With whom can I buy and sell?
You can buy from, and sell to, any of our 20,000+ member businesses across the US and Canada. Many services are conducive to out of area business so you don’t have to buy everything locally. In North Texas you can transact with over 200 member businesses.
Will ITEX dollars replace my current cash sales?
By and large, those that will be purchasing from you are not your current cash clients. And they may never have become cash clients. Therefore there is not a negative impact on cash sales. There is a marketplace policy that says that if someone is a current cash client, the seller does not have to change them to an ITEX paying customer. It is good practice to upgrade their purchase level in ITEX dollars. So if someone is buying advertising from you at $500 per month, it would be ok to maintain the $500 cash and upgrade them to a $1500 level by accepting the additional $1000 in ITEX Dollars.
How is value of goods and services determined by buyers and sellers?
The IRS states that an ITEX dollar is equal to a cash dollar for all reporting purposes. Therefore, the sale price of goods and services are priced just as they are in cash. Sellers can and should charge their normal prevailing retail price.
Do I have to discount and run specials to get sales like in the cash world?
No, pricing is based on prevailing retail price, just as cash. This makes for a level playing field. However, sometimes businesses run specials, coupon, or “sharpen the pencil” to get a cash job. This does not need to be done for ITEX dollars. Just charge your regular cash price.
How is my Cash Flow improved?
When using an ITEX dollar instead of cash, whether for a business expense or non-business expense, the cash that would have been spent is retained. This improves cash flow by making those saved cash dollars available for other purchases or payments or falls straight to the bottom line as increased profit.
How are transactions completed?
There are numerous ways for buyer and seller to consummate their transaction. They can use ITEX Checks, Phone IVR System, online at itex.com, or through our new mobile APP. With so many ways, it is tremendously easy to transact and we are here to help all along the way if necessary.
How is reporting, accounting, Sales Tax, and Income Tax handled?
The Internal Revenue Service recognizes one ITEX dollar as being equivalent to one US dollar and treats all sale transactions as taxable events just like any cash transaction. At the end of each year, all members receive a 1099B for the purposes of reporting income. Of course all legally deductible expenses can be reported as well, just like cash.
For Sales Tax, when applicable, the sales tax is paid by the buyer to the seller in US dollars as this is a straight pass through expense. The marketplace also allows shipping/postage and tips/gratuities to be collected in US dollars as well.
Is this like BitCoin and other such currencies?
Yes and no. Both are virtual currencies, however, BitCoin is also like a commodity that can be bought and sold for cash. It also can fluctuate wildly in value…and has. The ITEX Dollar is equal to a cash dollar for all accounting and reporting purposes. That makes it easy to manage.
Is this like Bartering?
Technically, ITEX is what is commonly called a Modern Barter Exchange. This is not like a direct swap of one’s goods/services for another’s of equal value. Grandpa had it right, bartering is beneficial. However, there are 3 major pitfalls. First, finding exactly what is wanted from someone who wants exactly what you offer is challenging at best. Second, the values rarely are equal. Third and finally, someone always feels like they got the short end of the stick. That’s why we do it better with our virtual currency, ITEX dollars.
What is the advantage of using a Virtual Currency vs direct swap bartering?
With Virtual Currency, the 3 pitfalls are generally avoided. Because there is a currency involved, direct trades and valuation issues aren’t part of the equation. Also, when buying with due diligence, no one gets the short end of a deal.
Is using B2B Virtual Currency better for services or goods?
All types of businesses benefit from increased revenue, improved cash flow and naturally increased profits. While it makes sense that services can benefit more directly, those that have excess and idle inventory benefit by the sales of that inventory instead of drastically discounting it or worse just letting it sit producing nothing but space use.
How much does it cost to transact in the ITEX Marketplace?
Each 4 week billing cycle, a member pays $20 US and $10 ITEX for Association Fee. Ask us how members get this waived on a regular basis. A Transaction Fee (commission) of 6% US is assessed on the total sales and purchases within a billing cycle. This is the Preferred Member Plan and requires automatic credit/debit card or EFT. Initial registration and setup fee $295 US. Ask how to get up to $200 waived when you join the marketplace.