BUSINESS ARTICLES

The Personal Touch and Finding Foreign Buyers

By Dennis Hessler

The deals that bring most business into the New Economy are still made the old-fashioned way - with a handshake.

It's true. The Internet may have changed the SPEED of a transaction and the MEANS of conducting it, but in the end, business is still business and it's done by knowing the people you're dealing with.

Being successful in the global marketplace -- and everyone on the Internet is in the global marketplace -- means developing REAL trade leads with REAL possibilities.

Many potential non-U.S. buyers are just "kicking tires" and have no intention of really making a buy. Some don't have the money they say they do. And some - let's face it - are just crooks.

Too often the most enthusiastic and quickest responses from potential overseas buyers are the LEAST likely to pan out. Sometimes the reason is the exporter - that's you - didn't take the time to focus on the right market. As a result the message may have fallen on the ears of many "sort-of" interested potential buyers in the overseas country, but darned few who were really serious.

And you may be targeting the wrong people.

If you're selling in quantity, for instance, you probably won't sell to an end user directly. Many new traders make this mistake. There are tiers of people in the supplier-to-user pipeline. While fewer intermediaries will make your product more competitive, many of these intermediaries add value to the export transaction so it's a good idea to keep them around.

Probably the most efficient first tier intermediary is the overseas distributor. He actually purchases the product then warehouses and distributes it to buyers in his particular area. Usually, he takes care of after sales service too.

Many new traders use overseas agents who collect a commission when they find a buyer. Service, shipping and payment, however, are still provided by you. The value of the agent is in providing the personal touch, the handshake - to your buyer. This relationship with the final end user is especially important if you want to be successful in the global marketplace. If your agent isn't willing to provide this personal service, find somebody else.

The other option is to sell directly to the end user. This could be a manufacturer who needs your parts to produce his product (called original equipment manufacturers or OEM), or to hospitals, schools or even to individual customers.

Most likely you'll use a distributor if you want to have a large supply of your product on hand in the target country and if after-sales service is important. You'd use an in-country agent when you want to maintain more control over your product such as when you are shipping individual, high value products.

When you're shipping directly to end users, usually you are selling products that require little or no after-sales service or you have a major servicing support structure in the company.

One of the best ways to find buyers/agents/distributors is to use the U.S. Department of Commerce International Partner Search program. This program works with commercial specialists in U.S. embassies and consulates around the world to help you find in-country representatives. These specialists will help you develop a package to market your product to potential distributors. Overseas offices will then come up with a list of two to five organizations that are reputable and have expressed an interest in representing or buying your product.

Another way to find buyers is to talk to your banker. If your bank has a correspondent banking relationship in the country you will be targeting, the bank can contact its correspondent bank overseas and ask for a list of reliable buyers/distributors/agents whom you can contact.

About the author:
Dennis Hessler is the publisher of The Computer User's Guide to Running Your Own Exporting Company and numerous other books, video tapes, software packages and The International Trade Connection newsletter which is designed to show entrepreneurs new to exporting how to get involved in the booming global market.

Learn more about international trade at his website, http://www.spyglasspoint.com. You can also download a free sample copy of The International Trade Connection at the site. If you have questions about any of his products or international trade in general, e-mail Dennis at Dennis@spyglasspoint.com. Spyglass Point Productions, P.O. Box 13141, Pensacola, FL 32591 U.S.A.


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