| CNN News, the Wall Street Journal, and other | | | | was developed as a common medium of |
| respected business anaylists agree customers are | | | | exchange. |
| reducing their spending of discretionary funds. | | | | Along with the evolution of the Internet a new |
| Purchase transactions are down "across the | | | | form of bartering developed. Computers allow |
| board" of all segments of commerce due to | | | | companies to network their bartering and begin |
| uncertainty in future economic trends. On the | | | | trading with any other company within their |
| street, shopkeepers report fewer people shopping | | | | network or "barter community". Today hundreds |
| and spending less per visit. More and more | | | | of Barter Exchanges are located in virtually every |
| businesses are going out of business as their | | | | corner of every state as well as worldwide. |
| cashflows dry up. How are the survivors keeping | | | | These "trade exchanges" bring together buyers |
| their doors open? | | | | and sellers. They use a "credit and debit" basis |
| They are getting creative, adapting to changes in | | | | much like a bank. Members sell their products or |
| the marketplace. . . in other words, bringing their | | | | services for a "barter credit" to others within their |
| marketing techniques into the 21st century. They | | | | barter community. According to the IRTA |
| are using the Internet to reach new markets and | | | | (International Reciprocal Trade Association), the |
| reduce cost of reaching their clientele. They are | | | | medium of exchange is a "trade dollar" and equal |
| automating services and chores, again to reduce | | | | to one dollar cash. As trade dollars are earned, |
| overhead costs. The wisest of these are using | | | | they are used to purchase from other |
| BARTER to increase sales, conserve cashflow, | | | | participants within the trading network. Therefore, |
| reach new markets, move old inventory, gain a | | | | participating in an organized trade network |
| competitive edge, and the list goes on. | | | | creates new markets and cash savings while the |
| One-on-one trading of goods and services was | | | | Barter Exchange records and provides monthly |
| the first form of commerce before there was | | | | statements of sales and purchases and the annual |
| any form of currency. Cavemen traded when Og | | | | 1099's. |
| discovered he could make great spears but | | | | The bottom line is Barter Exchanges are a |
| couldn't hit the side of a cave wall. He offers Nol, | | | | dynamic marketing tool that conserves cashflow |
| who doesn't make a good spear but can hit | | | | and increases sales while allowing businesses to |
| anything moving at 25 paces, a deal. Og keeps Nol | | | | purchase many of their variable assets at their |
| supplied with great spears, Nol keeps Og supplied | | | | costs of goods, rather than using their cash. The |
| with dinner every night. Voila! Barter was born. | | | | IRTA points out there is no magic, no tax |
| The limitations of one-on-one barter are that two | | | | avoidance, in fact virtually nothing different than |
| people (or businesses in our case) must have a | | | | the transactions that take place in the cash |
| need for each other's product at the same time | | | | economy. Barter is simply a new market, |
| and at an equal value. The occurance of matching | | | | generated through a different method of |
| need and value are seldom found so currency | | | | payment. |