Diversify Your Customer Base Through Exporting
Your company wants to grow but deciding how that growth will occur is another story. Of all the ways to expand, exporting is the most enticing because American manufacturers are in a favorable position to export. Increased sales and revenues are the obvious benefits but what are the other benefits of exporting?
10 Benefits of Exporting
- Increase sales and revenues. The United States only accounts for 5% of the world’s population. More than 70 percent of the world’s purchasing power is located outside of the United States. Selling outside the U.S. provides an opportunity to increase sales and revenues.
- Reduce the risk associated with being tied to one market. Different markets can be in different stages of the economic cycle. A recession in the United States may not extend to other parts of the world. Diversification into different markets alleviates dependence on any one market for all sales and revenues.
- Bypass oversaturated domestic markets. In the case of large equipment with long lifespans developing new markets keeps production flowing with new orders.
- Reduce idle capacity. Increased utilization of machines and staff spreads fixed costs over more units, reducing unit costs
- Achieve economies of scale. Costs are spread over a larger volume of revenue and production.
- Increase demand often requires additional employees. This leads to expansion of the company and fosters regional economic growth.
- Excess production can be sold in foreign markets. Many times, this can be done without giving deep discounts. Companies can also avoid disposing of excess production by exporting.
- Exposure to new technology and manufacturing techniques. This can lead to valuable innovations, increasing revenues or reducing product cost
- Boost sales for seasonal goods Products no longer in season here in the United States can be sold in foreign markets.
- Expand product life cycle. All products have a life cycle. They are introduced experience sales growth then mature and sales begin to decline. Products can be introduced into foreign markets, creating a new life cycle.
Before Getting Started
Learn to walk before you run. Make sure your company is efficiently and economically selling at a regional and national level before attempting exporting to foreign markets. Learn business etiquette for the countries in your target market. Each country has different acceptable business practices. Domestically accepted language and behaviors could be frowned upon in other cultures.
Also, consider product modifications that need to be made before exporting. Safety regulations and security codes are different around the world. Even if the product does not have to be modified the packing might have to be changed.
This program is designed for NJ manufacturers to learn from international business experts and develop a systematic exporting plan in 12 weeks
Key decision makers and C-level executives participate in three workshops over the course of three months.
If you are interested in participating in this program and would like an NJMEP Account Manager to follow up with more information, call (973) 998-9801, e-mail email@example.com or click the button below.