Businesses Benefit From Barter

By Amanda Cuda
 
HARTFORD, CONNECTICUT — There's a lot of overhead involved in running a business. In most cases you have to rent an office, hire a staff and pay for equipment. But Peter Bartush of Picture Perfect Printing in Stratford has found a unique way to keep his overhead costs low. It's bartering.

Locally, many businesses have discovered the benefits of using trade, rather than money, to get much-needed equipment and services. Bartush, whose business specializes in commercial printing, said much of the contents of his office were attained through barter. Computers, printers - even the carpeting - were gained via trade. "I've been in business 22 years" Bartush said. "And I've been bartering for 20 of those."

Bartush is a member of Fairfield-based ITEX New England, the local branch of the international bartering network ITEX. Calling itself a "cashless marketplace," ITEX has more than 470,000 member businesses, 1,200 of them in New England. Members offer items and services for trade and, in return, they acquire "ITEX dollars" - credit that can be cashed in for goods and services offered by other ITEX members.

ITEX is one of a number of bartering networks that allows businesses to get something for nothing more than some unwanted products or a bit of their time. Others include Business Network Inc. in Milford, which, as the result of reciprocal agreements with 25 other bartering networks, has more than 25,000 members throughout the continental United States.

 These networks have a wide range of members - including lawyers, accountants, doctors, restaurant owners and others - who offer everything from computers to plumbing work to art pieces and concert tickets.

Though barter organizations have thrived for years, officials at both Business Network Inc. and ITEX said they've experienced increased interest in light of the recent economic slowdown. "It's picking up a lot of momentum" said Business Network President Clay Yalof. "[Members are] really looking to save cash and cut costs."

Jay Mininberg, a partner in ITEX New England, said ITEX has experienced a 60 percent increase in business from last year. Mininberg said one of the advantages of professional barter networks is that they offer members ways to enhance both their business and their lives. For instance, a restaurant can offer gift certificates through the network, and use the credits to pay for cleaning or payroll services. Or maybe a business owner who doesn't have dental coverage can offer his services to "pay" for a cleaning or filling. "Every type of business has a hole that can be filled by barter" Mininberg said.

 Business owners can also meet personal needs via barter. Both ITEX and Business Network allow members to use their credit on goods and services that have nothing to do with business expenses. Last month, ITEX held a trade show at the Norwalk Inn and Conference Center, during which 40 to 50 members offered their wares.


Brian A. Pounds/Staff photographer Phil Pasmeg, left, of Fairfield, admires the autographed pro football jerseys at the table of exhibitor Russell Picerno of Newtown, during an ITEX trade show at the Norwalk Inn on Sunday.

These included not only practical goods and services, but also "fun" items, such as art, fur coats, and event tickets - all available for purchase with trade credits. "There are a lot of basic needs met" Mininberg said. "And there are a lot of frivolous needs met."
Business Network members also can make personal purchases with their credits, including vacations. Yalof said some private colleges have even allowed network members to pay for tuition with barter credits.

Bartush has also made personal purchases with his ITEX dollars, and once paid for the better part of a trip to Australia with barter credit. However, he spends most of his trade dollars on business expenses. Bartush said he acquired his credit mainly by offering printing services to ITEX members all over the country. Many of these are people from out of state who might not have heard of him otherwise. So, not only has ITEX provided him with free office equipment, it's also given him a much wider customer base. "They send me customers that I wouldn't normally get" he said.

Barter networks also allow businesses to get rid of surplus products that would have otherwise gone to waste. "One of the best things about bartering is that you can get rid of old inventory" he said.

Others in the region have also enjoyed the benefits of bartering. Davey Katz, owner of the Bridgeport-based audiovisual business A/V Davey, is a member of both ITEX and the Business Network, and has been using barter systems for roughly 20 years. Katz has gotten everything from plumbing and painting services to a wooden playset through barter, and said it's a great opportunity for creative business owners looking to cut costs and expose their company to more potential clients. "In essence, it's like having a free sales staff to promote you" he said.