The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
June 4, 2002
Written by Bob Meyer, Editor of BarterNews
U.S. Government Uses Barter In Various Efforts
The federal portfolio of white-elephant real estate is gargantuan! Facilities ranging from abandoned World War II-era training facilities to historic but outmoded courthouses amount to billions, aggregately, and are but a part of some $500 billion of government-owned real estate, according to the General Accounting Office.
Budget director Mitchell Daniels Jr. is launching the most ambitious review to date with the objective of shedding the real estate, or using it more profitably. Most efforts will see the government either exchanging the property or developing it jointly with private-sector partners. (There is now a bill, pending in both houses, that will make it easier to either lease or form joint ventures with private-sector developers.)
On another front, the Environmental Protection Agency (EPA) is looking to use trading credits as a way to lessen pollution in our nation's waterways. Farms, timber operations and construction sites, as well as industrial and municipal polluters, would be provided "trading credits" when they cut their quota (lowered pollution) below assigned levels. These "trading credits" would have a value, in that they could be sold or bartered to other polluters which haven't yet met their quota.
Little-Known Women's World Banking Building A Better World
They haven't received much recognition yet, but Women's World Banking is doing a remarkable job of building an infrastructure that will transform the world. And It's all being accomplished by assisting poor women entrepreneurs and the globe.
Some 30 million women have been provided with small loans, from $25 to $500, and their pay-back record is an outstanding 98.5%.
Just eight years old, the program was started with limited funding coupled with measured performance. The rapid reinvestment and expansion of the micro finance networks shows what success can be achieved by assisting very poor women entrepreneurs, who for so long have been undervalued and ignored.
"If the public sees a wall and says it's blue and you know it is red, the reality is, it's blue until you can either get them to understand what red is, or change their belief in what blue is."
--Chris Sweis, CEO of Ibart.com
The above quote and the following thoughts were provided to us in response to last week's article, "What Are Your Thoughts" (on why more bartering isn't occurring).
Sweis contends, after speaking about barter at major events like Comdex, "Many educated business people who are very intelligent when it comes to business, have never even heard of trade dollars. And when they do, it becomes almost an economic revelation."
Perceptions about barter in the marketplace, according to Sweis are:
1. Price gouging for goods occurs, i.e. inflated prices beyond the normal retail.
2. Lack of liquidity is inherent.
3. Pricing is part cash/part trade, which is no better than a discounted cash price with a coupon.
4. Trade business replaces cash business. (The customer would have come to them and spent cash eventually.)
"Now more than ever the barter industry needs to push education in the marketplace," suggests Sweis. "The true growth in the industry will be a result of education, not monitization.
"I believe the industry needs both an evangelist to spread the word and one company that builds a brand synonymous with barter. Until then we are still evolving, and only the strong will survive. The weak and slippery operators will only hold the industry back."
Note: Next week we will have more feedback from our May article, "What Are Your Thoughts On Why More Barter Isn't Occurring."
LOOKING BACK...Tuesday Report, June 12, 2001
reported on Blockbuster's use of barter to settle a $460 million lawsuit;
the Barter4Golf.com web site enabling members of the Barter One trade
exchange to pay green fees on trade at selected courses; and
Also noted was the power of the U.S. dollar, as immigrant wage-earners are exporting part of their pay. More than $13 billion a year is being sent to families in countries in all areas of the world.
He built a $126 million company and he's in the Pro Football Hall of Fame. Fran Tarkenton, a big advocate of barter, believes that most entrepreneurs are natural born traders. For more of Tarkenton's thoughts click on "What's New," then click "Trade Exchanges" to find and read the article.
Here And There. . .
This Issue's Glossary of Terms:
We welcome your comments, questions, and observations.
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