exchange owner Jack Schacht built one of the largest, most
successful trade exchanges in the world, starting it all from his
kitchen table on a part-time basis. That’s really an incredible
accomplishment. One of his strengths was facing the continual
changes in the marketplace. This article was published August 6,
(Note: all back
issues of the
Tuesday Report are
found on our website.)
As you will see, Schacht
believed that the marketplace, not an exchange, determines what a
client charges. He also embraced the belief that many unimaginative
members of an exchange are ill-suited for barter and shouldn’t even
be members; moreover the entrepreneurial small business owners
should be more appreciated by the industry.
“Though I gave up
arguing with my fellow trade exchange owners a long time ago, I feel
compelled to respond to Don Loughnane’s comments in your recent July
16 Tuesday Report. Don’s comments unfortunately represent a
common misconception still held by many exchange owners.
“First of all, an
exchange cannot control barter pricing through the enforcement of
trade rules and regulations. It is the marketplace, not the
exchange, which determines what a client charges. No trade rules
will have a significant effect on our highly entrepreneurial
“It is under the
exchanges control, however, to properly develop its marketplace
which in turn will help control pricing and keep it competitive. For
example, an exchange with only one computer vendor in its
marketplace will find that computers are sold for a much higher
price than an exchange which has several computer vendors. In the
barter market, as well as the cash market, prices are always
affected by supply and demand.
“A second way to develop
the marketplace in order to keep pricing competitive is to see that
key clients have products and services readily available to them. A
computer dealer who knows he can immediately use his credit for
things he needs at reasonable prices can obviously be encouraged to
do a more competitive deal.
“This is readily
demonstrated with clients who trade with more than one exchange and
offer the same item at different price points within the different
exchanges. The value of a trade dollar is simply not the same from
exchange to exchange. No trade rules can change that reality.
“It should be pointed
out that even in the strongest, largest, most developed barter
companies, the trade dollar is not on par with a cash dollar. Since
we need to interface with and work with the industry as a whole, it
is important that we take our cue from the barter main stream. This
will avoid the need to arbitrarily raise or lower our own client’s
prices when working with other barter companies.
“It is high time that
retail (trade) exchange owners got real and started appreciating the
great opportunity we have for highly entrepreneurial business
owners. We must stop catering to those unimaginative business owners
who will probably never fully appreciate what barter can do for
their business and their personal lifestyle. Barter is really not
for them and we can never build highly profitable businesses if we
cater to them.
"Finally, the very best
that we can do is educate our marketplace, not
legislate it into some petty bureaucracy where we delude ourselves
into thinking that clients will somehow serve our interest as
opposed to their own!”
(Jack E. Schacht, founder of Illinois Trade Association in Niles,
Is Your Trade Exchange Missing Out On
Valuable New Business?
your barter company’s listing on BarterNews.com isn’t current, you
are definitely missing out on new business. The web site
BarterNews.com receives heavy traffic — with over 150,000 page-views
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George Walther’s startling thesis is this: Most businesses waste
time trying to land new customers when they could be making much
more money reclaiming former customers.
You should go after new
business, of course, but as Walther explains in his book
Upside-Down Marketing, customers who have walked out or fallen
away are a major source of profits left untapped by most companies.
The fact is former customers know who you are, thought enough of you
to buy, and could “without much effort” be induced to do so again.
A much-quoted survey
found that 68% of those customers who drop off do so simply because
they sense indifference. Walther points out that most customers
leave our “conveyor belts” because we don’t show them how important
His prescription? Call
According to a survey of
more than 1,400 people around the world with an average net worth of
$2 million, the wealthiest respondents exhibited 80% more energy
than those at the bottom of the sample.
Energy, of course, is a
subjective quality. In the survey respondents were asked to use a
scale from 1 to 10, regarding how much energy they put into certain
tasks — with 10 being the highest.
The survey found that
the wealthiest of the group devoted 60% of their energy toward
focused goals like “making things happen” and “hunting out new
opportunities.” They not only focused their energy but they also
devoted more total energy (80% more) to all of these goals than the
(The report was done
by Scorpio Partnership, Standard Charter Private Bank, and SEI.)
Money-Making Reports Available From BarterNews
Serving Food With A Smile Keeps Patrons Coming Back
According to researchers at NFO World Group of Connecticut, the
survey results of more than 600 customers shows conclusively that
friendly service is what keeps a restaurant’s patrons coming back —
not its “hottest” sandwich or special. In short, the study revealed
that repeat customers are crying out for having a generic experience
turned into a personal one.
Here’s a can’t miss formula for success: Provide friendly service
with the ability to buy a meal on trade.
How To Get More Sales In
Our street-smart restaurant
marketing report shows proven ways to rapidly boost your
restaurant’s sales & profits.
The Growth and Use of Secondary
Capital (New Money) Creates Unprecedented Wealth In Today’s New Age
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 70 free, informative and
inspiring, articles for you in our “Secondary Capital Section.”
Check it out...
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