Exporting Products - 11 Common Questions Answered
Matt Berkley
John Zisser doesn’t like to use the phrase “international business scheme.” It sounds too sinister. In the early 1990s, during the midst of moving his retail tire company into wholesaling, Zisser, president of Zisser Tire Wholesale, became intrigued at the opportunity of selling his high performance tires abroad. The promise of a fresh customer base was too good to pass up—and the results have been phenomenal.
With an annual growth market share of 30%, Zisser Tire Wholesale has skyrocketed from $18 million a year in sales to $100 million in the past five years. As an international player, Zisser’s company also gets the edge over several of its competitors, buying into bigger deals both foreign and domestic.
Today, Zisser markets his high-performance tires to large retailers and other wholesalers throughout Europe, and he’s planning a move into Asian markets as well. What’s made him so successful? “It’s really about contacts,” says Zisser, “You can have the most successful product in the world, but if you don’t have the right contacts then you’ll end up selling to the wrong person and all of a sudden you’ve destroyed the market. You become the bad guy to the people you should be dealing with.”
Greater growth and visibility, increased market share and access to new contacts are only the beginning of the host of benefits enjoyed by companies that peddle their wares abroad.
How do I know if my product is exportable?
“If a company has a product/service that has an established domestic market, then it is very likely that they will have customers outside the United States looking for that product or service. A company should do its homework by preparing an international marketing plan with defined goals and strategies.”
—John Blum, regional manager, international trade programs, U.S. Small Business Administration
What makes a company ready to start shipping globally?
“Make sure your company is already a business success internally and domestically before thinking about expanding into international arenas. If your domestic market is not thriving because of business decisions that you are making now, this error will only be magnified by entering a larger market.”
—Linda Jacobsen, president and CEO of Global Vision Strategies, LLC
What’s a common misunderstanding about exporting?
“One of the biggest misconceptions people have is that, by exporting, they’re going to make a killing. We all hear of big companies that sell millions of dollars worth of products overseas. Most companies do not. They sell some here, some there. They sell to one or two countries, or maybe a few more. Start slowly. Become educated in the international process. Learn it well. Then expand your horizons. That is the benefit. If you think you are going to conquer the world overnight and make millions, play the lottery instead.”
—Stewart Dahlberg, president of Export Solutions, LLC, and international sales manager at J.D. Street, Inc.
How can exporting my product boost sales?
“A company can extend its selling season or selling cycle of almost any product. What no longer sells in the U.S. may be highly desirable overseas. What stopped selling with the first frost here might reach a customer in South America as spring is beginning. You have to look at the world as a continuum of selling opportunities and take advantage of any you see that legally makes a profit for your company.”
—Stewart Dahlberg, president of Export Solutions, LLC, and international sales manager for J.D. Street, Inc.
What should businesses understand about exporting before they start?
“It takes time and effort to make international sales. It is not something that can be done haphazardly. It requires commitment from top management of the company, which will involve time and money. International planning is essential to success, as is dealing with different cultures, mores, and ensuring payment for your product/service. How do you get legal remedies if something goes wrong?”
—John Blum, regional manager, international trade programs, U.S. Small Business Administration
Should I worry about my product being stolen by foreign companies?
“Almost anything we manufacture here can be duplicated elsewhere, especially if we are too trusting with revealing our intellectual property. It’s a good idea to speak with an IP (Intellectual Property) attorney with real international experience to see what kinds of competitive intelligence issues might arise in certain markets and with certain products.”
—Linda Jacobsen, president and CEO of Global Vision Strategies, LLC
Can a business handle an exporting venture on its own?
“Do not try to do it alone! If you are not experienced, you will most likely fail. Once you have a bad taste in your mouth from poor export management and stop, you may be missing out on the most lucrative opportunities for your company.”
—John Freeborn, international business manager for The Mart Corporation
Where should I go for research and assistance?
“The U.S. government makes good use of our tax dollars in composing and posting Country Commercial Reports online and by hooking up with the local USEAC (United States Export Assistance Council) right here in Clayton. The trade team there can walk you through how to use these in- depth reports, and what to research beyond what is provided there for best use of your assets. The World Trade Center-St. Louis, U.S. Export Assistance Center, the Ex-Im Bank, OPIC, and the U.S. Small Business Administration are among the top organizations to approach to get started and do a thorough job of things.”
—Linda Jacobsen, president and CEO of Global Vision Strategies, LLC
What should I expect in terms of order sizes for my product?
“Orders from overseas buyers often tend to be larger than a typical domestic order. Typically, in order to make it feasible to take delivery of an order 6,000 miles away means the customer wants to maximize the cost of delivery. This usually means they order more to reduce the cost per unit.”
—Stewart Dahlberg, president of Export Solutions, LLC, and international sales manager at J.D. Street, Inc
Don’t I need representation in the country I’m marketing to?
“Not necessarily. Many companies sell over the Internet and can ship the same day, using credit card payment systems online to overcome currency fluctuations and exchange rate issues. You can also use the state and federal trade programs, trade shows, and have their people represent your products and services at catalogue shows and other types of trade shows.”
—Linda Jacobsen, president and CEO of Global Vision Strategies, LLC
What’s the best advice for a small company that’s considering breaking into the international marketplace?
“Exporting takes involvement and requires a gradual building process before you become successful. It is an involvement in the process and an involvement of you and your company, as you both learn to adapt to an ever-changing environment.”
—Stewart Dahlberg, president of Export Solutions, LLC, and international sales manager at J.D. Street, Inc
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