Mardak Suggests Consumer Electronics Pro’s Consider Trade Leverage

Don Mardak, founder and CEO of New Berlin, Wisconsin-based International Monetary Systems (NYSE:INLM.OB), describes his company’s focus in terms of marketing. “We think of ourselves as an affinity marketing system,” he confirmed, “targeting specific populations that would be likely to do business.”

International Monetary Systems (IMS) is a barter exchange network that makes its money three ways: 1) by assessing a membership fee, 2) by assessing a small monthly fee, and 3) by earning up to 6% of the value of a trade for facilitating it.

“When you think of bartering, you probably think of an even exchange,” Mardak reasoned. Someone says, ‘I have apples and you have oranges...let’s swap.’ Our exchange allows you to trade your excess capital to the exchange for trade dollars.”

This, he says, spares business owners from having to hunt down the guy that has the oranges. “Often, two parties don’t have a common need to trade at the same time,” he added.

Swapping In Your A/V Leftovers

In a brief essay, entitled “Using Barter to Boost Audio/Video Sales,” Mardak makes the point that excess inventory can slow A/V retailers. For example, in an industry that thrives on new technology, having last year’s model taking up space on the shelf can make retailers hesitant to upgrade all of their showroom options.

Mardak explained that by trading the unsold merchandise into IMS, “all the excess capital can be converted into liquid capital that will produce buying power.” Can’t that be done on eBay or Overstock.com? “If you have something you have to sell, you can go to eBay and try to sell it,” he admitted. “But what about selling services?”

With IMS, integrators could provide systems installation to a chain of restaurants in exchange for, say, advertising dollars or display units purchased with trade dollars.

“We believe we’re working very hard to brand IMS in much the same way eBay or Overstock.com has branded themselves,” Mardak stated.

“Right now, we’ve grown to a base of 16,000 exchange members in 44 markets coast-to-coast.”

The IMS exchange is, indeed, growing. Last year they did $72 million in trade volume and revenue was $8.7 million. This year they expect to reach $108 million to $110 million in trade volume (which is computed on one side of each transaction).

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