I think I remember a small number “barter exchanges” existing many years ago, aimed primarily at individuals (rather than businesses) . After reading this report, my curiosity gave me pause to briefly research just what was the latest in “barter exchanging”. There are now at least a score of “Barter Exchange” type companies, and various related endeavors. Most have existed less than five years, a time period in which their numbers have increased exponentially.
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There exist even companies selling “franchises” to become a barter exchange. After researching the barter exchange issue on the internet, it would seem the primary thrust of nearly all is recruiting new members.
It’s also noteworthy quite a few in promoting THEIR exchange, make derogatory statements of the others. With the structure and operating procedures of most, it’s evident the only entity assured of profitability is the ‘barter exchange’ itself. The virtually none of the "exchanges" will accept
'barter bucks' for (monthly dues, etc.) payment. CASH only. Woops!
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The OP of this thread alludes to the president of one such business being awarded (the) “Distinguished Service Award”. After brief research, I would compare that to a used car dealer having been awarded a similar ‘award.
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Here’s an interesting tidbit from a customer attempting to benefit from a different but typical barter exchange. This negative diatribe is certainly not unique.’
“Just ask Mike TrueseMike, owner of Mike Truese Creations, a Web design firm based in Jersey City. Several years ago, Truese joined a barter exchange called ITEX. He figured he could save money by trading design services for some printing and promotional items his company needed. After about six months, he had earned about $10,000 in barter credits. He used some of those funds to have some printing done, but he wasn't very happy with the work. After that, Truese says, he struggled to find anything he wanted to buy on the exchange. At one point, desperate to spend, he bought 25 bars of soap at $4 a pop. Finally, Truese abandoned his remaining barter dollars, tired of paying ITEX's monthly membership fees. "I designed six websites and wound up with worthless barter bucks -- and soap," he says.
As Truese can attest, trades on barter exchanges are not completely cashless transactions. Many exchanges charge monthly fees of up to $30. And although exchange users pay one another in barter dollars, many barter exchanges charge both sellers and buyers transaction fees -- typically 5 percent to 8 percent of each purchase, which must be paid in real dollars. Plus, the government requires sales tax on most barter sales.”
