The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
June 25, 2002
Written by Bob Meyer, Editor of BarterNews
"To refuse a $500 item in advance for a service that has a negligible cost is downright idiotic!"
The above quote and comments herein were provided by barter veteran Alan Zimmelman in reference to our continuing dialogue on the question: "What are your thoughts on why more bartering isn't occurring in the marketplace?"
Zimmelman, former Sr. VP of BX Exchange, former VP of Ubarter.com and past owner of the BXI West Los Angeles office, contends that barter's perception is "second tier" because it is not a cash transaction.
"For many," he says, "there's the reluctance to try something different. Just like a child's resistance to jumping off the high diving board, it's scary, you could get hurt."
Zimmelman continued, "In negotiating the purchase of a new car on behalf of my mother earlier this year, I countered their offer with one that consisted of $20,000 in cash and $2,000 in trade. They came back and said they'd take the $20,000, with no trade money. That means they didn't value (or care to understand) the significance of my offer.
"There's also the belief in the marketplace," according to Zimmelman, "that if someone can't sell their product for cash, they're just not doing their job properly. Heavily discounting for fewer real dollars is more attractive (and more common) than capturing the full value on a barter basis, or even one on a part-cash part-barter basis."
Zimmelman observes that "many people lack common sense," explaining, "it's a wonder to me that they survive in the world of commerce.
"For example, when a car wash owner (who already knows and trusts me) will not do an upfront $500 trade for something he is going to spend cash on, then what we have is either a failure to communicate or a misunderstanding of barter's value in the marketplace. Because," Zimmelman reasons, "the incremental cost of washing one more car, about once a week, is insignificant. To refuse a $500 item in advance for a service that has a negligible cost is downright idiotic."
In the current issue of BarterNews (the cover is on our home page) we had an extensive story titled, "Where Are We Headed...The Future Of Commercial Barter." Twenty-five individuals from the barter industry were quoted in the article.
The following are comments recently received from readers regarding that article:
"Yesterday I received the current issue of BarterNews. It looks beautiful. I especially liked what the gurus of the trade industry are predicting about the future. I worked for a large corporation as a salesman many years ago, and they smartly relied a lot on peer evaluations of their salespeople. Your article was very good because people in the 'trenches' know what is going on, while corporate MBAs do not necessarily know." (From David Wm. Tuttle)
"I loved this issue. What realistic views on the industry. Even though some statements are in complete opposition, they are quite true, too, in their perspective." (From Paul Orozco)
in reading the seven page story, "Where Are We Headed...The Future
Of Commercial Barter" can order a subscription online. Do so prior
to next week's Tuesday Report and we will include a back issue as well.
Both will be sent out the same day we receive your order.
Acquisition-Minded Media Companies Must Wait Another Year
The FCC (Federal Communications Commission), under pressure from Congress and the courts, is going to review all of its media-ownership rules simultaneously, instead of through separate proceedings. (The decision is a blow to media companies that had hoped the FCC would relax or eliminate individual rules as soon as possible.)
One hotly contested rule bars companies from owning TV stations reaching more than 35% of U.S. viewers. Another rule makes it difficult for a company to own both a TV station and a newspaper in the same market.
The review is expected
to be completed, at the earliest, in mid-2003. So it will be another
year of uncertainty for the acquisition-minded media companies.
Have you read the interview with Tradecorp's Art Goehring (about barter's future) in the recent issue of BarterNews? Go to our Home Page and click through to the story...it's well worth your time.
BX Exchange Plans September National Convention, Too
In addition to other industry meetings, as announced in last week's Tuesday Report, we are told that BX Exchange is holding their national convention "The New Generation" at the Tradewinds Sirata Beach Resort in St. Petersburg Beach (FL)...September 24-26.
For an excellent commentary on how a client views barter click on "What's New" then click "Trade Exchanges" to find and read "A Client's View of Barter," which was the keynote address by Peter Comrie at the 13th Annual NATE Convention in Toronto.
Here And There. . .
This Issue's Glossary of Terms:
We welcome your comments, questions, and observations.
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