Barter is the exchange of goods and services without the exchange of cash. It is one of the oldest business practices in the world. The process of bartering goods or services relies on the seller finding a buyer who has something of equal value in return.
The International Reciprocal Trade Association (IRTA) notes that the volume of barter transactions is in the 12 to 14 billion-dollar range per annum. Most of this amount comes from traditional retail barter exchange companies and corporate barter.
The barter business provides manufacturers and distributors with an alternative to the traditional selling channels when companies have surplus products. When these companies do not accurately predict demand, they are forced to dispose of goods and or services at greatly reduced prices, yet they must do so without negatively affecting their regular selling channels.
FTI has over two decades of experience in both the surplus goods (liquidation goods) and barter businesses.
FTI steps forward to be a powerful force of growth and change in the evolution of both industries.
A Barter Exchange consists of a group of members who receive credits for their goods or service. The accumulated credits can then be used with any other member of the exchange. This eliminates the need to find a direct match of someone who has what you want and wants what you have.
A barter exchange serves as a third-party record keeper and coordinator of barter transactions between members of the exchange.
Barter exchanges provide monthly accounting for each member. Applicable taxes are payable on barter transactions. Barter “dollar” credits are recognized by the Canadian Revenue Agency as having equal value to cash (fiat currency).
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