Press Coverage

Are you maximising value from excess stock?

Dean Wilson 23 Feb 2011

With the end of the financial year looming fast for many of you reading this, there’s a strong possibility that excess stock issues, particularly thanks to the snow and ice disruption in December, is proving an issue. The big questions for finance professionals are how to offload this excess stock without doing so at a loss? And how to leverage maximum value from it?

Historically, it has been taken for granted that in order to minimise the loss of margin on excess stock, you can simply liquidate it. However, corporate trade businesses can pay three times the cash value that the excess stock is worth on the open market in trade credits. These trade credits can be spent by businesses on media campaigns - anything from print advertising to conference, events and corporate hospitality. This allows organisations to boost sales for the year ahead - ensuring they continue to perform well in tough trading conditions.. A few tips for dealing with corporate trading organisations:

  1. Big is best - only deal with established corporate trade operators who have the financial stability to ensure they will be around in the long term. This longevity guarantees that they can work with your marketing team to spend their trade credits as part of a media strategy, free from the worry that the corporate trade partner might not ex ist in the future.
  2. Global presence - if your business operates worldwide, you must partner with a corporate trade company with similar reach. This can help generate extra value for your media spend within the countries you operate in.
  3. Approved resellers - it’s vital that any business sells stock to approved resellers, or else they risk serious brand damage. Ensure your corporate trade partner has the contacts to do this.
  4. Reporting - technology has progressed sufficient ly for corporate trade organisations to offer 24/7 reporting on how trade credits are being spent. This knowledge can be used to easily tweak trade credit spend in real time to ensure the brand constantly generates the best results from their campaigns. Always ask what reporting procedures are in place before making any appointment.

As an industry corporate trade has grown enormously in recent years. It is becoming more and more commonplace for financial professionals to include it in their forecasting – rather than as a last resort. Corporate trade really is a no brainer for the savvy finance professional looking for maximum return from unsold stock.

Dean Wilson

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