Monday, January 9, 2012

How do I get trade leads?

This is a question that every owner who wishes to export its products asks. How do I find out who wants to buy my product? It’s a simple question with a complex answer. There are numerous options that a company can take to find out who wants to buy their products in the international market.
1. Export Management Company
This is the easiest, and probably the most expensive, option.  There are numerous export management companies in the U.S. and abroad, whose sole purpose is to help you export your product, obviously at a price.  Some of these companies include Amex International Sales Outsourcing (www.amexinc.com), Tradewinds (www.tradwinds-global.com) and Sefco (www.sefco-export.com) .The advantage of using thess companies is that it’s almost a ready-made service. Many of these companies will not only find someone who wants to buy your product but will also provide shipping services and customs brokerage services.  Furthermore many of these companies already have distributors overseas in place to distribute your product. These companies are excellent; however the greatest drawback is the price tag. Although many large and some medium sized business can pay for this service, many small business simply can’t. Researching and comparing prices will help you in determining if this is the right option for you.
2. Federal/ State government Agencies
There are many government agencies that encourage export and attempt to provide export assistance to US companies.  The Department of Commerce (export.gov), the Export-Import Bank, the U.S. Commercial Services and even the Small Business Administration have programs to help you in your exports. The advantages are numerous.  Many of these agencies can help you in conducting the necessary research and finding a buyer. Some even provide capital for you to export. Most of these services are very affordable and many small businesses could easily use them. The greatest drawback of these services is that they are government services, many are subject to current political conditions, and some bureaucracies aren’t exactly “customer friendly”. Furthermore you have to take the first step and although they can help in several ways many of the actions necessary to complete a transaction will ultimately rely on your research, planning and coordination. Understanding your need and your willingness to devote time to engage a government bureaucracy will help you determine if this is the right option for you.
3. Export Brokers
These are specialized service providers.  In full disclosure I belong to this group, but there are advantages and drawbacks to using brokers. Some of the export brokers include my own company Il Esportatore, LLC (www.ilesportatore.com) and Export Trade Brokers (www.exporttradebrokers.com). It is important not to confuse customs brokers with export brokers. Customs brokers are mostly involved with the documentation and freight arrangements necessary to get your product overseas once a deal has been reached, the export broker specializes in getting you the deal.  The advantage is that many of these services are very affordable as many export brokers work on commission (usually no more than 10% of the total value of the deal) and depending on your industry specialization many of these brokers can get you deals that the larger export management companies can’t (either due to contacts in the industry or a better understanding of your product and market). The drawback is that it’s a loose group; the standards of professionalism and expertise that you pay for vary. Some will take the interest of your company to heart, ensuring that you not only export one sale and they get their commission but actually helping you establish a relationship with a foreign buyer that might generate further sales for you, even if it means no commission for the broker. Others will simply take their commission and run, even if your product ends in the wrong port of the wrong nation.  The nature of your product and your willingness to devote time to get to know the broker will help you determine if this is the right option for you.
Exporting is not easy, it requires consistent research, networking and the willingness to try new things, and sometimes fail at those new endeavors. Export Management Companies, Governmental organizations and Export Brokers are just some of the entities out there that can help you achieve your exporting goals. Deciding which one to use will require, once again, some research on your part.
I look forward to your comments,
V/R
Juan A. Salva

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