Bartercard Australia Latest News

Back to Barter for leading telephone music on hold company

Fri, 06 Jan 2012 11:59:00 GMT

One of Australia’s leading music and messages on hold company, Phone Sound, has turned to barter trade dollars as an incentive for other businesses to "trade” products and services with the audio advertising company.

According to Phone Sounds’ managing director, Ben Harrison, Bartercard presented his business with a new and innovative way to target small to medium business owners. He had also apparently heard about the cash savings associated with the Bartercard network and decided to take the next step.

"Bartercard has always been a prominent brand in Australia, and after the global financial crisis, we wanted to look at an alternative payment option for our clientele.

"With Bartercard, we are part of an exchange network of small to medium businesses helping each other by exchanging services and products. It’s a great means of getting what you need to help your business succeed, without drastically affecting your cash flow,” he said.

According to Bartercard’s website, there are 55,000 trading members in 9 countries who are benefitting from the cashless economy of Barter.

"It’s a really simple, yet extremely effective concept. The Barter system is in no way a new concept, but what Bartercard brings to the table is a new and innovative way for SMEs and corporate to exchange ideas, bring communities together, build their brand, and target their core markets – without dramatically affecting their cash flow. Simple, yet extremely effective,” said Mr. Harrison.

Phone Sound has been operating since 2007, and has grown to be a market leader by providing professional and effective audio advertising solutions.

Published by KOZMedia

Posted by John Afleck

http://kozmedia.com/back-to-barter-for-leading-telephone-music-on-hold-company/22692/

Bartercard hosts party to jump-start Pattaya operation

Thu, 05 Jan 2012 11:51:00 GMT

In an effort to jump start its Pattaya operation, Bartercard (Thailand) hosted a welcoming party and marketing promotion to lure in new members.

The Dec. 8 party at Valentine’s restaurant on Soi 13 was hosted by Bartercard (Thailand) managing director, Raevadee Wattanurak, Pattaya branch manager, Ginna Bradbury, and local brand manager, Niran Kossaeng.

Executives said the Thai program has, in the past, seen growth of 10 percent per year and up to 8 million baht in sales per month. Members, they said, exchange about 42,000 baht each. The Pattaya branch, despite several rounds of management turnover, still is recording 900 transactions a month.

The company has a goal of reaching 90 million in goods to be exchanged in the next year, although executives conceded more marketing work needs to be done to teach customers the Bartercard system.

Raevadee acknowledged that Bartercard’s business has been affected in Thailand by a number of factors, including political strife, natural disasters and the economy. Small and mid-size companies have been particularly hurt and Bartercard, she said, is interested in obtaining new members in the tourism industry.

She said cash-strapped companies are ideal candidates for Bartercard as they can obtain items they need to operate without using cash. Bartercard, however, requires paid memberships and business owners who feel they cannot find customers on their own tend to rely on Bartercard agents to supply them enough customers so they can fund their barter spending.

Niran said the Pattaya branch has about 220 companies under its care, including real estate and construction businesses, restaurants and tourism ventures who have seen demand from customers in Bartercard’s home country, Australia.

Lifetime memberships can be purchased for 18,000-50,000 baht. The company then fronts members up to double that in credit. However, if the customer cannot find enough business to pay off that credit, the member is held financially liable for any credit over the initial enrollment payment.

In addition, Bartercard keeps 5.5 percent of all transactions and collects monthly maintenance fees, whether its services are used or not.

Founded in Australia in 1991, Bartercard operates six branches in Thailand, including Bangkok, Chiang Mai and Phuket.

Bond University Bartercard scholars announced

Sat, 17 Dec 2011 00:00:00 GMT

The scholarships are an initiative of Bartercard Australia and assist graduating Year 12 children of Bartercard Australia members, franchisees and staff with the cost of undertaking an undergraduate degree at Bond University.

Under the arrangement, Bartercard Australia will pay half of the students’ tuition fees for their chosen programs.

Bartercard Australia Director, Mr Trevor Dietz, said this provides an opportunity for students to study at one of the country’s leading universities.

"Through this unique arrangement, we are giving the next generation of business leaders an opportunity to study at a University whose graduates are clearly distinguished in the global workplace for their leadership skills and entrepreneurial flair,” said Mr Dietz.

"This is now the fourth year of our scholarship program and we have been genuinely impressed with the progress of the current scholarship winners, their academic record reflects the positive nature under which they entered this program,” he said.

Bond University Vice-Chancellor Professor Robert Stable said, "Our aim is to identify young people, like these students, who demonstrate outstanding potential and to facilitate them achieving their ambition,” said Professor Stable.

"I would like to congratulate the students selected as this year’s Bartercard scholars and wish them all the best with their studies.”

Mark will commence his Bachelor of Laws at Bond University in 2012.

The six scholarship recipients are:
• Mark Foster, Concordia College (Highgate)
• Claire Sun, Elanora State High School
• Macauley Stafford-Smith, Brisbane State High School
• Juliette Rountree, All Saints Anglican School
• Remi Hill, All Saints Anglican School
• Stephanie Marr, All Saints Anglican School

About Bartercard
Bartercard was founded in 1991 on the Gold Coast, Queensland, and has grown to become the world’s largest barter exchange, with 48 offices around Australia.
Bartercard assists more than 20,000 businesses in Australia and 55,000 globally to barter their goods and services – without the challenge of a direct swap.

About Bond University
Bond University is Australia’s first private, not-for-profit University, offering a personalised academic environment that enables graduates to exceed the outer limits of their potential.
With access to unparalleled academic and technological resources on Bond’s world-class Gold Coast campus, students thrive in smaller study groups where eminent professors and industry-experienced lecturers know them by name.
By undertaking three-semesters-per-year instead of the usual two, graduates finish their studies sooner. Combine this advantage with Bond’s commitment to opening doors to blue chip employers and it becomes clear that students graduate with a clear competitive advantage over their public university peers.
Bond University is Australia highest rating university, scoring more five star ratings than any other Australian University in the 2012 Good Universities Guide. See www.bond.edu.au for more information.
ENDS

MEDIA CONTACT:

Gemma Alker, Public Relations Manager, Bond University
Ph: 07 5595 1116 M: 0420 927 941 E: galker@bond.edu.au

Cezanne Laidlaw, Public Relations Coordinator, Bond University
Ph: 07 5595 1293 M: 0419 620 401 E: claidlaw@bond.edu.au

Bond University Bartercard scholars announced

Fri, 16 Dec 2011 00:00:00 GMT

Claire Sun from Elanora State High School will join Juliette Rountree, Remi Hill and Stephanie Marr, all from All Saints Anglican School, at Bond University next year.

Under the arrangement, Bartercard Australia will pay half of the students’ tuition fees for their chosen programs.

Bartercard Australia Director, Mr Trevor Dietz, said this provides an opportunity for students to study at one of the country’s leading universities.

"I would like to congratulate the students selected as this year’s Bartercard scholars and wish them all the best with their studies.”

The students will commence their studies in January 2012 across a number of programs including international relations and behaviour management.

