Barter battle billows

Written on the 6 July 2009

TRADE exchange company BBX has opened 11 new franchises across the country with the Gold Coast a prime target.

BBX, the membership-based, cashless trading exchange, has been taken up by more than 6000 businesses in Australia and New Zealand and is targeting the Gold Coast – the home to trade exchange Bartercard.

BBX chief executive Michael Touma, says the BBX network continues to grow despite the economic downturn. The company recently opened a new office at Hope Island and another at Logan.

“The reason for this is that people are discovering that barter is by far the best medium to fight a recession where cash dries up, sales drop and dead stock and inventory becomes harder to liquidate which can create huge losses,” says Touma.
“There are only two of us left in the market and we’re both after the same market place. But we’re sticking to our standard plan and will continue to do what we do best in the areas of hospitality and tourism.”


RIval Bartercard, under the re-appointment of managing director Brian Hall (1999-2001) is banking on cash flow and credit restraints to increase growth in the new FY.
Property has emerged as a new player as evaluations are hammered and profits downsized.

If BBX is making an audacious bid to leverage its share of the market, Hall and his team are not too concerned.

“We don’t worry about how competitors are going. Anyone can open an office at the end of the day. BBX has opened and closed on the Gold Coast multiple times,” says Hall, who has replaced Trevor Dietz in the Bartercard hot seat.

“We have not felt any glitches and it’s okay to make statements but show us what the results are.”

Opened nine years ago, BBX’s first Gold Coast office is one of its busiest. It equates to more than 50 per cent of BBX trading on the Gold Coast within the hospitality industry. Members include the Q1 Resort and Chevron Renaissance.

Touma says BBX opens up a new international market for Gold Coast businesses, especially those within the hospitality and tourism industries.

The exchange is working with the Reserve Bank of China to re-commence trading with its 300,000 members after selling its master franchise to the Chinese-owned Jimoa. Franchises have also been established in India and Costa Rica, with other international franchises under negotiation.Bartercard meanwhile has around 20,000 members Australia wide with 45 offices.

Hall meanwhile is one third of the Bartercard triumvirate consisting Trevor Dietz and chairman Murray d’Almeida. He remains confident the franchise model he founded can continue to thrive amid new competition. The shareholder group famously displayed tenacity during the company’s $25.5 million MBO in 2007.

“The Bartercard business model is also highly attractive to businesses in the current economic environment where cash flow is a major challenge for businesses as well as banks reluctance to extend credit,” says Hall.

“Everything is staring to turn around and we have recorded good sales in the last month. We have hung in there and now we are starting to climb again.”


Latest News

CROMWELL TRADES STEADILY IN FIRST HALF

CROMWELL Property Group has maintained a steady operating profit at $0.045 per security in the first half of FY17,...

WHY NEXTDC'S STOCK IS SOARING

AFTER posting its interim result, NEXTDC (ASX: NXT) gained more than 12 per cent on the stock market before noon.
...

PWR PROFIT CRASHES AS DOLLAR RISES AND COSTS MOUNT

A RISING Aussie dollar has offset PWR Holdings Limited's (ASX:PWH) overseas growth in the last half, forcing a...

SUPER RETAIL GROUP RESULTS SHINE ACROSS THE BOARD

A WELL-planned and executed half has paid off for Super Retail Group (ASX:SUL) as it posts a net profit result up ...

Related News

EVERYTHING YOU NEED TO KNOW ABOUT THE NATIONAL BROADBAND NETWORK

THE National Broadband Network (NBN) is more than an internet connection, it is an opportunity to transform your b...

WHY EMPLOYEE-OWNED COMPANIES ARE BEATING ASX200 SHARE PRICES

EMPLOYEE-owned companies command a higher share price than their publicly listed peers, reaping a 17 per cent prem...

RISE OF THE MACHINES HAS WORKERS SWEATING

UP TO 3.8 million Australian workers are fearful their job may soon be terminated by a robot, a new survey has shown....

LESS TALK, MORE SMALL BUSINESS ACTION IN 2017

THE future growth and prosperity of Australian SMEs could be undermined if governments lose sight of the sector...

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter