A Guide To Exports And Exporting Goods
Is it because of the unique nature of the product? Is it to support a declining home market? Is it to spread risk? Is it to take advantage of seasonal differences? What is the business trying to achieve?
Pricing
Pricing can be as simple or as complicated as you want; exporting does have extra factors to consider. Do you want the prices to cover the marginal costs, or also contribute towards your UK fixed costs? What are competitors charging? What do you want your price to say about your product, does it need to infer quality if this is your USP? Remember customs charges for non-EU countries as well as inflation rates potentially having an impact on the competitiveness of your product.
Exchange rates - always make sure you know what is going on so as not to lose out!
Promoting your product online
For many smaller businesses, marketing your products overseas can be tricky, not to mention expensive. Consider using the web as a main channel - online transactions can be cheaper than phone calls - why not give an incentive to online customers? Capture as much data about your customers to find out more about them - you will then be able to know what makes them tick. Can you use banner adverts and sponsored links on relevant sites to divert customers to your business? Can you affiliate with a domestic organisation to add credibility to your brand?
People and culture
Remember that cultures are different. Don't make mistakes of assuming that the way of doing business as you know it will be acceptable. Language, social organisation, packaging and so on are all crucial in getting your export strategy right.
You will need to do your homework - a Japanese hotel advert quoted "you are invited to take advantage of the chamber maid". Colours can mean different things in different cultures on packaging. Latin American business people prefer to stand closer together when in groups or meeting than Europeans do. The list goes on.
Getting your product to market
All the strategic thinking can lead to nothing if your products do not arrive as you want them to. Consider speed, value, tracking, goods in transit insurance, customer service, customs procedures etc. Talk to your carrier about the different options and their capabilities, don't be afraid to challenge them if you feel you are not getting the right solution. What do your customers overseas expect?
Experience it yourself
Once you have done all the ground work and made all your choices, consider a visit to your chosen market. There is no substitute for going and seeing the country, the culture and how things work. It may help you to refine your approach to marketing, or meet agents before launching anything, or just getting a view on what makes your potential customers tick. Try trade missions and the British Chambers of Commerce as a starter.
Go for it - sensibly
Remember that Europe is the biggest consumer market on the planet and is on our doorstep - free trade and everything. Don't be afraid of giving it a try. However, you should always seek advice and training. The Institute of Export run training courses on all aspects of international trade, UK Trade & Invest have a website with country profiles and advice. Get as much as you can and use it to make sensible, pragmatic decisions. But give it a go.
Released: 23/07/06 09:38