The six scholarship recipients are:
• Claire Sun, Elanora State High School
• Stephanie Marr, All Saints Anglican School
• Juliette Rountree, All Saints Anglican School
• Remi Hill, All Saints Anglican School
• Macauley Stafford-Smith, Brisbane State High School
• Mark Foster, Concordia College (Highgate)

Although the concept of barter is thousands of years old, bartering through Bartercard is an innovative way of combining modern technology, a network of businesses and direct and indirect marketing channels to increase a business’ customer base, sales and profit, and improve cashflow.
Bartercard Australia was bought from Bartercard International in a management buy out in August 2007. It is now 99.5 per cent Australian-owned with the majority of its share base in the hands of Managing Director Brian Hall, Chairman Murray d’Almeida, and Non-Executive Director Trevor Dietz. The remainder is held by an Australian private equity consortium. Website: www.bartercard.com.au.
About Bond University
Bond University is Australia’s first private, not-for-profit University, offering a personalised academic environment that enables graduates to exceed the outer limits of their potential.
With access to unparalleled academic and technological resources on Bond’s world-class Gold Coast campus, students thrive in smaller study groups where eminent professors and industry-experienced lecturers know them by name.
By undertaking three-semesters-per-year instead of the usual two, graduates finish their studies sooner. Combine this advantage with Bond’s commitment to opening doors to blue chip employers and it becomes clear that students graduate with a clear competitive advantage over their public university peers.
Bond University is Australia highest rating university, scoring more five star ratings than any other Australian University in the 2012 Good Universities Guide. See www.bond.edu.au for more information.
ENDS

MEDIA CONTACT:

Gemma Alker, Public Relations Manager, Bond University
Ph: 07 5595 1116 M: 0420 927 941 E: galker@bond.edu.au

Cezanne Laidlaw, Public Relations Coordinator, Bond University
Ph: 07 5595 1293 M: 0419 620 401 E: claidlaw@bond.edu.au

Bond University Bartercard scholars announced

Thu, 15 Dec 2011 00:00:00 GMT

Under the arrangement, Bartercard Australia will pay half of the students’ tuition fees for their chosen programs.

Bartercard Australia Director, Mr Trevor Dietz, said this provides an opportunity for students to study at one of the country’s leading universities.

"I would like to congratulate the students selected as this year’s Bartercard scholars and wish them all the best with their studies.”

Macauley will commence his Bachelor of Environmental Science (Sustainability Science) in 2012.

The six scholarship recipients are:
• Macauley Stafford-Smith, Brisbane State High School
• Mark Foster, Concordia College (Highgate)
• Claire Sun, Elanora State High School
• Juliette Rountree, All Saints Anglican School
• Remi Hill, All Saints Anglican School
• Stephanie Marr, All Saints Anglican School

MEDIA CONTACT:

Gemma Alker, Public Relations Manager, Bond University
Ph: 07 5595 1116 M: 0420 927 941 E: galker@bond.edu.au

Cezanne Laidlaw, Public Relations Coordinator, Bond University
Ph: 07 5595 1293 M: 0419 620 401 E: claidlaw@bond.edu.au

Could bartering present an untapped opportunity?

Fri, 09 Dec 2011 17:13:00 GMT

A new report urges firms to get rid of excess capacity through barter houses.

It’s one of the oldest systems known to man and now, according to new research by The City of London Corporation, bartering could come to the rescue of London’s credit squeezed companies.

The report suggests that the development of a global capacity exchange hub in London could improve productivity by reducing surplus stocks and providing an alternative to conventional credit.

Capacity Trade and Credit: Emerging Architectures for Commerce and Money, commissioned by the City of London Corporation, Recipco and the Economic and Social Research Council was released yesterday.

It highlights how businesses with spare capacity in their own goods, services or infrastructure, often the case in economic downturns, could utilise their surplus via an exchange to ‘finance’ the purchase of other goods and services that they need.

SMEs and larger businesses can find an alternative credit stream through capacity exchanges, in the face of a challenging environment for conventional credit as banks rebuild bank balance sheets.

"The UK has a long history of responding quickly to the competitive challenges of new technologies and forms of commerce,” said Stuart Fraser, Policy Chairman at the City of London Corporation. "In a fast-changing world, now more than ever our future depends on meeting these challenges.”

The idea that businesses could swap goods and services in today’s markets is not a new one. Established twenty years ago in Australia, Bartercard is one of the world’s leading bartering companies and has 75,000 trading members in six different countries.

One of London’s Top 20 Fastest Growing Companies is Miroma, which works exclusively with advertising companies to allow businesses to barter goods for advertising.

With Bartercard currently trading over $1.3 billion in cashless transactions per annum globally and Miroma being named as one of the fastest growing companies in the country it seems awareness of capacity training is spreading among the business community.

"Innovative capacity exchanges with common tender have particular relevance now as we face a weak economic recovery and widespread constraints on the flow of credit to SMEs, in that they have the potential to ease counter-cyclically the liquidity problems facing businesses coming out of recession,” said Fraser.

"But while the advantages may be highlighted in a downturn, reducing the need for traditional financing saves money and makes sense at any time for businesses, large or small.”

Capacity trading across the world has traditionally taken the form of simple bartering, which involves two parties – commonly SMEs in local or national trading networks – settling a transaction through a flow of goods or services rather than sovereign currencies - or cash.

Monetary trade has traditionally been seen as more efficient than an exchange of goods as the latter requires finding a suitable counterpart at one point in time and is often contractually more complex.

In contrast, the internet based multilateral exchange proposed in the report could potentially lower transaction costs through market clearing. The report finds that London is uniquely placed to facilitate the expansion in scale needed for larger government and multinational organisations to utilise capacity trading more effectively.

"The report exposes the scope of what could be possible, if a new economic architecture for the exchange of value were created to facilitate trade and overcome some of the limitations of traditional credit,” said James Fierro, chief executive of Recipco.

"Such a system of exchange could have a material impact on stimulating economic growth and social development in the UK and around the world.”

The study, authored by Z/Yen, also finds that such market infrastructure would need to provide confidence that deals agreed and contracts made will be honoured and delivery made in a secure exchange using an acceptable trade unit. It finds that if capacity exchanges were formally recognised, a more solid regulatory framework might encourage more rapid development.

Mankind began trading with barter. Looks there’s life in the old system yet.

Author: Gabriella Griffith
London Loves Business
Link to story: http://www.londonlovesbusiness.com/news/could-bartering-present-an-untapped-opportunity-for-londons-businesses/1209.article

Brisbane businesses spend over $1 Million Dollars in Christmas gifts without spending a Cent!

Tue, 06 Dec 2011 09:00:00 GMT

It seems that as times are getting tougher for business owners, many are turning to the age old form of bartering as a way to keep cash in their pockets and save on their expenses; and what better time to save cash than at Christmas time!

This year’s annual Bartercard Christmas Trade Show saw over 2,500 Brisbane business owners attend the 5 hour event. The purchases exceeded the Million Dollar mark and not a cent changed hands.

"The beauty of Christmas shopping through Bartercard is that our members, who are all local business owners, aren’t parting with their hard earned cash” say Bartercard Franchisee Erwin Brem. Our members have the opportunity to use their Trade Dollars that they have gained through bartering their goods and services to pay for these expenses. It provides great financial relief at this expensive time of year” he says.

Gone are the days of swapping a cow for a pig or a haircut for a pair of shoes. Bartering is now big business with members transacting over $400 Million Dollars per annum. Bartercard’s revolutionary electronic system has also eliminated direct swapping by providing a plastic transaction card to all members that record and process all business deals through the secure bank-like system.

