| Ruffin Trading Company contracts with building supply distributors to take inventories that they cannot sell in exchange for productive inventories. Based on our specific quantitative research on non-productive inventories of building supply distributors, the average dead stocks accounted for 15-20% of total inventories. Our definition of non-productive stock extends to sku's that have not sold one time in a twelve month period. Our research set included fourty five separate building supply locations in eight states across the US. The economic analysis shows that there is an "opportunity cost" to holding non-productive inventories. A way to quantify this lost profit opportunity is to take the standard industry margin on the cost value of the non-productive inventory and multiply by the average annual turns. Given that most distributors have limited warehouse, yard, and retail space, dead stock can cost a minimum of twice the value of the non-productive stock per year (based on a bare minimum of six turns). Ruffin Trading Company has made a science of analyzing and consulting on non-productive inventories for the building supply industry. We consult with companies and then contract to take away the problem inventories in trade for their choice of new inventories or other pre-allocated cash expenditures. Ruffin Trading contracts to return full value in trade back to the distributor. Our clients trade directly with Ruffin, however, Ruffin Trading sources some trade requests through barter houses in the barter industry. Ruffin has worked with the former BXI Exchange, ITEX, Active International, NuBarter, and others. Barter is reported to the IRS on a 1099B form. Ruffin Trading Company provides professionals to consult in barter accounting with our clients. The non-productive building materials that we acquire become productive in new economies. These building materials are our leverage to build trade bridges to other countries. |
| Payment for dead stock sent off to customer site in Virginia |
| Our Contracts Below: |
| This form is the actual purchase agreement, with details on how Ruffin pays back. Signature on this document happens before lists of inventory are finalized because often customers do not know exactly what stock they have. |
| This first form is used as each truckload of inventory leaves. If a customer does not have a computer record then the lists can be hand-written from best available information. |