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Electronic Barter System

COMP-CO845 - Group 5 - Seminar

Taylor Warden

on 4 October 2012

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Transcript of Electronic Barter System

Group 5 Electronic Barter System Glenn's Part Electronic Barter System Taylor's Part Tradebank Cameron and Lukas' part Canadian Barter System Sandeep's part Example Transaction History of Tradebank Tradebank International was founded in 1987 in the United States. In 1996, Tradebank expanded to the international stage. They began operations of Tradebank Canada, which now operates 28 offices - currently the largest trade network in Canada Today, Tradebank is positioned itself as the leading global trade network with further international and domestic expansion planned. They also hold offices in the Czech Republic and Slovak Republic in Europe Taxation The Canadian Revenue Agency (CRA) has designated the barter exchange network under the Excise Tax Act (ETA) pursuant to subsection 181.3(3) of the ETA The effect of this designation is to relieve members of the designated barter exchange network from having to pay tax on barter units accepted in exchange for their supplies of property or services. The members would continue to have to charge tax on their taxable supplies of property or services provided for the barter units The tax on such property or services is calculated on the exchange value of the barter units accepted as consideration. Obtaining Membership To begin the process you open an account to be listed in a member directory Your business pays: a one-time fee ($495) for setup a quarterly fee ($19.90, $9.95 paid via trade) for services a nominal brokerage fee (12.95%) billed on purchases Trade Dollars TradeBank reimburses you with 300T$ once you register and attend a TradeU TRADEdollars (T$) are accepted to be valued at a 1:1 ratio to the nation's fiat currency The TradeU is the Trade University which is a one to two hour seminar on how the
“trade world” functions and how to get the most out of the bartering experience. Tradebank is willing to pay this bonus because they feel that members who have a better understanding of how Tradebank works will ultimately become more active traders. How Transactions are Handled If a transaction is valued below 5000 TRADEdollars it must be a full trade. However if a transaction is valued above the 5000T$ threshold, then a blended cash/trade transaction can be discussed. The TradeBank of Canada has over 3000 businesses currently listed. The categories of businesses include: advertising, changing homes, construction/maintenance, for the home, for the kids, for your car, general business, office, personal needs, retail, and hobbies/things to do. A business is not required to offer all of their products or services on trade. There are instances where a company many only offer certain products and services on trade. If a company has a loss leader (a featured article of merchandise sold at a loss in order to draw customers) they would not be required to offer it on trade. 1. If a company has a sale they can choose whether or not to offer the products on sale for trade.
2. If there is a particular product or service that has an extremely high cost of goods sold it may be excluded.
3. If you have the type of business where a customer can’t obtain benefit from one of your services without obtaining another one of your services the total service should either be offered on trade or none of the service should be. Business Cui Bono? As a client of the Tradebank, you have access to 45 regional exchange offices across the US, Canada, and Europe. Your account will personally be managed by a Trade Broker, who is part of a dynamic brokerage team working together to promote your business. Think of your broker as another resource to manage your business; however where most resources are going to cost you money, your broker is making you money. While working closely with you in every aspect of your trade business, your broker will: promote your brand and bring your new sales assist in sourcing products and services facilitate larger trade transactions Employees Cui Bono? Affiliate account: if you will be giving a particular employee or group of employees on-going trade benefits then opening and affiliate account is beneficial for your business and employee(s).

Health Benefit Account: An affiliate account in the corporation’s name where you have an agreement with your employees (or a subset of only key employees) to pay for any health services they need - as they are available on trade. For example glasses, fitness, massage, dental, chiropractic, etc. It should be clear that this account is not an insurance program.

Gift Certificates: local regional offices often have gift certificates available for sale and if you are offering a small one-time bonus it often makes more sense to do the gift certificates rather than providing the aforementioned account

Group activities and events are a great idea to schedule through Tradebank such as restaurants or other customer service oriented businesses because happy staff means a better experience for customers.

Direct Purchase: you can arrange to do a direct purchase from your account for a product or service for your employee(s). This is utilized when there will be one big transaction and not on-going utilization of trade by the employee(s). When a company can:

Increase sales by obtaining new customers
Reduce cash outlay by purchasing goods and services with Tradebank Dollars
Enjoy discounts on trade purchases·

It can convert excess inventory or unused capacity into tangible assets Operations Flowchart CBS Pricing TradeBank 300 down 5% of each transaction 495 down 13% of each transaction 20 quarterly CBS Getting Started TradeBank Line of credit 300 from seminar Mixed transactions Client Base CBS TradeBank In the hundreds Windsor Thousands All over Canada What is the Barter System
The barter system is the exchange of goods or services, for goods or services independently operated
, their collective client base forms a
"business-to-business" network
comprised of an estimated 450,000 companies
(retailers, services, and manufacturers). http://www.barternews.com/ With the use of the world wide web, companies can
trade goods and services with ease, there are many web sites connecting companies world wide
http://barternews.com/mappage/worldwide.htm The US sanctions against Iran, which make it extremely difficult to conduct dollar-denominated business Using the barter system, China and Iran ( according to a July 2011 article, FT.com) are brokering and deal to exchange Iranian oil for Chinese good, thus avoiding sanctions. 65% of Fortune 500 companies participate in electronic barter. Example WebSite: www.barterquest.com
Condition: Used
Fuel Type: Gasoline
Model: magnaV65
Option: Leather Seats
Estimated Value: 4,200 points(one point=$1) Limitations of Barter 1. Indivisibility of certain goods
2.lack of system for storage of goods
3.Absence of common measure of values Any Questions? Thanks for your time! What they want: truck-suv Website link www.swapmamas.com
Full transcript