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The Tuesday Report

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June 6, 2006

Written by Bob Meyer, Editor of BarterNews

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From the desk of Bob Meyer...06/06/06

Size Does Matter In The Barter Business

News from Milwaukee-based Continental Trade Exchange (CTE) reported that sales rep Tom Schlindwein announced he could bring 85 Pizza Hut restaurants into the exchange if someone could line up 1,600 oil-change gift certificates.

Trade broker James Nooyen immediately called his client Fast Track, and confirmed they could provide the certificates. Thus, a $133,000 trade was consummated in less than three weeks.

Another client, a travel group located in Connecticut, was able to acquire 10 rooms plus meals in Jamaica with the capable assistance of Nancy Herrmann in the CTE/IMS travel department. The transaction was valued at $30,866.

Transactions of this nature become commonplace as a barter company’s inventory expands through its membership growth. Availability of such products/services is necessary for the trading optimization of their clients. As noted in a previous Tuesday Report, collective efforts within the barter industry will enhance these efforts immensely.

Barter Your Timeshare For That Needed Work

Are you the owner of a timeshare? If so, the next time you are negotiating for home repairs and services here’s good question to ask, “Would you be interested in staying at ABC timeshare-resort in return for some or all of your bill?”

Your timeshare offer—providing vacation accommodations—makes for an excellent barter tool. One recent trade we learned about was an owner who exchanged a two-week booking in Hawaii for $5,400 of needed dental work. Both parties were happy with the trade.

Out-of-pocket costs for the owner’s two weeks included the maintenance fee’s of $800 ($400 each week), the RCI exchange fees of $149 per week, and a $49 charge for the RCI guest certificate—a total of $1,147.

Timeshares can be acquired for cash or barter very inexpensively on the resale market. Hence, the annual outlay for this trading tool is basically the cost of maintenance fees and taxes.

Bartering For Hotel Rooms Takes On Added Significance

Last year was another record year of profits for the lodging industry, according to Bjorn Hanson, of PricewaterhouseCoopers. Hanson, a principal in the firm’s hospitality-and-leisure practice, reports that in 2006 the average hotel room-rate will have the largest yearly increase ever, climbing $5.78 to $96.69.

Although increased travel creates stronger demand, this year only 75,000 new hotel rooms will be added to U.S. inventory...43% fewer than the 132,000 new rooms added in 2000.

Not only are fewer rooms being built, but hotels are being converted into condominiums (a phenomenon that’s sweeping Chicago, New York, San Francisco and Los Angeles) which takes inventory off the market...thus the continuing escalation of room rates can be anticipated.

As prices rise, travel on trade will become more desirable and in greater demand.

Airlines Working Smarter—Not Good News For FFM Holders

Major U.S. airlines are recovering from five years of brutal loses by increasingly being unwilling to fly half-empty aircraft (to stay competitive on a given route), just for the sake of feeding their nationwide networks.

Last year said airlines filled an average 77.6% of their seats on domestic and foreign flights...the highest levels since 1946. It’s predicted that the percentage will rise to around 85% this summer, potentially the highest ever recorded.

Therefore many more planes will be flying completely full, and frequent flyer mile holders wishing to book a flight will have a tougher time getting aboard.

(Please feel free to forward our newsletter to your friends and colleagues. We have a “box” at the end of the newsletter for your convenience. See you next week. . .)

Get New Money-Making Ideas And Valuable Contacts!

You can obtain useful, informative ideas and contacts in every available back-issue of BarterNews.


Barter Aids Startups, Regardless Of One’s Business

An incredible 55% of last year’s business startups opened their doors with $10,000 or less in capital, underscoring the fact that undercapitalization is the norm for the new business owner.

For the knowledgeable entrepreneur, whether new or experienced, the use of barter can play a significant, positive role in getting a business of the ground. Here’s a story about how one company used barter to build and expand its operations.

Chris Lindland and Enrique Landa, the co-founders of San Francisco-based Cordarounds.com, launched their firm in the fall of 2004.

Their online corduroy-pants business was opened with $8,000 between them. Couple some money with a large amount of desire and creativity, and some pretty amazing things can happen.

In a short period of time they’ve not only sold 3,000 pair of pants that retail for $66 to $88 each, but they’re in the black, without any debt, according to Lindland.

The two have kept their overhead to a minimum through the use of barter, convincing others to provide needed services for pants. Web design work, for example, was obtained by trading pants and several home-cooked meals. The balance, approximately 10% of the bill, was in cash.

