The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
February 11, 2003
Written by Bob Meyer, Editor of BarterNews
A Look At Some Great Barter Deals
From time to time we look back over some of the barter deals we've reported on in BarterNews...here's a sampling that should get your creative juices going!
Barter Made All-Time-Record $50 Million Home Sale Possible!
The highest price ever paid for a private home in the United States was the $50 million sale of the Thunderbird Lodge (the largest private estate on Lake Tahoe, a 140-acre property that included a 16,000-square-foot compound with more than a mile of shoreline) which occurred because of barter.
The Tahoe property was sold by Jack Dreyfus, founder of the Dreyfus Mutual Fund, to the Del Webb Corp (developer of the Sun City communities) in a land exchange.
The developer then traded the land to the Bureau of Land Management for 5,000 acres of property, which became a site for a third Sun City community.
There's Hidden Value In One's Various Assets--As This Trade Illustrates
When trading, always be aware of the hidden value of the asset, and by strategically negotiating you may be able to retain a very valuable portion just for the asking!
That's essentially what Prudential Insurance did when selling its Boston Prudential Center office complex for $700 million.
As part of the deal, the giant insurance company cleverly negotiated that the property forever retain the Prudential name--signage that is worth many millions. (Such value is seen repeatedly, as major corporations willingly and eagerly pay millions to have their names affixed to major sports stadiums.)
GNC Barters For TV Mention
General Nutrition Centers built its exposure on television by negotiating with nutritional supplement maker Twinlab Corp.
Recently they agreed to extend their contract and buy 20% more product if, in return, Twinlab would mention GNC in its television advertisements.
U.S. Government Voracious Barterer!
The Bureau of Land Management, an agency of the Interior Department, is the biggest federal landowner, controlling about 270 million acres.
It isn't widely known, but just about every week on average, some agency of the federal government trades public land for property owned by private interests that the government deems environmentally sensitive.
With little fanfare, the Bureau of Land Management barters tens of millions of dollars worth of land with real estate developers each year. Our first story on the Dreyfus property is one example. That deal pleased the League to Save Lake Tahoe, a conservation group, as they report a tremendous shortage of shoreline land open to the public.
BXI Names New President
The oldest trade exchange in the U.S., founded in 1960 by M.J. McConnell, has announced that John Cooper is being added to its executive management team.
Cooper holds an MBA in finance from Columbia University, and has had an extensive financial career, encompassing corporate lending and services as well as investment and trust services for high deposit holders, with some of the countries largest banking institutions. He was also a navy fighter pilot.
As BXI's new president, Cooper will be heading the development and implementation of specific initiatives to help generate more revenue for the entire BXI organization.
Duncan Banner Changes Roles
BXI also announced that Duncan Banner, VP of Sales and Marketing, resigned recently to devote more time to his San Diego BXI operation as well as his new efforts in handling Hawaii BXI.
900-Pound Gorilla Moves To Level Competition
If you think once you reach a certain size you can overcome the competition consider this. The world's largest company in annual sales, Wal-Mart, is taking some aggressive action in the marketplace to level the playing field with those they see as major competitors--Internet-only rivals.
Their strategy? Voluntarily charging online sales taxes in a move they hope will reshape the way business is done on the Web. In short, they hope to persuade states to mandate online sales taxes.
(Under current laws, catalog companies and pure online retailers only have to charge sales taxes in states where they have operations, such as a warehouse or distribution facility.)
Wal-Mart can expect an assist from the states that are eager to plug their budget shortfalls with help from internet taxes. Last year's internet sales totaled $79 billion, or 3% of all retail sales.
Moral of the story: Be ready for change, it's constant, and seldom what you expect.
ITEX Has New Board Of Directors
The new Board of Directors convened February 5, just days after the January 31, 2003, annual meeting of shareholders. The results of the annual meeting were certified by IVS Associates (independent election inspectors located in Delaware).
The Committee for the Advancement of Stockholder Equity (CASE) nominees won the majority of the votes. 10,880,870 votes were cast, with 7,000,000 in favor of the CASE nominees and between 3,200,000 and 3,700,000 for the incumbent directors.
The Board of Directors nominees receiving the highest number of votes at the annual meeting were: Steven White, Eric Best, John Wade, Alan Zimmelman, Spike Humer, and Jay Abraham. (Abraham removed his candidacy.) Humer will continue as President and CEO.
Reported Humer, "I'm pleased with the voting results and the caliber of the individuals serving on the board. Our commitment is to stay focused on increasing revenues, controlling costs, and improving our bottom line performance. Although the costs of the proxy contest will negatively impact earnings for the quarter ending January 31, we expect that the substantial long-term savings from reduced directors fees will greatly benefit ITEX."
Attention Trade Exchange Owners. . .It's GROW OR GO!
The magic bullet for growth is sales, always has been and always will be...yet the industry's overall growth is anemic. Why? Maybe it's because we're not providing on-going education about our unique way of doing business. Knowledge is always a pre-requisite to taking sustained action.
And for those newcomers, the lifeblood of an exchange, awareness of and understanding about the value of trading is even more important.
If you expect prospects to come aboard and your members to be more active traders, but you are perplexed when the results are less than you desire...there's a good reason. You must continually educate and motivate every month--month after month after month!
Such action is necessary because, let's face it, more cash business, not trade, is of paramount importance to your members. You must break through this "cash only" focus and redirect their thinking toward barter. Although most exchanges don't see the importance of doing so, many industry leaders are taking action and so can you.
As the owner of your own operation, there is an easy and inexpensive solution for moving forward...look into using The Competitive Edge newsletter. It's a camera-ready, 4-page, professionally written, informational marketing tool...available in PDF format as well as print. So regardless of how you reach your prospects and clients, you will have the necessary vehicle.
Written especially for you, the busy trade exchange owner, I am certain it will be the best investment you ever make.
For more information about The Competitive Edge, and how it can benefit you click here.
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