Posts Tagged ‘export’
U.S. Exports Rise by 16.9 Percent
Thursday, November 13th, 2008
U.S. exports have risen since January by 16.9 percent to $1.41 billion in September, to levels 8.8 percent higher than in 2007, according to the U.S. Department of Commerce.
“Although the last two months have been weaker than we like to see, today’s trade numbers highlight the strength of American exporters over the last year,” said U.S. Commerce Secretary Carlos Gutierrez in a statement.
Gutierrez and the Department of Commerce concluded that approval of pending trade agreements could result in nearly 100 million new consumers, who had a combined 2007 GDP of nearly $1.2 trillion. Such agreements could eliminate industrial and consumers goods tariffs that range up to 50 percent in Korea and 81 percent in Panama.
“Breaking down barriers to U.S. goods and services and improving global competitiveness are now more important than ever,” Gutierrez said, with Colombia also in mind.
Over the course of the year, the trade deficit still rose by 1.5 percent as imports increased by 12.3 percent, totaling $1.95 billion.
Tags: Carlos Gutierrez, christina lee, export, trade agreement, U.S. Department of Congress
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How to Create an Export Plan to Sell Internationally
Friday, February 15th, 2008
Once you have decided to sell your company’s products overseas, it’s crucial that an export plan is developed. When preparing your export plan, you’ll be able to research and carefully examine your potential export markets, develop company goals, and determine what (if any) limitations exist. The result: a custom-designed strategy that prepares your company, products, and promotional efforts to succeed in the export business.
Tips for creating a successful export plan
Keep it brief - Your company’s export plan should be detailed, yet concise. It should be easily understood by other members of your company. It’s important that goals and objectives are written clearly so that they are not misunderstood by those involved in the process.
Be specific - Lay out definitive goals and objectives for your company, for example sales goals or market saturation goals.
Make it factual - It will take some time, but it’s imperative that an export plan is based on facts, not assumptions. You may need to call factories, shipping companies, etc. to get pricing, but the more your export plan is based in facts, the more useful it will be to your company.
Be honest - The most important thing you can do in your business’ export plan is to accept and address the company’s limitations and constraints. List them out and attempt to find a solution to fill in those gaps.
Questions to answer in your company’s export plan
In developing a thorough export plan, it’s essential that all of these questions are answered in full, with specific goals listed for each. Be sure to do the research necessary in order to provide accurate answers, rather than just guesses and estimates.
1. Which of your company’s product(s) have been chosen for export?
2. Will any modifications need to be made in order to adapt the product(s) for overseas markets?
3. Which countries have been chosen as export markets?
4. What is the customer target market for each country?
5. Through which channels will the product(s) reach the customers in each country?
6. Are there any country-specific limitations that exist for any of the targeted export markets? If so, how will they be addressed?
7. What will the product(s) export sale prices be in each country?
8. Which company employees will be involved in the exporting process, and what will their roles be?
If you take the time to create a well-thought-out export plan, your business will be rewarded with an accurate presentation of exporting facts - specifically tailored to the needs of your company and its products. Companies that begin exporting their products without a prepared export plan can quickly find that their assumptions were way off or that a crucial product adaptation was missed. Creating an export plan will take some time to develop, however without one you could make a mistake that costs your business tens of thousands of dollars. In the case of exporting, a bit of preparation could very well save your company from financial disaster.
Tags: Carrie Hinkel, Doing Business Internationally, export, international business, selling internationally, tips
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Finding Product Sources Using Trade Lead Sites
Friday, November 30th, 2007
Part of the success of any small business is being able to take advantage of as wide a range of resources as possible. One great resource for any small business is a trade lead site.
We will take a look at what trade lead sites are in this article, along with ways that they can help you to grow your business - both in terms of selling and sourcing.
So What Are They?
Trade lead sites are websites that are dedicated to information exchange on the behalf of small businesses. There are quite a few free trade lead sites, as well as those which small businesses must pay for in order to obtain information from.
