FREQUENTLY ASK QUESTIONS
What are the advantages of trading?
There are several. First of all, trade produces new business . . . and allows you to expand your market beyond your cash-paying customers. Secondly, trade conserves cash. Instead of spending your cash to purchase needed goods and services, you can trade your own goods and services for the things you need, keeping more cash in your business for other purposes. Finally, trade puts idle resources to work. Excess time, excess inventory, and excess capacity are converted into needed goods and services.
How does trade work within GETS Trading?
Members of GETS Trading use a unit of accounting called Trade Credits, instead of cash (pound sterling), to handle their transactions. If a member sells one thousand pounds worth of products to another member, they will receive one thousand Trade Credits which can be used to purchase anything from our other trading members on the GETS Trading marketplace such as cruises, hotel rooms in most major cities, restaurant meals, advertising, printing, as well as thousands of other products and services can be obtained with Trade Credits. We are simply a third-party record keeper, sending monthly statements to all members showing their purchases, sales, and current Trade Credit balance.
What major companies are involved in Exchange?
Internationally over 600,000 businesses have been involved with Trade Exchange systems. Major corporations include Xerox, Mattel, IBM, National Semiconductor, Chrysler, Hilton Hotels, Shell Oil, Goodyear Tire, General Electric, Fairchild Camera, Spaulding, Douglass Aircraft and countless others. It is estimated that 75% of the Fortune 500 companies engage in with Exchanges to one degree or another.
What is unique about GETS Trading?
GETS Trading was established in 1995 making us the UK oldest and most stable trade exchange system. GETS Trading has also earned for itself a reputation for hard work, honesty, and reliability. It is always open to ideas and suggestions from members, and endeavours to establish policies which protect the members' interests and help to insure a stable, trade-credit economy.
What creates a stable trade-credit economy?
Many Trade Exchange organisations, though well-intentioned, have large Trade Credit deficits in their systems. These deficits are a result of indiscriminate Trade Credit spending by owners, losses created from members going out of business, or poor Trade Credit loans. Our organisation, on the other hand, has a balanced Trade Credit economy. For every positive pound of Trade Credit in circulation there is a corresponding negative pound of Trade Credit which has been sufficiently collateralized under GETS Trading guidelines.
Who are the people behind GETS Trading?
GETS Trading was launched by Richard Logie. who has over 25 years experience in sales marketing and management. His partner is Linda Sim who brings to the business strong business administration, sales and management skills. Together they have built GETS Trading since its inception in 1995.
I already trade (barter) on my own without cash. Why join GETS Trading?
Great but you also understand the problems with one-to-one trading is the incidence of coincidence that is, each business must want what the other has to offer. In GETS Trading however, everyone can trade with anyone even if he does not want what the other person has. Trade Credits can be spent just like cash - on items everyone needs and wants.
What if I cannot spend my Trade Credit on things I need?
When GETS Trading Marketplace does not have something a member needs, it is our job to work with a member to source it for them whenever possible. As new businesses are solicited to join GETS Trading, we only approach those who can fill the needs of our current members. To get the most benefit from GETS Trading, each business should give us as large a list as possible from the online Purchase Request Profile System of its current and future needs. Trading can never fill every need, but a large enough list will usually allow everyone to spend their Trade Credits productively.
Do you have any special tips on how to spend Trade Credits?
When a member makes his long list of needs on the Purchase Request Profile System, they should think of everything on which they spend their cash. They should not limit themself to worrying about one or two single purchases. They need to look at their business purchases for the last twelve months as a memory aid and think too of his personal needs. If the owner regularly takes drawings such as salary or dividends* out of the business for personal living, travel, home improvements, etc., why shouldn't the owner take out Trade Credit income instead and save the cash for products and services the GETS Trading Marketplace cannot so easily acquire? (*normal HMRC taxes apply)
What if I earn more Trade Credit than I can spend?
Members should only trade in proportion to their ability to spend the Trade Credit they earn. If someone sells products or services that are in high demand, it may be necessary for them to limit their trade activity. The best way to do so is to have GETS Trading manage the flow of trade business that comes in. When the member has reached his limit GETS Trading will put the account on standby and stop referring new customers until they are ready to resume trading.
What if I do not get any business through GETS Trading?
