The weekly newsletter for everyone interested in barter--the world's most versatile business tool!

July 9, 2002

Written by Bob Meyer, Editor of BarterNews

UNITE, A Collaborative Alliance For Barter Exchanges, Now Operating Global Online Trading System

Crump Barter System (CBSI) and VirtualBarter formed an alliance months ago with the objective of building an online e-commerce marketplace, one that would enable independent barter exchanges and exchange networks to trade online.

Launched the first of June, this new online trading marketplace is experiencing rapid success. On June 28 UNITE reported that 41 exchanges were online simultaneously. CBSI is the industry's largest collaborative global trade network with 175 member trade exchanges worldwide. For more information see: www.unite.tc.

Barter Veteran Bruce Harris Leaves Legacy Of Service

On July 3rd Bruce Harris passed away at the age of 52. Bruce and his brother Richard were the founders of the National Commerce Exchange in Maryland Heights (St. Louis), Missouri, over two decades ago. Both have worked diligently on behalf of the commercial barter industry over the years.

Bruce served on the NATE board of directors and as treasurer for that association. He was the recipient of the Monkman/Crumpton award, NATE's highest honor, in 1999.

The Harrises hosted the 5th Annual IRTA Convention (then IATE) at the Marriott Hotel across from the Cardinals' baseball stadium in May 1984. Later that year they were part of the founding group which established NATE.

Having experienced the early days of the industry, Bruce was one of the architects of NATE's Banc currency. He was an outspoken advocate of the need for fiscally sound policies if the barter industry was to grow into what many envisioned.

Harris was an intelligent and compassionate person who lived by his motto, "do not hurt anyone." And he had a wonderful, different perspective about many things. When asked what his favorite book was, he once told me, "the Yellow Pages!" His biggest splurge? He said it was "getting married to a women with four kids." They, like all of us in the barter industry, will sorely miss Bruce Harris.

Our recent Tuesday Report dated June 25, in which Alan Zimmelman commented on why more bartering isn't occurring in the marketplace received 3,986 visitor sessions. And Art Goehring's "Focus On Excellence" story was downloaded 314 times the first week.

Follow-up to Herbert Teichmann's comments last week:

"Finally, one guy who seems to think straight. Herbert Teichmann has expressed my sentiments exactly." (Val Valentini)

"I thought Herbert Teichmann's statement, that if we don't regulate ourselves someone will do it for us, was right on. We all should be more aware of the ones who break the trust." (Norm Alvis aka edaddywarbucks)

LOOKING BACK...Tuesday Report, June 13, 2000

Barter played a major role in ESPN offer...and Warren Buffet stated that dot-coms' primary objective was to make money off of, rather than for, investors! The "business model" for these companies has been the old fashioned...!

Do you think like a banker? In the article titled, "Countertrade Creates Symbiotic Relationships Between Buyers and Sellers" here's the comments made by a major New York banker..."We can see how the benefits (of countertrade) could help, but in the banking industry, we associate creativity with risk." Click "What's New" then click "Countertrade" to read the entire article.

• Lim Kean Beng, Managing Director of BBN Malaysia, has informed BarterNews that Steve Goldbloom is marketing their global deployment "Back Office" --Platronix transaction software and the Match Maker trading engine--for the barter industry.
  
  
• O.J. Simpson's lead attorney, Robert Shapiro, received equity and co-founder status in LegalZoom.com, without having to put up any cash. Shapiro's actual contribution to the new company has been primarily promotion and input for the overall concept. (The company was founded 15 months ago and offers cut-rate legal services to individuals and small businesses.)
  
  

• Prandium Inc., which owns 170 restaurants in 22 states (Chi-Chi's, Koo Koo Roo and Hamburger Hamlet), has emerged from Chapter 11. The company's debt has dropped to $59 million from $320 million. Some debts were canceled and bonds were traded for new stock...PRDM on the OTCBB.
  

• Bjorn Hanson, chairman of PricewaterhouseCooper's lodging practice, says the demand for hotel rooms as it relates to growth in GDP is now at its lowest level since the 1929 stock market crash.

  Industry profits, however, will be up this year due to hotel layoffs and cutbacks in other operating expenses as well as reductions in capital expenditures and general maintenance. Very high end properties and long-stay hotels are doing better than mid-to-high priced full-service hotels.
  

• CEO Wayne Sharpe of the Bartercard Group (www.bartercard.com) reports that the company is now doing "almost $1 million per month in trade just on the auction site."
  

• Would you invest $512 million and then guarantee 39% of your gross revenue to the government? That's what U.S. casino mogul Steve Wynn did when he recently signed a 20-year contract with the government of Macau to build a casino by 2006 on the Chinese island.
  

• Trade Exchange owners, check out the hottest marketing tool in the industry...click here!
  

• Direct foreign investment in the United States tumbled 60 percent in 2001 to $132.9 billion from $335.6 billion in 2000, according to the U.S. Bureau of Economic Analysis.

  The Bureau attributed the decrease to weakness in the U.S. and world economies, and a sharp drop in overall merger and acquisition activity worldwide.

  Canada represented the single greatest source of foreign direct investment in the United States, with a total of $16.9 billion in 2001. Britain followed with $16.9 billion, and Switzerland with $15 billion.
  

• Have you signed up to receive a summary via e-mail of the Tuesday Report every week? If not, go to the top of our Home Page (right hand corner) to sign up!
  

• The way to build wealth? Acquire "toll positions" like pop star Michael Jackson has done. Jackson's portfolio of song titles has just been boosted by 55,000 titles, as he and his partner Sony Music Entertainment purchased Acuff-Rose Music, a storied country-music publishing company, for $157 million.

  Years ago Jackson purchased all of the Beatles music, as well as titles by Bob Dylan, Jimi Hendrix, Willie Nelson and Roy Orbison. (Prior to this recent acquisition Jackson/Sony had ownership of 300,000 songs.) Jackson and Sony receive a payment "a toll" each time its songs are used or played.
  

• According to a new poll from Harris Interactive, 95% of people age 55 to 64 plan to do at least some work after they, er, retire. That's up from 75% who said the same thing just four years ago. (But they don't expect what they do to be a grind: 81% want to continue to learn, 70% want to try new things, and 63% want a new hobby or interest.)
  

This Issue's Glossary of Terms:

Can-add:
Other things in your inventory (properties, equities, or cash) that "can be added" to an offer to close the deal.

Cash blend:
The cash portion required to satisfy an invoice, usually designated by a percentage. (Example: 60% cash/40% trade credits.)