‘Working Trade’ vs ‘Non-Working Trade’

Non-Working Trade

Essentially, by non-working trade, we refer to dollars that do not get to the consumer, do not drive targeted distribution, and do not drive repeat purchase.

Examples of Non-Working Trade

    • OI’s & the Resultant Forward Buying
    • Non-Targeted Slotting/Free Goods
    • Administrative Fees
    • Short Coded Buy Downs
    • Unauthorized Deductions That Need to be Repaid

Working Trade

Working Trade is targeted spending with retailers to drive growth, your brand franchise/equity, and represent dollars reflected at the consumer level.

How Can You Measure This?

While short-term results may be difficult to measure, retailer level case growth is a barometer. Longer-term consumption growth, reduced spending per case, and reduced slotting are key metrics. Also, spending can be evaluated and measured by ROI, ‘cost per incremental case’, and customer profitability longer term.

So When Do You Begin to Evaluate This?

It is important to note that these are not ‘big company’ approaches – companies under $10M address some or all of these areas when discussing working trade vs. non-working trade.

On-Demand Webinar - Working Trade vs Non-Working TradeNatural-Specialty Trade Spending Webinar (On-Demand)

Would you like to learn more about ‘Working Trade’ vs. ‘Non-Working Trade’? We have developed an educational webinar for CPG manufacturers in the natural-specialty segment, and invite you to join us at your convenience for this on-demand webinar. Feel free to reach out on LinkedIn to learn more about Adesso.

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“You’ve made such progress, I’m all in!”

That’s what our owner, Mark Strome of The Strome Group, said when we presented our plan and early results on focusing Adesso on offering not just a better TPM product, but including a range of trade services from a new team of manufacturer side CPG trade experts, and starting a TPE community to help our clients collaborate to improve their trade promotion effectiveness.
And he wasn’t just all talk. He recapitalized the company, became the sole owner, eliminated all debt and has indicated he is in it for the long term. Armed with that level of owner backing and financial support we have made even more progress and generated even more favorable results during the past 6 months.