Barter is a system of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is distinguishable from gift economies in that the reciprocal exchange is immediate and not delayed in time. It is usually bilateral, but may be multilateral (i.e., mediated through barter organizations) and usually exists parallel to monetary systems in most developed countries, though to a very limited extent. Barter usually replaces money as the method of exchange in times of monetary crisis, such as when the currency may be either unstable (e.g., hyperinflation or deflationary spiral) or simply unavailable for conducting commerce
What is BEX Barter Exchange? BEX is a service oriented trade exchange company in the Philippines that facilitates bartering of goods and services among local businesses to increase their sales, cash flow and profit with the use of Credit/Barter Money/Trade Money as a medium of exchange. BEX functions primarily as the organizer of a marketplace/platform wherein members buy and sell products and services among themselves.
Mechanism of Procedure (BEX)
• Imagine a system which allows you to buy items that you, your business, or your family needs without having to spend any cash. That’s exactly how a barter exchange works.
• Also called a trade exchange, a barter exchange is developed from the ancient system of bartering, where you trade one product for another. On a basic level, parties can choose to barter on a one-to-one basis, setting their own terms and agreements. More commonly, however, a trade exchange is set up through an authorized barter exchange company.
• Members sign up with this company and join a network of other members of businesses and individuals who offer their products or services. Through this company, members start to barter by indirectly selling their available products or services for trade dollars on account.
• They can turn around and use those trade dollars to barter indirectly, buying the products or services of other members. The fair market value is used for each item or service that is exchanged, so you’re sure to get the best value from your trade. Dollars are debited and credited, without ever having to exchange physical cash!
• Replace old office equipment, treat your staff to a luxurious meal, or take your family on an exciting vacation. When you choose to barter, your trade dollars go far.
• By using a barter exchange system, you become associated to a network of other thriving businesses so you can find almost anything on trade. Exchange any necessary items when you choose to barter without hassle, haggle, or any aggravation!
How does BEX Barter work?
BEX Barter members use Credit/Barter Money/Trade Money instead of cash to do business together. A member is given an account and it works similarly to a credit card. Members earn point Credit/Barter Money/Trade Money when they sell and use Credit/Barter Money/Trade Money to buy products and services they needed for their businesses. Members can use their Credit/Barter Money/Trade Money for payment in hotel rooms, resorts, restaurants, advertising, printing and many other goods and services in the network. BEX is a third party record keeper and acts as an administrating body of each transaction. Members receive a monthly statement reflecting their sales, purchases and current balance.
What is the value of the Credit/BarterMoney/TradeMoney?
1 Philippine Peso = 1 Credit/Barter Money/Trade Money
What are the advantages of joining BEX Barter Exchange?
Barter produces additional business that you never had before and allows you to expand your market. Secondly, when you barter, you conserve cash. Instead of spending cash to buy needed goods and services, you can barter your own goods and services. Therefore, you keep your cash in your business for other purposes. Finally, Barter allows your idle resources to work. Excess capacity, empty or excess time and excess inventory are converted into needed goods or services.
How can I promote my business in BEX Barter Exchange?
One of our trade broker’s jobs is to promote your business to other members. BEX can help promote your goods or services to other members via our WEB directory, weekly news fax, mailing lists and direct contact.
I can barter on my own; why should I join BEX Barter Exchange?
The problem with direct barter or one-to-one trading is each business must want or need what the other business has to offer in equal amounts, no flexibility to trade. With BEX Barter Exchange trading program, everyone can trade with any other member using their Credit with Barter.
Who decides what price the seller will charge?
Members are expected to trade their goods and services for barter at the normal selling or retail price. However, by accepting or rejecting prices, trading members act as the final authority in pricing.
Why Barter Today?
Let’s build on the above examples. Children often have a much simpler outlook on life due to their age and inexperience. Trading things they have but don’t really want for things they do want just makes simple sense. Likewise, as adults, if you hate mowing grass, but enjoy cleaning, the neighborly example just makes sense too. The outcome is still the same — it just gets done in a more enjoyable manner. The next time you’re faced with a chore you dislike, why not ask around your neighborhood? You’re sure to find somebody willing to trade with you.
The benefits for a business owner are just the same, but in a slow economy much more important. Almost every business has the constant burden of cash flow. You’ve heard the expression “Too much month at the end of the money”? Most business owners have double the bills to pay (a personal mortgage and rent for their company, two utility bills, etc.) and are totally responsible for the amount of money that comes in.Therefore, the flow of money is twice as important to them. Let’s break down the example above to see how it works.The florist has already bought and paid for the flowers. (They are in her inventory as a perishable item.) What does it really cost her to put together a PHP100 bunch of flowers? Her cost (cost of goods) is probably about PHP50. So, if she trades that PHP50 bunch of flowers for an oil change she would have paid PHP100 cash for, the benefits are as follows:
• She just saved herself PHP100 in cash.
• She turned over her inventory.
• She potentially made a new customer.
• She has potentially marketed herself to a new area.