Export to America By William CateAmerica represents less than 5% of
World's population. Yet we consume more than 30% of World's goods and services each year. If you aren't exporting your goods or services to America, you are doing more than ignoring your largest potential retail market. You are ensuring that you can't raise risk capital in North America.
Consistent high quality is secret to multiyear selling of your goods or services in States. Every exported item must be as good or better than sample that you supplied to your American buyers. Japanese automakers understood this quality axiom and have come to dominate American car industry.
Your company can hire a local exporter to find an American importer willing to find wholesale buyers for your goods or services. If you hire a local exporter, you add another layer of costs that must be paid from your American sales. Aside from local exporter, your costs will include freight, customs duties if any, importer profit, wholesaler profit and retailer profit. The more of these profits you want your company to retain, greater initial costs for your company to export to States.
There are three cost control strategies for selling your goods or services in America. Each successive strategy potentially increases your corporate profits, but costs your company more money to implement. 1. Your least expensive initial export option is to find an American importer willing to sell your goods or services to American wholesalers. An American importer will develop your US wholesale network for a percentage of sales that they generate for your company. Using an American importer is least costly way to develop an American market, but it will substantially reduce your profits. You must pay American importer while keeping your product or service price competitive with local manufacturers. This often means thin margins for your company. It can mean selling at prices below your current factory price. Exporting through an American importer is by far most popular way for your goods or services to enter American Market. American importers expect you to offer quality products or services at competitive prices to those of American manufacturers. Your company risks little in developing market using an American importer and should States prove to be a major source of corporate revenue, you can take option 2 or 3 below when your present American importer contract ends. 2. You can open a wholesale office in USA and sell your products or services directly to retailers. This direct marketing option can cost your company over a million dollars before your company makes its first sale. However, wholesaling your products or services allows your company to earn importer and wholesaler profit on your goods or services. It's easy to compute how long it will take your company to repay startup costs of an American wholesale operation against costs of working with an American importer. However, it's far more difficult to compute risks of developing a wholesale company in States. Usually risks of failure offset cost savings of using an American importer.
