The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
April 22, 2003
Written by Bob Meyer, Editor of BarterNews
"When you're an independent filmmaker, every penny counts, this barter thing is a win-win-all around."
Jeff Peel, Director Miami-Dade Office of Film and Television Production
Faced with the perennial conundrum of financing their movies, South Florida filmmakers are latching on to what the big movie and TV studios have been doing for years...trading scenes featuring branded products for goods. Known in show biz as product placement, it's now a $1 billion-a-year industry.
It's a business that has been around for decades, used by everyone from the U.S. government for highlighting American technical savvy during World War I, to watchmaker Gruen whose Curvex timepiece was worn by Humphrey Bogart in Casablanca (1942), to Hearst Corp. which used Clara Bow to launch Vanity Fair magazine in the 1927 movie It.
"Product placement can save a third of your budget," declared Doug Schwab, president of Maverick Entertainment, which distributes B movies for video release. "We've always used it," he added, "but we're going to get more aggressive with it."
It Pays To Read Barternews!
"Thanks to you and your magazine, I was fortunate to read a particular article in your last publication about cruise ship lecturing. My wife and I are heading to Barcelona Spain on a Transatlantic cruise in late Aprilall on barter!"
Editor's Note: The article referred to was on page 44 of Issue #60, "Trade Your Expertise For A Cruise."
Get New Money-Making Ideas, And Valuable Contacts!
You can obtain these ideas and contacts in every available back-issue of BarterNews
The Banking Industry Can Use Barter To Avoid Loan Write-Offs
What happens when a bank's major borrower is walloped by a regional economic crisis and can't repay a loan. The creative bank executive will think outside the box, looking to exchange their delinquent loan(s) for needed products or services: computers, airline tickets, hotel roomsyou name it.
We know of a situation where a Mexican bank used barter credits, arranged through a corporate barter company, to purchase new furniture for its branches. The deal was structured wherein the bank's delinquent borrower worked with the barter company, selling its product to them for trade credits, equivalent to the amount of the outstanding loan. (The barter company then sells or barters the acquired product to underwrite the balance of the transaction.)
The final leg of the transaction sees the bank accepting the trade credits from the delinquent borrower as repayment of the loan. In turn spending the trade credits, along with a cash blend, for needed products/services from the barter company.
Barter Can Be Used To Extend A Debt Deadline, Too
What if a borrower just needs a little more time to make a repayment? The creative use of barter can bring additional profits to a creative banker, as well.
That's exactly what happened when US Detergents, a maker of household cleaning products, bartered with PNC Bank to waive existing defaults and extend the deadline for repayment of a $35 million debt.
US Detergents provided PNC with options to purchase between 140,000 and 700,000 shares of the company's stockdepending on when it repays the debt.
SPECIAL Announcement: Be a part of the largest, most all-inclusive special real estate report we've ever published...coming in the next issue of BarterNews.
If your company offers any type of real estate service (assisting sellers and buyers, offering notary, property management, or counseling services) you should be in this special issue. Plus, of course, all types of properties available on tradeanywhere in the world! To get your company's ad in this unique issue contact: email@example.com... Do it now, so you don't miss this great issue.
Entrepreneurs' Optimism Is Roaring Back
After the September 11th terrorist attack sent the economy into a tailspin, small-business owners' faith in the short-term future plunged as well.
But the latest monthly survey by the National Federation of Independent Business, based on 10 components ranging from capital spending to inventories, reflects the most upbeat perspective on the economy in almost 19 years! That's the optimistic report from NFIB's Chief Economist William C. Dunkelberg.
The following message was used to promote one's trade exchange. The exchange owner sent this flyer/message out to every member....
Trade Is The Competitive Edge-Spread the Word!
We have begun co-publishing a monthly newsletter entitled The Competitive Edge that is a generic overview of barter in today's competitive marketplace.
In addition to providing the newsletter to you (our members) we have also begun a prospecting campaign using the publication. Each month we mail The Competitive Edge to businesses that would be an asset to our exchange, and follow up with phone calls.
Many trade exchanges have successfully used this newsletter, published by BarterNews magazine, to educate potential clients about trade and therefore attract new members. And we hope to have the same results here!
You can help us spread the word by providing some counter space or other conspicuous area to display The Competitive Edge to your clients. Waiting rooms, bookshelves, reception areas...wherever your customers have a chance to pick up a copy of the newsletter, they also will have a chance to find out more about bartering in today's economy.
Each month's issues offers new insights into the advantages of using trade and how it can improve a company's cash position. Every business owner will find the articles interesting and educational.
To learn more about The Competitive Edge newsletter and how it can help build your trade exchange, click here.
Every barter company in the world is listed here click through to our global list of barter companies.
PLEASE NOTE: The Global List of Barter Companies has been updated. Check out the new companies added, as well as changes made to the existing listings.
If you haven't read the current issue of BarterNews, get yourself a copy now! Orders are shipped the same day we receive them. (Click on Order Form.)
Here And There. . .
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? Copyright BarterNews 2003. Redistribution of BarterNews content expressly prohibited without the prior written permission of BarterNews.