CASH FLOW SAVINGS: THE NUMBER 1 WAY HOW TO BUY ADVERTISING WITH YOUR STOCK NOT YOUR CAPITAL OR CASH FLOW

Stock on hand is cash sitting on a shelf, use it to buy advertising and save cash flow
Stock on hand is cash sitting on a shelf, use it to buy advertising and save cash flow

Use you stock on hand to purchase advertising instead of your cash flow and conserve capital. This is a great sales strategy in difficult times and could be part of your business continuity plan.

Why make Inventory Media Trading a part of your Business Continuity Plan ?

Inventory Media Trading (IMT) allows you to buy advertising with your stock, not your cash thus preserving both capital and cash flow. It utilises the age old barter system. Barter is the direct exchange of goods and services instead of the exchange of money. Barter has been a way of doing business since ancient times and is just as relevant today as it was then. Barter in the form of inventory media trading is an often unknown yet strategically important tool for any business continuity plan. It conserves capital and cash flow and is available for any business in today’s challenging environment.  

In today’s Corona infected business environment, we need to consider our business continuity plans and sales strategy. Cash flow and capital utilisation are critical. Few companies offer inventory media trading as a finance option and as a way to capitalise on stocks on hand move distressed inventory and preserve cash flow. Advertising is the business expense most often used in IMT transactions. It’s also one of the first expenses to go when cash flow is tight.

IMT allows any business who advertisers a way to increase their advertising budget and market reach without the need for additional cash. IMT works for any business from SME’s up to multinationals and offers them the opportunity to part or fully purchase media by using their products or services rather than their cash.

Historically barter trading has been seen as a secondary and somewhat questionable activity. Today’s 21st century business process allows advertisers and media owners to trade without having to pay 100% in cash for what they want to buy. 

M4R is a new generation IMT company and may play a significant role in the marketing and distribution strategies for companies looking for a cash savings, efficiencies and additional sales. This may require a paradigm shift for many but those who make the move position themselves well for difficult times. 

Recessionary times are tough and the impact of online retail has been tough on many high street retailers. When times are tough businesses need to find new and different ways of creating market edge and cost efficiencies. IMT may be the solution.

Media barter companies like Media 4 Retail (M4R) provide a service that enables the deal between advertiser and the media owner. M4R makes sure both parties are satisfied.  

So how does Inventory Media Trading conserve capital and cash flow?

M4R works alongside media buying agencies to negotiate the placement of specific planned media with media suppliers. The media may be purchased with some, most or all of the payment being made with product and services rather than the traditional bank to bank money transfer.  

Generally, M4R will accept the goods and services component in the form of a credit or gift voucher and cards. Other times M4R will accept the actual physical product which can be a mix of current stock and or distressed stock. Every deal is different and is tailored to meet the needs of both the business looking to advertise and the media supplier.

M4R works with the media owners and the client reach an agreement that ensures each party benefits from the transaction.  Upon approval by all parties the deal is documents and signed. 

IMT companies structure the deals that fit into the customers sales strategy. Plans are developed according to the individual requirements of their customers and as such every deal is different. However, the basic concept is the same: advertisers leverage the margins on their goods and services to access the media they desire. This way, they are able to save significant amounts of cash resources, cut the cost of their advertising and move additional inventory. Ultimately the savings may enable the creation of an even larger campaign.

The IMT company will then distributes the advertiser’s goods and services via specific channels that have been agreed in advance with the client. 

A well-executed IMT sales strategy will add value beyond delivering cost efficiencies on media spend. M4R is a modern media trading company that delivers innovation and smart thinking, using first line product and not just distressed inventory.

So What Does Inventory Media Trading Deliver? Is it the key to your business continuity plan?

By adding IMT as a funding option, businesses achieve a couple of financial benefits. Firstly it allows them to build in more media placements within their current ad budget and secondly in the right circumstances the business may access media with up to a 100% of the payment being made with their product or service.   This may be a key sales strategy for your business continuity plan.

If the media budget has decreased then supplementing a budget with IMT can allow the business to maintain or increase the current advertising frequency level without increasing the demand on cash for payment.  

There are two main deliverable to an IMT deal.

  • Return on Investment M4R is able to structure media deals with payment being made all the way to 100% of the payment in product or service down to the more traditional deal with 80% in money and 20% in product or service. IMT creates an immediate return on Investment for businesses.

Using M4R to buy media means that we will buy an agreed amount of our client’s product or service. So effectively the client has an upfront guaranteed return on their media investment before the advertising has even run. With a successful campaign the results only get better.

  • Conserving Capital and Cash Flow whilst Leveraging Inventory to Fund the Media.  The more traditional barter companies tend to sell media on an 80% Money plus 20% product basis. It’s just a little better than a cash discount. M4R on the other hand can, under the right circumstances accept up to 100% payment in products and services. This creates a massive cost saving for the client. 

Can I Achieve the Same Deal as I Achieve with my Existing Media Plans?

IMT operates within your existing media strategy and sales strategy. IMT has no effect on the prices provided by your media agency.  Media owners have been doing this for years and understand the process. 

M4R will not influence the type of the media recommended by your media agency. M4R’s only objective is to optimise the media plan, save you the client money and move additional inventory making everything much more efficient. You and the media agency remain in control at all times.

What can be traded?

We can trade almost anything! If you have a product or service and would typically advertise then there is a 99% chance we can make this sales strategy work for you.  We will look at anything from accommodation, flights, property, cars, jewellery, clothing, shoes, retail gift vouchers/cards, furniture, carpet, wine and hardware.

Just ask and we will quickly let you know if we can do something for you. 

Why Media 4 Retail and Inventory Media Trading?

IMT is not for every business. It requires a paradigm shift and some out of the box thinking. Not every key executive or every business will want to engage. 

The Finance Director is generally supportive with less cash outlay for the same advertising, the avoidance of write down of distressed inventory values and increased inventory turnover all putting a smile on the FD’s face. 

The Sales Director is also generally supportive. A bigger advertising budget for same cost with a guaranteed ROI and guaranteed sales together with the liquidation of distressed inventory without cannibalising current sales is all seen as a positive result.

The Marketing Director can be resistant and may not like a third party becoming involved in current media relationship that may have been in place for years. 

The bottom line is that if you want to make your marketing budgets work harder, want to make additional sales and want to move distressed inventory without a write down then Inventory Media Trading could be right for your business. 

Next Step

Media R Retail Limited can add significant value to your media strategy and business planning. The process is a gentle rollout starting with a meeting and brief. The next step aims to bring all key parties on board.  

M4R is happy to meet with you and explain how Inventory Media Trading works in more detail. 

Regards 

Ian Jones

CEO

Media 4 Retail Limited

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