Companies Saving Cash By Trading With One Another - - Tyler, Longview, Jacksonville |ETX News


Companies Saving Cash By Trading With One Another

"When you are using trade dollars, you are opening yourself up to a whole another group of people," says Randy Russell of Engines Express in Tyler. 

He's not talking about horse trading of old.  But bartering is still big business.  From the work at Engines Express to a sandwich at M.A. Simms in Tyler, trading with one another is saving money.

M.A. Simms/Cap Ranch owner Brett Nelson: "I have all my windows washed on ITEX [bartering service.] So, the expenses for the business, I can use trade dollars for, and not use cash. And it helps with operating expenses."

ITEX is a group of more than 100 East Texas businesses and thousands nationwide that trade with one another without using cash. Instead, they use trade dollars.

"When everyone understands how it works, it works well."

Many companies have a healthy profit margin, spending sometimes less than 50 cents to produce something they sell for a dollar.

Stephen Soape is the local broker for ITEX services.

"If you can get a trade dollar bill that spends like a dollar bill, but you only have 45 cents invested to, it adds cash to your bottom line," he says. 

Soape adds businesses prefer to buy from others when it doesn't mean spending cold cash.

"You take the trade dollars, spend them where you normally spend cash, and you keep the cash in your pocket."

Nelson says it brings in more for lunch and dinner for his Bergfeld Center deli and smokehouse.

"It creates loyalty as a business owner. They bring in a lot of friends and family who are not ITEX members," he says.

That generates real cash that otherwise wouldn't come in the door. Russell at Engines Express uses trade dollars for hotel rooms for employee training even for advertising that will bring in new business.

"You can't just go out and use [the trade dollars] anywhere. But it is beneficial. It has saved me a lot of cash by using it," he says.

More information on ITEX is available through the link at the top of this story. 

Morgan Palmer, reporting.


Powered by Frankly