Barter Boom Predicted for 2006 by NABA
`We may see the $30 Billion mark by year`s end,` remarked NABA`s executive director Nathan Forbes. Why would he make a statement like that? Because 2005 has proven to be another record-breaking year for both the consumer and commercial levels of the barter industry. And the North American Barter Association`s 2006 annual forecast forsees even more growth to come. Current 2005 stats are still being counted, and $25 Billion of barter in North America has already been recorded. And there is still one month left to go.
Today, NABA released it`s 2006 forecast which sees yet another record-breaking year ahead due to many developments in recent months that will make barter even more popular and attractive to consumers, but even more so to small businesses. `Hurricane damage in the billions, the growing costs of the Iraq occupation, volatile energy markets, GM`s 30,000 lay-offs, a 12% increase in bankruptcy filings, China`s growing influence, unpredictable terrorist acts, and a real estate bubble which is expected to burst within the next 3-6 months are all going to wreak havoc on our economy` explained David Busch, one of NABA`s veteran analysts. `And it`s a known fact that when our economy struggles, or even sputters, barter thrives due to consumer doubt and the shortage of hard cash flow. A recession is definitely looming near on the horizon and we feel it will coincide with the collapse of the current real estate market.` NABA officially predicts a 23% growth in barter for 2006 with 72% of that increased growth coming from the commercial sector.
`Watch out for barter operators who do not itemize their fees in advance or want a part of the trade to be paid in cash.` It`s standard procedure for barter exchanges to charge an annual membership fee or monthly service fee, or a barter fee per trade. `This industry is not highly regulated and we count on consumers and merchants to help us identify the scammers so they can be flagged and reported to the authorities` said Forbes. Suspected barter fraud and/or legitimate complaints can be reported to NABA by e-mail. But there are some pitfalls to barter that the public needs to be aware of and NABA is quick to warn against barter companies that exist only in cyberspace and prey on unsuspecting consumers and merchants. `There are a lot of beautiful web sites out there that mislead people into believing they are dealing with huge and reputable barter exchanges. Astute merchants and consumers should look beyond those web sites and insist upon speaking with current clients and check with the local Better Business Bureau and do some UCC and D&B checks on-line,` Forbes advised. With over 500 barter exchanges operating in North America NABA urges due diligence to all.
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