Corporate Trade (Barter) Can Be Successful, But Be Very Careful

Situation:

A large national restaurant group had been approached by several corporate trade (barter) companies. The company had a desire to try corporate trade, but was unsure how it would work. They had heard stories about trade deals being “too good to be true” and needed expertise to help them decide whether to proceed.

Our Approach:

Corporate Trade, or Barter, is definitely something that should be approached with extreme caution. There have been many instances of barter arrangements being “too good to be true.” Some instances have led to a difficult situation becoming more difficult. But there are some companies that engage in corporate trade that will be conscientious throughout the entire term of the agreement.

Our first step was to assess the corporate trade companies that had already approached our client. We checked the companies’ backgrounds and their reputation within the media buying advertising industry.

Findings:

We found that each of the corporate trade companies that had already approached our client had some flaws in how they had done previous arrangements with other advertisers. Plus, we closely examined the terms of the proposed barter arrangements and found that the terms were too risky for us to recommend pursuing further.

But our client still wanted and needed to do something. So we contacted another corporate trade company that we knew had a good reputation and “brokered” the deal between them and our client. The terms of the agreement and the stewardship safeguards were favorable to both parties.

Results:

The corporate trade arrangement was completed successfully with only a few minor issues. The company was able to realize over $1 million in cash savings and all media advertising schedules delivered in excess of 100%.