Many businesses consider exporting because the domestic market offers limited growth and profits. By contrast, the international marketplace offers enormous potential, but Export sales presents many new challenges and demands.
International trade enables producers of goods and services to move beyond the U.S. market of more than 300 million people and sell to the world market of nearly 7 billion people.
U.S. exporting firms experience 2% to 4% faster annual
growth in employment than their non exporting counterparts.
Exporting firms offer better opportunities for advancement, expand their annual total sales about 0.6% to 1.3% faster,
and are nearly 8.5% less likely to go out of business, regardless of time period or export volume.
The Number of Small Business Exporters is Growing
Small and medium-sized firms account for the vast majority of growth in new exporters.
Small and medium-sized companies account for almost 97 percent of U.S. exporters.
Because nearly two-thirds of small and medium-sized exporters only sell to one foreign market, many of these firms could boost exports by expanding the number of countries they sell to.
More than two-thirds of exporters have fewer than 20 employees.
Getting your exports started
The transition from national to international business is an exciting step that can significantly grow your business. We are on hand to support that growth with the contacts and experience that will make the transition a smooth one.
Foreign markets are different, and it is important that you know your market intimately before you export overseas. Being fully prepared, you will avoid pricing mistakes that would make your products unattractive to distributors and unaffordable for your targeted markets. We will also help you understand the technical aspects of exporting such as documentation, financing and freight. This involves doing a great deal of 'desk research' and preparation.
When considering Export opportunities, our Export experts will first research trade barriers such as tariffs, duties and quotas. This will help define your International pricing structure . Some countries overprotect their local manufacturers with import duties that can be as high as 180%! This will impact your wholesale and retail pricing . Also look at labeling and other product regulations, identify your competitors, and establish contact with potential agents and distributors.
Cultural and language differences also need to be considered. Your product, labeling and advertising may need to be adapted to satisfy the cultural, religious or political sensitivities in your overseas market. You may also need to have instructions, technical details and specifications translated into the local language to avoid confusion.
There has never been a more opportune time for U.S. firms to capitalize on these market shifts. Therefore, it is critical to a firm's growth and competitive advantage to export for the following reasons:
Overseas Growth: Exports of consumer products are growing three times faster than sales here in the U.S. They have soared in recent years in response to consumers' growing purchasing power and lower trade barriers.
Overseas Potential: 95% of the world's population and two-thirds of total world purchasing power are located outside of the United States. Imagine the potential, as the world becomes more integrated, and develops similar likes for products.
Small Companies Can Export: It's a popular misconception that only large companies can succeed overseas. Indeed, many small companies have found that their competitive advantage lies in some form of technological or creative advantage. Many have "unique" or "niche-type" products that are always in demand overseas!
If your firm is succeeding domestically, expanding overseas will likely improve overall profitability as well. Average orders from international customers are often larger than they are domestically, since importers overseas stock by the container rather than by the pallet. Furthermore, increased sales tend to increase productivity by lowering per unit fixed costs.
Companies can reduce dependence on existing domestic markets and seasonal factors by expanding internationally.
By spreading your risk over a wider customer base, companies become less dependent upon the ups and downs of the domestic economy and the likes/dislikes of the American consumer.
Trading in the global marketplace increases your exposure to international best practice, ideas and alternative ways of doing business improving your chances of competing at home and overseas
Our Export Experts will help you kick start your exporting plans. Whether youre already exporting and have an eye on new markets, or are thinking about your first export plan, we can help !
No company is too small to take advantage of the global market all can benefit by selling to an increased customer base.
BENEFITS OF EXPORT SALES
International sales | Export distributors International Sales Experts provide a wide range of services to assist firms with their export operation
According to the U.S. Small Business Administration (SBA), small firms represent 99.7% of all employers, generate 60% to 80% of new jobs annually and account for 97% of all U.S. exporters.
With the help of our Export consultants, selling your products on International markets can be a profitable way of expanding your business, helping to spread risk and reduce dependence on the local market.