Want to Break Into International Trade? Here's the Greatest Challenge You'll Be Facing.
If you want to become an international trader, what is likely to be your biggest challenge?
In the international trade business, it usually boils down to locating buyers and sellers and knowing in which order to do it.
If you're serious about becoming an exporter, your first major task is identifying a supplier. The "fax jockeys" out there who hunt around for buyers and then start looking for a supplier of that product never seem to last very long. And for good reason.
They don't add value.
Adding value is the commodity you're selling. You're not really selling steak sauce or phone cords or garden tools. That's what your supplier is selling. Instead, you're selling your ability to solve problems, find buyers and sellers, ease concerns and pull the deal together so everyone is happy.
The new trader has a few obstacles to overcome to be successful. One of the biggest challenges is establishing credibility, which is a topic I'll address in a future article. But the other big challenge faced by all intermediaries--new and old--is avoiding the "middleman" stigma. I've discussed this before, but I just want to reinforce a few important points on the subject since I receive so many questions about it.
Buyers and suppliers sometimes feel that your role as a middleman just raises the final cost of the product and serves no other real purpose. When buyers and suppliers decide to cut the intermediary out of a trade transaction (it's called circumvention and although it doesn't happen much, it DOES happen), this is usually the reason they give, lame though it may be.
If you're doing your job right, of course, this is a false perception. The value you add to the transaction almost always outweighs the modest commission you collect when the sale is completed. If this issue comes up in your discussion with a potential supplier, simply point out how much cheaper it is to hire you than for the company to start and operate its own export department.
Not only do you bring expertise ad enthusiasm, the company doesn't need to find you office space, pay health and retirement benefits and you receive no money unless you're successful. How many other company employees (you might ask) get paid only when they bring in cash through the front door?
One of the most successful strategies for avoiding the middleman stigma is to present yourself as much as possible as the supplier's own export manager and NOT an intermediary.
One way that many successful intermediaries "assume the cloak" of the supplier is to use supplier letterhead on all correspondence, faxes and even emails. It works and reinforces your role as someone looking after the best interests of the supplier.
When you request permission to do this, the supplier is often more inclined toward hiring you in the first place. This is just one of the reasons you should look to identify a supplier BEFORE you start hunting for buyers. Of course, using company letterhead is the least of your concerns if the supplier doesn't believe you have the expertise to do the job. You must convince him you will add value. What are some ways you can do that?
If you've followed the advice I've given in other articles about international trade, you know to take advantage of your "edge" before making export contacts. As a result, you have either identified an industry with which you are familiar or targeted a country where you have contacts.
These are just a few of the ways you can show you are more than a middleman (others include being prepared with questions about funding, translations, shipping, currency transfers, etc). You're finding buyers. You're solving problems. You're adding value.
And in the end, it's proving that you're adding value--and bringing money in the front door for your supplier--that will guarantee your success and profits in the global marketplace.
Dennis Hessler is an international trade consultant and publisher who runs his own home-based trade and information company, Spyglass Point Productions. You can learn more about Dennis' international trade information products, including books, videos, software, newsletter and consulting services by contacting him directly or visiting his website. Contact Dennis at:
Spyglass Point Productions PO Box 13141 Pensacola, FL 32591 USA Phone: 850-438-5527 Email: Dennis@spyglasspoint.com http://www.spyglasspoint.com
Previous Index
Idea Help
Next
