Years ago, bartering was considered a viable way of doing business in many countries, including America. Before the advent of a cash-based society, people traded goods and services on an everyday basis.
Today, bartering is making a comeback, partly in response to the efforts of Scotty Ebberbach. As an international licensed broker for ITEX corporation, North Americas leading marketplace for cashless business transactions, Ebberbach has been promoting the use of bartering since 1982.
“Even though everyone accepts cash, the fact is, you are losing power every time you use it,” explained Ebberbach. “With inflation, a dollar is only worth about 28 cents once its spent. I wasnt brought up understanding that losing would win the game.”
Instead of spending cash, ITEX members use ITEX dollars to buy and sell products with other members. These dollars, unaffected by inflation, are credited to a members account as services are rendered.
“Say, for example, that you want a massage,” said Ebberbach. “A massage therapist comes to your home and you write them a trade draft, which looks just like a check, for the value of your massage. You call us and authorize the draft, and when the transaction is done, the draft is faxed to us to post. Trade credits are then transferred from one account to the other.”
The advantage of this, according to Ebberbach, is that trade dollars cost less than regular dollars. “A trade dollar may cost you 10 to 20 to 30 cents,” he said. “Whereas in a cash world, youre losing 75 percent of a dollars value.” In the past year, ITEX processed more than $300 million in trade dollars.
More than 22,000 clients nationwide believe in the value of trade, as ITEX membership rolls show. The advantage of using ITEX to make the trade is that it serves as a bank for members credits, allowing people to trade services or products even if only one member has a service or product that another member wants. “George calls us and says that he needs a dentist,” explained Ebberbach. “It doesnt matter what he does or what product he has to offer. Even if he doesnt have something that the dentist wants in return, George can use his trade credits for the service.”
ITEX dollars can be used to purchase almost anything from office paper products to air conditioning repairs to air travel or even boat engines. “I save a huge percentage on the things I buy for everyday life,” said Ebberbach, who uses trade dollars for most things he does. “Im currently renovating a Victorian home, and a very big part of the work has been traded. Electrical wiring that should have cost $30,000, I traded for $22,500 and only paid $7,500 cash.”
Members have enjoyed the benefits of the trade lifestyle as well, even trading wedding services to save money. “Weve done 25 to 30 weddings over the years, costing between $10,000 and $100,000,” said Ebberbach. “One client held a $30,000 wedding for only $6,000 cash.”
Patricia Doyle, owner of M.G. Floral, has found that being a member of ITEX has helped increase her sales. “With ITEX, I can pay for things that ordinarily wouldnt be practical during slow times,” she said in a testimonial. “Working with ITEX members is nicethey are business owners like me and since they want to spend their trade dollars, its a much easier sell.”
To become a member of ITEX, clients pay $795 to join, as well as some other fees, including a small percentage each time they buy or sell a product or service. “How well bartering works for someone depends on their profit margin,” said Ebberbach. “A person who has a product worth $8 and sells it for $10 may not do as well as clients who only have labor costs, like doctors or lawyers.”
For those who are not familiar with the bartering life, Ebberbach will provide instruction. “If they have a service or hard merchandise to trade, they should call us,” he said. “Im surprised that colleges and high schools dont teach bartering as a part of economics, but they dont. I feel that its my responsibility to convey the concept and let people know that it does exist.”
“Bartering helps our members increase their sales, and it reduces their costs,” he said. “And if they play it like a game, its really fun! Its a lot more challenging than just handing someone a $5 bill for $5 worth of stuff. Barter is smarter.”
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