The weekly newsletter for everyone interested in barter--the world's most versatile business tool!
August 6, 2002
Written by Bob Meyer, Editor of BarterNews
Strategic Finance Magazine Reports On Barter
The official publication of the Institute of Management Accountants, Strategic Finance, published an article titled, "The World of Barter," in their July issue. The author of the article was Don Mardak, CEO of International Monetary Systems (www.internationalmonetary.com). Mardak is an industry veteran, former two-term President of NATE, and has just taken his company public. (OTCBB:INLM)
The article was generic in nature and acquainted the readers, CFOs and CEOs, with an overview on the benefits of barter.
Jack Schacht's response to comments of July 16. . .
"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, that determines what a client charges. No trade rules will have a significant effect on our highly entrepreneurial marketplace.
"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 effected 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 competitive 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,
Land is still one of the ultimate commodities. Do you know the seven advantages to acquiring and owning raw land? Do you know the five precautions you should observe prior closing your barter deal? This valuable information is found on page 62 and 63 of the FastStart Program I.
Retailers Moving Toward Self-Checkouts
The retail self-checkout market is poised to surpass $1 billion in annual revenue (shipments and installed hardware/software maintenance) by 2003.
critical mass in 2002 with Kroger and Kmart installing several thousand
units each, and 25% of grocery retailers now have self-checkout installed,
according to IHL Consulting of Franklin (TN), an independent business
consulting firm that provides analysis and business planning services
for the retail industry.
Valuable Contacts For You. . .541 Barter Company Listings
Now available, listings
of every barter company in the USA...manufacturers, wholesalers, retailers,
travel & media companies move your products and services through
these 541 barter companies. Listings include addresses plus phone, fax,
e-mail and URL as available. Click
Here And There. . .
This Issue's Glossary of Terms:
We welcome your comments, questions, and observations.
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