"Don't be Afraid to Approach Suppliers"
by Dennis Hessler
Spyglass Point Productions
I received an email today from a man interested in getting into the exporting business, but he had a few questions.
They were good questions, too. Most of them had to do with setting up an office, required funding for an intermediary and finding buyers. But he said one thing that I found a little curious. He was worried he might be intimidated when it came time to deal with big companies expecting to make mega-bucks with a trade transaction.
Intimidated? Who's doing whom a favor here?
This made me wonder if there are many more of you out there with the same concerns. Approaching the potential supplier isn't exactly a walk in the park but it shouldn't be an intimidating event either.
Let me tell you why.
For one thing, I always suggest you target small and mid-sized companies, not the big corporations. There are lots of reasons but the best is that small companies are far more approachable. There are exceptions, of course. I've probably mentioned before the client who approached the Carnation Milk Co. about selling their milk products in Japan. Yeah, fat chance, right? Carnation must have legions of salesmen ready to sell their products in a market like Japan.
Wrong! He got the order and made a bundle. Go figure. The point is, for every rule there's an exception. Okay, having said that, let's move on.
When
you deal with smaller companies -- preferably ones with which you have
an edge or an advantage (like familiarity with their product or a
particularly ripe market in which to sell it) -- you'll usually deal
with the man in charge, not some hotshot kid out of business school.
This is someone who understands business and is not interested in
intimidating you. I'll come back to dealing with a senior company
officer in a moment.
The other question posed in the email letter is "how can I possibly compete for the few companies not exporting?"
First of all, you are (as the politicians might say) laboring under a misapprehension. The figures I have indicate that only 30,000 U.S. manufacturers out of more than 300,000 are exporting at all. That's right. Only 10 per cent of U.S. manufacturers are currently exporting their products. Of 5.7 million total companies in the U.S., only 4 per cent exported in 2004. There is no better time to be approaching suppliers (the 90% who aren't exporting) than now.
Let's get back to the senior officer at the small or mid-sized company you're targeting. My personal experience and anecdotal feedback from others corresponds with some real research I've read. But all of this information indicates that intimidation is the least of your problems. In fact, a little intimidation might help. Most intermediaries take a kind of indifferent attitude when it comes to approaching suppliers.
I call these intermediaries "beggars" and so do many company executives. Some of these executives are genuinely amused by these intermediaries although, in my mind, they're really more pathetic than funny.
They're called beggars because they randomly call manufacturers (at least they're not afraid to use the phone!) and offer their services as an exporting intermediary. It quickly becomes clear in the conversation that they are calling anybody. They have no idea what the company does or where they're going to sell their products.
You tell me. If you were the president of a small company selling, for instance, an electrical machine part, and someone called you like this, what would you do?
Undoubtedly, you would not be impressed. After all, you've probably spent your life building up this company. You care a great deal about your products, where they're sold, your bottom line and who's representing your company. Are you really going to give the time of day to this "beggar" who just wants a commission and knows nothing about your company and its products?
Short answer: nope.
The opportunities are out there . . . if you're ready. Knowing something about the supplier is the minimum you need to do if you want to send a businesslike message to a potential client. Ideally, you should have done some research on the company's products and identified a few likely international markets for them. There are numerous research tools to help you do just that.
If you're prepared you're not only far less likely to be intimidated, you're far more likely to be successful.
Dennis Hessler is the publisher of The Computer User's Guide to Running Your Own Exporting Company and numerous other books, video tapes, software packages and The International Trade Connection newsletter which is designed to show entrepreneurs new to exporting how to get involved in the booming global market.
Learn more about international trade at his website, http://www.spyglasspoint.com. You can also download a free sample copy of The International Trade Connection newsletter at the site. If you have questions about any of his products or international trade in general, e-mail Dennis at Dennis@spyglasspoint.com. Spyglass Point Productions, P.O. Box 13141, Pensacola, FL 32591 U.S.A.