In these uncertain economic times, companies are always looking for ways to maximize profits and reduce expenses. One of the best ways to do that is by trading excess inventory for the goods and services you need to run your business. There are plenty of reasons why it’s a smart move.
It frees up storage space
Unwanted inventory quickly takes up valuable real estate. Not only does it take up space for new inventory, but it hefty warehouse costs hinder company’s bottom lines. According to a CNBC Supply Chain Survey, 27% of companies surveyed stated they are selling surplus inventory because of high warehouse prices are hindering their the bottom line. When using trade services, your company can free up valuable warehouse space by trading inventory for media services, such as promotion for your new or incoming inventory!
It helps you build relationships
When companies find themselves stuck with surplus inventory, it can be a significant burden on their business. However, forming relationships with different vendors can help alleviate this issue. Partnering with companies who are willing to trade inventory for advertising or media services can be a win-win situation.
By doing so, companies can sell surplus inventory for up to full price. The inventory is sold into channels approved by you in advance, while vendors can acquire goods at a discount generating many new users and customers. This type of partnership can also help build long-term relationships between the two companies, which can be beneficial for future business endeavors. Ultimately, you might find yourself with a valuable network of contacts and collaborators.
It’s environmentally responsible
Trading excess inventory is environmentally responsible. Companies that dispose of their surplus inventory as a quick, short-term solution can face reputational backlash, not to mention the numerous sustainability implications. In fact, according to a study on environmentally concious consumers, 84% of consumers stated that poor environmental practices and policies would alienate them from a brand or company.
Instead of throwing away inventory that isn’t selling, you’re finding new homes for it. This reduces waste and helps preserve the environment. It’s also a great way to show your customers that you’re committed to sustainability, which can help you build a positive brand image.
Unwanted Inventory does not age well
It only goes down in value and up in expenses. Excess or idle inventory does not age well as it tends to decrease in value over time, ultimately causing businesses to incur losses. However, the decreasing value of inventory is not the only issue; it also increases expenses, such as the cost of storage space to hold it. With each passing day, the inventory takes up more space and becomes more difficult to manage.
To avoid these expenses, companies should find an outlet or vendor to take the inventory off their hands quickly. Companies can reduce storage costs and prevent the inventory from decreasing in value further. Finding a vendor quickly allows companies to focus on their core operations and prevent inventory from becoming a liability. Managing excess inventory proactively is essential for businesses to remain profitable and competitive.
Sometimes 20% of your inventory (the unwanted portion) is what causes 80% of your headaches. So, the next time you find yourself with excess inventory, don’t despair – consider trading it instead. At a loss on who to trade with? That’s when you call Net Trade! The best cure for inventory headaches.