"My members are constantly surprised at our overwhelming ability to move their excess or out of season stock. Just last week we moved over 20 bikes for a bike store in a day and a half! It is this sort of promotion that you just don’t get in the cash market and that’s what sets Bartercard apart,” says Brem.

"We know that many businesses are really feeling the pinch and after what we have all been through with the Brisbane floods it was great to finish off the year with a very successful Trade Show that has been able to help relieve some of the financial pressures of Christmas.”

Through the company’s 20 year history, members have turned over $6.7 Billion in cashless business transactions using Bartercard’s modern electronic system that is fair and flexible for all types of businesses.

GOLD COAST RETAIL SECTOR GETS A BOOST

Fri, 02 Dec 2011 15:59:00 GMT

Sunday saw Bartercard members as far as Sydney flock to the Gold Coast’s Parklands Showground for the annual Gold Coast Region Christmas Trade Show where just over $1.5 million in transactions took place during the five hour event.

This was boasted as the biggest trade show on the Gold Coast in over six years with by far the best variety of product.

South Gold Coast Trading Manager Renee Drew said "Over 160 stands with everything from children’s toys, clothing and surfboards to high end jewellery and kitchenware.”

There was definitely something for everyone.

Trade show organizer and Gold Coast Trading Manager, Fiona Dixon, was very excited about the family friendly event.

"We had live music, Titans players and a photographer to take pictures, Santa even came down for a visit. It was extremely hot but I’m very happy with the result” she said.

The line up at the doors for the 10am opening was a sign that stall holders were in for a successful day.

Bartercard Founder and South Gold Coast Franchise Principal Andrew Federowsky said. "Our members turned out in masses to snatch up Christmas gifts for family, friends and clients, which allowed them to keep that precious cash flow in their business over the holiday season.”

South Gold Coast’s Events Coordinator Karren Griffiths said "The two Gold Coast franchises are the most powerful in Bartercard Australia and we were able to pull off this massive event but it wouldn’t have been possible without our members and their top quality products and services.”

About Bartercard
Bartercard was founded in 1991 on the Gold Coast, Queensland, and has grown to become the world’s largest barter exchange, with over 40 offices around Australia.
Bartercard assists approximately 20,000 businesses in Australia (55,000 around the world) to barter their goods and services – without the challenge of a direct swap.

How to save $250,000 on your investment

Wed, 05 Oct 2011 00:00:00 GMT

Early in 2010, Mark Antonio was planning a major expansion of his company, DMD Shelving Direct, in the Perth suburb of Bibra Lake but wished to avoid paying wholly in cash.

The solution that Mark found has saved him $250,000 in cash since then.

What Mark had in mind was a large purpose-built facility comprising of four warehouses, a large
showroom and offices which would allow for future growth.

The construction took 12 months and now he and his 26 staff have settled into their new home. A
significant benefit of the project was that Mark avoided a large cash outlay by using Bartercard.

"Bartercard allowed us to fast-track the development”, Mark said. "We were able to purchase more items with a higher value than what our cashflow would have allowed.”

Services and equipment such as the builder’s management fees, carpet, air conditioning, paint supplies, electrical work, an alarm system, the concrete ceiling in the warehouse and epoxy floor finish in the showroom totalling $250,000 in value were all purchased without the use of cash.

As DMD’s Managing Director, Mark confirms that he wants to use Bartercard now for growth of its investment portfolio, be it property or further developments. "It has already helped with our business growth to date and created a cashflow positive situation,” he said.

"The new premises allow us to display to our clients’ different racking, shelving and other storage
systems, even our warehouse is a showroom. We believe that our new facility has already helped to
secure business we might not otherwise have secured previously due to our greater visibility.

"We mainly specialise in industrial warehousing but also offer storage solutions for offices and retail
showrooms. Our approach is to understand our clients’ needs by undertaking a comprehensive onsite assessment which, in turn, will help to streamline their business logistics.”

Mark stated that DMD is different to other warehousing and shelving companies and has kept up to
speed with technology and business strategy. It has maintained a steady annual growth rate of 20% for a number of years.

Larger corporations in the industry, according to Mark, have lost market share during the same period. He believes that one reason for this is that they have become out of touch with their clients, while DMD’s approach is to maintain constant contact which, as a result, builds long term relationships.

DMD has been operating for 16 years and a Bartercard member for 12 years. Mark said that, "Over the years Bartercard has provided us with additional new business contracts that we would not have been involved in. These contracts have enabled us to then purchase goods and services on Bartercard, which has helped our cashflow.

"Why buy a service or goods with cash, when you can purchase it with Bartercard dollars and leave your money in your bank account for other expenses or luxuries?”, Mark asks.

"If you ask me has Bartercard assisting us in growing our business and cashflow, I would have to say definitely yes. Also Bartercard will go and find you the work, thus providing you with hot leads.”

About Bartercard
Bartercard is celebrating 20 years in business this year. It was founded in 1991 on the Gold Coast, Queensland, and has grown to become the world’s largest barter exchange, with more than 40 offices around Australia. Bartercard assists approximately 20,000 businesses in Australia (55,000 around the world) to barter their goods and services – without the challenge of a direct swap.

What does it really cost you using Bartercard?

Thu, 25 Aug 2011 13:43:00 GMT

Trade Dollars are the currency Bartercard members use to trade with. The "Cost of Trade Dollar” is a term used in Bartercard to explain what it actually costs a member (in cash) to make sales in Bartercard (inclusive of Bartercard transaction fees). The "Cost of Trade Dollar” is calculated by considering the replacement cost (cash outlay) of a business’s product or service and the Bartercard fees. These combined equate to the "Cost of Trade Dollar”. (The "Cost of Trade Dollar” only takes into account variable costs, not fixed costs incurred by a business, as the normal cash trading completed by the business covers these.)It stands to reason then, when you spend your Trade Dollars, you’ll receive what’s known as a "Purchasing Discount”. This is the discount members receive when they make a purchase using Bartercard Trade Dollars. When you add the replacement costs plus Bartercard fees and then minus the selling price it leaves you with your "Purchasing Discount”.

Sound good so far? It should do, it’s one of the major benefit of being a Bartercard member! When you go to purchase something in the cash economy, stop and think… would it be more cost effective for me to purchase that product or service on Bartercard? In some cases, you may even be better off buying something that is more expensive from a Bartercard supplier than paying cash! The majority of Bartercard members are small to medium size businesses and, therefore, may not have the buying power of larger multinational companies. As a result, their prices may be higher. But, if you actually consider the "Cost of your Trade Dollar” and the cash outlay to generate one Trade Dollar, you may be better off paying in trade even if the Bartercard suppliers’ rates are slightly higher than that of a multinational cash supplier!

If you need your staff to gain a greater understanding of Bartercard and this concept of trading, why not bring them along to the next networking function run by Bartercard or ask your Trade Co-ordinator to sit down with them the next time they do a service visit to your business? They’ll be more than happy to educate your staff on the ‘how to’s’ of Bartercard.

Is Barter Better

Thu, 25 Aug 2011 13:32:00 GMT

Barter is probably the world’s oldest way of doing business, and while the idea of barter evokes early agrarian economies in which labourers worked for food, the technique is easily visable in today’s economy.

The Australian tax office (ATO) certainly recognises barter, defining it as "the direct exchange of goods and services for other goods or services without reference to money or a money value.”

One example of such a transaction is sponsoring the local footy team by providing them with uniforms. If you enter into such an agreement, you give good in return for exposure of your logo.

Barter also appears in some very high-value situations, such as ‘The United Nations’ "Oil for food” program in Iraq. This program saw Iraq trade US$46 billion in oil for staples including wheat and rice between 1995 and 2003.

Modern barter
While Barter made sense before society had developed money, today it’s a little harder because you have to find someone - whether that’s an individual or a business – who has what you want and wants what you have.

Thanks to modern technology, this is now very simple. A quick internet search reveals that there are a vast number of ‘swap’ sites, where you can exchange everything from your house to your dog walking skills. These sites act as a broker to bring people together who are looking for exchanges. Many of them cost nothing as the websites generate revenue from advertising.

One listings My Business found offered search- engine-optimised writing services, and suggested that work could be exchanged for goods including a "small reliable car, registered”, "French door” and even "a front fence to reduce traffic noise”. The problem with such an exchange, of course, is that without monetary value, both parties have to agree (using the previous example) exactly how much writing a "small reliable car” might reasonably be worth.

These examples are of informal barter, but barter has a commercial face too. More formalised barter or trade exchange systems exist – you join up and use "credit units” (also described as "trade dollars”). For every "sale” you make, you receive trade dollars which you can then spend on purchases. You keep a running account where your sales and purchases are tracked, so the exchange is both broker and banker.

Why bother bartering?
If you’re long on capacity and short on cash, barter can be a simple and effective way to convert your goods or skills into purchasing power. Generally speaking, if your business finds itself with excess capacity or excess inventory, you may also find that your cash flow is decreasing. Barter can be a useful tool for breaking out of this pattern.

To understand how, imagine you are stuck with some obsolete inventory. You could liquidate it for a certain number of cents in the dollar, and probably make a significant loss. Or you could "sell” the inventory through barter exchange for trade credits, perhaps giving you the chance to get close to the book value of the inventory. Although you don’t get cash, you can use the trade credits for many other things your business may need, whether that’s goods, raw materials, advertising or labour.

A less obvious use of barter, but one that Bartercard (see box-out) has been highlighting recently, is staff motivation. That is, using trade credits to reward your staff. You might not have the cash (or wish to spend it on motivational perks), but using barter you can offer rewards like tickets to sporting events or book vouchers.

Don’t barter with the ATO
If you think bartering looks like a way to avoid tax on transactions, think again. Informal bartering in the form of non-commercial transactions doesn’t attract the ATO’s attention, but barter transactions with trade exchanges are treated in the same way as any other transaction. In fact, they are treated almost identically:
• Tax invoices are required for barter transactions, including GST expressed in $AUD;
• ABN obligations apply;
• Records of transactions must be kept for five years from the completion of the transaction.

It’s also worth noting that the ATO considers any trade exchange unit (whether called a ‘credit’, ‘unit’, ‘trade dollar’ or any other name) to be equal to one Australian dollar, unless it can be proven that it’s not.

Could barter ever replace current systems?
During the GFC, when global financial markets were in turmoil, it was inevitable that commentators would ponder the possibility of new or different financial systems. Although a number of banks and financial institutions did go under, and others only survived thanks to bail-outs, a complete collapse was avoided. But could barter rise again?

Probably not. The main reason for the development of money as we know it was the creation of a commonly-agreed measure, so goods and services could be measured against each other. Without such a standard, it can be hard to ascertain how much something is worth compared to something else. There’s also the problem of invisibility. A dozen eggs is not a fair trade for, say, a table, but the party with the table can’t offer just part of it. Barter just isn’t up to the complexity and flexibility that we take for granted in the financial systems of the early 21st century.

It’s therefore hard to imagine a scenario in which barter replaces our current systems. But it does offer a useful adjunct to our financial systems, by giving businesses a way to utilise spare capacity and inventory. Barter is also sustainable; unused goods and capacity are not going to waste.

Bartercard
The most visable promoter of bartering in Australia is Bartercard, which this year celebrates its 20th year operating in Australia.

The longevity means the company is clearly doing something right. It’s not the only barter exchange around, but with over 55,000 trading members in six countries. Bartercard is apparently the world’s largest. Members are from industries including building and construction, media, professional services, retail, manufacturing, hospitality and tourism-whatever you’re looking to spend trade credits on, you’re likely to find it. Members businesses are promoted via Bartercard’s directory (online and printed), as well as at networking functions.

The organisation also offers interest-free credit to new members, which means that you can make purchases as soon as you join, and ‘pay’ for them later as you sell your goods or services.

Bartercard offers businesses the opportunity to trade without cash, but how does it make its money?

Members pay to join, with membership fees varying depending on your business, and then there are monthly account-keeping fees, plus a transaction fee for all purchases and sales. Bartercard itself is a franchise operation, with franchises all over the country. Entry level franchises come for as little as $80,000 cash plus $30,000 trade for a franchise with 120 members in the Riverina region.

Author: Tiffany Hutton

Barter for Kids

Sat, 06 Aug 2011 00:00:00 GMT

Ian Furze, franchisee of Bartercard Central Victoria, has been running a "Barter for the Kids” promotion on the local radio station, 3BOFM, to help raise money for the Children’s Special Care unit of the Bendigo Hospital, through Give Me Five for Kids.

The promotion commenced with listeners offering their goods and/or services in exchange for the current item, which kept increasing the overall value.

The first item was a pair of green socks worth $4, which was bartered for an hour of computer servicing. That in turn was exchanged for Gillies pies and sausage rolls. Over the weeks of the promotion, the goods being traded have included a mountain bike, beauty pack, water tank, accommodation in Thailand, a Nintendo WII, Mary Kay cosmetics, AFL Memorabilia and Fitness Centre memberships.
"The reason that the value grew is because we were using the margins within each item to provide the receiver with an item of similar or greater value than the item they offered”, Ian said.

"For example, to buy 2 dozen Gillies Pies and sausage rolls from the shops would cost approx $70-$80, but to make them would cost much less. So Gillies received the IT service at their wholesale cost instead of the retail charge rate, had they paid cash.

"Towards the end, we were able to barter for 3 Fitness Centre memberships which were bartered again separately for 3 different items.”

The final items to be auctioned were a large framed Collingwood memorabilia item worth $750, a brand new set of Golf Clubs worth $800 and a holiday in Fiji worth $800, with all proceeds going directly to Give Me Five for Kids.

"No donations were made. Everyone has received an item of similar or greater value in return. It’s a
win/win. In the end, we have increased the value of the items, at no cost to any participant, from $4 to $2300,” Ian said.

About Bartercard
Bartercard is celebrating 20 years in business this year. It was founded in 1991 on the Gold Coast, Queensland, and has grown to become the world’s largest barter exchange, with more than 40 offices around Australia. Bartercard assists approximately 20,000 businesses in Australia (55,000 around the world) to barter their goods and services – without the challenge of a direct swap.

Bartercard: 20 years old, thanks to its people

Thu, 28 Jul 2011 14:48:00 GMT

Most companies making it to their 20th birthday can claim superior products or services as the keys to their success. While Bartercard’s services are the main reason it has become Australia’s biggest barter company, the stability and longevity of its work force has been equally important in its success.

