The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
June 11, 2002
Written by Bob Meyer, Editor of BarterNews
Chattem's Still Thinking Out of the Box
A little-known 123-year-old company which began as Chattanooga Medicine Co. back in 1979 has seen its stock price jump six-fold (600%) in the past 18 months. Interestingly, after all these years, they are still doing things in an unconventional way.
Initially the company got started when their salesmen struck barter deals with farmers across America. They'd provide the farmer with a needed improvement, such as a new roof for the barn, in exchange for the right to paint ads on the barn for one of their products.
Today the company is known for its ability to buy well-known, undermarketed brands, and then pitching them with short, simple ads on TV and radio.
Chattem spends about a third of its annual revenue ($225 million) on advertisements. They stretch out costs by hiring freelance ad people instead of big agencies, shooting ads quickly, and buying numerous 10-second spots instead of relying on fewer 30-second ones.
New, from the just published issue of BarterNews
our newest feature, "Focus On Excellence," is a scintillating
conversation with Tradecorp's Art Goehring about the future of the barter
industry. Click on "Issues."
ITEX Financial Turnaround Impressive
Founded in 1982, ITEX Corporation (OTCBB:ITEX) is a trading and business services company with domestic and international operations.
ITEX Corporation's third fiscal quarter (ending April 30, 2002) reported a net income of $185,000, compared to a net loss of $870,000 for the same period last year. Total costs and expenses for the quarter decreased by $1,140,000 compared to the same period last year.
CEO Lewis "Spike" Humer says the stage has been set for future top line growth. "In upcoming quarters we expect to see positive results from our efforts to develop new marketing programs, and the addition of resources dedicated to recruiting and training additional independent licensed brokers."
For more information
on ITEX see www.itex.com.
Continuing dialog from "What Are Your Thoughts" (on why more bartering isn't occurring):
"I think the answer is simple...tradable inventory! There are not too many deals that can't be put together with an abundance of airline tickets or electronics or computers."
--Marvin Grafton, President, TargetBarter
U.S. Economic System Depends On Information Accuracy
The stakes are enormous, according to Business Week, as our economic system depends on the accuracy of information. So it's disheartening to see so few CEOs speaking out to urge reform in accounting, restraints in executive compensation, honesty in financial analysis, and integrity in corporate governance.
To make a high-growth, high-risk equity culture work people must have honest financial data available. What's at stake today is nothing less than popular trust in the markets.
The trust crisis is reinforced by the fact that Wall Street, even with a major blowoff the past two years, is flat despite predictions of a 3% to 5% growth rate in the GDP...such flatness (when the economy is growing) is a real rarity following a recession.
LOOKING BACK...Tuesday Report, September 26, 2000
In that issue we reported on BarterTrust's turning over the reins to Philip Letts, creator of the online currency Beenz.com, and on the Series B funding of BarterNet. (Both companies have since come together and are now operating under the name Intagio.)
NBC Entertainment President Garth Anceir was quoted in telling how barter enables TV executives to lower their operating costs.
Other news was BigVine's
co-founder Eric Gertler leaving, and ITEX founder Terry Neal agreeing
to a settlement with the SEC.
Here And There. . .
This Issue's Glossary of Terms:
We welcome your comments, questions, and observations.
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