Barter network built to promote local business

A person can sell their bicycle at their garage sale and then turn around and buy shoes at their neighbor’s garage sale. The Neighbor to Neighbor bartering system is the same idea, but US currency is taken out of the equation as people are using that for gas, groceries and bills, according to founder Dan Benesch of Lakeside.

In the last 14 months, bartering has been taken to a whole new level by Benesch and over 40 local businesses and tradesmen with the formation of the Neighbor to Neighbor bartering network through the Lakeside Blessings Exchange. Lake Dollars, gift certificates, skills and even just unused items are being exchanged to get the local economy rolling.

A business can be a member of the network if it is located within the same area and accepts Lake Dollars in lieu of cash for at least 50 percent of its services or products.

“The economy has taken a hit and there’s a lot of good people that are unemployed or underemployed, there’s no sense in them standing around with their hands in their pockets,” Benesch said. “You’ve got skills and stuff you’re not using, and I got skills and stuff that I’m not using, so let’s create a list of skills and stuff and exchange what we have too much of for the things we’re in need of.”

Since it is unlikely a direct exchange will occur with both parties desiring the goods or services of another, participants exchange Lake Dollars to be used with other participants. And, each participant can post the goods and services they posses or desire on the Exchange’s website.

One Lake Dollar is equal to one US Dollar. If the seller is providing a service that has material cost, the labor is usually paid for in Lake Dollars and the cost of materials are paid for with US Dollars.

Lake Dollars are printed and embossed on stock paper from Paper Chase that is no longer being manufactured to hinder counterfeiting. There are no 501-C3s, no business licenses, and no IRS tax identities, and it’s all legal.

“It’s perfectly legal in the US to issue your own currency,” Benesch said. “I contacted the IRS and they put some restrictions on what I can do. It’s the responsibility of participants to report their income as income.”

The network of bartering locals has expanded from it’s original focus of Lakeside and Somers to include Kalispell, Bigfork, Whitefish, Columbia Falls and other communities near Flathead Lake. Businesses such as Far West Boat Tours, Lakeside Denture Studios, Watkins Plumbing, and Store-It Storage Yard are already accepting Lake Dollars for some of their services.

Although there are no membership fees, there are four types of memberships.

General memberships to use Lake Dollars are free, and “Supporting Members” pay $35 in exchange for 35 Lake Dollars to help start trading.

Businesses memberships are $100. Businesses members receive 100 Lake Dollars to start with and their services are listed in up to five categories in the Exchange’s service directory. Business members also get help posting their ads online and are called when a barter opportunity comes across the desk of the administrator that is relevant to their business.

Business members are also listed in the Exchange’s business directory with a link to their web site.

Active members of a community service organization in the area may qualify for “Service Membership” which is also free and can have other benefits.

In order to join, a prospective member must live in a community surrounding Flathead Lake or operate a business located in that area. Members must also be at least 18-years-old, and sign a membership agreement.

Some businesses have also issued gift certificates, which may be purchased with Lake Dollars at the Lakeside Blessings Boutique, the thrift store in the basement of Lakeside Baptist Church. There is no consignment fee for the sale of gift certificates, so when one is bought, the seller receives 100 percent of the Lake Dollars it sold for and can then use them to buy other certificates, clothing in the thrift store, or items and services offered for sale on the barter web site.

Gift certificates currently available to purchase with Lake Dollars include everything from childcare and errand running to snow plowing and haircuts.

Between the Lake Dollars and gift certificates, the work is being done, goods and services are being received, and the gears of the local economy turn faster simply by having neighbors work together, according to Benesch.

“They are effectively swapping labor, and everyone wins,” Benesch said. “Everybody gets to work. You don’t pay for gas or groceries with it, but at the end of the year the landscaping is done and the window is replaced.”

For a complete list of participating businesses and tradesmen, go to the service directory section of montanabarter.com.