Almost every manufacturer has the same dream: to generate export income. Besides the financial advantages, there are many opportunities and support packages from governments to help their manufacturers to export. However, it is not as easy as to dream and takes many years, big investments and dedication to generate this valuable foreign income. We will cover the most common difficulties of export sales and put down 5 key points to catch the success along this path.
Depending which industry you are working at, the export sales and its department is the most featured and appreciated one by the company owners.
First and maybe the most important advantage is the payment terms of the export deals. Most common method is the letter of credit payment method and it is comforting for both parties. The manufacturer is receiving the letter of credit to secure the payment and the customer is protected by the terms of the l/c. In domestic sales, the deferred payments are putting big financing costs on the shoulders of the manufacturers and putting the market in a very risky situations.
Another advantage of the export sales is the pricing of the products. The domestic market prices are mostly determined at a very high competition and only indexed to the purchasing price whereas companies are giving offers at very low profit levels. However, the export sales prices are configured according to much more factors: quality, after sales availability and delivery periods. This factors making it much easier for manufacturers to create their price levels and confronting the end user with the the high quality product and services.
Last but not least advantage of the export is the references. Export sales and deliveries are much more valued by the market than the domestic sales and it is boosting the growth of the manufacturer. Also, sales in export market supporting the manufacturer’s domestic sales and marketing activities.
As it is preferred and profit-oriented, it is definitely not easy task to be successful in export. The internet and global markets have made it much easier compared to 30 years ago but still today many manufacturers don’t have stable export sales in their books.
Here’s 5 key points to help you in export adventure:
1. Strong local partner: You will not be able to reach to the end-users in foreign countries if you don’t have a strong local partner in that country. However, if you can find a strong, established and experienced dealer, distributor or franchise in your target country, you can make much faster and larger volume sales in foreign countries. The local partner will be also big help for you to provide after sales services of your product and customer relations in a very effective way.
2. Global Brand Marketing: Only a partner on the foreign country will not be enough to make sales if your brand doesn’t have global brand identity. You have to make your brand internationally known and prepare advertising materials accordingly
3. Sufficient Production Capacity: You found your partner and established good marketing strategy but if you don’t have enough capacity to answer the demands from foreign market orders than your export journey will not be very long. You have to have enough capacity to deliver on time and especially fulfill the delivery period commitments in the market.
4. High Quality After Sales Services: It is very critical to have well established after sales service in the foreign countries. This is also a point where you should choose your partner in foreign country wisely. Your partner should be well trained and capable of providing after sales services and giving good customer service. Local customers are mostly concerned about the availability of after sales services for import goods and that is way you have to make them comfortable about your after sales services
5. Product Quality: Regardless of export or domestic sales, you have to make sure your product is in good quality to satisfy the customers comparing to its price level. If you are seeking to have returning customers to your products, you should make sure your products are good quality