Trade lead sites usually act as huge hubs for small businesses; they can be used to find new business contacts, source products, even to find new customers. They also usually provide quite a lot of information about the economic climate.
Just as there are a couple options when it comes to free or paid trade lead sites, there are other variations in the style of trade lead sites available. You can select a trade lead site that operates on a national level, or one which includes companies that operate globally.
There are also industry specific trade lead sites. The biggest sites generally break down their contact information by category, so it is a bit easier to find.
Using a Trade Lead Site to Source Products
If you are looking to use a trade lead site to source products, you will probably have to spend a little bit of time getting used to the site first. As we mentioned above, they can have a wealth of information, so you will need to be able to find the areas where you might be able to source your products, and then spend some time sorting through the options to find the right source option for you.
You may notice that most trade lead sites list primarily companies from other companies, so if global sourcing and importing is an avenue you want to explore, trade lead sites are an excellent option. Just make sure, as with any supplier you’re interested in, to do your research .
Once you do find product sources (and it can be as easy as selecting an “offers to sell” option), all you have to do is compare prices on the same or similar goods to see which will best suit your business.
Examples of Trade Lead Sites
As you have probably already gathered from this article, there are a lot of different types of trade lead sites. In addition to paid subscription or not, there are sites which require a registration and others that you can just browse.
One of the most comprehensive trade lead sites we have come across is Premier Business Club. Not only are all the usual ingredients present, but there is also a running tally on the offers to buy and the offers to sell listed (not surprisingly, and this holds true for most TLS, it is the business equivalent of dating sites when it comes to numbers, with sellers outnumbering buyers. Great for sourcing, not so great for finding customers). There are lots of other trade lead sites out there - here are some more examples:
* Importers.com (import/export leads and information)
* TradeBoss.com (worldwide B2B trade listings)
Trade lead sites are not that difficult to find on the web, and the one you choose will, of course, depend on your own preferences. They can be a great way for small businesses to source products - and savvy or niche providers will also find new customers.
Tags: export, import, importers.com, Leeia Ladipoh, Product Sourcing, source, trade lead sites, trade listings, tradeboss.com
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Basics of Wholesale Product Outsourcing: Small to Medium Business Owners
Wednesday, November 14th, 2007
The business environment in the past decade or more has changed rapidly. It is now possible for a small to medium-sized business to flourish with the help of thorough market research and efficient wholesale product sourcing.
This kind of sourcing has its advantages and its pitfalls: if the source is genuine, profits are guaranteed, but if the source is defective in one way or the other, the entire business can fail. To ensure continued success in wholesale product sourcing, here are a few basics that a small to medium reseller needs to keep in mind:
Before buying wholesale, the buyer has to be sure of an existing target market in which the products can be resold at a profit. You should only buy a product on wholesale if there is a demand for it, feeding an existing demand is easier than creating one. Equally important: what is of no value to you could be of high value to someone else.
If a wholesale source seems too good to be true, it is probably a scam. Sourcing products on a wholesale basis is never easy, and needs a lot of legwork. Research is your best friend in finding a genuine wholesaler, there is no cheap shortcut to finding a wholesaler who would meet his or her end of the bargain.
A wholesaler should not be contracted till he or she is verified as having existed for a considerable period of time, factory-authorized, and working from a solid infrastructure. One of the best ways is still to call the wholesaler, and if possible, to make a visit.
Middlemen have to be avoided at all costs; these are the people who do not have access to the goods themselves. They arbitrate between the buyer and the seller while marking up the cost, sometimes posing to be legitimate wholesalers themselves. You must always verify if the wholesaler has a real, longstanding relationship with the manufacturer.
The idea is not only to be able to find a wholesaler who is selling the goods you want, but one who is also selling them at enough discount for you to be able to make a profit. Discount does not mean a compromise in quality, however.
A small-medium business owner can choose from amongst the following types of wholesalers:
Dropshippers: For a small to medium-sized business owner, drop shipping can be an excellent option. This means that you simply open a store, advertise a product chosen from the wholesaler and take orders. You charge your customer a retail rate for the product and pass the order to your wholesaler. Your wholesaler processes the order by packing and shipping the product directly to your customer, charging you the wholesale rate.
