4. Select a Product for Export
•Do you have sufficient supply to service export markets?
•Do you have sufficient capital, personnel, and resources to
handle volume?
•Are you better off selling a big volume item or a small volume
item with more profit?
5. Niche
Niche definition
A position particularly well suited to the
person/product who occupies it; “shea
butter has a good niche in the natural
cosmetic industry in California."
6. Applied to products
Most products have several possible niches in the market
– the key to maximum success is finding the niche that
provides the greatest return for the supply chain – a
“good” product in the wrong niche will be unsuccessful.
Identifying the right niche requires a full understanding of
the product including strengths and weaknesses of the
product and supply chain.
Consumer demand is what drives a product to succeed in
a niche.
7.
8.
9. Discussion
Discussion 4 what factors
What factors determine if a buyer
purchases a product at the importer level?
determine if a buyer buys?
What about the distributor level?
What determines if an end consumer
purchases your product?
10. Prepare Company Profile Sheets
Objective of the profile is to create buyer
confidence in the producer by communicating
their background, ability and resources.
Provide information about the company’s
owners and management team
11. Company Fact Sheets
Vital Information About Your Company:
Contact Information
List of Products
Company History and Philosophy
Answer the question “why in the world would
anyone buy my product over everything else that
is available?”
12. Company Fact Sheet
Value of athat the customerfact sheet
It is important company have
confidence in the company producing the
product the fact sheet helps them gain this
confidence.
It is important to provide an outline of the
companies technical abilities and resources.
It is important to provide background
information on the company owners.
14. Develop a Product Profile Sheets
What is a product profile sheet?
Why prepare it?
“Unseen is Unsold”
What elements would it need to include?
15. Product Fact Sheet
Contact Information
Common and Scientific
Names
Ingredients
Packaging Specifications
Special Certifications
Shipping conditions
16. How will these documents be used and why do
them?
Documenting information – ensuring that it is
complete and the process has been thought
through.
Marketing tool for promoting the company
You need something to leave with the
customer – either in person or e-mail.
20. Find out how your product usually
ships
Know When to Ship Your Product So
That It Arrives in Good Condition!
21. Packaging Wisdom #2
“It doesn’t matter what you like, it matters what your
customer likes.”
•Color
•Size/Units per package
•Transportation
•Living conditions
•Shopping habits
•Cultural beliefs
22. Packaging Wisdom #3
“Follow The Market Leader”
Guerrilla Marketing:
Emulate those who have market experience.
23. Solicit Feedback from your Customers!
They Can Help By:
•Proofreading your labels
•Reviewing your grammar
•Giving feedback on your colors
•Critiquing your image
Your Customer Is The Expert!
24. Use Photos On Your Labels
The importance of Photos
• Photos can show how the product is used
• They can be understood in any culture
• They can remind customers why they want to
buy the product
• Photos create an image of value
26. What is a Tradeshow?
A tradeshow is an industry gathering
where manufacturers and producers
exhibit their products to expand
their markets.
27. Reasons for attending a show
* Identify new products and services
* Strengthen relations with existing suppliers and customers
* Identify industry players – customers, suppliers and
support industry
* Gather information for future purchasing decisions
* Review business plans with customers and suppliers
28. Reasons for participating in a show
* Find new customers and suppliers
* Launch a new product
* Strengthen brand identity
* Visit existing customers
29. How to catch a customer at a tradeshow!
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You have a choice....
• Will you cast a wide
net and see how much
you catch?
• Will you choose
your bait carefully and
attract one big fish?
30.
31. Choose a targeted tradeshow
The tradeshow doesn’t
have to be big to attract
the “Right” customer
32. Tradeshow attendants are at the
show to sell – not to buy
Therefore, it is critical that you do
your homework to arrange meetings
prior to the show!
33. Visit tradeshow websites and research
Research
who is exhibiting and who is attending.
Look for other companies in your niche
or complimentary to your niche.
Talk with people who have been to the
show in the past
34. Questions to consider before
committing to attend the show….
Questions to consider before
Who is the target audience and how do I
committing to attend a show
reach them?
Do I need to change the product, image or
position of the product to reach the target
audience?
Can I afford the time away from my regular
work to attend the show?
35. Budget for all costs of attending a tradeshow
Cost of Brochures
Samples This image cannot currently be displayed.
Follow-up Travel
Business Cards Booth Rental
36. Don’t underestimate the cost of your time
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If you were not at
the trade show,
what would you be
doing ?
Is that more
rewarding than
attending the
show?
38. Take care of details!
Make sure you and your product arrive
to the trade show on time!
Make sure the samples have all the
necessary paperwork for customs
clearance.
39. Actively promote your attendance
at the tradeshow
Announce your attendance to prospective
clients
Invite clients in the area to your booth or to
dinner
Follow-up with a call to personally invite them
to visit your booth
40. Be prepared to answer questions:
• Why should the customer buy your product over any
other in the world?
• What is the price?
