With the current global financial crisis, bartering, a practice that
predates any modern form of currency, reemerges as a possible
solution to the credit crunch. Today�s technological advances make
barter a natural means of economic exchange � one that has returned
to center stage.
John Castoro, owner of the New York and New Jersey franchises of
ITEX which handle $250,000,000 worth of deals a year, has 14 years
experience in the trade exchange/barter business. He and other
investors bought ITEX�s web-platform for Latin America, choosing
Panama as the launch pad for the venture because of its dollar-based
economy.
Initially in Panama to deal in real estate, locals � after learning
about his background in the barter field � encouraged him to set up
a similar trading network in their country. Consequently, trading
services have been available since May and are targeted at
businesses where the variable costs are low, such as hotels, media,
and service related businesses. Members of the cashless marketplace
can buy and sell products and services to each other, using accrued
credits within the ITEX system instead of real cash.
�The point is, we take your company�s unused capacity, and bring you
new business,� said Castoro. ITEX aims to give its customers 5-10%
extra business which would not normally take place if dealing with
cash. These are transactions business agree to only because it�s on
barter.� Castoro also promises to help clients keep their cash, and
most importantly enhance their lifestyle.
�With bartering,� Castoro noted, �you do things you wouldn�t do in
the cash world.� An example? Castoro indulges in limo rides once in
a while, a service provided by one of the ITEX clients in New York,
and one which he would never dream of paying for with cash. Castoro
admitted, �It�s just like having another bank account.�
ITEX customers get a checkbook, and 24-hour access to the online
service, where they can both list the services they are offering and
check out services other clients offer. When a beneficial
transaction is identified, clients call a trade director and let
them know what they are offering and what they want in return.
The company generates revenue by charging a $20 fee per month
(waived when you refer 3 new clients), and 6% transaction fee to
both sellers and buyers. Over 50 local Panamanian businesses, from
doctors and lawyers to boutique hotels and restaurants, are
customers of ITEX�s bartering system. All of which can barter
services among themselves and with any of ITEX�s North American
clients.
For more information on ITEX go to
www.itex.com.
