Developing Overseas Markets A presentation for The Really Useful Business Show by Peter Thompson Int

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Developing Overseas MarketsA presentation
forThe Really Useful Business Showby Peter
ThompsonInternational Trade Trainer Sussex
EnterpriseOctober 2009
THE NEW SHAPE OF TRAINING
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Why do it now?

• Weaker Domestic Markets
• Strength of Euro v Pound

• Weak Domestic Market

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Some Benefits of Export Sales
Increase Sales Possible Higher margins Decrease
unit production costs by greater productivity
lower material costs Reducing single country
exposure Smooth out seasonal trends Gives mature
products a new lease of life Personal benefits
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ROUTES TO MARKET

• DIRECT SALES
• AGENTS
• DISTRIBUTORS
• FRANCHISE
• JOINT VENTURE
• SUBSIDIARY

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COMMISSION AGENT transmits orders to the
manufacturer in the name of the buyer, who is
responsible for payment
DISTRIBUTION AGENT buys on his own behalf and
sells to his own customers. Usually has an
exclusive sales agreement with the manufacturer.
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Market Research-Some sources

• UKTI - EMRS
• CHAMBERS OF COMMERCE
• BANKS
• COMMERCIAL SOURCES

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Market Research-Do I need to adapt my product
or service

• Labelling/language requirements
• Physical Changes
• Product Placement

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COSTING

• Make sure you know ALL the costs use
  Tates/Croners to guide you on local requirements.
• Use a costing form
• Talk to your freight forwarder/agent

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Some items to include in your Costings

• Export Licence
• Credit Insurance
• Costs to FOB/FCA point
• Freight to Destination
• Insurance to Destination
• Customs Clearance
• Duties
• Taxes
• Commission
• Negotiation Factor

• Ex Works Cost
• Export Packing
• Bank Charges
• Warranty
• Pre shipment Inspection
• Certificates of Origin
• Legalisation
• Labour to load
• Inland Transport
• Carriage Insurance

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Logistics

• Cost
• vs
• Convenience
• vs
• Compliance

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Pricing

• If you can, price as high as the market will
  stand!
• All markets are different.
• Be flexible
• Negotiate the detail

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Winning Orders

• Excellent service
• Understanding some of the cultural issues
• Competitive prices
• Flexibility
• Supplying what the market wants
• Above all
• TRUST, PROFESSIONALISM AND PERSONAL RELATIONSHIPS

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Getting Paid

• Security of Payment
• Partial/Full Advance payment
• Letters of Credit and Documentary Collections.
• Carry out due diligence Banks, Credit Insurers,
  Credit reference Agencies, other
  suppliers/principals

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Sussex EnterpriseTraining Seminars

• Introduction to Export Operations
• Understanding Export Paperwork
• Using Letters of Credit
• Agents and Distributors
• Winning Export Business
• Export Licensing and Controls
• A Foundation Course in Importing