Monday, July 1, 2013
No Guesswork in Sending Products Abroad
Rapid changes in marketing practices creat new opty's. all over the world for today's small business. But…it's important not to forget significant factors that influence decisions on where & when to export.
REGULATIONS - Import regs. will be the 1st category of info you need when approaching a decision to export; Including import quotas of the target market, licenses, permits, dollar exchange availability and other non-tariff barriers. Just call the Embassy in DC of the target market ask for the "trade" officer for full details. In many markets there are rigid standards for prod. approval under the guise of consumer protection. EX: how customs puts on import duties all have to be considered as part of your pricing.
MARKET CONTROLS - What restrictions exist on price controls, territorial limits - EX: in Puerto Rico an exclusive terr. granted to a local is a "marriage made in heaven". You can NEVER break it.
SALES ENHANCEMENTS - All sales mat'l. to be in the language of the country - labels, catalogs AND... use metrics instead inches & lbs. Advertising is not the same as in the U.S. You will have to educate your buyer on the perceived benefits of your product. More importantly still is extension of credit. EX: in many areas 60 days is considered cash. That will affect your ability to be aggressive in using price & payment terms as a sales tool.
LOGISTICS - Air and/or cargo reflect differing methods of transport. You need to consider packing, packaging, (they are different), insurance coverage AND hire an Export Freight Forwarder here in the U.S. to handle the movement of your shipment, prepare all the documentation and make sure you can collect (See an earlier blog on the subject of payment).
BRAND PROTECTION - Apply for copyright and patent registration. Logos and the right to your name can be ripped of instantly Piracy is rampant. Intelectual property has to be protected. GET LEGAL ADVICE! NEVER get involved in foreign local courts - you will lose.
AFTER SALES SERVICE - Warranties need to considered in determining how you will take care of your customers. EX: your products may have an entirely different application overseas. It is difficult to bring things back here for warranty so the best thing is to set aside some type of allowance, in advance, to handle claims. EX: a percentage of the the purchase price of the item.
You wanna know more? GET IN TOUCH WITH www.SCORESOUTHFLORIDA.NET
or contact: Henry Samuel, Certified SCORE counselor at firstname.lastname@example.org