A NEW TWIST ON BARTER BRINGS PROFITS TO UNSOLD ROOMS

CHICAGO, IL - - Just the name can make hotel managers and owners scream.  Though manageable, this tool has been misunderstood for years, causing the hospitality industry run the opposite direction.  What is this idea that causes so much panic?  Barter.

Never fear.  Barter is back with a new twist designed to bring profits to unsold rooms and relieve managers and owners plagued by remodeling costs and property repairs.  A long-time financial instrument of the industry, barter has been used by local hotel owners for years, trading out rooms for such needs as catering and entertainment services.  Often known as a wolf in sheep's clothing, barter left managers scarred by bad deals after being unable to obtain the goods and services they were seeking.  According to Craig Kaufman of Kaufman & Associates, Inc., a business consulting firm based in Chicago that specializes in creative financing solutions using barter techniques and strategies, "unsuspecting owners sought out materials that were unavailable in the system.  When they received 200 twin box springs instead of the 500 double mattress sets they ordered, managers and owners threw up their hands and gave up on barter."  But, things have changed, and according to Kaufman, his company offers a whole new world of options to the industry.

Kaufman brings a new twist to barter by essentially turning trade into a buying consortium.  Businesses can receive both hard and case goods in exchange for rooms and vacation packages at rack rate.  "That's the difference," says Kaufman.  "Whether it's a cruise line or a local or national hotel chain, we can get owners exactly what they need in exchange for rooms at a premium rate.  No more sacrificing expensive rooms for high-priced materials that aren't needed.

ADD ONE--HOSPITALITY BARTER

From towels to soap to beds, Kaufman & Associates, Inc. has a staff that works within the consortium to get buyers precisely what they need at the lowest price possible.  "If owners need 300 televisions of a certain brand and size delivered by a specific date, we will get the buyer the televisions at the lowest benchmarked price when they are needed," states Kaufman.   "Because we are an industrial user, we can obtain materials in larger, less expensive quantities than the average manager or owner."  Companies with property in major markets with 100 rooms or more to trade are great candidates for the system.   "Why let rooms sit empty?" asks Kaufman.  "Trade out that space at a premium rate and post the sale on the books profitably, conserving cash."
Another obstacle for the industry is the constant need to upgrade and remodel.   Hard cash is scarce when available space remains vacant.  By trading those empty rooms or unused vacation packages, managers can use the barter cash-equivalent credits towards remodeling projects and furniture upgrades.  Dressers, wallpaper, carpeting and building supplies are readily available within the buying consortium.   What better way to fuel the off-season, when most remodeling and repairing takes place, than through barter?  As rooms and packages are purchased at premium rates, managers use trade credits to finance renovations on a part cash, part credit basis.

The difference is the buying consortium.  "Now, managers and owners don't have to write-off this tool as an industry has-been and let vacant rooms stifle their cash flow," says Kaufman.  "This new twist on barter gives owners and managers options that work for the hospitality industry.  They can put aside past fears and explore the buying consortium for the exact brand, size, and spec they need."

For more information regarding hospitality trade, contact Craig Kaufman at 773/334-1631

ADD TWO--HOSPITALITY BARTER

Kaufman & Associates, Inc., an international corporate barter company based in Chicago, specializes in consulting and deal facilitation.  Through his guidance and innovative financing solutions, large-scale corporations save millions of hard dollars each year.  He demonstrates how to save cash, acquire goods and services for company financing needs, and utilize excess capacity or overstocked goods.  Kaufman & Associates, Inc., started in 1989, deals with a variety of clients worldwide, including both private and public companies in many industries including hospitality, computer, medical, media, telecommunications industries and consumer manufacturing.