• What are your payment terms?
• How quickly can you ship?
• Do you have an agent?
• What is your experience in the market?
42. To draw customers into your booth:
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Make Brochures,
Business Cards, and
Corporate Literature
Available
Give-Away Samples
or Gifts
Create a U-Shaped
Booth
43. Keep your display simple and feature your
hottest selling products This image cannot currently be displayed.
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44. Dress to Sell
• Don’t over or under
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dress your customer
• Consider dressing in
“theme” clothing
• Wear company tee-
shirts or matching
colors
45. At the Show
• Walking the Show
• Contact
• Schmooze
• Take promotional photos
• Debrief with care
46. This image cannot currently be displayed.
No Exhibit? No Problem.
• The Power of coffee
• Walk the floor
• Pick up others materials
• Check out the Media Room
• E-mail
• Send a thank-you note
• Google your competition
48. Things to consider when contacting the
potential customer
• You have a two week window to keep the relationship alive
• The first week the customer is swamped getting back to their
normal flow of business.
• When contacting the customer always send something in
writing first
• Avoid sending attachments in e-mails
• Give them time to read the document and then follow-up
with a phone call
• Always follow-through on what you say you are going to do.
• Be persistent but not a pest – walk the thin line.
• Look for other opportunities and ask if they can recommend
someone else to talk with or another company to work with.
49. Relationship management
Key points
• Listen – it is your most valuable communications tool.
Learn what the buyer wants.
• Look – when meeting with them look for signs as to
who they are. Get to know them.
50. The meeting
• Work with your target customer to arrange a
meeting. If they are not going to be at the show ask
who else you can meet with.
• Always have something to leave them. Have a
sample to show if possible and paper to leave. Send
the sample later as most people don’t want to carry
it home from the show and it will get lost.
• Know your product, its potential and your target
customers needs.
51. Monitoring the relationship
• Stay in touch. Don’t just call the people when you
need something, but don’t waist their time.
• Develop a friendship with both supplier and customer
that goes beyond the product
• Follow-up with details requested at the show. Contact
100% of the people who gave you a business card.
• Send out samples promptly
52. Back Home
• Make press book
• Send thank-you notes
• Debrief your colleagues
• Update database
• Follow-up with stragglers
• Update website
• Send samples!
53. This image cannot currently be displayed.
Sending samples
This image This image cannot currently be displayed.
cannot currently be displayed.
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59. Documentation flow export shipment
offer
• Formal offer submitted to interested customer
Proforma Invoice
• Proforma Invoice sent to customer
Purcer
• Customer opens Purchase Order – places order
hase Or
LC
• Customer opens LC
Advsesd
• LC is advised by bank to Exporter
60. offer
• LC reviewed by exporter
Proforma Invoice
• Containers or shipment space booked
Purcer
• Pre-shipment documents filed 10+2 USA
hase Or
LC
• Shipment loads on vessel – bill of lading issued
• Documents prepared and submitted to the bank
Advsesd for negotiations
61. offer
• Bank reviews documents
• Bank submits documents to issuing bank for
Proforma Invoice
payment
Purcer
• If no discrepancies payment made
hase Or
• If discrepancies either an amendment is
LC requested or an acceptance is requested
• Funds deposited into exporters account
Advsesd
62. Costing and Pricing
COSTING PRICING
• Calculating what a product • What you're willing to part
costs to produce. with a product for and what
your market is willing to pay
• As you calculate, you need for it.
to consider everything it costs
to produce THIS product. • Cost-based pricing sets the
floor; demand-based pricing
sets the ceiling
63. Export Quotation Worksheet
►Document and record how you arrived
at your offer price.
► Use the form in your notebook or develop
something computerized with a similar
function.
64. Cost of Goods for Export $3.50
Quantity 1904
Total Cost of Goods $6,664.00
Add Profit Margin 3.50 $0.53 $1009.12
x .15 = .525
Inland Freight to Port or Airport $0.21 $400.00
Consular Legalization Fees $0.01 $25.00
Inspection Fees/Charges $0.02 $35.00
Freight Forwarding Fee $0.03 $50.00
Bank Charges $0.02 $35.00
Document courier charges $0.01 $25.00
Total Exporting Costs $0.30 $565.00
FOB Loading Port / FAS Airport $4.33 $8238.12
Total Price
Ocean Freight /Air Freight $0.63 $1200.00
CFR Unloading Port / CPT Airport $4.96 $9438.12
Total Price
Insurance Premium $0.11 $ 200.00
CIF Unload Port / CIP Airport $5.07 $9638.12
Total Price
Offer Valid Until: 11/31/02
Prepared by: Authorized by:
65. The Role of the Bank Under Letter
of Credit terms
# 1: The bank replaces the
exporters credit with theirs
thus eliminating risk to the
Bank exporter that the importer will
be insolvent at time of
shipment.
#2: The Bank guarantees the
importer that the exporter has
met the terms of the LC before
issuing payment.