You do not need to have an inventory, only a small back-up store in case your wholesaler fails you, which you can order in "light bulk" from a supplier. The prices do go up in this case, because dropshipping can be expensive, so you have to ensure that you still make an adequate profit out of the amount you charge your customer.
Manufacturers: Most big manufacturers are not accessible to small businesses, but if you can find a way to get in touch, you might be able to buy wholesale directly from the manufacturer. Most small to medium or new manufacturers are more than happy to become wholesalers themselves, all you will need to deal with them would be an ID, tax license and resale license.
Since there is no distributor between you and the manufacturer, your profit margins would be higher. One of the best ways to source products from manufactures is to attend Merchandise marts and Trade fairs.
Liquidators: This can be attractive for small business owners as liquidators often sell stuff for pennies which can later be sold for dollars. The important thing is to find why the liquidation is taking place.
If it is happening to clear out the warehouse of a business that is closing down, but the goods are ok, then this is a good deal. But sometimes liquidations also happen because a product has no demand, or is defective, and this is where caution comes in.
Distributors: Wholesalers and distributors are those who buy in bulk from the manufacturers for resale to retailers. If you can find a factory-authorized distributor for a product and develop a long-term business relationship, you can place re-orders easily, and lower your buying price significantly.
Importers: Cheaper markets in Asia, especially China, have become very attractive to small-medium business owners because of the low cost of products: importing is now a viable option in order to achieve higher profit margins.
Importing involves more risk, higher volumes and higher payments, so it is best approached with the help of professionals. Communication with the wholesaler and the maintenance of delivery dates and quality standards is paramount.
The sort of wholesale supply that would be suitable for you would depend on the type of products you wish to source, what the size of your business is and the target market you have in mind. Wholesale sourcing is never simple; but once established, it can yield benefits for the long term.
Tags: advice, distributors, Doing Business Internationally, export, import, liquidators, manufacturers, outsourcing, Product Sourcing, small business, source, tips, wholesale, wholesale product outsourcing
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Distributing Your New Product Globally
Friday, September 28th, 2007
Everyone has an idea that they are certain will change the world. However, although the idea for an invention may come from one person, it takes a world of “interested parties” to truly get the idea up and going. Bringing an invention from idea to fruition requires the work of designers, licensing agencies, manufacturers, marketing experts, and distributors. This article assumes that you have already completed the proper paperwork to patent and license your invention.
Target your worldwide market
If you have spent any time in the social circle of other inventors, you are already familiar with the phrase “target your market.” No matter how beneficial or practical, an invention doesn’t have a chance if it’s not marketed to the right people. Since you’re considering international distribution, you will have to put some creative thought into your marketing campaign. Each country is culturally, socially, even scientifically unique. For example, electrical devices run off a different voltage and current system in Europe and Asia than they do in the United States and Canada. While this might seem like a trivial fact, it can mean the difference between success and failure if you have invented an electronic device.
When you’ve decided where you would like to sell your invention, it is time to begin the marketing process itself. But because you cannot know all of the traditions or taboos of each country you’re marketing in, you might want to consider working through a foreign sales representative. This person is already familiar with market conditions in the country you’re trying to appeal to. He or she might even have connections to local distributors. Of course, a foreign representative works on commission, and will often ask for a multi-year contract, so it is in your best interest to choose your representative carefully.
Trade shows are a good place to find a foreign representative. You can find out when and where a show is in your area. By calling ahead, you can find out what sectors are represented and how many booths are set up. This will tell you if the show is worth your time and money. But don’t go to a trade show expecting to find that perfect rep. Just as you had to sell your idea to your friends, family, designers, or capitalists, you will have to convince this person that your invention is the best thing to come along since the wheel. If you’re lucky, you might even meet foreign buyers, who often frequent trade shows to scout out products that they would like to distribute in their country.
