While the Wall Street Journal reports that October Retail Sales Top Expectations, it’s still unclear how the year will end, which products will sell and how much inventory will be left when the dust settles. Especially since the impact of the government shutdown and early holiday shopping season is unknown.
The good news is that even with the high level of uncertainty for companies as they finish the year and look towards 2014, managing that inevitable year-end inventory doesn’t need to be a concern.
Many companies consider deep discounting and liquidation as their first line of defense, but an alternative solution that every manufacturer and retailer should consider is corporate trade. Also called corporate barter, this solution enables manufacturers and retailers to receive more value for their excess inventory.
In corporate trade, an excess inventory is purchased with trade credits, cash or a combination of the two. Payment is usually equal to the wholesale/acquisition cost of the inventory.
In exchange for purchasing the inventory above market value, a manufacturer or retailer commits to making business purchases through corporate trade companies using the trade credits and cash. Common expenditures include advertising, marketing, travel, and freight and logistics services – expenses that are already part of normal day-to-day business activities.
It is never too late to use Corporate Trade to manage a year-end inventory problem. Before the fiscal draws to a close, learn more about the advantages of corporate trade and how it can help your company mitigate excess year-end inventory issues.