The Tuesday Barter Report - April 11, 2006

From the desk of Bob Meyer... 04/11/06

Wallach Says Commercial Barter Industry Hasn’t Embraced Enormous Opportunity Available

Talked with Dave Wallach last week, and I’m happy to report he is feeling chipper and upbeat. Although he reminded me, “You know I’m supposed to be dead now!” (When diagnosed with lung cancer back in August the doctors were looking at 3 to 6 months.)

Wallach, the epitome of dedication and determination during his ValueCard ownership days is showing the same mettle today with his chemotherapy treatments.

He had just returned from the IRTA meeting in Amsterdam, as a director on the IRTA Global Board, and was as enthusiastic about the potential of the commercial barter industry today as he was back in the spring of 1998, when we spent two days together at his San Francisco office. At the time I was there to interview him for BarterNews magazine.

My nostalgic recollection of that visit in March, was the delightfully balmy weather that greeted me in one of the most spectacular and scenic cities in the world. As always, it was a pleasure talking with one of the industry’s passionate pioneers. (Wallach had opened his doors in 1979, after four years of working for another bay area barter company.)

While Wallach admittedly started-out financially under-capitalized, he was always rich with vision and ambition. And when our interview turned to the barter business he became more animated as he energetically talked about a barter company’s services being that of a business ecologist.

“Think about it,” he pointed out, “we bring our members new customers to buy what’s wasting away. And then, in turn, provide them with needed products and services—all a result of our efforts. And it’s done through the use of our private currencies.”

Wallach contends the same situation applies today. “As business ecologists we offer the small business community a noble service, after all it’s no secret that nearly every business has extra time, space, or materials.”

“But,” he quickly added, “we haven’t taken advantage of the enormous opportunity available. I believe our industry has really missed the boat in educating the business marketplace about our ecological might and private currency abilities.”

Wallach believes before the industry can ever hope to reach the next level it must come to grips with this reality of needing to educate the business world. (P.S. He was preaching to the choir, as I agreed fully.)

Countertrade World Changing

I recently heard from an accomplished former Executive Vice President at United Technologies, he was the point man for the company’s countertrade efforts back in the mid-to-late 1990s. A first-class guy, who, upon retirement, began a countertrade consultation service. For years he was on the go continually. Now, he reports, things are changing in the marketplace.

As a result, he hasn’t done any offset/barter consulting for Corporate America in the past three years. When questioned about this, he responded that it was “due to lawyers who drive me crazy with their holier than thou attitude.”

He said he walked away from several potential contracts where he could have made considerable fees, plus been able to save the company many millions of dollars. Who loses? Not the lawyers who killed the deal...but rather the company stockholders, who never know such things occur.

U.S. Legislation Aims At Curbing Counterfeit Imports

A new bill, “Stop Counterfeiting In Manufactured Goods,” was signed by President Bush on March 16. It will extend investigators current powers by giving them search and seizure rights over not just the products but the equipment used to manufacture and ship them. This closes the “import hole” that allowed counterfeiters to evade prosecution by separating the manufacture of products from the labeling process.

The law also makes it illegal to barter counterfeit goods, meaning that traffickers can no longer move counterfeit merchandise in return for any future service or goods.

The traffic of counterfeit goods is thought to be worth around $500 billion globally, affecting sectors as diverse as aerospace, automotive, electrical, pharmaceutical, and consumer goods.

New Listings In Our Barter Contacts Section

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Oakland, CA 94621
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BizXchange produces one of the barter industry’s more exceptional newsletters. The company’s founders—Bob Bagga, Chris Haddawy and Raj Kapoor—all experienced, are some of the youngest owners in the industry.