Is your balance sheet already holding next year’s marketing budget?

‘Tis the season for spreadsheets. Across the country, cells are being populated, formulas being written, and tables are being pivoted as plans come together for 2027. Finance and procurement directors, looking to justify every dollar, are asking a familiar question of their marketing colleagues: how do we grow without spending more? 

But there is another, less obvious question worth asking first. What assets do we already own that aren’t working hard enough?

These are what the money men and women call ‘lazy assets’, and every business has them. Slow-moving stock, or product superseded by a new model. Hotel rooms and airline seats that go unsold in the off season. Equipment that has been written down but still works. Spare capacity in a factory, a fleet or a services team. On the balance sheet they are numbers. In reality they are capital that has at best stopped earning its keep and at worst is leaking cost in storage, insurance and the slow creep of obsolescence.

The outlook for these assets is rarely pretty. Discounting them erodes margin and devalues them for customers. Clearance brokers pay cents in the dollar. Writing stock off crystallises the loss.

Barter: A smarter alternative 

Corporate barter offers a much brighter future. In simple terms, a business uses goods, services or under-used capacity to pay for media and other operational services. Done properly, an asset that might have ended in landfill recovers its full book value and is converted into something the business needs. That could be media investment, freight costs, power, market research, recruitment, software, travel, training and other operating costs. 

This is not a fringe practice. In the UK alone, corporate trade drives more than AUD $750m of marketing spend each year. In Australia, though, it remains a strategic tool that is too often misunderstood and explored only when a company has surplus product or a supply chain issue.

Consider what, if used strategically, corporate trade can do to the numbers. Investment risk is reduced on NPD and discretionary projects by funding them with those lazy assets. Cash that was earmarked for media or other costs stays in the business, supporting cash flow and working capital. Operational expenses can be reduced. Marketing can maintain or grow effective share of voice when competitors are cutting spend, all without asking for more budget.

Many brands are heading into 2027 under pressure to show how every dollar earns a return. The temptation is to cut media, especially in the upper funnel. But brands that go dark in tough periods often find they lose market share which is expensive to win back. Corporate trade lets a business protect its media investment using value it already has.

Three important questions to ask before FY28

So, when looking at plans for 2027 and beyond, I’d encourage every CFO, procurement and marketing director to ask three important questions.

Firstly, what is sitting idle? Look beyond the warehouse. Unsold capacity, excess stock, end-of-line products, surplus equipment and under-used property can all hold value. You’ll often be surprised what you have when you look.

Second, what is it costing us to hold, dispose of or discount these assets? That is the real benchmark any trade arrangement should beat.

Third, what are we planning to spend cash on next year that could be offset? Media is a significant and frequently purchased start point, but corporate trade can also contribute to key services such as power supply, telecommunications, logistics, research and travel.

Transparency must be non-negotiable. Any credible corporate trade partner should be upfront about what an asset is worth, how quickly the value can be released, and how that compares with cash alternatives.

Modern corporate trade is audited and compliant, built on like-for-like value exchange rather than remnant inventory. Finance teams should hold it to the same standard as any other investment.

Not every business is a natural fit. Trade works best for companies with tangible inventory or capacity and a meaningful spend in line items that can take advantage of the value created. CPG, retail, automotive, travel, consumer electronics and e-commerce brands, particularly those dealing with supply or demand volatility, tend to benefit most. But the starting point for everyone is the same: an honest discussion about what the business owns, how hard it is working and what it could be used for.

Lazy assets are not a sign of failure. Every business has them. The failure is leaving them idle when they could be funding growth.

Because, as you finalise next year’s numbers, if you look at the whole balance sheet, you might find next year’s marketing budget is already sitting in the back of your warehouse.

And if you’d like a chat about how to better utilise these assets please reach out.