in the news
Daily Mail: Swap Show Britain
By Tom Rawstorne: Thursday, November 19, 2009
The perfect smile does not come Globally, Bartercard has 75,000 'To do it, you have to find someone
cheap. But equally, as Yvonne Hill's members, 4,000 of them in Britain. Every who can exactly match what you want
impressive dentistry demonstrates, month, 100 more Britons sign up. with an equal amount of product or
it doesn't necessarily have to leave a Harnessing credit card technology, services that they want - and at exactly
gaping hole in your bank balance. Bartercard allows a community of the same time.'
barterers to exchange products and
Rather than dip into her savings, the Sounds good. So what's the catch?
services internationally. But rather than
59-year-old mother-of-four covered the The fact that there is an additional cost
having to match up two businesses
cost of her £17,000, state-of-the-art involved, for one. Businesses wanting to
which both want something of equal
'mouth job' by turning to something as join must pay a one-off fee of up to
value from the other, the Bartercard
old as the hills. Bartering. Nor did it stop £1,500, depending on the size of the
system occupies the middle ground.
there. Yvonne has also traded nights at business. Then there is a monthly
the Cornish boutique hotel she runs for How it works is best explained by way administration fee of £20, plus a fee on
hair cuts, clothes, a surfboard, a bicycle, of an example. Just imagine a plumber each transaction. This represents a
and even a holiday in the Caribbean. who needs his accounts doing. Being a cash payment of 5.5 per cent of the
member of Bartercard, he goes online to transaction's value from both parties
Stephen Doughty, a South-West
check the list of subscribers and finds an involved, plus 1per cent of the
London baker, can trump that. He's
accountant who is also a member. The transaction's worth in trade pounds.
just used the power of barter to put
accountant will do the work for 600
down a £30,000 deposit on a villa in These fees provide the vast majority of
trade pounds - one trade pound being
Cyprus. Again, instead of having to Bartercard's income. Given the cost,
equal to £1, and the cost of the work
empty out his current account, he's wouldn't it make more sense for the
reflecting the accountant's normal
managed to do it with buns and plumber simply to ring his local
charges. The work is completed and
baguettes. accountant and pay the £600 in cash
the plumber's Bartercard account is
and be done with the additional fees?
Then there's Heather Bird-Tchenguiz,
debited by 600 trade pounds, while the
'Let us assume that the plumber is in a
the 38-year-old proprietor of one of
accountant's is credited by the same
position where he is a little tight for cash,
London's most exclusive health and
amount. Those pounds are the
which pretty much everyone is at the
beauty salons. She's been bartering
accountant's to use as he wants: he
moment,' says Mr Sharpe.
massages, Botox, facials and even
does not have to reciprocate his
colonic irrigation for years. Heather first
business with the plumber. He can go 'Obviously, anything he can do to
came across bartering in her native
on to the directory of subscribers and preserve cash is to his advantage. So he
America.
find some other service he needs - say a has a choice of writing a cheque for
courier service or website designer. The £600 for his accountancy fees, which
But while that involved companies
plumber, meanwhile, will have to pay off may be his net profit for the month, or of
coming together to swap their products
his £600 at some point by doing £600 paying for it with £600 worth of
face-to-face, the bartering system
worth of work for another member or plumbing services in the future. 'The
Heather, Stephen and Yvonne belong to
members, who will, in turn, pay him. It is latter option is a big advantage to him.'
is considerably more sophisticated.
the network he owes the money to, not ...continued
Called Bartercard, it was launched in
the accountant.
Australia in 1991, coinciding with the
start of the last serious recession. Now,
This, explains Wayne Sharpe, the To read the full story please visit
almost 20 years on, it is fast becoming
company's founder and chief executive, www.dailymail.co.uk/news/article-
big business here as British companies
is crucial. 'It is very difficult to do a direct 1229101/Swap-shop-Britain-How-
look for new ways to survive the hostile
barter between two parties,' he says. afford-lifestyle-dreams-
economic climate.
bartering.html
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