EXIM Strategies Supplier Diligence
This information is provided to suppliers who are considering expansion into international markets with their products. There are several factors that must be considered as part of your decision making process. This summary of factors is provided as a courtesy to assist in establishing or strengthening the strategic direction of your company.
Why International Markets?
Your current and predominate market is highly competitive, over-saturated with like-kind products, enduring a struggling economy, and the continual proving of your products to every potential buyer. International Markets have buying power with a growing consumer base demanding higher quality products. It is a fact that the international business arena is occurring. Those companies who tap into these expanded markets will increase their likelihood of additional sales while those that do not will not hold a competitive edge in the future.
Economy
The only historically proven method to improving an economy is trade within free market systems. You have responsibilities as a company within the economies you do business. You have the responsibility to generate profits then use those profits to pay wages, purchase inventory and supplies, and keep a flow of cash through your local economy. This process strengthens the economies in which you do business. This ensures that there is adequate expendable cash for consumers to purchase more of your products.
Mitigate Risk & Expense
There is no doubt about it. There is risk associated with being in business. There is and will always be expenses associated with being in business. These include more than just the cost of manufacturing. The continual requirement for sales representatives to market products (in-house or outsourced) is an additional cost of doing business. The benefit of outsourcing your sales and marketing can work to an exponential benefit for you. By utilizing a Contracted Manufacturer's Representative, we become your outsourced sales and marketing function without the on-site space utilization, personnel management and payroll associated expenses. While it does cost to have a dedicated account executive within a Manufacturer's Representative Firm, there is also the benefit of our combined expertise, experience and support staff available for less expense than a normal full-time wage for one person on your staff.
Value and Worth
While we do have a representation fee, we do not accept clients or their products for representation without meeting strict standards. We can readily find products similar to yours. For this reason, we must evaluate several factors prior to exending an offer to represent you. These factors include your vision and growth objectives, an internal sales potential projection of your products, the quality and image of your products, the target market sales growth as well as your capability to perform in filling the orders we secure. The international sales cycle can easily be six to eighteen months of constant effort to secure sizeable orders. This decision to partner with us if extended the opportunity is one you must seriously consider if you have the strategic vision and growth objectives that includes expanding into additional markets. We will not represent products without the likelihood of getting sales from them.
Consider This:
1. Are your sales and profit where you want them to be?
2. Is your existing market increasing or decreasing?
3. How many companies are seeking you out to create new market penetration?
4. Are you willing to invest in your own company by providing the expertise to penetrate new markets.
5. Are you cutting back on expenses (including sales/marketing related costs of doing business) in a declining market then expecting increased sales?
6. Where will you be in 3, 5, 10 years if you do not expand your market penetration while your competition is expanding theirs?
7. Is fear and uncertainty preventing you from growing?
8. Do you currently have the experience, expertise, and knowledge of foreign import requirements, transaction requirements and multiculture awareness to penetrate international markets?
9. Are you continuing to market your products the same way when the consumer/market base has evolved?
10. Is your company with the investment of utilizing experienced manufacturer's representatives?
11. When is the best time to begin penetrating additional markets to increase your company sales?