Business-bartering service coming to Moose Jaw
Published on May 26, 2016
A new business is coming to Moose Jaw that will allow companies to buy services from other businesses without using cash through a type of barter system.
Tradebank is set to open in Moose Jaw today, with a special seminar at from 6 to 8 p.m. at Mosaic Place in the Belle Plaine Room.
An example of how this system works is like this: a Moose jaw pizza restaurant in Moose Jaw may want a new store sign.
Normally, they would write a cheque to a sign company to make that sign for $10,000.
Using Tradebank, that Moose Jaw restaurant would instead put in an offer for $10,000 worth of food and beverages to Tradebank. A sign company that is also a partner with Tradebank could take up that offer and instead of receiving their payment in cash from the restaurant, they would receive it in "TRADEdollars," which they could spend with other Tradebank members.
This sign company would not have to be only based in Moose Jaw, but could be a company based out of Regina or elsewhere.
Food for signs is not the only type of trade that people could make – excess retail items could be given for apartment cleaning, advertising, or whatever else both companies may want.
“Businesses need things all the time whether it be printing, construction or renovation to locations, or leasehold improvements, customer incentives, dining out, meals and entertainment, golf, that kind of thing,” said Tradebank president president John Porter. “A business owner every day writes cheques for things they could be trading for instead.”
Porter claims that since his company started in Saskatchewan five years ago, 500 businesses have signed up, and 3,000 have signed up across the country.
He also said that in 2015, his company recorded over $24 million in transactions.
Tradebank receives a commission of 13 per cent on every transaction, which pays for the organization’s services. There’s a full paper trail for tax purposes as well, and every trade dollar traded is equivalent to one Canadian dollar.
“There’s no under the table trading,” said Porter. “It’s all above board.”
For Matt Hetherington, the new Tradebank Moose Jaw, the idea was “an opportunity to build my own business…and save some cash.”
Hetherington owns and operates Moose Jaw Hydro-Seeding, a company that does grass-lawn seeding for commercial and residential properties. If you are unfamiliar with hydroseeding, you may have seen it as bright green spots in fields around the province.
He believes that the system would allow people to bring in new business that they may not have.
“In small business, cash is king, and so if you can save some cash flow by purchasing things that you need without having to cut that cheque, it’s definitely a way for businesses to add to their bottom line.”
So far, about 25 to 30 businesses have said that they would be interested in the launch, according to Hetherington.
Hetherington brought the idea in after discussing it with Tradebank’s Regina owner, Dan Benesh.
“We felt Moose Jaw was a good area to bring Tradebank to, because there’s a ton of small businesses out here,” he said.