In a market characterised by high staff turnover and declining job loyalty, Bartercard has broken the modern mould with an average term of employment of more than 5.5 years in the head office. Having opened its doors in 1991, many of Bartercard’s 270 staff have been with the company for 10 to 20 years.

Bartercard runs an innovative barter exchange through which its 20,000 business members can barter their goods and services for the goods and services of other members. Membership also includes an EFTPOS-linked Bartercard transaction card, an interest free line of credit and Bartercard online auctions where members can sell excess inventory.

The company has been an innovator since it started 20 years ago with a policy of rewarding those who stick by the company, with upskilling, education, training and provision of career opportunities.

"Bartercard is a sales and marketing company that must remain as dynamic as the small business environment in which it operates,” says Bartercard Managing Director and co-founder, Brian Hall. "We need good people to make that happen, so the goal has always been to find and develop the best people, and then encourage them to stay.”

The Bartercard vision is to be a world class Leader in people development through its innovative STEAM initiative, which stands for Support, Train, Encourage, Appreciate and Motivate. Exit Surveys conducted by Bartercard show almost 100 per cent of leaving employees would consider working for Bartercard again.

"It isn’t enough to have a HR mission statement,” says Hall. "If you’re serious about developing human potential, you must establish an environment where gaining extra education and skills is part of the job description. That develops loyalty too – people feel they are part of the journey.”

An initiative that is currently being rolled out to all Bartercard franchisees is called "30,000 by 2015”. This is a campaign to increase membership by 10,000 in the next four years. This expected acceleration in growth is underpinned by a strong history and a bright vision for the future shared by the staff and senior management.

Justine Hayek has been at Bartercard for 15 years in total. She started as an employee before having a family and starting a family business. Justine returned to Bartercard with a new found knowledge of running a small business. She quickly progressed her career to National Administration Manager and is now the National Franchise Manager.

"Bartercard is a dynamic organisation”, Justine says. "Thanks to its growth and constant evolution, there is always something different with new developments and initiatives. numerous opportunities, both personal and professional, have certainly come my way.

"I have been to Anthony Robbins twice, active leadership programs and 10 high level business courses. Not to mention a massive amount of travel all around Australia.

"Because members have to be in business, you are exposed to a huge realm of business types. There is engagement in servicing and marketing businesses in every industry. You also gain an excellent understanding of the challenges in small business.”

Steve Quinn also has been on staff for 15 years. He started in the credit area and is now the Research and Compliance Manager for Bartercard Australia. Steve is currently studying for his executive MBA at Bond University and Bartercard is paying half his fees and allows him time off to attend classes. Bartercard supports tertiary education by partnering with Bond University in providing six half scholarships annually.

"What I like about Bartercard is the stimulation it provides due to the variety of tasks, roles and opportunities”, Steve says. "I am a mixed bag – I am involved in multiple areas including working with franchising, debt collection, assisting corporate counsel and assisting with processing members’ credit applications.

"Bartercard is more than a supportive employer, it has a caring culture – both the staff and franchisees are a tight-knit family as compared to businesses that do not place the same value in maintaining relationships. It supports an environment which fosters lateral thinking and there is real comradeship in the relationships you develop.”

Bartercard was founded in 1991 on the Gold Coast, Queensland, and has grown to become the world’s largest barter exchange, with over 40 offices around Australia. Bartercard assists approximately 20,000 businesses in Australia (55,000 around the world) to barter their goods and services – without the challenge of a direct swap.

Titans score with Bartercard

Thu, 28 Jul 2011 14:30:00 GMT

Gold Coast Titans’ Managing Director Michael Searle first came across barter finance as apractising accountant in the mid 1990s. Even then he had an open mind, noting that it provided opportunities for his clients.

He admits that barter as an alternative finance network has come a long way since and that it entered his day-to-day activities when Bartercard signed on as a Gold Titans’ sponsor in 2007.

"We use Bartercard extensively”, Michael said. "The Gold Coast is a unique market with many small businesses. We treat Trade Dollars as currency in dealing with this market. It is quite easy to encourage its use. We accumulated Trade Dollars for the first couple of years but since then they have become a resource and a tool. ”

The Titans have specifically used Bartercard to manage their cashflow. At the rugby league club’s Titanium Bar in Surfers Paradise, a refit including electrical services and lighting has been paid for with Bartercard. Plant and equipment, painting and paper supplies have been bartered as well.

There has been an ongoing upgrade at the bar for the past 14 months. Printing of fliers and advertising for marketing purposes have also been bartered.

Bartercard has been used even for entertainers such as comedians and bands. When a venue manager who knew of Bartercard joined the Titanium Bar, he broadened the familiarity with the alternative finance network inside management and has used it actively.

"The use of the account has been expanded significantly since we first commenced the sponsorship arrangement as our understanding of what can be utilised on Bartercard has grown”, Michael said.

A Centre of Excellence commercial building was opened by the Titans six months ago. It was built at a cost of $30 million and Bartercard was - and still is - used for items such as painting, tiling, chemicals and maintenance.

"Some organisations in hospitality with which we deal have had cashflow problems and the Bartercard account has come in handy”, Michael said.

The Titans also have been creative in leveraging Bartercard for staff incentives. In 2009, a staff retreat was organised in Queenstown on the south island of New Zealand. About 60 staff and partners attended the retreat. Bartercard was used to pay for conference dinners and other activities such as white water rafting.

"Businesses are diverse these days and looking at alternative non-cash solutions, especially in slow economic growth cycles”, Michael said. "Downturns in demand for tradespeople have shown the potential of Bartercard, as they seek the creative generation of revenue. It has become a leveraging tool to secure our work with the building industry.”

Bartercard will be celebrating 20 years in business this year. Bartercard was founded in 1991 on the Gold Coast, Queensland, and has grown to become the world’s largest barter exchange, with over 40 offices around Australia. Bartercard assists approximately 20,000 businesses in Australia (55,000 around the world) to barter their goods and services – without the challenge of a direct swap.

Accountants recommend Bartercard for revenue growth

Thu, 28 Jul 2011 00:00:00 GMT

Senior accountants in Sydney and Melbourne have recommended Bartercard for companies with high labour or fixed costs as a means to increasing revenue in supplying goods and services at a small marginal cost.

With 318 accountants in the Bartercard network around Australia, many of these not only use barter for their own purposes but also share with their clients the value of joining up as members and having access to an alternative finance system.

Howard Pelquest-Hunt, a Chartered Accountant who owns the firm Business-2-Business in Sydney, has several member clients who operate in Bartercard and has seen a significant boost to revenue through his firm’s membership.

"I think of Bartercard as extra revenue in a different currency”, Howard says. "For example, you can buy and sell in say South African Rand, but the restriction is that you can trade only with South Africans.

"The Bartercard organisation acts as the bank at a conversion rate of 1:1, with income tax and GST payable as normal to the ATO. Bartercard maintains its own liquidity reserve, and monitors its members for potential inflation and uncommercial trading.”

At its simplest level, Bartercard members earn revenue via marketing and selling to members within the network. This revenue is then spent back within the Bartercard system on businessor personal related expenses.

