Mardak Suggests Consumer Electronics Pro’s Consider Trade Leverage
founder and CEO of New Berlin, Wisconsin-based International
Monetary Systems (NYSE:INLM.OB), describes his company’s focus in
terms of marketing. “We think of ourselves as an affinity marketing
system,” he confirmed, “targeting specific populations that would be
likely to do business.”
Monetary Systems (IMS) is a barter exchange network that makes its
money three ways: 1) by assessing a membership fee, 2) by assessing
a small monthly fee, and 3) by earning up to 6% of the value of a
trade for facilitating it.
“When you think
of bartering, you probably think of an even exchange,” Mardak
reasoned. Someone says, ‘I have apples and you have oranges...let’s
swap.’ Our exchange allows you to trade your excess capital to the
exchange for trade dollars.”
This, he says,
spares business owners from having to hunt down the guy that has the
oranges. “Often, two parties don’t have a common need to trade at
the same time,” he added.
Swapping In Your A/V
In a brief
essay, entitled “Using Barter to Boost Audio/Video Sales,” Mardak
makes the point that excess inventory can slow A/V retailers. For
example, in an industry that thrives on new technology, having last
year’s model taking up space on the shelf can make retailers
hesitant to upgrade all of their showroom options.
explained that by trading the unsold merchandise into IMS, “all the
excess capital can be converted into liquid capital that will
produce buying power.” Can’t that be done on eBay or
“If you have something you have to sell, you can go to eBay and try
to sell it,” he admitted. “But what about selling services?”
integrators could provide systems installation to a chain of
restaurants in exchange for, say, advertising dollars or display
units purchased with trade dollars.
we’re working very hard to brand IMS in much the same way eBay or
has branded themselves,” Mardak stated.
we’ve grown to a base of 16,000 exchange members in 44 markets
exchange is, indeed, growing. Last year they did $72 million in
trade volume and revenue was $8.7 million. This year they expect to
reach $108 million to $110 million in trade volume (which is
computed on one side of each transaction).
information on International Monetary Systems see “Site Sponsors” at
top of page for click through.
for the economy? How will it affect YOU personally? How will it
affect the BARTER industry? Two noted authorities speak out on the
two most important topics facing the world today. Just one of the
532 articles found on the BarternewsBlog.
There are over 500
articles posted on our blog.
ITEX Holds Successful Regional Conference
Franchisees, trade directors, staff, and representatives from the
ITEX corporate management team converged in Omaha (NE) for three
days, from September 14th through the 16th, at the first of their
two annual regional conferences.
annual event drew a strong turnout to network, strategize and learn
from professional speakers so as to enhance and grow the franchise
network. Sponsored by the ITEX Broker Association Board of
Directors, the theme this year is “Building On Net Growth.
Speakers including CEO Steven White, VP of Marketplace Brian
Argetsinger, and Director of National Sales Doug Dagenais provided
information about the status of various incentives, plans, and
programs. The three-day event was hosted by Omaha franchisee Ms.
Terri Smieja in a professional setting at the La Quinta Inn & Suites
regional conference will be duplicated in San Jose (CA) beginning
October 18 for the west coast ITEX offices.
more information on ITEX go to
Barter’s Value Questioned
Within the past 10 days I’ve come across two
articles, both written by business women, who have voiced their
opinions regarding the use of barter. In both cases they suggested
it is not the way to go.
Regardless of their arguments, which were
rather weak (showing they weren’t entirely conversant on how to
ascertain the value of a direct trade or how a trade exchange
functions providing value to a member), the commercial barter
industry should take such writings into account.
Why? Because many, if not most, of the readers
of such stories will not have any prior barter experience, and
therefore will accept unquestioningly as true what they read.
Below we have printed parts of the article
(published in the Herald Sun, Australia’s largest selling
daily newspaper), written by Ms. Karen Morath...a speaker,
consultant and writer:
Good To Barter?
“It is tempting to exchange business services.
