(4 April 2007 – Australia) Barter exchange company BBX has snapped up Victoria based outfit Tradex Pacific.On its website, Tradex, which has been operating in Victoria since 1996, describes its business model as providing a “broker service for businesses to purchase goods and services, using spare capacity in their business to pay for them”.
BBX, for its part, offers a membership based barter trade exchange whose primary role is to generate new business for its members, and “show them how to offset many current cash expenses by utilising down time or idle inventory in their business”.
Its trade exchange uses trade dollars, which have par value with the local currency, to assign value to the transactions that take place between members. According to BBX, the exchange acts as a third party record keeper, “similar to a bank”.
BBX listed on the ASX in August 2005 and has also set up franchises in New Zealand, where it has operated since 2001, India and most recently, China.
BBX managing director Michael Touma said the acquisition of Tradex boosted its membership by about 200 in Melbourne and the outer metropolitan area.
“Generally speaking, BBX can add five to 10 percent to the turnover of member businesses by introducing new business through the trading system,” he said.
BBX also offers mortgage broking via BBX Money, insurance, business finance, financial planning, and property services.