Barter is Smarter

The Gold Coast business which modernized 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.

Bartercard 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 union 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 global financial crisis (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.

"We've overcome those traditional problems that lacked with the direct barter system,"

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 [United States]-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 & efficient manner."

This approach certainly paid off – Bartercard now boasts a network of 20,000 businesses in Australia, 6,500 in New Zealand and 35,000 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 localized and small. "There was no one operating on a global scale," he says. Due to Australia's large distances and 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.

BIRTHDAY CELEBRATIONS

Celebrating 20 years at the top of its game this year, Hall says Bartercard has lots of exciting events planned. "We've already had our first staff event, where we invited a number of people from the past and present," he says.

Bartercard also held a series of member functions from April through to October, where it invited 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 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.

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

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've 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 over the next 20?

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

"We're working on phone apps to make it 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 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.

23 December 2011