It can be seen as a way to preserve cash flow and get all the
legal/accounting/marketing help we need. But is a contra deal (an
exchange or a trade) more trouble than it is worth? I think so.”
rebuttal: The headline of
her article should more appropriately have been, "Is Barter More
Trouble Than It’s Worth?" Obviously she feels it is. Of course what
we don’t know are some important facts...like how often she has
actually traded and in what amounts? (Nor do we know if the reason
for the article was actually to get some valuable coverage for her
business. If this was the case, I say congratulations to her. To
this end she was certainly successful.)
let’s look at her reasons why she says barterore
often the experienced trading individual looks at the merits of the
transaction...is it beneficial? Does it further the building of the
business, or meet other goals? The answer to those questions will be
answered by looking at one’s variable cost of making the trade and
the value received. (Additionally, the sophisticated trader will
have ascertained the other party’s variable costs as well.)
in the FastStart Barter Program is an example of a trade that
illustrates how easy it was to turn a $5,600 trade into $11,200
retail value simply because the trader knew the other party’s
variable cost to make the trade and that they desired what was
In a nano-second
by asking the right question, the value of the trade was
doubled...without an additional cost to the trader. That is the
power and significance of barter.
“And then there are products, another
complicating factor. If you seek to exchange your products for
someone else’s services or your services for someone else’s
products, should the product price be at retail or wholesale? And
what will be the wholesale cost of your service provision?”
rebuttal: Morath’s concern
in the entire article revolves around pricing issues, rather than
the more important consideration (the value one obtains in an
exchange)"which revolves around the cost of one’s bartered goods or
services. She feels the effort to resolve these issues are more
trouble than it’s worth. Her perception is her reality, and it is
summed up in her closing comments...
“If you want to support other businesses, use
and recommend their products and services, just do it. Engage them
commercially and hope they will support your business too. In my
opinion it is cash that fuels businesses, not bartering.”
rebuttal: Cash may fuel
businesses, but barter (new incremental business) enables you to
move well beyond the constraints of the cash world. Your wealth is
not tied to just the cash you or your company earns. Nor is your
financial success governed solely by the dollars (or lack thereof)
in your pocket...because you’re changing the method of payment.
knowledge and commitment you can harness and utilize a powerful
multiplier. One ruled by ingenuity, creativeness, and the ability to
perform. Barter, when used intelligently, is a powerful adjunct to a
deals, direct trades or exchanges can be the most profitable ones
undertaken because there are so few limiting parameters, plus one’s
negotiating abilities and business acumen play such an important
barter transactions do take more time, normally, to both find and
negotiate. But the potential profits derived are more than worth the
For another look at this subject see “Twelve
Steps To A successful Barter Negotiation.”
Coming soon: we will look at the second article
that revolves around bartering through a trade exchange. The author
contends there are five reasons NOT to join a trade exchange. You
won’t want to miss this story.
The Easiest $100,000 You’ll Ever
Bring To The Bottomline!
cash, as usual, from the guest accounts staying at your
facility that require the use of professional AV services.
And rather than shouldering your ongoing employee costs, or
your current vendor’s cash agreement for AV services,
here’s a much better alternative:
with a proven national vendor (a sterling 25-year track
record) who will provide all of the AV services for your
hotel on a 100% TRADE BASIS! (Payment to be in the form of
hotel rooms and/or trade dollars.)
Your hotel’s annual AV billings must be a minimum of $200,000, and this
offer is available only in the continental United States.
confidential introduction contact Bob Meyer via e-mail:
(Please type in AV Services On Trade in the subject
line of your e-mail.)
Attention Trade Exchange Owners:
member hotel(s) have a minimum of 10,000 sq. feet of meeting
space and annual billings of at least $200,000 for AV
services this is a great opportunity to earn substantial
cash service fees on the hundreds of thousands of trade
dollars your hotel member will be paying the vendor. Contact
Bob Meyer at the above e-mail.
How To Get More Sales In
Our street-smart restaurant
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The Growth and Use of Secondary Capital (New Money) Creates
Unprecedented Wealth In Today’s New Age Of Possibility
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...
New Money-Making Ideas And Valuable Contacts!
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click through to our Global List
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