This fall the company has scheduled ads in the Harvard Lampoon in exchange for 35 pairs of pants. The owners, both in their twenties, astutely traded with yet another group, which, Lindland exclaims, “needed us almost as much as we needed them.” Who might this group be?

It is business-school prospects, a hungry group of students looking to spruce up their job applications. “They will work hard and work for less so they can list Cordarounds as part of their business experience,” explains Lindland.

Our Web Site Has Added A Search Tool For You

Ever wondered if a certain topic, person, or organization has been written about on the Barternews.com web site? Now you can easily find out, as we’ve added a search tool. It will quickly give you the answer to your questions, in 3 easy steps that take about 12 seconds!

At the top right of the page, just under where you sign up for the Tuesday Report you will see a little Google box. It is where you can (1) type in the name of a subject, company or person. Then (2) click the button for www.barternews.com to search the site, followed by (3) hitting the search button.


Richard Branson’s Virgin Mobile Barters With Customers

How do you overcome an intensely competitive marketplace and even gain a marketing advantage over your competition? One of the world’s most famous bootstrappers, Richard Branson, shows how it’s done with his new mobile phone company.

Virgin Mobile USA, a venture of Sprint Nextel and Branson’s Virgin Airways, is offering its customers a barter option wherein they can trade their time (by viewing and responding to ads on their phones) for free calls.

Branson believes the ad-subsidized call service will appeal to younger customers who are short on cash. The move seeks to expose customers to the idea of mobile phone advertising, and also provides advertisers a way to reach the youth.

 

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Avid Readers Can Now Barter For More Books

Voracious readers of paperback books now have another avenue to secure selected titles. And it could well be more productive than the usual fishing through boxes at garage sales, or scanning the shelves at used book stores, or even visiting Costco for the newest paperbacks.

With the use of a computer one now has access to half a million titles through PaperBackSwap.com. The web site also offers hardback books and audio cassettes.

It’s a barter version of Netflix, only with books instead of movies. PaperBackSwap involves readers trading books for the price of postage, which in most cases is $1.59 or less.

All that’s required to sign up is a short list of books you’re willing to part with. The instant you sign up, the site gives you three credits towards books on other people’s lists. Books arrive in the mail, postage paid.

TeleTrade International Announces 23% Trade Volume Growth

TeleTrade International (TTi) has announced that trade volume through its online systems (www.eValues.net) saw a 23% growth, posting $5.9 million in May 2006, compared to $4.8 million for the same month in 2005.

For the first 4 months of the year total trade from eValues.net was $46, 653,447. Trade activity is ahead of last year’s pace by $4.6 million. Gary Lasater, CEO of TTi, says aggregate activity since 1999 when the firm took its technology online now exceeds $391 million.

The eValues system is designed for independent trade exchanges, allowing members and exchange personnel expanded opportunities for trading with 24/7 online access, daily trade opportunity broadcast e-mails, a strong trade inventory control system, as well as a comprehensive contact management and accounting system.

For further information contact Gary Lasater at gary@teletrade.net

Trade Exchange Owners...
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Then it’s time to grab-a-hold of the most powerful marketing tool in the barter industry! The Competitive Edge newsletter is a monthly, ready to use, professional 4-page publication...no work is needed! (Click here.)

Syndication Czar Norm Pattiz Selling Beverly Hills Estate

There are many ways one can incorporate the use of barter. And within the arena, the degree of success attained will differ as well. Here is a short story about one of the superstars—Norm Pattiz.

In 1974 Pattiz founded Westwood One (NYSE:WON), a company that syndicates radio and TV news programs, including sports and talk shows as well as traffic reports. (Syndication is a process whereby programs are bartered to broadcast stations, in exchange for advertising time that is bundled and sold to national advertisers.)

Over time he built a powerhouse, and with success came the spoils, such as the 5-acre Beverly Hills estate that sits on a knoll behind gates with lush gardens and downtown-to-ocean views. For the past 20 years, 63-year-old Pattiz and his wife have been living in the house once owned by Marlo Thomas, but they are now ready to sell and have listed the home at $27.5 million.

The Growth and Use of Secondary Capital (New Money) Creates Unprecedented Wealth In Today’s New Age Of Possibility

There are many forms of secondary capital—which can be defined as any financial instrument that measures and communicates value in a common language. Would you like to see and learn more about the many forms of secondary capital?

We have 75 free, informative and inspiring, articles for you in our “Secondary Capital Section.” Check it out... www.barternews.com/secondary_capital.htm.


Every barter company in the world is listed on our web site, click through to our Global List of Barter Companies.

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