Rather than liquidate an inventory of short-coded stock, one leading manufacturer of food seasonings used barter to minimize their financial downside and maximize their ad spend. Find out how they did it.
The client’s challenge
Faced with the need to liquidate surplus and short-coded product, a leading maker of food seasonings sought to minimize its financial downside.
The Active International answer
Active offered the client full-value payment in trade credits for its excess inventory, then resold the inventory into channels approved by the client. The client, in turn, agreed to coordinate with its ad agency to purchase a portion of its annual media schedule through Active using trade credits.
- Financial loss mitigated: By accepting trade credits instead of cash, the client realized full value for inventory that otherwise would be liquidated at a significant discount.
- Brand integrity sustained: The client approved the redistribution channels for its inventory, assuring a continued positive brand image.
- Media, as planned: All media purchased with Active trade credits met the specific buying guidelines and costs established by the client’s agency.
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