Man Can Live by Credit Alone

John Riggle works very hard for his living. However, he does not make any money.

Riggle is one of three partners in an outfit called Dallas Exchange Enterprises. Their business is, in simplest terms, a trade-out clearinghouse. It works like this: John Riggle solicits area businesses to join Exchange Enterprises for a membership fee of $125. Once joined, the member business is able to trade his products or services for those of any of the other 400-plus member businesses. For example, a furniture store might trade $1,000 worth of office furniture to a radio station in need of new couches for its reception room. In return, the radio station would trade $1,000 worth of time in advertising spots for the furniture store on its airwaves. However, it never works that simply.

Member businesses are not given a list of other members; there is no catalogue of clientele to shop through. All trade requests must go through Riggle or his partners. For example, say a member clothing store needs some printing done for advertising handouts. The clothing store calls Riggle, who arranges it with a member printing company. With its resultant credit, the printing company may seek through Riggle some new bats for its company soft-ball team. Riggle gets them from a member sporting goods company. The sporting goods company may need some hotel accommodations for a convention in Houston. Riggle contacts a member hotel chain and makes the trade-out arrangements. The hotel then needs some new jackets for its bellboys. Riggle calls the member clothing store and gets the jackets. However, rarely, if ever, does the system follow such a direct flow and complete such a tidy circle. Instead it is a constantly fluctuating system of credits and balances, orchestrated by Riggle.

“It works for everybody,” he says. “The idea is for the member business to defray operating expenses by generating new business. My job is to generate that business for them by bringing companies together in trade.” Not just anyone, though. “Some businesses have nothing to offer in trade value. Other businesses would create too much trade demand, for example appliances or office supplies. And carpeting. Carpeting is impossible. You’d never expect it, but everybody wants new carpeting. So we don’t deal with it.”

So what do Riggle and company get out of this? They get 10% in trade of the buyer’s product from each transaction. “I live entirely by trade,” says Riggle. So when he needs a new pair of shoes, he goes and cashes in his credit with the member shoe store. When he needs a new tire for his car, he goes to the member automotive store. When he needs a pound of bacon, he goes to the member grocery store. When he needs new carpeting for his living room . . . well, you can’t have everything.