66. Avoid Discrepancies in an LC
Your Documents
Must Exactly
Reflect the LC,
Even if the
Information is
Incorrect.
67. Questions to ask about an LC
Is the LC Irrevocable? Can I produce the documents?
Is the amount accurate? Can I meet the schedule?
Is the address correct? Is insurance required?
Is the description correct? Is the correct
transportation
Are the ports correct? document required?
Is transshipment allowed? Is it what I expected?
68. Documentation Terminology
Proforma Invoice - An invoice sent in advance of
shipment, to enable the buyer to obtain an import permit
or exchange permit or both. The proforma invoice gives a
close approximation of the weights, values and timing of
the intended shipment.
Commercial Invoice - A written and signed list of
merchandise and/or services with associated quantities,
prices and expenses. It contains the terms of the sale and
is prepared by the seller to show the total amount owed
by the buyer.
69. Notify - This phrase requires the carrier to notify a
designed party upon arrival of the merchandise, but
does not transfer title of the merchandise to that party.
Consignee - a person who receives goods from someone
for their own use or to sell for the sender. The
consignee is the person to whom the shipment is to be
delivered whether by land, sea or air.
70. Types of payments
Documentary Credit - A letter of credit issued to support
the movement of merchandise supported by shipping
documents presented by the beneficiary to the Issuing
Bank for payment or acceptance.
Documents Against Acceptance (D/A) - Instructions given
by a shipper to his or her acceptance bank that the
documents attached to a time draft for collection are
deliverable to the drawee/payer against his or her
acceptance of the draft.
71. Direct Collection - Method of payment for goods in which
the seller sends a draft drawn on the buyer, the shipping
documents, invoices, insurance certificates, other
appropriate documents directly to the buyer’s bank for
collection. Only an information copy of the advice is sent
to the exporter’s bank to establish and monitor the
collection transaction for the seller.
72. Negotiating Bank - The bank that reviews the
documents required in the letter of credit for compliance
with its terms and remits payment to the beneficiary.
Discrepancy - Any deviation from the terms and
conditions of a letter of credit or from the documents
presented under the letter of credit.
73. Bill of Lading (Air, Ocean, Railroad, Truck) - A document
of title issued by the carrier (transport company) or its
agent. Bill of lading is a receipt for the merchandise in
transit, as well as a contract for delivery to a specified
party at a specified destination.
Clean Bill of Lading - One in which the goods are
described as having been received by the carrier in
apparent good order and condition” and without
qualification.
74. Beneficiary - The party who receives payment as
stipulated in a letter of credit. This party is usually the
seller/exporter.
Freight Forwarder - An independent business that
arranges for the shipment of export cargo and completes
the necessary export documentation on behalf of the
exporter.
Issuing Bank - Bank that draws up and issues the letter of
credit and that makes payment according to the
conditions
Negotiate - Take action to verify that the documents
presented under an L/C conform to the requirements in
order to release funds to the seller.
75. Expiry or Expiration Date - The date on which the draft
and documents drawn under a letter of credit must be
presented to the negotiating, accepting, paying, or
issuing bank in order to effect payment. If the letter of
credit is a “negotiable credit,” the issuing bank must
honor the credit, provided the complying documents
were submitted prior to the expiry (or expiration) date.
Draft - A draft is a formal demand for payment. It is an
unconditional order in writing, addressed by one party
(drawer) to another party (drawee), requiring the
drawee to pay, at a designated or determinable future
date, a specified sum in lawful currency. In international
trade, drafts are also known as “Bills of Exchange.”
77. Letter of Credit - An instrument issued by a bank, at the
request of the applicant, promising to pay the beneficiary
upon his presentation of stipulated documents in
accordance with the terms and conditions of the credit.
Irrevocable Letter of Credit (L/C) - Letter of credit that
cannot be changed or cancelled without the consent of all
parties involved. Almost all L/Cs are irrevocable unless
otherwise stated on L/C. See also “letter of credit”.
Confirmed - A letter of credit issued by one bank to which
another bank added its irrevocable confirmation to pay,
thereby obligating itself in the same manner as the opening
bank.
78. Revocable Letter of Credit (L/C) - A letter of credit that
can be modified or canceled by the issuing bank without
the beneficiary’s consent unless the negotiation of
complying documents has already taken place. The issuing
bank must honor the draft(s) negotiated before the notice
of revocation has been made.
Red Clause - Clause in a letter of credit that authorizes
the advising/negotiating bank to make an advance
payment to the beneficiary before presentation of
shipping documents, usually against a simple receipt.
79. Transferable Letter of Credit (L/C) - Letter of credit that
permits the beneficiary to transfer all or some of the
rights and obligations under the credit to a second
beneficiary.
Standby - A letter of credit that generally guarantees
payment due for an unfulfilled obligation on the part of
the applicant or another party. It is payable upon
presentation of a draft, as well as a signed statement or
certification by the beneficiary that the applicant has
failed in his obligation.
