Corporate Trade or Barter is usually discussed in the context of a financial solution for well-established companies that have an issue with an excess or under-performing asset. These companies have a history of media buys, a product distribution pipeline, and other normal and predictable systems. For these companies, corporate trade is used to get more value from the asset while optimizing their media presence , increasing marketplace awareness through events or retail marketing activities.
However, disruptive companies, the ones that appear out of nowhere with a new product, can also use barter to their advantage. These disruptive companies are competing with established companies, their own competitors, or both. As such, they have a wide variety of challenges:
- Limited, if any, history of financial success or profitability
- Need to determine priorities – constant pressure to determine if funds should go towards
- marketing education
- consumer engagement
- lowering margin to increase exposure
- Competition from “gorillas” in their related fields that can out-spend and out-wait them
- Possible reactive legislation or negative response from various groups or associations
Many of these disruptive companies may not be familiar with the capabilities and advantages of partnering with a corporate trade company. Or they may think they’re not big enough. However, using product to offset the cost of media is a savvy move, and one that would give them a competitive advantage. In addition, barter companies that offer other services such as experiential, provide a unique opportunity for creating consumer relationships while maintaining a cost advantage.
Disruptive companies have a small window to make big gains. Corporate Trade offers a financial solution that can help them get ahead of the competition – give us a call now to find out more.