GULF COAST TRADE EXCHANGE
The procedure of operation is very simple. The members sell
their products and services through the Exchange to earn trade
dollars credited to their account; after “banking” their dollars,
they can now spend their “credit” to buy from other exchange members.
This system is very similar to using a checking account at the bank;
however, GCTE also provides new business, new customers, new sales,
and greater profits for its members.
If You Can Imagine It, You Can Trade For It!
FREQUENTLY ASKED QUESTIONS
First, trade produces new business. . . and allows you to expand your market beyond your cash paying customers. Secondly, trade conserves cash. Instead of spending cash to purchase goods and services, you can trade for them. Finally, trade stimulates idle resources. (Excess Time, inventory, and capacity can be converted.)
Clients of a trade association use trade credit, instead of cash, to handle their transactions. If a client trades one thousand dollars worth of products to another client, he will receive that amount in trade credit which can be used for purchases from other trade members, hotel rooms in most major cities, restaurant meals, office supplies, as well as thousands of other products and services obtained with trade credit. We are simply a third party record keeper, that sends statements to all clients showing their purchases and sales as well as the the current trade balances monthly.
Nationally, over 100,000 businesses are involved. Major corporations include Xerox, Wilson Sporting Goods, Mattel, IBM, Pan AM, National Semiconductor, Chrysler, Hilton Hotels, Shell Oil, and countless others. Approximately seventy-five percent of the Fortune 500 companies engage in barter.
The problem with one-on-one trading is that each business must want what the other has to offers. In our Association, however, each can deal with others because of the round-robin benefit of trading with over four hundred merchants. Trade credit, thus, can be spent just like money.
When the Association does not have an item a client needs, our job is to find it for him whenever possible. As new businesses are solicited to join the Association, only those who can fill the needs of our current clients are approached. To receive the most benefit from our Association, please give us a list as large as possible of your current and future needs. Trading can never fill every need, but a list will usually focus on targeted areas to assist in spending allow you to spend your trade credit wisely and budgeting efficiently.
Clients should trade only in proportion to their ability to spend the trade credit earned. If someone sells products or services that are high in demand, he may need to limit his trade activity. The best way is to have the Association manage the flow of trade business. When you reach your limit, GCTE will stop referring new customers until you are ready to resume trading.
This problem should only be temporary if your products or services are marketable. The amount of business, however, will depend on your particular type along with normal supply and demand factors. If you are not receiving as much business as you desire, the Association may also be able to help you by promoting your products and services.
Yes. Many clients use trade credit to pay employee bonuses. Some even pay employees a portion of their regular salaries in trade credit. At your request, we will set up employee sub-accounts and will assist your employees in spending their trade credit as advantageously as possible. The employees, of course, will not pay the ten percent broker fee; it must be paid by the member when credit is transferred to an employee’s sub- account.
Saving trade credit to purchase a very specific high demand item can only frustrate and discourage a client. To receive the most benefit from the Association, each client should provide our staff with a diverse list of his needs. Everyone usually spends his trade credit as he earns it, rather than saving for an item that may or may not become available.
Of course. We will help your creditors spend their credit on the goods and services they need just as we would help your employees. Paying bills with trade is just one more creative way to use your credit!
Trade credit lines can be set up for clients just as banks give credit lines to qualified customers. All trade credit loans are backed by acceptable collateral under guidelines established by the National Association of Trade Exchanges.
According to our trade rules, any client who quits the Association must pay cash fees in advance and should spend the remaining credit in a reasonable time.
Trade income is the same as cash income for tax purposes. There are no inherent tax advantages nor disadvantages. Trading should be considered a marketing tool, not a tax tool. Trade purchases that are business-related, however, are tax deductible just like cash transactions.
At the end of the year, the Association will total your trade sales and will submit this information to the IRS (mandated since 1982) on Form 1099B. The Association will also give you a copy of this form for your records.
All clients are provided with a three-part GCTE sales receipt. The seller calls the GCTE office for an authorization number and enters it in the provided space on the GCTE form. The purchasers receive the pink copy, the seller retains the yellow copy, and the white copy is mailed to GCTE. A detailed statement recapping all purchases and sales will be mailed monthly.
Launched in 1977, GCTE spans from Gulf Shores, Alabama to Destin, Florida. Currently over 400 members enjoy the benefits of increasing sales and purchasing power — not only locally — but also nationally with other professionals across the USA.
GCTE is affiliated with Pensacola Chamber of Commerce, Perdido Chamber of Commerce, Better Business Bureau, and NATE (National Association of Trade Exchanges) as well as the BANC (Barter Association National Currency). (Founders Bob and Fran Crumpton have both served as Board of Directors of NATE; Bob also was President in 1987-88; Fran was Vice-President in 2000-01.)