The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
April 29, 2003
Written by Bob Meyer, Editor of BarterNews
IRTA's UC Announces Progress
The International Reciprocal Trade Association's UC Board of Governors has ushered in the new e-marketplace for its Universal Currency.
Full time broker Dawn Ingalls, and the UC Board of Governors, announced a 49% increase in trade volume for the first quarter of 2003. For more information see: www.ucmarketplace.com, or call 585-424-2940.
NATE Increases Banc Line Of Credit
Announced at the recent National Association of Trade Exchanges convention in Atlanta, April 10-12, was the Banc's actions to increase the line of credit by $1,000,000. (In 2002 the Banc's trading volume was up almost 60%, approaching $11 million.)
Also, Jack Schacht, founder of Illinois Trade Association and the Banc's top trader, is coming back to lend his expertise and vision to the Banc, a definite plus for everyone involved. For more information: www.thebanc.com or call 440-205-5378.
Oakley Sunglasses Founder Used Barter To Get Started
Savvy Use Of Barter Reinforces The Amazing Versatility Of
In 1979, when he was 30, Californian James Jannard designed his first protective eyewear. It was a high-impact part goggles, part sunglasses product for skiers and bicyclists.
Demand for the hybrid goggles/sunglasses got a huge boost in the summers of 1985 and 1986, when Greg LeMond wore a pair on his way to becoming the first American ever to win the Tour de France bicycle race.
But what lifted Oakley sunglasses from being a specialty product to becoming a mass-market smash was Jannard's use of barter. He and his salesmen provided many pairs to top athletes during the late '80s and early '90s.
At a golf tournament Oakley glasses were put in the hands of a young basketball playerMichael Jordan. The Chicago Bulls star later struck a deal before Oakley went public, wherein Jordan would receive stock for his endorsement.
Businessman/celebrity Philip Knight of Nike was rarely photographed without his Oakley sunglassess. Tennis star Andre Agassi charged his friend nothing for wearing Oakleys. And baseball star Cal Ripken, Jr., garnered Oakley reams of notoriety by being seen in its distinctive-looking shades.
As he understood barter and promotion, so did Jannard grasp the principles of smart marketing. He sold mainly through specialty shops and deliberately limited the number of outlets that could sell his gear.
When he took Oakley public in 1995, Jannard and his chief lieutenant Michael Parnell took out $154 million in cash...and they still held 72% of the company's stock.
Publicly-Traded Stocks Will Benefit From Upgrade Of OTC BB
The six publicly-traded barter companies could benefit from proposed changes and the overhaul of Nasdaq's Over-the-Counter Bulletin Board which will come about if Nasdaq wins approval from the Securities and Exchange Commission. The new exchange would open January 1, 2004, and the OTC BB would be phased out of existence over the following six months.
Its new successor, the BBXchange, or BBX, would function as a trading exchange, rather than leaving it up to market markers and traders to consummate transactions.
One key feature would be automatic execution. Far different than today's situation, where market makers have the ability to raise their asking price based on one's interest in buying a stock. Under the BBX, an investor who sees a quote for a price and amount he likes would be able to make that trade without further negotiation.
Firms making it to the BBX would be subject to more oversight and stricter corporate governance rules, i.e. conforming to the Sarbanes-Oxley Act of 2002, have an independent audit committee, hold shareholder meetings at least yearly, and have timely distribution of their 10-Ks. (If unable to meet these standards, firms would then fall to the so-called Pink Sheets.)
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 monthmonth 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.
Every barter company in the world is listed here click through to our global list of barter companies.
PLEASE NOTE: The Global List and the U.S. List of Barter Companies has been updated. Check out the new companies added, as well as changes made to the existing listings.
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