Whit Weeks, Vice President and General Manager of Ashby Street Outdoor talked about how to trade out of home advertising space for services at last week’s IBOUSA show. This is also known as barter.
On how Ashby Street uses trade
We prefer cash contracts first but will use trade. All Ashby Street trade contracts are pre-emptible.
Trade has brought us a lot of customers that didn’t have the budget and they converted to cash customers after the contract expired because the advertising worked.
We use trade with vehicle maintenance companies, cleaning companies and print/copy companies to minimize expense.
Types of trade the company has accepted
- chamber of commerce dues
- equipment (Ashby once traded billboard advertising for vegetation trimming equipment which it could use to maintain its billboard plant)
- furniture
- golf memberships
- gym memberships
- promotional items
- university football tickets
- lodging
- chamber dues
- legal services.
Who approves trade?
Market General Managers approve trade. If it is a larger item (tractor, hot tub, etc.) we run it by our CEO Jim Matalone.
How is trade accounted for?
Apparatix has a “Trade Revenue” tracking ability and if the traded item is sold to a employee or third party, it is accounted for here. If it is a item Ashby uses, there are offsetting expense lines for the revenue.
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