FAQ

Frequently Asked Questions
Listed below are the most frequently asked questions regarding our trade
exchange company.

Contact us by phone or email Tradesource for additional information. We look forward to hearing from you and answering your questions about trade.

Frequently Asked Questions

What are the advantages of trade?

There are several benefits of trade. 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 products or trade 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 the trade exchange work?

Members of our trade exchange use trade credits, instead of cash, to handle their transactions. If a member trades one thousand dollars’ worth of products with another member, they will receive one thousand dollars in trade credit which can be used to purchase anything from our other trade members. 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 credit. Tradesource is 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 trade?

Nationally over 300,000 businesses have been involved in barter or trade. 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 Fortune 500 companies engage in barter or trade to one degree or another. Local companies trading with the Illinois Trade Association include Rogers & Holland’s Jewelers, The Gold Coast Hotel Group, Scott Lift Truck, National Louis University, Oslo Technologies, Ala Carte Entertainment, and many others. Click here to view the member categories in the trade network.

What is unique about Tradesource?

Tradesource was established in 1987 making us Phoenix’s oldest and most stable trade exchange company and one of the largest independents in the country. Tradesource has also earned for itself a reputation for hard work, honesty, and reliability. It is always open to criticism and suggestions from members, and has established policies which protect the member’s’ interests which insures a stable, trade-credit economy.

What creates a stable trade-credit economy?

Many trade and barter organizations, though well-intentioned, have large trade credit deficits in their trading 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 organization, on the other hand, has a balanced trade credit economy. For every positive dollar of trade credit in circulation there is a corresponding negative dollar of trade credit which has been sufficiently collateralized under guidelines established by the National Association of Trade Exchanges (NATE).

Who are the people behind Tradesource?

Tradesource, Inc., was founded by Sylvia Rosinski and her daughter Mary Ellen Rosinski. Sylvia has over 25 years’ experience in sales marketing and management and Mary Ellen, a Certified Public Accountant, brings to the business strong business administration, sales and management skills. Their combined skills have built Tradesource into the leading trade exchange company in Phoenix, Arizona.

I already trade on my own. Why join Tradesource?

The problem with one-to-one trading is that both businesses involved in the transaction must want what the other has to offer. As part of a trade exchange, a business does not have this limitation and can trade products and trade services with any other business.

What if I cannot spend my trade credit on things I need?

When Tradesource does not have something a member needs, it is our job to find it for them, whenever possible. As new businesses are solicited to join Tradesource, we only approach those who can fill the needs of our current members. To get the most benefit from our exchange, each business should give us as large a list as possible 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 credit productively.

Do you have any special tips on how to spend trade credit?

When a member makes their long list of trade products and trade services needed, they should think of every current cash expenditure. They should not limit themselves to worrying about one or two single purchases. They need to look at the business checkbook for the last six months as a memory aid and think, too, about their personal needs. If they regularly takes cash out of the business for personal living, travel, home improvements, etc., they should use their trade income instead and save the cash for products and services that the trade network cannot so easily acquire.

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 work with a trade broker who can help you manage the flow of trade business that comes in. When the member has reached his limit, Tradesource will stop referring new customers until they are ready to resume trading.

What if I do not get any business through Tradesource?

This problem should only be temporary if the products or services are marketable. The amount of business a member receives, however, will depend upon their particular type of business along with normal supply and demand factors. If a member is not getting as much business as they want, Tradesource 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 getting something for trade can take more time than getting it for cash?

Sometimes. 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 member if they do not expect to use Tradesource 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 Tradesource?

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 Tradesource, each member should provide our staff with as large and as diverse a list of their needs as possible. Everyone should spend their trade credit as they go, never saving it for something that may or may not become available when they need it.

How can I find out about any advanced uses for trade or trade credits?

There are a variety of ways that you can leverage trade.  For example, 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 the broker 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 pay off creditors with their trade credit just as we would help a member’s employees. Paying bills with trade credit is just one more creative way to use trade credit.

What if I cancel my membership with Tradesource? What happens to my trade credit balance?

According to our trade rules, any member who cancel their membership with Tradesource must be given six months to spend down their trade credit balance. Extensions can be granted to members with large balances.

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.

How do I know how much trade income to include on my return?

At the end of the year, Tradesource totals trade sales and submits this information to the IRS on Form 1099B. Tradesource also furnishes each member with a copy of this form for their records.

Who decides what prices a seller can charge on trade?

Essentially the market determines pricing just as it would for cash. Where the seller has sufficient margin, they are expected to trade their goods and services at the same price as they sell them for cash.  By accepting or rejecting prices, Tradesource’s members act as the ultimate authority in pricing integrity.

What do I do when trade prices are substantially higher than cash prices?

Actually they are not always higher. But, in those instances where they are, each member must consider how much they have actually invested in the trade credit held in their account.

If a product’s cost of goods sold is fifty cents on the dollar, $10,000 worth of trade credit actually costs only $5,000.  (This difference of $5,000 represents a member’s wholesale buying power). If the member is in a service-related business, the trade credit may only cost them their idle time.

It will often be less expensive to pay full retail price with trade credit than to get the same article at a discount for cash. Seasoned traders are always aware of this difference and use it to their advantage. On the other hand, if someone overprices their products or services beyond a reasonable limit, no one should do business with them but should call our office for another referral.

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.

Can I use my trade credit to negotiate purchases with businesses that are not members of Tradesource?

Absolutely. However take care not to promise anything without first checking on its availability with Tradesource. A member purchasing a $10,000 car from a non-member dealer, for example, might ask the dealer if they would accept goods and services for the down payment. If the dealer accepts, and if Tradesource 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 organization?

Absolutely. You may spend your trade credit with any trading member of any organization that belongs to our national trade networks credit clearing systems. Thus, you gain access to the products and services of literally thousands of businesses across the country. Arrangements, however, must be made in advance through our office.

How do I get started?

When you are ready to join our trade exchange, you can either process your membership online or meet with a trade broker to discuss what you want to trade as well as how you will spend your trade credit. Your broker will help to arrange and walk you through your first sale and continue to suggest ways for you to spend your trade credits.

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Tradesource Inc., 2920 East Northern Ave. Ste 104, Phoenix, AZ 85028 (Map) | (602) 996-1557
Offices:  Arizona Corporate Office  Idaho
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