Yewtrade Launches A Barter Way Of Doing Business

Yewtrade Launches A Barter Way Of Doing Business

A number of businesses attended the launch of Yewtrade at the Apex Hotel in Bath, on February 22nd.  Yewtrade is launching in the Bath and Bristol area with the purpose to help other small and medium enterprise (SMEs) businesses become more profitable through more efficient use of their resources.

What is Yewtrade?  Yewtrade is a platform that allows its member businesses to pay for their business expenses with their own goods and services and thereby get a discount on those expenses equivalent to their profit margin.  This is old fashioned barter brought into the 21st century.

By trading some of their excess spare capacity on our exchange, businesses can earn trade pounds which they can then use to pay for expenses from other members.  This sits alongside their everyday business and is a simple way of extracting some value out of the business potential that was previously underused. 

More and more businesses are trading on non-legal tender exchanges worldwide and it is a growing trend and yet this mode of business is still in its infancy in the UK.  According to the International Reciprocal Trade Association (IRTA) the industry of trade exchanges has been growing for the last three decades and estimates that there was over $20 billion of sales between members last year and this is growing at an annual rate of 8%, which is significantly faster than the growth of GNP in most countries.

The platform simply acts as a record keeper for the transactions in trade pounds to account for their value and because these trade pounds can be passed from business to business this overcomes the disadvantage of one-to-one barter.  So, the seller doesn’t need to buy from whom they sold to. 

In the modern world this is a useful tool for businesses to tap into their spare capacity and increase their turnover because the trade pound economy exists to trade the spare capacity not to replace the existing sterling business.  When the trade pounds are then used to pay for expenses that would ordinarily have been paid for in cash the cash is conserved in the business improving the bottom line.

For some reason, reciprocal trade exchanges aren't very common in the UK although we expect this trend to catch up with the rest of the world soon.  We decided to launch in Bath because of the many small and independent businesses that exist in the area.  We need to preserve these businesses and the diversity that they bring and so adding this additional tool to their toolbox will help the indies to survive and flourish.