On another level, Bartercard offers an interest free line of credit which is readily available to all clients. Property developers, in particular, use the interest free line of credit to fund building projects and have the ability to sell their units in the cash economy and also within the Bartercard economy with a trade dollar portion.

"Post-GFC, Bartercard has enabled developments to commence when regular bank finance was unobtainable”, Howard says. "By selling property to members, with a keen finance package,members then have the incentive to sell their services, and pay off their barter loan. It’s a neat system, which generates extra revenue and links entrepreneurial members to trade further.”

Although it is sometimes difficult to find suppliers of hard goods, Howard has enjoyed benefits he would not have achieved in a regular business: ski and family holidays in Australia, NZ and Bali, accommodation, car hire and events in the Middle East and UK, flying lessons, property purchases, marketing and web services, domestic repairs, phone and office supplies, lawyers, valuers and auditors, health and massage, wineries, restaurants, seminars and sports events.

"Bartercard works best for members with high labour or fixed costs, as the marginal cost of supplying the goods is small”, Howard says. "It is also of benefit where the goods can be bought on trade, and then sold to both trade and cash customers, for instance wine purchases sold into a full restaurant.”

This is where Howard’s expertise helps his clients to use the system effectively. When earned in moderation, Bartercard can boost revenue, which many businesses are seeking.

When the Melbourne accounting practice Pendlebury’s recently moved premises, it made good use of Bartercard by paying for items such as removal costs and cabling with Trade Dollars.

Phillip McGinnes, chairman of Pendlebury’s, recalls that the firm became a member 16 years ago – the reason being that one of his friends held the first Melbourne franchise.

He believes that Bartercard has an upside for any business, taking advantage of a closed buying group and transactions which allow the translation of current expenditure into Trade Dollars and the substitution of cash expenses.

Pendlebury’s generates its Trade Dollars by selling services such as account keeping into the network. One of the more unusual purchases on Bartercard for Phillip was a property at Portland for his superannuation fund.

When asked how widely the firm has used Bartercard, he exclaims, "Let me count the ways! We have utilised it for office supplies, travel, accommodation, car rentals and repairs, office cleaning, security and much more.”

Its chief advantage, according to Phillip, stems from the marginal cost of supplying a service which in all kinds of circumstances is virtually nothing for many businesses. He gives the example of a restaurant which has committed expenditure every time it opens its doors and can utilise it better with Bartercard.

Another key benefit is how additional accounting work is sourced through the Bartercard franchisees. Phillip admits that it is work that the firm would not normally attract, being outside the usual catchment of customers.

Pendlebury’s has used Bartercard extensively in its marketing. Credit applications and recourse to a marketing agency have been paid for with Trade Dollars, along with work on the web site, hard print media and function venues when running seminars.

Phillip advises any accountant to seriously consider Bartercard. He points to the low marginal cost of using excess capacity, and ability to substitute cash for Trade. A sales boost is sourced by others in the network and it helps to fund existing expenditure.

"Bartercard is a great system”, he says. "Its use, though, is dependent on the cost structure of a business. I have heard of companies not knowing what to dowith their Trade Dollars but really there is a multitude of ways of spending them.”

Sydney practice Scahill & Co Accountants director Phil Scahill, as a Bartercard member for more than a decade, has been converting his company’s excess capacity into Trade Dollars and deriving additional income outside his business.

"We joined Bartercard as an opportunity to soak up the extra capacity I had in the firm at the time,” Phil says.

"We found that as we started to pay for our business expenses with our excess capacity (using Trade Dollars), additional cash flow became available to invest into the growth of our business and any other unscheduled expenditure.”

Bartercard is celebrating 20 years in business this year. Founded in 1991 on the Gold Coast, Queensland, it has grown to become the world’s largest barter exchange, with over 40 offices around Australia. Bartercard assists approximately 20,000 businesses in Australia (55,000 around the world) to barter their goods and services without the challenge of a direct swap.

CLICK HERE to hear from Bartercard Members>>

Bartercard – the cash flow-friendly deposit

Thu, 28 Jul 2011 00:00:00 GMT

As smaller real estate agencies close along Australia’s east coast, one agency has held firm in the face of falling house constructions and poor mortgage borrowing figures: Barter Realty.

The division of Bartercard is enjoying steady trading despite the flat real estate market because in any deal done through Barter Realty, at least 25 per cent of the purchase is done with ‘Trade Dollars’ – Bartercard’s currency when its members trade goods and services.

In the tough post-GFC climate, small business owners who belong to Bartercard can buy property without having to fund the deposit with cash.

"Bartercard members are from many industries including accountants, solicitors, restaurants,printers, manufacturers and tradies, to name a few,” says Brian Hall, Managing Director of Bartercard Australia. "They build their Trade Dollar accounts and then they can use those dollars as the deposit component of a property purchase. Most business owners use Bartercard to increase sales, boost cash profits, improve their lifestyle and build wealth, and purchasing property with Trade Dollars is a prime example of that.”

Barter Realty is registered with Queensland Fair Trading and the REIQ as a real estate agency and lists properties on its own web site – not unlike the major real estate web sites. The agency only accepts properties with accurate valuations meaning many purchases are completed sight- unseen.

Bartercard also manages "Bartercard Property” which enables builders, developers and owners to sell their properties directly to other members also with the Trade Dollar component of at least 25%.

When a business owner joins Bartercard, they have an account in which their Trade Dollars build – credits for the units of value they perform in goods or services. Members carry a Bartercard which looks like a credit card and it can be used on normal EFTPOS machines at other members’ businesses. Bartercard also extends interest-free lines of credit to approved members, a facility that’s often used for completing property purchases.

In the past five years Barter Realty has turned over $30 million in property sales and $31 million in direct member to member sales through the Bartercard network. Some property vendors even join Bartercard to be able to list their property on the Barter Realty and Bartercard Property sites.

Click here to learn more about Bartercard

Panthers save plenty with Bartercard

Thu, 28 Jul 2011 00:00:00 GMT

Cash is tight across the major rugby league clubs at present, and the Penrith District Rugby League Football Club (known as the "Panthers”) has found that its burgeoning hook-up with Bartercard is producing substantial financial results.

Since 2008, Bartercard has been a sponsor of the Panthers, and in turn the Panthers have become a member of Bartercard. Scott Hudson, Corporate Partnerships Executive for the Panthers, recalls that they made the first move by approaching Bartercard for sponsorship.

The Panthers generate Trade Dollars in lieu of cash by selling available inventory such as signage and hospitality to Bartercard members. The club then has spent Trade Dollars on a wide range of items from an annual corporate harbour cruise to branded golf balls.

"Bartercard has added value to our club by bringing business to our corporate hospitality,” Scott said. "We allocate one corporate box per game for Bartercard members. This fills an unoccupied box and brings more people to the game.

"Thanks to Bartercard, we’ve been able to promote our home games creatively as well as build a fun atmosphere on game day. We purchased outdoor media on trade including display balloons to go on roof tops in the local area, inflatable branded balls to use in half-time entertainment, and Panther branded tall men which are positioned on the side of the field and inflate when we score.”

Scott believes one advantage of Bartercard has been that it has introduced new business to the Panthers, granting the opportunity to develop relationships with other members.

"The biggest benefit we receive from being a member of Bartercard and obtaining sponsorships through Bartercard is having access to such a large network to grow our own corporate network,” he said.

The ability to use Trade Dollars instead of cash in purchases has been a major attraction for the Panthers.

"Whenever we host away trips for our sponsors, we always check to see if we can get accommodation, bus hire, cafes and restaurants on Bartercard,” Scott said. "This exercise always saves us valuable cash for the club.”

For any company considering the idea of joining Bartercard, Scott highly recommends it whileemphasising the need to "get creative” in using the alternative finance system.

Bartercard is celebrating 20 years in business this year.It was founded in 1991 on the Gold Coast, Queensland, and has grown to become the world’s largest barter exchange, with more than 40 offices around Australia. Bartercard assists approximately 20,000 businesses in Australia (55,000 around the world) to barter their goods and services – without the challenge of a direct swap.

Glimmer of hope for coast restaurants

Fri, 06 May 2011 00:00:00 GMT

Gold Coast restaurants have been hit very hard in the past few months, we’ve seen many local favorites close their doors; some blame the Global Financial Crisis while others believe that the popularity of Masterchef has inspired people to cook at home more often.

Whatever the reason, it seems for the many restaurants doing it tough and that there may be no end in sight.

However, Broadbeach Restaurateur Andrew McElhone who owns the multi award winning venues; Yellowfin Seafood Restaurant, 1 two 3 Mediterranean Dining & Lounge Bar, and Sage Restaurant has found that through Bartercard he has been able to offset some of his cash expenses and get more customers through the door.

He stated "It is always good to have a busy looking restaurant; customers and potential customers always deem this to indicate quality and value. So Bartercard is perfect for both slower and semi busy times; with bums on seats passerbys make a mental note that they must dine there then and there or at a later time.”

Mr. McElhone continued "To counter this [the quiet months this year] I have picked up the volume of my Bartercard sales and spent a little more time on ensuring I get lots of good business expenses on Bartercard. This extra effort has seen my sales return to normal in a short time and I have spent my Barter dollars just as quickly as I have received them, so Bartercard has been a massive help during these quieter months. "

Mr. McElhone has been a Bartercard member for about 6 years and in his experience he has used his Bartercard to offset both business and personal expenses "probably 90% of my spend is on business expenses and 10% on personal.

He boasts having great holidays, and many personal lifestyle improvements thanks to his extra barter business as well as business expenses like painting, pest control, upholstery cleaning, graphic design and printing, photography, equipment hire, staff entertainment, framing, he has even been able to buy over $1 million of wine to supply his restaurants.

He believes in his time as a Bartercard Member he has saved approximately $900,000 in cash.
Using Bartercard to his advantage as well as utilizing the internet and social media to promote his businesses has seemingly helped Mr. McElhone cope in this trying time.

The Sage Restaurant has won the 2010 National I Love Food Award for Favourite Family Restaurant while 1two3 Mediterranean has won Australia’s Favourite ‘Flavours of the World’.
Sage and Yellowfin Seafood Restaurants are open at 12pm daily while 1two3 Mediterranean is open daily from 7am. For more information on each restaurant find them on the web or Facebook or download the 1two3 Mediterranean iPhone application.

For more information on how Bartercard can benefit your business, please contact Bartercard today on 1300 BARTER (1300 227 837) or visit www.bartercard.com.au.

About Bartercard
Bartercard was founded in 1991 on the Gold Coast, Queensland, and has grown to become the world’s largest barter exchange, with over 40 offices around Australia.

Bartercard assists approximately 20,000 businesses in Australia (55,000 around the world) to barter their goods and services – without the challenge of a direct swap.

Although the concept of barter is thousands of years old, bartering through Bartercard is an innovative way of combining modern technology, a network of businesses and direct and indirect marketing channels to increase a business’ customer base, sales and profit, and improve cash flow.

Celebrations in Sydney as Bartercard turns 20

Tue, 12 Apr 2011 00:00:00 GMT

Bartercard brings its 20th anniversary celebrations to Sydney this Wednesday (April 13) with a luxury night cruise around the Harbour for 320 local businesses that are Bartercard members.

Now the world’s largest barter exchange, it boasts approximately 20,000 businesses as members in Australia alone and operates around the world. Bartercard has accounted for more than $25 billion in barter transactions over the past two decades.

It has come a long way since 1991 when three Gold Coast business partners launchedan audacious concept by creating a central exchange for bartering.

Although barter is the oldest form of commerce, in a sophisticated economy it is unrealistic to expect a café owner to barter directly with a plumber, or an accountant to swap goods and services with a book retailer.

The invention of Bartercard 20 years ago resolved that problem by establishing an electronic clearing house for members and creating ‘Trade Dollars’ as the currency for barter inside the system. So member businesses could ‘sell’ their own goods and services into the system, and convert them to trade dollars, with which they could ‘buy’goods and services from another member business.

This eased cash flow difficulties for thousands of small businesses.

A founding Sydney member of Bartercard is Andrew McGuire, director of domestic and commercial electrical contractor Orange Electrical. He remembers joining because his neighbour was the Parramatta franchisee and asked him if he was interested.

Andrew has stayed in Bartercard for 20 years because he saw it as a "good system” and he has built relationships with customers who have members for a long time as well. Purposes he has used Bartercard for over the years have included printing, design and even a South Pacific cruise.

The cruise on Wednesday night will be shorter but full of entertainment with a magic show and presentations. Executives including Bartercard Australian managing director and founder Brian Hall will be in attendance.

CLICK HERE to hear from Bartercard members>>

Q400: Bartercard celebrates 20 years

Tue, 29 Mar 2011 10:19:22 GMT

The Gold Coast business which modernised the ‘barter’ concept is this year celebrating its 20th birthday as it continues to grow its footprint across the globe.

Bartercard Australia Managing Director Brian Hall says the company is not only increasing its network, but pushing for a greater presence in the corporate sector and rolling out education-based websites for various industries.

Hall says part of the business’ strategy going forward includes an online ‘business centre’ which will provide information to firms in the sporting and hospitality sectors.

"Development has just started, but we’re going to be defining it [our websites] more on an industry basis,” he says of Bartercardsports.com.au, which is expected to be rolled-out in the next couple of months.

Bartercard – ranked 86 in QBR’s 2010 Queensland 400 – is also making its mark in the corporate sector and developing its brand through sports sponsorships.

It has recently teamed with the Queensland Reds rugby team in addition to its existing ties with the Gold Coast Titans.

"We’ve taken on a fairly major position and we’re well-branded, including on-field signage,” Hall says of the Reds’ partnership.

Despite being mildly affected by the GFC, Bartercard is on track to reaching a goal of 30,000 business members in Australia by 2015.

"We’ve put that challenge to our franchises … and we believe it’s very achievable,” Hall says.

FORWARD THINKING
Bartercard was originally founded on the Gold Coast in 1991 as the brainchild of three business partners – Brian Hall, Wayne Sharpe and Andrew Federowsky.

It resolved the problems associated with direct bartering by establishing an electronic clearing house for members and creating ‘trade dollars’ as a currency.

"There was another smaller exchange operating here and we looked at the concept and researched some of the US-based concepts as well – because that’s where it’s originated from,” Hall says of Bartercard’s early days.

"We decided that we could put together a model that could rapidly develop through franchising.

