March 03, 2009
by Bob Meyer, Editor of BarterNews
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the desk of Bob Meyer...03/03/2009
Asia�s BarterXchange Expectations Growing
BarterXchange expects to see RM30 million of barter
transactions this year for the Malaysian and Singapore
TradeBay Follows eBay Model, But Operates On
Teddy Rader, a student at Bowling Green State University in
Ohio, has started a business called TradeBay. It is much
like eBay but operates on a barter system only. (Click
Alcoa Aluminum Barter Equity Stakes
Alcoa has announced that it has entered into an agreement
with Orkla under which both companies would exchange their
corresponding stake in a Norwegian smelting partnership and
a Swedish extrusion joint venture in order to focus on their
respective areas of expertise and best practices.
Direct Barter Internet Sites
Here are two sites where consumers can barter:
Ford Motor Barters To Fund Retiree Health
Ford and the United Auto Workers agreed to change the way
the company funds retiree health care benefits. Ford which
faces nearly $10 billion in health costs for retired union
workers, now may make up to half its contributions in Ford
stock rather than cash. (Ford has 187,000 retirees.)
back issues of �From the Desk...� can be accessed by
free to forward our newsletter to your friends and
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newsletter for your convenience.
See you next week. . .)
IRTA Sends Letter To
(The following letter to
the editor of
USA Today was sent
last week on letterhead from the International Reciprocal Trade
Dear Mr. Hillkirk:
are responding to address issues that were brought forward in the
February 26, 2009, article titled �For Work, That Will Cost One
Laptop� by Emily Bazar.
article was primarily focused on one-to-one barter activities
between individuals. One-to-one bartering, or ancient barter, was
man�s first method of commerce and is still widely practiced today.
As Professor Staiger said, it does not significantly contribute to
the nation�s or world�s GDP.
would like to point out that there is a Modern Trade and Barter
Industry that facilitates 12 billion dollars in business-to-business
barter transactions worldwide annually. Last year over 250,000
participating businesses in the U.S. utilized this process to earn
additional revenues and profits.
Modern Trade and Barter companies in the U.S. are considered third
party record keepers pursuant to the Tax Equity and Fair
Responsibility Act (TEFRA) of 1982 and as such are required to make
IRS 1099-B filings verifying the gross amount of barter sales for
their participating members. Clearly, the Modern Trade and Barter
Industry is hardly an �underground economy� and it does indeed make
a significant contribution to the nation�s GDP.
With the current economic conditions, businesses are searching for
innovative ways to capitalize and earn additional revenues, and they
are finding these benefits by utilizing the services provided by the
Modern Trade and Barter Industry. Right now the industry is
experiencing a major increase in barter transactions and
applications for membership.
our view the Modern Trade and Barter Industry is poised to provide a
significant element in the economic recovery by supplying business
capital that will lead to job creation and increases in production
IRTA is a non-profit organization now in its thirtieth year of
operation. IRTA regulates and provides standards for companies who
supply businesses with Modern Trade and Barter services. For more
information regarding IRTA�s mission and goals please access our web
David Wallach, President
Ron Whitney, Director
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
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
Barter�s Activity Is
Impossible To Measure
According to Brett Beemer, founder of the South Carolina-based
America�s Research Group and author of the book �The Customer
Rules,� how much barter is actually taking place is impossible to
measure, but it certainly is on the rise. (Barter activity on
Craigslist confirms Beemer�s assertions.)
Beemer says people are never honest about bartering. When he
conducts surveys people often don�t want to talk about it. Pushing
barter�s use is the consumers desire to find a way to survive in
these tough economic times.
International visitors look for BARTER CONTACTS in our Global Barter
Section. If YOUR exchange isn�t listed see the forms on the lower
left of the page. (Click
Attention trade exchange owners...thousands of visitors every month
visit our BARTER CONTACTS section on our web site where we have
names & addresses of barter companies in the USA. If YOUR exchange
isn�t listed, or the information is incorrect, you can correct the
situation by using the forms to the lower left of the USA map. (Click
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Barter�s Uses One Decade
(From the files of
Kimco Realty, a shopping center company based in New Hyde Park (NY),
is moving forward with a new ambitious barter venture, called Kimco
Auto Fund, to acquire the land under the biggest U.S. car dealers.
Dealerships will be able to barter their land�which usually
represents about 40% of a dealer�s net worth�in exchange for stock,
once the new Kimco Auto Fund goes public.
trading of their land, and then leasing it back, offers the car
dealers much needed liquidity and additional capital at a time when
many auto dealers are coping with new competition. The barter
agreement is especially attractive because the value of the real
estate has risen sharply in recent years and represents a big share
of their net worth.
Walt Disney�s ABC-TV and ESP signed a six-year barter deal to
broadcast Major League Soccer. The networks won�t pay a penny in
broadcast-rights fees to the two-year-old league, instead the barter
agreement reached sees them sharing costs and revenues generated
from advertising sales.
Apple Computer is shoring up its sagging U.S. education stronghold
by launching a special promotion. In effect their offer is: Buy a
computer from us and in exchange you can designate any school with a
10% trade voucher. When the school receives ten of these credits it
then trades them in for a free computer.
John Elway, the Denver Broncos football star quarterback, recently
traded his six Denver car dealerships to Republic Industries for
$82.5 million in Republic�s stock. Elway will also earn additional
stock by becoming a spokesman for Republic.
Kimberly-Clark is following a proven way to get employees to see a
connection between their work and Kimberly-Clark�s
fortunes...they�re offering stock options to every one of their
56,000 employees, globally.
Following suit is the world�s largest consumer-goods manufacturer,
Procter & Gamble. All 106,000 employees will be offered stock.
Other companies that have offered such benefits include PepsiCo,
Dupont, Delta Airlines, and Wendy�s International. So trading a
piece of the ownership in exchange for increased effort and interest
in the company�s fortunes is spreading around the business
Best-selling author Stephen King recently signed an important barter
agreement with publishing giant Simon & Schuster. (More than 225
million copies of King�s 38 books are now in print.)
Basically, King�s barter agreement sees him becoming a �partner�
with the publisher on all of his works. King chose to forego any
advances in exchange for higher-than-standard payments when his new
books are published.
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