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

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September 5, 2000

In this week's report. . .

  • BarterNet's newest affiliations
  • Coverage we don't need!
  • Here and there. . .
  • National associations' coming events

BarterNet Rounds Out Its U.S. Affiliations

BarterNet Corporation announced the affiliation of three additional United States trade exchanges to their network. The exchanges are Eagle Barter in Chattanooga, Tennessee; Barter Business Exchange in Raleigh, North Carolina; and The EXchange in Orlando, Florida.

These Southeast affiliations complete the first round of BarterNet's affiliations in the United States. The three exchanges plan to merge with BarterNet at a later date.

"Now we can offer our clients services which would have been well out of reach if we were not part of the BarterNet network," declared Scott Whitmer, president of The EXchange in Orlando. "I can get on the phone and trade a client's Florida hotel rooms for 100 lobsters from Maine and a cruise in Alaska, this would not have been practical in the past."

Whitmer also stated that "BarterNet's plan is very different from pure internet-play barter organizations, in that they combine the local flavor of the existing exchanges with the power of the Internet."

Editor's Note: The current issue of BarterNews has an extensive cover story on BarterNet, a company backed by Wand Partners, Alignment Capital, and the partners of Parthenon Capital. See our home page for (a look at) the cover and Editor's Note on BarterNet.


This Kind Of Coverage We Don't Need!

The September 11 issue of Forbes magazine had a two-page article titled, "Swap 'Til You Drop...Or Drop Out." Then it went on to say, "It took humans thousands of years to emerge from the barter system. Does bringing it back online make sense?"

The author, Robert Goff, goes on to tell of his registering with the most popular consumer-to-consumer barter sites. Goff says he couldn't find much and when he did, he said, "It's rare that the person who has the watch I covet will want any of the things I want to unload."

The balance of the article wasn't any better. For instance, "online swapping is aggravating, unnecessary, and anything but efficient. It's a hungry consumer of that most precious commodity: time."

And one of Goff's final remarks was, "I concluded that barter on the Web was one of those ideas that sounds great in theory, but doesn't work in practice."

Editor's Note: A couple of observations are important to point out here. First, the article was focused entirely on consumer-to-consumer barter, not business-to-business barter. One-on-one barter, whether on the web or in person has proved to be difficult, which is why the trade exchanges and corporate barter companies have achieved a growing prominence within the business community.

Secondly, the sweeping statement that barter on the web doesn't work in practice, didn't take into account the business-to-business barter sites. They are working very diligently to make barter on the web an integral part of the commercial barter industry.

Unfortunately, Forbes' 800,000 circulation (millions of readers) will most likely make a fleeting judgment about barter from the negative headline and story.


Here And There. . .

  • In response to the e-mail received regarding pop singer Alanis Morissette's receipt of 129,328 shares of stock, obtained in exchange for agreeing to name her concert tour after the company, the price of MP3.com stock is $9 per share. Consequently, the value of her trade transaction is now $1,164,000, rounded off!

  • Gary Winnick, founder of the telecommunications company Global Crossing, has struck a barter deal with David H. Murdock, Castle & Cook's CEO, to acquire Murdock's Bel-Air home through a complex exchange involving land and a certain number of furnishings, chandeliers, and antiques. The California barter deal--with a total value in the $60 million range--is one of the biggest, if not the biggest, in the country for a single-family home.

  • More cruise-ship inventory for trade, as Carnival acquires the 50% of Costa Crociere it doesn't already own from Airtours PLC.

  • A barter spin-off for Nestle USA occurred when they agreed to take 900,000 shares of Nutrisystem.com, an online weight-loss program. Nestle moved its Sweet Success line of weight-loss products which includes a ready-to-drink shake, powdered mix, and snack bars. Nutrisystem shares closed at $11.63, bringing the trade valuation in at around $10 million.

  • Here's an unusual trade arrangement...options to keep silent! AT&T gave IDT Corp. "put options" in exchange for IDT's commitment not to talk to any other companies about buying its stake in Net2Phone. Last week IDT said it would exercise its put-option to cause AT&T to purchase about two million shares of IDT's new Class B stock at $36.75 per share.


Coming Events: IRTA & NATE

The International Reciprocal Trade Association's (IRTA) 21st International Barter Congress, "Mining for Gold," will be held in another month September 14-17 in Phoenix, Arizona. For more details e-mail: sheila@irta.com, or call (312) 461-0236.

And scheduled a week later, down in Atlanta is the National Association of Trade Exchanges (NATE) regional conference, September 22-23. For details on this training session contact The Barter Company in Atlanta, by e-mailing tammy@barterco.com, or faxing (770) 591-3602.

 

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