A new online company based in Ottawa called SMAKK is aiming to boost small businesses by allowing web shoppers to purchase gift cards from an array of top, locally-owned companies in Canada, many of which are located in Centretown.
SMAKK, which officially launched on Oct. 2, only offers gift cards from independent businesses across the country. It refuses to list chains and corporations on its website.
“I love the interesting, unique things you can find from local businesses versus big-box shopping,” says co-founder Bettina Vollmerhausen.
Each business on SMAKK’s website has its own web page with a description and photos. Gift cards bought through the website are delivered to recipients in a handwritten envelope by SMAKK, along with a personal message from the sender.
Vollmerhausen stresses that SMAKK is the first of its kind in Canada. Since its launch in March, about 70 companies countrywide have signed up with SMAKK. More than half are located in Ottawa.
“I do find that the movement towards supporting local (in Ottawa) is really quite strong. Local businesses have noticed that as well and they’ve really increased over the last few years,” says Vollmerhausen.
In order for SMAKK to provide its online consumers with top-notch selections, small businesses are required to be unique and excel in customer service. They must each fulfill a different market niche in order to guarantee its exclusivity on the website.
Companies that partner up with SMAKK pay a $25-membership fee. From there, SMAKK collects a commission based on the number of gift cards sold.
Dave Hands, a consultant at a firm called Small-business-consulting, says that due to SMAKK’s low membership fee, it’s hard to predict how well the company will be able to create a steady revenue.
“I like the concept, but you can hardly set up a web page for $25. I hope that over time, they’re going to be able to monetize this as a business,” he says.
Hands says that regardless, SMAKK offers an attractive deal for local businesses.
“Small businesses are always looking for ways to lever their advertising,” he says. “For $25, how can you lose? You can’t.”
The Upkeep Shoppe, located in the heart of Little Italy on Preston Street, has been with SMAKK since March. The nail and skin care salon’s owner, Natalie Esau, says she sees the value of SMAKK’s services.
“It’s a great marketing tool for us,” she says. “Customers who come in are really excited that they’ve received a gift.”
Esau also says that SMAKK helps reinforce a strong sense of solidarity among the small Centretown businesses that are on the website as well.
“It positions us in a place that we want to be in,” she says. “We look at other businesses that are on there and it creates a tight network. It’s like a tight community.”
The Zen Kitchen, a whole foods restaurant on Somerset Street West, has recently joined SMAKK. The owner and manager, David Loan, says he is excited to be a part of its exclusive inner circle.
“I think that local businesses always need new ways of finding new business, so I’m glad to see this focus on local businesses,” he says.
Ultimately, Loan says, he hopes that online services like SMAKK can help propel a trend of people supporting small companies.
“It’s a small but growing trend,” he says. “There’s so many good local businesses in town, and they’re struggling against the behemoth big-box stores and restaurant chains.”
Vollmerhausen also says that she hopes that online shoppers will recognize the advantages that small, independently-owned businesses can offer to a community.
“I think that local businesses add such a vibrancy to our communities and our identity,” she says. “It’s very, very scary to think about living without them. Can you imagine?”