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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. . .) |
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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.
(Advertisement)
Give Your Loyal Customers A Free Phone Dialer. Unlimited Long
Distance Calling For Free...compliments of your company.
This is the best
advertising and customer loyalty program you can find...and it?s
100% trade.
For complete
information please e-mail:
norm@edaddywarbucks.com.
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...
Would You Like To Make 2006 Your Greatest Year Ever?
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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