Often called the secondary economy, bartering empties inventories when customers are cash-strapped. It also provides services without using much cash.
Thousands of Chicago-area small and midsized businesses already barter, and evidence suggests these tight economic times attract even more barter activity.
"What's unfortunate for the economy is good for us," said Steven White, chief executive officer of barter exchange ITEX. "As we get into this (economic) headwind, businesses want to cut back on expenses."
With its local headquarters in Oakbrook Terrace, ITEX reported June 3 that its first-quarter revenue rose 19 percent.
The industry, dominated by small regional exchanges, is expected to grow 3 percent to 4 percent this year.
At the same time, mainstream economists believe the gross domestic product will be flat or slightly down.
ITEX and rival IMS are the two largest barter exchanges, both nationally and locally, with more than 5,000 Chicago-area members.
New Berlin, Wis.-based IMS has 18,000 members nationally.
Bartering is particularly popular with hotels, retailers, printers, restaurants and service-oriented jobs such as doctors, lawyers and contractors.
Exchanges cater to small and midsized businesses, which trade by using their markups - the bottom-line cost plus a profit.
Different businesses operate at different profit margins. Ala Carte, which operates numerous brand restaurants including Famous Freddie's Roadhouse and the Alumni Club, trades meals and drinks for advertising and computers. Ala Carte's profit margins range from 20 percent to 40 percent, according to Comptroller John McKendrick.
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