Frequently Asked Questions

Our media process ensures that our clients’ benchmark rates are maintained in the trade process. Anchor collaborates with our clients’ media agency to ensure that we are buying the media to the exact buying specifications set forth by their agency, inclusive of all the qualitative and quantitative buying guidelines. Therefore, our clients’ media agency will be setting and providing the benchmark rates which Anchor will adhere to contractually. Anchor’s trade agreements with the media providers remain separate from our client’s benchmark pricing, and therefore, our clients’ pricing and media parameters will always remain intact, both before and after the media is purchased.

Anchor is not a liquidator. Anchor Trading is an independent Corporate Trade company. We purchase under-performing or slow-moving inventory with a Trade Credit, for the full value of your inventory. You would use the Trade Credit to partially offset the cash cost of media that you would purchase through Anchor.

Yes, in certain circumstances Anchor can purchase your underperforming assets in cash, instead of a Trade Credit. In exchange for the cash payment, your company will purchase a predetermined amount of media through our media activation group.

Yes, if there is value-add associated with your buy, Anchor will secure the same value-add.

When it is realized that the inventory is impaired, most companies will write an inventory down to the fair market value. Upon entering the trading transaction with Anchor, they reflect the trade credits by crediting out the inventory, and booking an asset, typically as a prepaid marketing or media expense. As the media runs, that asset is amortized on a pro-rata basis against advertising expense. In addition, once a client establishes that they are using trade credits on a regular basis, many of them will record the trade credits at the full book value of the traded asset. All of the above accounting treatments are memorialized by FASB in EITF 93-11.

In an age of consumer empowerment and category disruption, it is imperative that agencies, technology, and media platforms work together toward their clients’ goals. We are incredibly proud of the strong relationships that we have fostered with our clients and their agency partners over the years. Although each client situation is unique, our years of experience managing and developing some of the most complex Corporate Trade and Media transactions, has empowered us with the ability to operate effectively by building strong relationships predicated on trust and transparency. Our clients receive a dedicated account team that ensures a clear and consistent line of communication with our client’s agency and partners is maintained at all times. This keeps the focus on delivering on our client’s objectives while minimizing any and all disruption.

Actually, it is a very simple five step process:

a. We first identify the problem asset, some asset examples are Excess Inventory, Discontinued Products/Package Changes, LTO’s (Limited Time Offers), Capital Equipment, Real Estate (Owned or Leased), Raw Materials, MRO Spare Parts and Fleet Vehicles.

b. We then review our potential client’s media. Anchor reviews the media plan and evaluates and provides a recommendation of where trade can best be utilized.

c. Anchor pays full value for the underperforming asset, in the form of Trade Credit, or, under certain circumstances, cash.

d. Anchor will buy the client’s media adhering to the client’s strategy, costs and deliverables. The client then pays for the media with a combination of cash and Trade Credit.

e. Client avoids all financial losses related to the asset, improves EBITDA and increases cash flow.

Anchor is a business solution to a business problem. We are not trying to replace your planning agency; we simply work as an extension of your agency. Our job, as it pertains to the media, is to purchase the same media you were going to be purchasing through your agency, utilizing Trade Credits to reduce the cash outlay for the media. All media buys utilize your net planning rates and are approved by both you and your agency before the buy is purchased.

Anchor’s remarketing team works closely with our clients’ logistics teams to ensure that the inventory is sold only to pre-approved channels.