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Secrets of International Trading © copyright Procedures for INDIRECT Exporting
If selling direct to foreign buyers yourself, arrange
for
promotion campaign, trade shows, advertising foreign visits,
to develop a list of sales leads.
Prepare a short list of trading house that might be interested in handling your product. 1. Get references and recommendations about them. 2. Ask for information for each trading house, explaining your purpose. 3. Visit the most promising to find out what they may be able to do for your product. 4. Keep in mind which foreign markets you wish to penetrate first. 5. Reserve those foreign markets that you wish to export to directly. 6. Supply trading house selected by you with information about your company products. 7. Negotiate an agreement whereby the trading house buys directly from you or acts as your export agent covering prices, commissions, export support, orders, etc. 8. Maintain close contact with the trading house, and monitoring its performance. Summary of Various Direct Exporting 1. Direct to Final Buyer Abroad - Manufacturer sells directly to buyer abroad. No middlemen. Needs high degree of marketing skills. 2. Foreign Distributor - Buys and sells on own account. He makes all the marketing decisions. |
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3.
Foreign Agent - Sell your product on commission. 4. Foreign Broker - Handles primarily commodities and deals in large volume, buying and selling for a fee. 5. Foreign Trade Organization - Specialized import agencies of socialist and some non-socialist countries. 6. Licensing Agreement - Exporter may seek royalty in exchanging for licensing a foreign firm to manufacture his product abroad, use his brand name, technology, etc. 7. Joint Venture - Exporter may enter into a partnership arrangement with a foreign firm to produce and market jointly in the foreign country |
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