If you don’t have the resources to attend trade shows, which may be counties or states away, you can often find a foreign representative by contacting your local Department of Commerce for a list of leads. By going this route, you bypass some of the legwork of the process, but you’ll still have to sell your idea. You may find someone who expresses an interest in your product right away, but don’t let your excitement lead to an impulsive decision. You want someone who has as much passion for the potential of your invention as you do.
Export Management Firms
For some, going it alone is just too much to handle. If you are one of these types, you can try to find an export management firm to serve as your invention’s agent. This firm will represent your product to foreign distributors. However, an export management firm won’t work with you if you cannot prove that your invention will be in demand where you plan to market it. This means you’ll have to do your research before approaching them with your product. You will also want to consider the business atmosphere of the country you’re planning to work with. In the United States, business owners often make decisions on their own, but many foreign entrepreneurs are attached to a group, and must have their approval before accepting a new product.
Having an export management firm doesn’t mean that you are free from the menial tasks of marketing. New products need exposure, and that means putting them out for everyone to see. Place advertisements in popular magazines, develop a direct-mail campaign using lists from the Office of International Trade, attend international trade shows, or hire a translator to help spread the word about your invention. If you’re patient–and a little lucky–your product might just become the “next big thing.”
Tags: distribution, Doing Business Internationally, export, global business, jennifer ratliff, Trade Shows
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Where to Start With An Import Export Business
Wednesday, May 30th, 2007
There are many aspects of international trade to learn. I have been studying and practicing in this field for years, and I can honestly tell you there is no quick way through all of the information. It’s a matter of persistence and patience. In addition, every single venture is different and presents unique challenges. But it can be done, and if you pursue it further than the next person, then you win. So hang in there. You can do it!
With that said, here are my suggestions:
These are the 4 main points to remember:
- 1. Learn the import export basics, but don’t let yourself get too bogged down. As I discuss in my popular import export workshops, there are 7 main areas to learn about:
- Product or Service
- Trade Barriers
- Market Research
- International Marketing
- Logistics
- Legal Issues
- Financial Aspects
Keep in mind, that international trade is not a light or quick subject to learn. It’s not something you can learn completely in one 4 hour session. However, I have created a step-by-step online import export workshop for my clients and workshop participants that will help get you started.
- 2. Research, research, research! If you think about research as just making a lot of phone calls, looking up and collecting important information, and reading market reports, government statistics, and trade magazines. Research helps you to make important decisions about your business, such as how to market your products in a certain country. Most importantly, research will reveal whether an import export venture is worthy of going forward or not.
I always say, "Increase your research to decrease your risk"
- 3. You must write a business plan (if it is a start-up) or an international marketing plan (if you are expanding into new markets with your existing business) in order to attract investors, bankers, or small business government funding programs.
You may find this a shocking statement, but guess what: no one else can do it for you. The business plan is where you express you vision and idea for the business, and compile all of your research. Here is a good source of business plan templates, step-by-step guides, and information:
http://www.businessplansmartstart.com/
- 4. Make the right contacts. Relationships are the key to a successful international trade partnership.
In addition, unless you are on you way to getting a degree or extensive education in the field, then the best thing to do is to hire an international trade consultant who does have the education and experience to assist you. Having knowledgeable input will dramatically increase your chances of success. As I said earlier, you should gain a basic understanding of import export, but you must rely on experts around you to provide the needed information to make important decisions.
My experience holding public import export workshops and working with thousands of entrepreneurs around the world, has lead me to understand that most start-up companies cannot afford the expensive fees of a consultant. That is why I created affordable options for my clients, participants, and website visitors.
I also write and distribute a popular newsletter called, "Eye on the World Ezine", which includes import export business start up information, links, resources, and articles.
I know you can achieve your dreams through your own import export venture.
About the Author: Jennifer Henczel is a Business Trainer and International Trade Consultant known as The Import Export Coach . Her award winning website has helped thousands of entrepreneurs around the world start an import export venture and grow their business.
Tags: Doing Business Internationally, export, import, The import export coach, tips advice
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