"We developed a franchise-based model where we developed systems, processes, manuals etc so that we could duplicate it across the country in a fairly quick and efficient manner.”

This approach certainly paid off – Bartercard now boasts a network of 20,000 businesses in Australia, 6,500 in New Zealand and 55,000 worldwide.

Since its modest beginnings it has become the first barter exchange in Malaysia, Sri Lanka, Thailand and the Middle East.

While there were other trade exchanges operating in the early ‘90s, Hall says these were predominantly located in the US and were very localised and small.

"There was no one operating on a global scale,” he says.

Due to Australia’s large distances and a lack of upfront capital, the founders decided to adopt a franchise system, which quickly took off.

Today, Bartercard has grown to become the world’s largest barter exchange, with 40 franchises across Australia and trading over $8 billion worth of goods since inception.

BARTERCARD 101
Not to be confused with ‘haggling’, bartering is essentially the exchange or trade of goods and services, according to Hall.

He says Bartercard has modernised this base concept by replacing money as a medium of exchange.

Hall uses the example of a restaurant and a printing company when explaining the simple Bartercard premise.

While a direct, one-on-one barter would see the restaurant offer meals in exchange for $10,000 worth of printing, this could prove problematic.

Challenges would no doubt be faced in firstly finding a business to deal with, then timing, pricing and accountability.

"These are all things that make trading inflexible,” Hall says.

"With Bartercard, we have developed a business model which overcomes those and makes it much more flexible and secure.

"We’ve overcome those traditional problems that lacked with the direct barter system.”

Identified as a way for businesses to boost sales and customers, Bartercard involves a debit-credit system; similar to bank transactions.

"We use transactional-based ‘barter cards’ which are Eftpos-enabled,” Hall says.

"We’re one of the first companies in the world to have non-bank transactions go through an Eftpos terminal.”

Going back to Hall’s original example, the restaurant could pay the printer 10,000 trade dollars, which is equal to $10,000 Australian dollars.

The printer would receive 10,000 trade dollars, credited to his account, and the restaurant would be debited 10,000 on his account.

"The printer doesn’t have to buy from the restaurant; he can now go and buy from any other business in any denomination locally, nationally and internationally,” Hall says.

"On the other side, the restaurant makes itself open to other Bartercard members to come and spend trade. So the restaurant is paying off its printing bill with meals.”

THE BENEFITS OF BARTER
The real advantage of bartering, in Hall’s view, is that when a business is trading its goods for other people’s goods, it is only at its marginal cost.

Helping to ease the cash-flow problems of small businesses, he says Bartercard is considered a unique selling point and can even help to generate more business.

"We’ve created a modern, electronic bartering system,” he says.

When businesses sign up, they are given access to a computerised ‘Barter’ account and supplied with a card which can be used to pay for products or services over the phone, computer or Eftpos.

Bartercard also has an online directory which acts as an e-marketplace, where people can list goods to buy on an auction site.

"It’s a vehicle where people can trade virtually anything they want,” Hall says.

Going back to the restaurant/printer scenario, he says if a restaurant had to make a decision to buy from a printer he can go pay $10,000 cash or 10,000 trade dollars in meals, which may translate to a physical value of only $3,500.

Given the choice, he says a business would select the Bartercard option.

"They have a competitive advantage. They can maintain their margins because the effective buying discount is built in when trading the products.”

SURVIVAL OF THE FITTEST
Throughout the history of Bartercard there have been around 20 different rival exchanges – but not all of them have stood the test of time.

Hall says the competition Bartercard has faced over the years have been much smaller in size, and admits only a couple of them survived.

"We don’t worry about them too much. Our biggest challenge is just educating the business market and the general business public of what we do,” he says.

Although Bartercard faced its fair share of licensing issues when expanding in Australia and breaking into international markets, it now has a well-established network and is anticipating further development.

Hall says the business has set a growth target to have 30,000 businesses in Australia as active users by 2015.

He says this will involve a focused work effort from franchisees, and good introductions from members.

Bartercard is also looking to increase its presence in the corporate sector, which will no doubt open up new doors for the business.

"Trade exchanges work for small, micro-businesses and it also works for corporate businesses as well,” Hall says.

"Like anything, we’ve had to build a foundation of smaller businesses because ultimately the corporate still feed off smaller businesses, but the corporate can also feed down to smaller businesses.”

Part of this involves confidence and contacts, according to Hall.

He says Bartercard has existing relationships with business networks in Sydney, but is hoping to ramp these up in the near future.

"Corporate trading has access to a lot of different types of products,” he says.

BIRTHDAY CELEBRATIONS
This year celebrating 20 years at the top of its game, Hall says Bartercard has lots of exciting events planned for the coming months.

"We’ve already had our first staff event, where we invited a number of people from the past and present,” he says.

Bartercard is also planning a series of member functions from April through to October, and will invite its pioneering members as guests of honour.

"Our plan is to have special functions inviting the foundation members and top trading members,” Hall says of the Australia-wide events.

Bartercard has 63 foundation members, which account for $35 million of trading since the exchange’s inception.

While looking back and celebrating this important milestone is proving a constructive exercise for the business, Hall also has his eyes set firmly on the future.

"We’re looking for a big improvement this year,” he says.

"I think the last 12 months, with the GFC and recent floods, have had some effect on our businesses.”

He describes the market as a two-speed economy, where the mining industry is surpassing the rest.

"Because we’re covering all sectors it has had an effect on some of the trading, but we see the confidence building and we anticipate some growth this year,” he says.

CLICKING ONTO SUCCESS
Within the next few months, Bartercard will be rolling-out the first of many industry-based websites to further educate members.

The first portal, Bartercardsports.com.au, will focus on how the barter system can benefit sporting clubs and will include information on gaining sponsorships, leveraging-up sponsors and untapping club potential.

It will also include testimonials from the Titans, and provide free advice to mum and dad-run clubs.

"That’s just one industry; then we’re going to do the same for the hospitality industry and the same for professionals,” Hall says.

He says development is already underway, and hopes Bartercardsports.com.au will be up and running by mid to late-May.

Bartercard caters for a range of industries, including: hospitality, building and construction, health and beauty, and retail.

While no one in particular is overly weighted, Hall says the system seems to work particularly well for restaurants and hotels.

"Everyday tradesman and professionals also have the capacity [to use Bartercard],” he says.

ONWARDS AND UPWARDS
Working your way to the top does not come easy – it takes passion, focus and a lot of hard work, according to Hall.

"In the early days we worked seven days a week and often worked until 11 at night,” he says. "You’ve got to get the job done.”

While it pays to take chances, Hall says it is equally important to plan and measure what you are doing.

"You also have to have a work environment which is fun and where people want to learn and develop,” he says.

When it comes to Bartercard, the proof is in the numbers.

"Since our inception we’re probably traded over $8 billion worth since our early days – so the system does work well,” Hall says.

Having grown from strength to strength over the past 20 years, the question remains; where is the business headed for the next 20?

"We feel technology will be a driver,” Hall says.

"We’re working on phone apps to make it much more easily accessible to the information.”

While transactional technology will play an important role in Bartercard’s evolving future, Hall says relationships will always be an important factor.

"You will still have a relationship because that’s one of the strong things of the networking and education – we feel that will be a personal touch,” he says.

By Jayne Munday. Published in QBR Online publication 25 March, 2011.