ITEX in the News

Business owners who learn the art of bartering may be able to get more of the supplies and services they need without jeopardizing their bottom lines.

Itex, a company in which brokers barter trades between businesses, expects to see $2 million worth of goods and services change hands today at its Inland Valley Holiday Barter Fair at Fairplex in Pomona, spokesman Alan Zimmelman said.

Based in Bellevue, Wash., Itex has 90 offices in the United States and Canada and also links prospective barterers through its website.

The company facilitates trades through "Itex dollars" that allow one company to provide surplus goods or services to another firm without having to take something in trade directly with the partner in the first transaction. Instead, the firm can claim Itex dollars for a third party's goods and services.

In effect, Itex dollars are money for companies that do not have large amounts of Federal Reserve Notes available. Itex earns its money by charging its clients a real money fee for trades.

Zimmelman discussed his company's approach to bartering in an interview:

Question: How would a company that has never tried bartering before get started?

Answer: It's easier to do with Itex in that they can go online and sign up to be members. Some basic information is required, and there are very few times when a member would not be accepted.

They go online, and shortly thereafter, they're contacted by their local office.

Q: Could you describe an example?

A: Let's talk about a magician. A magician says, things are a little slow today. It's not an essential thing and people are hunkering down in a survival mode. A magician, or a piano tuner, or even a tree trimmer ... the magician or the piano tuner or the tree trimmer or the dentist signs up to trade.

The dentist or the magician or tree trimmer can use the Itex dollars anywhere in the system, that he or she can trade with.

Q: How is the value of an Itex dollar determined?

A: It's based on whatever the cash value would be. It's dollar for dollar. If it's $50 in cash, it's $50 in Itex. We don't allow any price raising.

Q: How much did bartering increase during the past recession?

A: It didn't. It stayed relatively flat. Contrary to what people would think, that it would increase, it didn't increase or decrease. It remained steady.

Q: Why do you think that is?

A: A lot of businesses went into survival mode. They didn't spend a lot of money on advertising so it didn't make sense to spend money on advertising. They also didn't use trade dollars for nonessentials, like travel or expensive jewelry.

Q: What are the most commonly bartered goods and services?

A: Hotel rooms. restaurant meals. Medical services. Printing. People do a lot printing, business cards and brochures. Website design. Auto repair.

Let me add one more, charitable contributions. We have 200 charities on Itex. They're happy to take trade dollars.

Q: What is the future of your industry?

A: Good. Real good. As long as there is commerce, people will barter. As long as there is any economy, people will barter. They get the barter bug. People get addicted to barter.

Read more: http://www.sbsun.com/business/ci_19373344#ixzz1eMxU7Ra6