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Genesis Economic Development, FAQ

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Trade Club VS Direct Trade

QWhat is the difference between a tradeing in a club and direct trade?

   AThere are several obvious downfalls of the one-on-one barter system vs belonging to a trade club

• Need – direct trade you have to ensuring that both parties want each others products or services. With a Club or exchange: The party you sell to does not have to supply what you need, but can instead pay you in credits which can be used to purchase what you need.

• Fair trade - direct trade you have to ensure that the items being swapped have the same value. With a Club or exchange: The value of your product or service is credited or debited per transaction at full retail value.

• Timing – direct trade you have to deal with Timing -if you wish to trade corn for fish you can only do this if corn is in season. With a Club or exchange: this ceases to be an issue when you can deposit your dollars as you sell and use your trade dollars at any time now or in the future.

• Record Keeping – direct trade If a party’s trade takes place now, but one parties product or service is not worth the same amount or not a present available, then one party will have to issue another party an “IOU” With a Club or exchange:- there is no need to ever issue an IOU in the barter system, as credits and debits are processed in real time and you elevate the need for a record keeper. The software does the work for you!

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Genesis Economic Development
12004 Red Oak Drive FAYETTEVILLE, AR 72704
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