Many firms have the ability to participate in the international marketplace. Unfortunately, many companies ignore opportunities outside the US thus missing out on a tremendous opportunity.
Why do firms export? The many reasons can be boiled down to only a few:
- Increased revenue and profit
- Increased production
- Spread risk base of business
- Offset lack of demand for seasonal products
- Potential tax advantages
Prior to exporting companies should take into account certain factors addressed in our Export Preparation Kit . Some of these factors include:
Export Readiness Indicators
Market Research
Export Plan (Sample)
Preparing Products for Exports
Pricing, Quotations and Terms
Methods of Payment
Documentation, Shipping and Logistics
There are various approaches to exporting:
1. Filling orders from domestic buyers who then export the product.
These sales are indinstinguishable from other domestic sales as far as the original seller is concerned. In essence, someone else has decided that the product in question meets foreign demand.
2. Seeking out domestic buyers who represent foreign end users or customers.
These buyers are a large market for a wide variety of goods and services. In this case a company may know its product is being exported , but it is still the buyer who assumes the risk and handles the details of exporting.
3. Exporting indirectly through intermediaries
With this approach a company engages the services of an intermediary firm capable of finding foreign markets and buyers for its products. Export management trading companies give the exporter access to well-established expertise and trade contacts. The exporter can still retain considerable control over the process and can realize some of the other benefits of exporting such as learning more about foreign competitors, new technologies and other market opportunities.
4. Exporting directly
This approach is the most ambitious and difficult, since the exporter personally handles every aspect of the exporting process from market research and planning to foreign distribution and collections. A significant commitment of management time and attention is required to achieve good results.
Outsource Trade Group is one of the most recognized Export Management companies (EMC) based in the United States. We provide manufacturers in North and South America, Southeast Asia, Europe and certain African countries with our professional sales, trading and export services. As an EMC we act as the export department for various producers of goods and servers. We engage and transact business in the name of our clients on an client elected salary or retainer plus commission basis. With our experience and resources we are fully equipped to help achieve your objectives and increase your sales. For more information or request an Export Trade Management brochure outlining our services, feel free to email our Export department at export@outsourcetradegroup.com