Terms commonly used in Barter Trading.
What is Barter – Barter is the process when trading of goods, products or services in exchange for other goods, products or services which either no money or a percentage of the actual cost is exchanged.
Barter Contract – Barter trade is a contract between two parties even though practiced informally. Organized barter networks or exchange permits third barter bartering. It helps to eliminates the concern over unequal one-on-one trading.
Gift Certificates – Gift Certificates will not only provide a perfect gift for company’s function/event but also great perk for staff benefits. A member will be able to access a full range of gift certificates on offer throughout the year, however, participating members vary from time to time and always check on gift certificates availability.
New Members/Customers - Offering your products / services can be the most costly activities to grow your business which can immediately be marketed to other businesses network on great potentials for new cash customers.
Membership Directory – A registered member, will be able to view into our membership directory and look up for products and services and companies in business category to trade.
Broker – an individual who puts together companies or individuals which allows them to trade with each other.
Benefits – something other than price a client acquires when making a transaction.
back-to-back trade – also known as one-to-one trade. Trading goods or services between two individuals with no middlemen or brokers involved.
buying plans – also known as plan trade. The client’s written guidelines for rating point goals, budget, demographics.
barter auction – also known as trade auction. Barter marketplace organized auction like where bids are made ‘in kind’ rather than cash.
cash blend – the cash required to satisfy an invoice, usually designated by a percentage. (eg: 50% Cash and 50% Barter Trade Credits)
cash conversion – a method of converting trade credits, products or services, into cash.
cash out – transferring equities to more liquid assets which can, if necessary, be converted to cash.
cash recovery – a transaction whereby a member receives cash, as well as trade credits, in exchange for the mechandise.
countertrade – a set of parallel sales agreements in which a supplier sells products and receives unrelated products in exchange.
due bill - A brief written acknowledgement of a debt, usually due upon demand. A promissory note. Often used to describe certificates issued by hotels or resorts.
exchange – a trade, barter or swap as a shortened term for ‘trade exchange’
FMV - fair market value. The price at which a property could be sold if a willing buyer and seller aware of all relevant facts.
FOB - designates where the buyer of the merchandise becomes responsible for the delivery costs; in many cases it also indicates the location of the actual transfer of title.
good/services – clients may use their trade credits to satisfy all/part of their costs on various products and services that are offered other than media.
gross media – the client’s cost of advertising, before adjustment of trade credits and agency commission.
GRP - gross rating points. Refers to the total rating delivery purchased within a specific media schedule.
horse trader – a person who always trades up, often by acquiring goods at a very low price and improving the appearance with cosmetic changes. Because of cosmetic changes, the values are set above the actual worth of the items traded.
hot button – a motivator, an item that is desired.
impression : a total number of people who view a commercial message on TV, billboards, magazines.
invoice matching report – a report matching the media spots run with the spots purchased.
invoiced cost – invoice amount for media, goods and services before adjustment for trade credit application.
IRTA - International Reciprocal Trade Association – an association consisting of national and international trade exchanges, corporate barter companies and others assocaited with barter and trading.
leg – a transaction (usually part of a multiple or multi-legged transaction).
leverage – having a low cost (a high margin) in some asset of someone else’s money that you use to create your wealth.
list - an inventory of everything a trader has to trade, something he keeps in his back pocket. Lists change as soon as transactions are made.
margin trader - one who takes items in trade at one value normally does not exceed 5% to 10% then retrades them at a slightly higher value.
media broker - a specialist in exchanging printed and electronic media servies for a fee.
merchandising - the act of buying and selling goods or commodities.
NATE : National Association of Trade Exchanges
one-on-one trade – its back-to-back trade or trading goods or services between 2 individuals with no brokers/middlemen involved.
opportunist - a person who takes advantage of any opportunity.
option - having the right to purchase it for a specified price by a specified date. Options can be traded.
over-trade - offering larger equity and asking for cash to balance smaller equity.
perishable - anything that becomes useless, therefore written off. Trading is very much needed normally from the holders of perishable goods.
professional trader - trading of smaller value for an item of bigger value usually the person who makes the major portion of his living.
ratio trade - Its the mechanism in a form of discounting by which soft cuurrencies can be converted to hard or giving multiples in the value of a particular item to get the trade done.
reciprocal trade broker - one who have the skills in exchanging goods and services for a fee
refurbish - to fix or restore or to make new.
spend down - to lower down on one’s trade account balance or using up one’s trade dollars.
spend out - to use up trade dollars without giving any surplus barter business when a member wishes to terminate.
subject to - a conditional trade requiring certain actions or items
sweetener - something included to a package to make it more desirable.
taker - Good trader will always be a taker for anything if the deal is acceptable.
trade dollar - a unit of exchange which represents value issued by a trade exchange eg – trade unites, trade credits, trade points. It is at par to a dollar in Singapore currency.
trade up - increase equity position through a series of favorable trades.
wants - same as needs. – what people is looking for
wholesale buying power - A member of a trade exchange ability to buy products and services with the exchange at their wholesale cost which provides them with wholesale buying power.
