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

July 23, 2002

Written by Bob Meyer, Editor of BarterNews

541 (And Growing) Barter Companies Listings For You

Now available, valuable contacts to every barter company in the USA. Manufacturers, wholesalers, retailers, travel & media companies, you can move your products and services through these 541 barter companies. Listings include addresses plus phone, fax, e-mail and URL as available. Click here.

Credibility, Accountability & Measurable Results Are The New Focus

Joanne Killeen, president of the Public Relations Society of America, says the present environment has changed things dramatically in the business community.

The first order of business today, when she secures a new client, is to talk to them about a plan. Do they have a crisis plan in place? She also puts the client through a false crisis, so executives know how they're going to respond under pressure.

And the bottom line is you've got to tell the truth. Not telling the truth for short-term gain is not going to work. Once credibility is destroyed, you can't get it back.

Killeen says a lot of myths about PR professionals exist. "People think we are spin doctors or massagers of truth, that we spin the story for our client or a company's personal objectives. But that's not true.

"We research the truth to understand how to objectively communicate on behalf of clients. Companies realize, especially now, that they have a responsibility to their employees and shareholders."

Killeen contends that people today are more focused on business. Who would have thought 15 years ago we would have a 24-hour business channel?

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LOOKING BACK...Tuesday Report, September 19, 2000

John Madden's fantastic $500,000 barter deal. . . U.S. postage stamp becomes a currency for low-cost, non-postal goods and services. . . Commissions for internet domain-names differ when bartering versus selling for cash. . . David Johnstone of Australia named President of IRTA Global.

Follow-up to Don Loughnane's comments last week:

"I think the only reason some products are priced much higher than retail (in the barter marketplace) is because the mark up on these products (like PCs) is so small. And the only way that barter works for the seller is to mark the selling price up.

"That said, any consumer should use good judgment, with respect to price, before making any purchase, barter or not. If they don't like the price, then (duh) DON'T BUY IT.

"I also think the market sets the price for the buying and selling of trade dollars. If they were worth face value then no one would sell them for less. Based on current market conditions they are obviously not worth their face value. No amount of high-handed edicts is going to prevent the buying and selling of trade dollars."

Ray Antonelli
Focused Resources Inc.
Highland Heights, Ohio

(Editor's Note: Antonelli is a member of ATX, ITEX and Intagio. He says he loves trading, "I do as much trade as I can.")

International Offsets: US Perspective
14th & 15th October 2002
The Park Hyatt, Washington DC, USA

Drink reception sponsored by: Summit Corporate Services

Attend this event to examine the variety of available offset agreements, the requirements, challenges and alternatives. This 2 day conference will also scrutinise the American market, the legal and economic requirements and constraints to enable you to best manage your agreements. With offset packages becoming the key factor in winning large overseas contracts, this event is a must-attend for those wishing to secure new contracts.

This event will also offer you an excellent opportunity to network. Confirmed attendees already include representatives from:

• Defence Export Services Organisation
• US Department of Commerce
• US Department of Treasury
• Swiss Embassy
• US Department of Defense
• Polish Embassy
• The Ministry of Trade and Industry, Czech Republic
  FMV

So register now to avoid your competitors gaining the advantage.

SPECIAL OFFER
Due to an increase in external investment SMi are please to be able to offer you a ú100 saving on the usual conference pricing. Thus at only ú899 for serving military and ú999 for commercial organisations, this event offers you a superb opportunity to benefit from the experience provided by the outstanding panel of speakers.

TO REGISTER
Simply visit our website at: www.smi-online.co.uk/usoffsets2.asp
Alternatively you can contact Jayesh Patel for further information on tel:
+44 (0)20 7827 6746 or email: jpatel@smi-online.co.uk
Sponsorship opportunities are also available by contacting Fiona Punter on
tel: +44 (0)20 7827 6098 or email: fpunter@smi-online.co.uk

Follow-up to Chris Sweis' comments in June 4 Tuesday Report:

"Liked (the letter from) Chris Sweis of Ibart on why there isn't more barter occurring in the marketplace.

"As I see it barter is not in its infancy stage. This is a developed industry that hasn't acquired the tools or management to capture a greater share of the marketplace...that does indeed exist.

"Customer service is generally weak. The larger companies do not offer good consumer service. The attitude is the customer owes us. Smaller exchanges have better service but fewer tools and goods to offer and are buried in administrative work.

"An evangelist (as noted by Sweis) is not needed at this moment, but it was a good statement to make. Barter needs to have many more successful offices, centers, more to offer, before using an evangelist. (So we're) back to where we need the ability to bring in more in shorter time frames--the answer is networking.

"The dot-coms did everyone a favor. I know I saved a million by letting them do, on a larger scale, what I couldn't. They made mistakes but advanced the concept. The next round of finance into our industry will be more prepared, and probably still won't have the support of the current exchange owners."

Ted DeLong
Trade Exchange Developer
Sacramento, California

What makes my business work?

That is a question we all ask ourselves. But have you ascertained the critical function of your business? Click through to read "Knowing the Critical Function of Your Business Puts You on the Road to Success."

• One man does make a difference. On the question of treating stock options as an expense, Warren Buffet has been an outspoken advocate of such treatment. The Berkshire Hathaway chairman sits on the board of two prominent companies--Coca-Cola and the Washington Post.

  Both companies have succumbed to the argument Buffett has been delivering nearly annually in his Berkshire letter to shareholders, that stock options should be accounted for in the same manner as any other form of compensation--as an expense.

• China's economy is booming along at a 7.8% growth rate for the first six months of the year. The country is investing heavily in road construction, airport, and other infrastructure projects to fuel production and spur consumption across a continental economy of vastly uneven wealth.

• 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!

• Inventories of unsold goods at U.S. companies increased in May for the first time in 18 months, as spending by retailers and wholesalers declined.

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

• The executive search firm Christian & Timbers reports that a recent poll of 225 executives at major companies show that about 59% believe their company boards don't have the financial smarts to determine if their books are cooked.

  Replacing board members in today's environment won't be easy. CEO Jeffrey Christian says about 60% of qualified candidates are saying no to offers of sitting on company boards.

• Rapid changes in technology can produce more booms and busts, according to economic historian J. Bradford DeLong of the University of California at Berkeley. Technological change increases uncertainty about the future.

  And with more uncertainty come NASDAQ-like bubbles and busts. The promise of technology creates tidal waves of euphoria that are followed by tidal waves of despondency when profits prove disappointing. So as long as the revolution continues in information technology, in biotech and in finance, big swings in the stock market are likely.
  

This Issue's Glossary of Terms:

Cash out:
Transferring equities to more liquid assets which can, if necessary, be converted to cash.

Cash payment requirement/cash blend:
That portion of a barter company's invoice which is remitted in cash--as opposed to that portion which will be satisfied by some (or all) trade credits.