HOW TO JOIN A TRADE CLUB

If you own a business (or are yourself incorporated), bartering could offer cash savings for you or your company. For more than 20 years, bartering networks have offered the goods and services of doctors, carpenters, restaurants, graphic artists, print shops, interior decorators and new-car dealerships, to name just a few.

In the bartering system, members use trade dollars instead of

federal currency. For example, if a restaurateur needs work done on a car, he would select a mechanic and the two would negotiate the mechanic’s labor and parts costs. The mechanic would in turn receive an equivalent credit for meals at the restaurant. The parties to the deal do their own negotiating, in some instances with the club monitoring to make sure one side does not get cheated.

Barterers are not limited to making a direct one-to-one exchange. A major function of a club is to maintain a “credit market,” where goods and services are offered to the larger group. This facilitates more trades, particularly of those goods that are not easily matched. Plus, some companies have begun to use gift certificates from trade clubs to provide bonuses for their employees.

Benefits of joining a trade exchange include club-sponsored social gatherings and business expos among members to encourage a sense of camaraderie and introduce businesses and products to each other. Trade clubs also co-produce shows--for example, home and garden, computers and interior design. Members buy booths on trade, but non-member attendees represent cash sales and, of course, potential trade club members.

Most clubs provide varied “products” to members, working to maintain an even ratio between goods and services. Trade brokers help members find products through a membership bank and will also match buyers with sellers, helping to move items that have been part of previous bartering deals. Any high-demand service or product missing from the membership roster is sought out by the club’s sales department, which then approaches companies offering this product line. On the other hand, the club will monitor the goods and services being offered so no single “product” is overrepresented.

To join a trade club:

* An individual must own a business with an address (corporations may also join).

* The business must be licensed, bonded or insured.

* A person must pay an initiation fee, which gives access to the system (including “shopping” at barter showrooms).

ORANGE COUNTY TRADE CLUBS

Business Exchange of Orange County

1920 Old Tustin Ave., Santa Ana

(714) 973-1712

Members: 1,200

Initiation fee: $495

Trade American Card

777 S. Main St., Orange

(714) 543-8283

Members: 2,500

Initiation fee: $495

Source: Individual clubs