7 Habits of a Successful Agricultural Exporter
Timothy J. Larsen
Senior International Marketing Specialist, Colorado Department of Agriculture
1. Focus
You cannot conquer the world. Select 1-4 markets to focus on first. Coors Brewing's initial success in the U.S. market was to build one market at a time, only moving to the next market when they had achieved their goals in the initial markets.
2. Understand what and to whom you are selling
To be successful you need to do more than fill orders. Why should someone buy from you? What are you offering? Is there unique products, or a higher level of service and support? What are the seasons in the overseas market? Are your products ready for their production season?
3. Build your team
Build you team first. Does your banker understand what you are doing? Have you located the shipping/transportation support you will need? How do you get a phytosanitary certificate for your shipment? Do you have a fax and email for international communications?
4. Understand your costs and pricing, including arranging financing options
Does your U.S. sales price include an advertising allowance? Do you provide payment terms (30 days or 180 days)? What are the terms your international buyers receive from their current suppliers? Can you match them? At what cost? Can you arrange for the various US programs to provide protection against a failure of a customer to pay when sold on an open account? Know these things before you start to sell in the international market. When someone calls up to order is not the time to start understanding these costs and options.
5. Learn all the elements of shipping.
The sale is not complete until you have successfully delivered to product to your buyer. Chances are the buyer will call or order at a busy time for you. If you have already researched the shipping issues, you can respond quickly.
6. Make a long term commitment
International buyers are looking for long term suppliers. They need reliable suppliers for the long term. Make this commitment and follow through.
7. "Internationalize" your business.
Do you have a web site? Is it inviting to your international customer? Will they find information focused on your exporting within 1-2 clicks? Do you attend U.S. trade shows? Start there, put up a sign "Looking for international distributors."