The weekly newsletter for everyone interested in barter--the world's most versatile business tool!

May 20, 2003

Written by Bob Meyer, Editor of BarterNews

Vendors Barter In The Billions

Ever wonder how certain products always seem to be in the best locations, i.e. particular aisles or shelves at grocery stores or electronic retailers? It's a result of product placement, where a zealous manufacturer/vendor will often barter for the space.

The trade occurs when the vendor supplies additional product to the store in exchange for good location, new product placement, or even partial funding of a store promotion.

The consumer-packaged-goods manufacturers spent in excess of $100 billion on such trade promotions in 2002, up from approximately $75 billion in 1997, according to Cannondale Associates Inc., a Connecticut based consultant.

The products, and/or cash rebates, received represent from 5% to 7% of all sales, and typically exceed the overall operating-profit margins of most grocery stores.

Every barter company in the world is listed on our web site, click through to our global list of barter companies.

PLEASE NOTE: The Global List and the U.S. List of Barter Companies have been recently updated. Check out the new companies added, as well as changes made to the existing listings.

"Continental Currency" Now Available On Continental Airlines

Continental Airlines is introducing its own currency, and will initially sell the $5 "Continental Currency" coupon to consumers at the slight discount of three for $13 or six for $25.

The new currency will initially be used to make in-flight purchases more convenient for the flight attendants and easier for passengers. (It can be used to purchase beer, wine, cocktails and audio headsets.) The coupons, in denominations of $5, are available at more than 700 self-service kiosks in 117 airports.

It's very possible that the float (use of the money by the airline until the coupons are redeemed) and the breakage (coupons lost or never used) will eventually make the new currency one of the company's profit centers.

$148 Million Shopping Center Is Traded...35 Investors
Become Largest Tenant-In-Common Acquisition Ever Made

One of the largest shopping centers in California was traded to a group of 35 investors in a complex, tax-deferred real estate exchange. The 35 investors traded their real estate (which they were holding for investment purposes) for approximately a 5% undivided interest in the larger property.

Under such a 1031 tax-exchange transaction, the 35 real estate owners/investors will defer payment of capital-gains taxes on the deal until the new property—the $148 million shopping center—is sold. Then the owners can cash out and pay taxes, or transact another exchange.

Editor's Note: The coming issue of BarterNews is featuring a special real estate report that covers 1031 tax-exchange transactions and other exciting stories on how owners of real estate have used barter to build and expand their wealth.

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.)

ITEX Reports Fifth Consecutive Profitable Quarter

The ITEX Corporation reported a net income of $102,000 for its third fiscal quarter ending April 30, 2003. Gross trade exchange revenue for the quarter totaled $2.7 million.

According to CEO Spike Humer: "Throughout the first three quarters of fiscal 2003, we have allocated time and resources toward personnel and infrastructure enhancements to ensure our progress is immediate and sustainable. Now we intend to place our focus and primary efforts upon growth, economies of scale, and absorbing our fixed costs over larger revenues."

The Barter Market Place—New Online Classified Ad Service

In September, the Tuesday Report will celebrate its 4th birthday. Over the years we've had requests to offer classified advertising on our weekly newsletter service, as it would provide a most timely way to reach the vast barter marketplace.

We are offering this weekly service to the business community (click here).

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.

Get New Money-Making Ideas, and Valuable Contacts!

You can obtain these ideas and contacts in every every available back-issue of BarterNews.

• Imports of foreign-made industrial supplies, including crude oil, rose to an all-time monthly high in the USA. And the March trade deficit (imports/purchases over exports/sales abroad) reached $43.5 billion, the second-highest on record.
  
• The $245 billion adventure-travel market is down 25% from 2000. The one exception is "family business" or "soft adventure" for the entire family.
  
• The Air Transport Association is predicting an 8% overall decrease in passenger traffic this year.
  
• Have you signed up to receive a summary via e-mail of the Tuesday Report every week? If not, go to the top of this issue (right hand corner) to sign up!
  
• It took the catalog industry 100 years to reach 5% of retail sales in the US, online retailers have reached the same level in only 6 years!
  
• Citadel Broadcasting, which is controlled by Forstmann Little & Co., has agreed to buy eleven radio stations for $133 million from Wilks Broadcasting. The acquisition will boost Citadel's station count to 216.
  
• The US banking industry set a new record for profits, earning $105.3 billion in 2002 and surpassing its previous record of $87.5 billion set in 2001, according to Weiss Ratings of Palm Beach Gardens (FL).