GOLDEN RULES

TO BE A SUCCESSFUL EXPORTER: GOLDEN RULES: 

            In order to be successful in exporting one must fully research the potential, new and traditional  markets.  Each overseas market has to be explored in a systematic manner by understanding the  design and product requirements. Cultures, habits and the spending power of the customers  are to be carefully considered. Markets are to be nursed in such a way that our products and services always dominate those and we come to stay as the supplier of the same for a longer period. 

            Products are to be offered and sold  as close to the market as possible. Even though sometimes buying agents and commission agents are required to be appointed for the sales promotion of the products and services, but there must be fewer intermediaries as  every intermediary requires some percentage for his share in the business, which results into  less profit for the exporter and higher prices for the customer. 

            All goods for export must be efficiently produced.  These must be produced with due regard to the needs of the export markets.  For the goods and services offered, pricing is one of the most important factor as the world market is now open to all players and in view of the intense competition, export price is the main factor to be kept in view in order to become a successful exporter and service provider. Even though products have more competition, but where specific supplier and service provider is to dominate the market, prices are also to be determined in such a way that our supplies are comfortably accepted by the buyers. Certain situations and circumstances may lead us to additional profits, but even in these situations, pricing should be the determining factor to catch the customers for a longer period.

SUPPLY OF GOODS TO EXPORTERS:

Where a person cannot easily export his goods, he can concentrate on supplying goods and materials to other persons who already have an export trade.  Or he can concentrate on making what are termed ‘own brand’ products, much demanded by buyers in overseas markets which have the manufacturing know-how or facilities.  In trade, following points are to be kept in mind always:

EXPORT IS  A TOUGH TRADE:

In the present day competitive world, customer has always a choice of various suppliers and before he procures goods from a particular supplier, he decides as to who is the most competitive, quality supplier, supplies will be available over a longer period, and he is a dependable source of supply. Selling in the present day international market is an honorable profession, and exporters prove to be  expert salesmen, it  is an honorable profession.

TIMELY DELIVERIES:

Timely deliveries are a must for a successful trader and it adds to his reliability and dependability. Even though late deliveries are there due to various factors such as  dock strikes, go-slows, and so on which almost occur everywhere in the world.  Such avoidable  difficulties can invariably be overcome, and anyone contemplating entering export for the first time must be determined to let nothing stand in the way of-fast and efficient delivery.

GOODS MUST BE PROPERLY SERVICED:

Customers do not buy considering only the price and the product is right, but also because they know that it will, if necessary, be properly serviced, both when it arrives at its destination and during its whole working life.  Service is the main stayback of exporting and those  companies which  give service  can survive.  Service must rank high by international standards, and must stand up to the service provided by any competitors in the world. 

COMMUNICATION:

Communication has to be far-reaching and speedy.  Good communication is vital in export.  Some one seeking an immediate response has to be responded urgently through proper communication. Prudent exporter  replies promptly to letters, using E-Mail, Fax Facilities and Telephone service. Speed is the essence of export communication. It is the human nature that every one seeks prompt reply and there is always an advantage in replying promptly which does not cost too much. Prompt interaction adds to the intention, trustworthiness of the exporter. Whether overseas market accepts the products or services, but communication adds to a link between the buyer and supplier. 

PRICING:

Profitability is the main stay in foreign trade and one should not just get satisfied that he has exported goods and services in a big volume without realizing the funds which have gone into their production, a person must know in considerable detail how he costs his products, and what charges to apply at all stages.  He must be aware of fluctuations in exchange rates and interest charges, losses which are bound to occur and allow for them in its costings.  He must know in advance to what extent prices can be lowered, or credit extended, without trading at a loss.  Where export is additional business for a person, he must know exactly what this is worth in terms of total profit, and how far he can go to get it.

          A supplier has to tell the indigenous and overseas markets about his achievements loudly and he has to enter into a systematic publicity, entering into effective negotiations, deals and contracts against safe payments modes. The world today frequently judges companies and products on what is said about them.

         For foreign trade, the organization has to be managed by  expert staff which must be carefully selected and adequately paid.  They must be allowed and encouraged to take appropriate decisions, proper programming about production and supply, traveling, incentives and other related facilites.  They are required to be given the equivalent rank, status and pay of other similar executives in the company.  They must be consulted on company policy, and made to contribute.

TESTING PRODUCTS:

           

While the risk of failure in export markets can be minimized by the intelligent use of research, one never really be sure whether a given operation will succeed until it has been tried.  Before committing to a large-scale operation in overseas markets, it is sensible to try things out on a small scale, with the intention of selling on a national scale.  If the test is successful, many overseas markets are so huge that to sell everywhere would be asking a great deal at the outset.

INITIAL ATTACK

            Use the initial attack on a market as a test, and any mistakes can then be corrected without much harm having been done.  While the test campaign may appear to cost more initially than research, remember that some of the cost will be repaid by sales, so that test marketing often turns out to be cheaper than too intensive a research programs.

ATTITUDES

            If possible some indication of the attitudes towards the product should be established, both negative and positive.  This is required of any sales operation.  Even if a  product is successful always try to obtain reactions from the customers, because it might be that with certain minor modification one would have in fact sold a great deal more.