Exporters can reap huge rewards and have great success exporting to the US. America’s vast market is full of potential.
Exporters can also fail in the US market costly them a lot of money. The competition among exporters around the world to do business with US importers is stiff. Those that do not know how to be successful have little chance of success in the American market.
Here are a few reasons exporters are not successful in the US market:
Poor Marketing
US importers want to be sent a sales letter that directs them to your web site. They do not want to be telephoned. They do not want to be faxed (plus it is illegal). They do not want to be sent an e-mail.
Poor Web Site
Your web site is your 24-hour sales agent. It should be well designed and guide the importer page by page through the process. Poor web sites lead to poor sales.
Poor Sales Letter
Your sales letter (and your web site) is all that the US importer sees of your company and products. If it looks good – you look good. If the letter is sloppy and filled with bad grammar and poor letter writing style it makes your company look sloppy.
Not Taking Exporting Seriously
All too often exporting is seen as a way to get rid of the products that can’t be sold on the domestic market. Exporting cannot be viewed as a side market.
Lack of Knowledge Of The Export Process
Inexperience with and lack of knowledge of the entire export process can be a serious handicap. This includes getting products out of the exporter’s country, shipment, and getting products into the buyer’s country and through Customs.
Underestimating Costs and Expenses
Not knowing all the costs involved in producing and taking a product to market and lead to real financial loss.
Low Selling Price
The inability for you to get a price for your products that covers your costs and allows you to make a profit will not allow you to continue for long.
Late Shipment Of Goods
US importers expect you ship the goods at the time you promised. Late shipments are a primary cause of losing customers. US importers do not tolerate it.
Failure To Supply Needed Documents For US Customs
Documents are that improperly filled out or missing prohibit the US importer from bringing the shipment through US Customs and into the country. Don’t count on another order from that buyer.
Poor Relationship With Buyers
The inability for you to establish a good working relationship with your buyers will lead to lost customers.
Relying On Too Few Buyers
Just a few buyers may keep you producing your product at capacity. But lose one or two of these buyers and you will suffer.
Insufficient Working Capital
Not having enough cash on hand can put you into a financial crisis and close your business. You must be prepared if a buyer pays late, if a shipment is delayed, or if there is a recall.
Not Understanding Foreign Exchange Fluctuations
Your inability to see and protect yourself against foreign exchange fluctuations can wipe out your potential for profit.
Inability To Work With Your Professional Advisors
Not being able to work with your export customs broker, freight forwarder, banker, attorneys, and accounts can slow down your process and cause great hardship.
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A well prepared marketing and exporting plan can lead to success and profits. A sloppy one can lead to failure and financial loss.
