The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
January 8, 2002
39% of Top 100 Advertisers Are Spending More To Promote
Quite a significant number, almost 40%, of top advertisers are spending more to promote their products and services than they did last year at this time.
Companies that have bumped up their marketing did so to gain a competitive edge or reach out to consumers amid the treacherous business environment. State Farm lead the list with a 112% increase in ad spending.
Others making dramatic boosts in spending included AT&T Wireless, Kia Motors, Pharmacia, Campbell Soup, Lowe's, Subway, Home Depot, and Fidelity Investments.
Small Hoteliers Under Pressure
PKF Consulting predicts that 36% of hotels, most of them small independent operations, won't be able to make debt payments from operations this year, double last year's rate.
Room revenues at hotels in major urban centers will be down 17.5% in the fourth quarter over the year-earlier period, and airline industry revenue should decline 30% for the same period--fourth quarter over year-earlier period.
And PricewaterhouseCoopers Hospitality Practice has announced that its expected 2002 occupancy rates for U.S. hotels to be 59.6%, suggesting a slower recovery than most have anticipated.
The Evolution Of Bruce Hovis, Long Time Trade Exchange Owner
One of our long time subscribers to BarterNews recently communicated an interesting story to us, which we're publishing here for you. Bruce Hovis has been in the barter business just short of 20 years. During that period he's built ten trade exchanges from scratch, and then subsequently sold them.
In November of 2000, having been diagnosed with a serious heart problem and working seven days a week, he decided to sell his Jamaican trade exchange located in Kingston and move into a less demanding arena.
Hovis is presently setting up a new company in Montego Bay which will handle only bookings for major all-inclusive resorts. Primarily, he's rolling the credits back into advertising, via major reciprocals he has in the U.S. and Canada.
Hovis says he's never been happier, carving out this new business in a tiny corner of the barter world. With eight resorts and six reciprocals he jokes that he may qualify for having the world's smallest trade exchange!
Hovis's philosophy is think small. "If you take care of the little things," he advises, "the big trades still come along...and they'll go much more smoothly."
Introduction Of Euro Will Benefit Business World
For the twelve countries of Europe now using the euro, an immediate huge plus is the elimination of transaction costs. (The money-changers' commissions previously charged every time one would buy francs, marks, etc.)
Indirectly it's a benefit for the US as well, because as our trading partners and allies become stronger, we're made stronger. Plus, competing world currencies will be an excellent guarantee that no single central bank can exploit its market power to the detriment of global commerce.
The introduction of the euro should also unleash a tidal wave of pent-up entrepreneurialism, giving smaller companies greater access to capital, talent and markets. One economist at the University of California, Berkeley, says the single currency could mean a doubling in volume of intra-European business!
We in the barter industry are impressed with the entrepreneurialism of our friends in Europe, and wish them the best with this bold new effort. As the barter industry matures and continues in its evolution, the development of several international barter currencies will strengthen and catapult the industry to a higher level.
Here And There. . .
We welcome your comments, questions, and observations.
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