One of the main problems we’re seeing at this time in the project is that many of the incredible businesses accepting Kingston Pounds, have not yet begun to pay other businesses for services in the currency. So, for my first ‘Thought from Bobi’ I though I would focus on the problem and try to figure some solutions.
Why is a local supply chain of K£ important?
In January, we announced that since starting our electronic pilot – currently the only way to trade in Kingston Pounds – that every £1 converted is actually K£1.30 for our local economy. A big part of this is the local supply chain and businesses, ‘re-cycling’ and re-using the money they earn with other businesses in the local area. As with bigger economies, money moves in circles, and it is through this exchange and cycle that big things like the GDP are worked out. The more we (businesses) re-spend in our locality the stronger and more resilient we as a business community become – there’s more money floating around.
How can we highlight the supply chains that already exist?
For us – The Kingston Pound Team – we don’t want to tell you where to spend your money and force you into creating a more resilient supply chain locally. So, the question stands, how can we create a vibrant re-cycling of cash between businesses in the borough?
The K£ Business brochure
We will very shortly be launching our first ever brochure of the borough including all businesses that have, to date, signed up. This has been designed by K£Biz, Creative People and some local businesses have taken ‘enhanced listings’ to pay for both design and print. Some of these businesses have paid for these using Kingston Pounds. The printers of the brochure – that signed up to the project and now accept K£ as a result of creating this brochure – will now receive payment in our local currency. Just one example of how well a local supply chain can work.
In this diagram that Andrew shared with me when I first joined the project team, he shows the dream. A connected and resilient local economy, where high street businesses are accepting K£ from the public. They are then spending their earned K£ with service driven businesses – such as their accountant. The service business are then spending their earned K£ for client meetings in the high street business – grabbing a coffee, or even buying some stationary. At the top, the council accepts K£ as business rates, and also spends these locally with their suppliers.
But, a local supply chain is not just about money. What this cycle also does is build relationships between businesses and with the wider community. Will you support us to grow and prove the value of teh local supply chain in Kingston? We hope you will.