Barter Economy
Back in Panama
Panama Star, Panama - 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.
With today’s technological advances, this
natural means of economic exchange has
returned to center stage, with a company
from New York able to barter services with
one in Ontario, Canada, and now with
businesses in Panama.
John Castoro, is owner of the New York and
New Jersey franchises of ITEX, a Bellevue,
Washington-based company that is one of the
leading marketplace for cashless business
transactions in North America, handling
$250,000,000 worth of deals a year.
With 14 years experience on this business,
Castoro 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,
once Castoro started talking about his work
with ITEX, locals encouraged him to set up a
similar network in the country.
For the last five weeks, ITEX services have
been available in Panama.
ITEX services 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 "ITEX dollars"
(or credits) 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 percent extra business which would not
normally take place if dealing with cash.
According to Castoro, these are transactions
business agree to “only because it’s on
barter.”
Castoro also promises ITEX clients to help
them keep their cash, and most importantly,
enhance their lifestyle.
Castoro said: With bartering, 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 which he would
never dream of paying with cash.
Delving on how ITEX works, Castoro said:
“It’s just like having another bank
account.”
ITEX customers get a checkbook, and 24 hours
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 percent transaction fee
to both sellers and buyers.
Over 50 local businesses, from doctors and
lawyers to boutique hotels and restaurants
are customers of ITEX’s bartering system,
all of which can barter services within
themselves and with any of ITEX’s North
American clients. |
