Retail Trading

FAQ

The following are terms commonly used in the BXI system.

Area Director - The owner/manager of a local trade office.

Area Directory - A publication of local BXI members.

Area Office - The local office which maintains your membership account.

Authorization Number - A computer generated code that guarantees
that BXI credits are available and reserved for a specific transaction.

Barter Credits - Sometimes referred to as trade credits. Barter credits
are usually equal to a U.S. Dollar.

BXI Corporate Office - The base of BXI operations and accounting.

BXI Hotline - A monthly publication for BXI members nationwide.

Scrip - A certificate of value such as a gift certificate or redemption
coupon. Most commonly used in the restaurant and hotel industries.

Service Fees - A cash fee charged to BXI members on a monthly basis
as a percentage of overall purchases.

Trade Broker - An employee who works in an Area office and is
responsible for promoting trade.

Retail Trading

One of the terrific advantages of bartering is that traders expect to pay the full retail
price of the product or service they are buying. Barter is a supplemental currently,
in which cash is always king, however, through the use of barter, business deals
can still be consummated.

Because barter currently (trade credits) can not purchase all items in the
marketplace, traders expect to pay the full retail value when negotiating a barter
purchase. This is due to several factors. Most businesses have a direct cost factor
in their product. If a wholesale or discounted price was to be negotiated, the margin
of profit would be minimal in comparison to the amount invested in the product to
date. When a company needs to liquidate items for emergency needs, the only
justification of lowering prices to the bone would be the infusion of cash. Barter
does not result in immediate cash, so it would not be practical to expect a
business to liquidate for trade credits. Therefore, the barter industry has been
set-up to deal on a retail price level, which means that if a company has surplus
goods or discontinued merchandise, there would be no need to market down this
merchandise. Rather, this would prove to be a high profit maker.

By trading on a retail level, traders are able to realize much higher profit margins
through the user of barter than through any other program. This represents high
buying power when a company is looking to spend their barter credits on items that
would then reduce the amount of cash expenditures.

Another vehicle for creating profits, is the sue of Script (gift certificates). When a
company is well established, the ability to write a large amount of script and then
sell it into the marketplace gives a business the opportunity to create profits
immediately and offset larger expenses at the same time. For additional
information on script, consult your local BXI Area Director.

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