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
- 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.
- 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.
- 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.
- 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.