- ARE BARTER EXCHANGES LEGAL?
Yes. There is nothing illegal about a trade exchange and any legitimate
trader will not allow any illegal activities to be conducted by its clients.
- HOW DO YOU CHOOSE THE RIGHT FIRM TO DO BUSINESS WITH XCHANGE TO
JOIN?
Barter is a billion dollar business. Many individuals have little or
no experience in barter or even business economics. Choosing the right
Barter Company should be done with the same care as you use in choosing
a bank, stock broker, accountant, financial consultant or any other professional
organization that you would trust to work with you for your financial betterment.
- WILL PALMS & COMPANYSOLVE ALL MY FINANCIAL PROBLEMS?
No! And no honest businessman would ever make such a claim. While barter
has many positive things to offer you it is not an end unto itself, merely
a very valuable tool available for you to use towards solving financial
problems.
- WILL PALMS & COMPANY HELP ME TO SAVE MONEY?
We probably will
- WILL PALMS & COMPANY GET ME STARTED?
Yes. Palms & Company has people on its staff, whose job it is to
assist new clients to get the maximum benefits possible from barter trading.
- WHAT IS A BARTER TRADER?
A barter trader is a company that functions as a "Third Party
Record Keeper" for a group of people and or businesses that "Trade"
or "Barter" their goods or services for other goods or services
instead of paying cash. These people have become members of a "closed
circle", that is, they conduct these transactions only with other
clients of Palms
- WHY DO PEOPLE DO BUSINESS WITH PALMS
People have many reasons. A few of the most common are:
- The desire to increase sales.
- The need to conserve cash during difficult economic periods.
The ability to convert excess time to goods or services they might otherwise
find difficult to afford.
WHY DON'T PEOPLE JUST DO THEIR OWN BARTERING?
While some people do, most quickly discover that without professional assistance
there can be many problems such as:
Attempting to trade your product with someone that has a product you desire,
but that person doesn't want what you have to offer.
Trading with a dishonest person who takes your product but never delivers
his to you.
Had you been represented by Palms & Company, neither of these situations
would have occurred. Because a trade exchange involves a system of debits
and credits. You would have been directed to another client of Palms, who
would have received credits that were spendable for whatever he wanted,
not just your product. Your account would have been debited the amount
of your purchase; that debit to be paid in your merchandise to those clients
that had a desire for it. Since Trade Dollar Credits can be spent for any
items available through Palms it eliminates the need for the old one-on-one
type of trading. The second example could never have happened. All transactions
require an authorization from Palms.The other merchant could not have received
credit to his account until he had actually delivered your merchandise
to you.
- WHAT TAX PROBLEMS WILL I ENCOUNTER?
There are NO tax problems! Your barter transactions are different than
if you had paid cash. Your accountant can be your best guide since each
individual has different methods of reporting taxes. There are other advantages
as well. Advertising is a good example of an item that can be traded for
an expense.
- IF I TRADE MY PRODUCT I WON'T HAVE CASH TO REPLACE MY STOCK, WHERE
WILL THE CASH COME FROM?
Keep in mind, one purpose of bartering is to replace cash outlay, i.e.:
the cash normally spent for those items acquire through barter is used
to replace traded stock. A $1,000 sale which cost you (100% mark up) $500
in barter leaves your $1000 in cash free to buy inventory replacement items.
Your merchandise is almost pre-sold because members will go out of their
way to buy from you as a fellow member.
- WILL I BE CLEANED OUT OF STOCK BECAUSE EVERYONE IS GOING TO COME
IN AND TRADE FOR MY PRODUCT?
You are never obligated to sell beyond your reserve obligation or credit
line, (whichever is greater). In every instance where a sale is made and
either of the two are exceeded, you will be made aware of your balance
at the time of that call. If you then choose, you may inform us at that
time of your intention to halt sales until further notice. You will also
confirm this by written notice to that effect. We will effectively follow
up with the complete membership and direct their purchases to another supplier.
Remember, we must have your written notice to insure the halt of all sales
and place your establishment on stand by.
- IF I CAN BUY CHEAPER BY PAYING CASH THROUGH BUSINESS CONNECTIONS,
WHAT IS MY ADVANTAGE IN TRADING?
Your cash is worth 20% just to hold on to it. Realize too, some of
the merchandise sold to members could have been very inactive in your inventory.
In addition, you may well find yourself in a position sometime where the
trading of merchandise is easier than spending dollars.
- WILL PALMS CLIENTS CHARGE HIGHER PRICES SINCE I AM BARTERING?
If a member is trading or buying for cash, he will always look for
the best deal. We have several clientsin most categories. Just like buying
anything, shop for the best buy. We also caution all members against overcharging.
We do not want this type of member in our exchange. Most businesses have
their product prices and it is very easy for any business person to check
to see if a product is being traded at a fair profit.
- I DON'T FULLY UNDERSTAND TRADING. WHO WILL EXPLAIN ANY QUESTIONS
I MAY HAVE?
Yes we will always be available to answer any questions you may have
and will gladly guide you with your purchases. We will, in many cases,
package a purchasing plan such as advertising programs to give your trade
dollars as much mileage as possible. Call or stop in at any time, you will
be more than welcome.
- HOW MANY CLIENTS DO YOU HAVE?
Vast numbers of members do not make a successful barter business. The
variety of products is more important as well as type.
- I KNOW OTHER BUSINESSES THAT HAVE REPORTED PROBLEMS WITH BARTER,
HOW IS YOURS DIFFERENT?
We try to be selective by bringing into the group those inventories
which will balance the demands of our clients. We are able to eventually
negotiate a trade deal of almost any size.
- WHAT HAPPENS IF I DON'T NEED ANYTHING?
It is a very rare person who can say: I don't need anything. Everyone
spends money on something. Getting used to using credit in place of money
is the only thing you must get used to. Every time you decide to buy something,
don't spend money...Trade It.
- MIGHT OTHERS TREAT MY BUSINESS AS SECOND CLASS BECAUSE I'M BARTERING?
Absolutely not! It is a smart businessman that spend wisely, and guards
his cash flow. We have banded together to realize benefits which make life
a little easier. We ask all of our clinets to be considerate with each
other.
- MY MARK UP IS NOT AS HIGH AS THE MARKUP ON THE ITEMS I AM TRADING
FOR.
Every traded item is not marked up to the same margin of profit Conditions
vary each time a purchase is made, and usually average out for everyone
in the long run.
- SUPPOSE I WANT TO TAKE A VACATION, BUT MY CREDIT LINE DOES NOT ALLOW
THAT MUCH CREDIT?
The opportunity to negotiate a temporary credit increase for a large
expenditure is available to you. Just call the office and register your
need... we will do the rest.
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