This problem should only be temporary if the products or services are marketable. The amount of business a member receives, however, will depend upon the particular type of business along with normal supply and demand factors. If a member is not getting as much business as he wants, GETS Trading may also be able to help. We are concerned about balancing supply and demand as carefully as possible. We will also help everyone promote their products or services to other members.
Is it true that paying for something with Trade Credits can take more time than paying for it with cash?
Yes. Printing, for example, that might be done in five days for cash, might take ten to fifteen days for trade. Service businesses must give priority to their cash business. Trading represents that extra business used to fill the sporadic lulls in business activity. This situation is not really a disadvantage to the trader if he does not expect to use GETS Trading for emergencies. Careful advance planning, along with patience, is required to make trading a pleasant and profitable experience.
I am looking for a large computer. If I save my Trade Credit, can I get it through GETS Trading?
Saving Trade Credit in order to purchase a very specific high-demand item can only frustrate and discourage a member. To get the most benefit from GETS Trading, each member should provide our staff with as large and as diverse a list of their purchase needs as possible this can be done through our "Purchase Request Profile System". Everyone should spend their Trade Credit as they go along, there is no benefit in saving them for something that may or may not become available when they need it.
How can I find out about any unusual uses for Trade Credits I might not think of?
Many members 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, need not pay our fee. This can be paid by the member when credit is transferred to any employee's sub-account.
It is also possible to pay some bills with Trade Credit. We can help a member's creditors spend their Trade Credit on the goods and services they need just as we would help his employees. Paying bills with Trade Credit is just one more creative way to use Trade Credit.
What if I leave GETS Trading? What happens to my Trade Credit?
According to our trade rules, any member who quits GETS Trading must be given three (3) months to spend his Trade Credit balance.
Are there any tax advantages to trading?
Trade income is the same as cash income for tax purposes. There are no inherent tax advantages or disadvantages. Trading should be considered a marketing tool, not a tax tool. As with cash income, however, trade purchases that are business-related are also tax deductible.
Who decides what prices the seller will charge in Trade Credits?
Essentially the market determines pricing just as it would for cash. Where the seller has sufficient margin, he is expected to trade his goods and services for Exchange at the same price as he would sell them for cash. Where margins are tight, a seller is allowed to adjust his price to manufacturer's list price. Such a situation regularly occurs with electronic items such as television sets and copiers. In some cases regular prices are retained but cash is mixed in to increase a dealer's narrow margin. GETS Trading frequently publishes guidelines on this issue. By accepting or rejecting prices, GETS Trading's members act as the ultimate authority in pricing integrity.
What prices should I expect to pay?
You should expect to pay the normal price for a good or service through GETS Trading, but never more than the retail/list price. This is where certain goods and services will not be offered through the Exchange, for example marked down goods, or discounted in a sale which would mean that the Seller is only covering the initial cost of goods and no profit is made or items which have very low margins.
The important factor to remember is the cost of your Trade Credits, how much your Trade Credits will cost you to obtain.
Can I exclude anything in my inventory from trade?
Yes. You should only trade what you want to trade. The idea of trade is to move excess inventory or that inventory which gives you an advantageous profit margin unless you account balance is in the negative then you will be obligated to sell all your goods and services .
Can I use my Trade Credit to negotiate purchases with businesses that are not members of GETS Trading?
Absolutely, however take care not to promise anything without first checking on its availability with GETS Trading. A member purchasing a £10,000 car from a non-member, for example, might ask the non-member dealer if he would accept goods and services for the down payment. If the dealer accepts, and if GETS Trading has what the dealer wants, the trade can be made. Members are always encouraged to negotiate at least a small trade component for purchases with non-member businesses. We are always willing to assist you in putting any special trade together.
Can my Trade Credit be spent with any other trade organisation?
Absolutely, you may spend your Trade Credits with any trading member of any organisation that belongs to our international trade network. Thus, you gain access to the products and services of literally thousands of businesses across the globe. Arrangements, however, must be made in advance through our office.
How do I get started?
When you are ready to join GETS Trading simply register you detais here, if approved we will contact you to setup your account and discuss with you what you want to trade as well as how you will spend your Trade Credits. Our team will help to arrange and walk you through your first sale and continue to suggest ways for you to spend your Trade Credits.