In-Compasse International

Why Export Now!

2010-04-13T12:02:00Z

According to SEO expert, Gillian Muessig, globalizing should be done in good times and even faster in bad times. I don’t agree with the faster part since entering global markets requires more expertise and caution than selling domestically. However I don’t think that only selling to one market is a good idea either…especially when times are bad.

As a consultant in Michigan, I met with dozens of suppliers to the auto industry. While they had lower margins as approved suppliers to the auto industry, they had the business and it was a very good business. But we all know what happened to the auto industry in Michigan. I would try to convince suppliers of the sound practice of diversifying but they would typically not hear of it. They were busy filling the orders of their primo customer with no time or interest in looking to other markets. Most of the suppliers that I spoke with depended on the auto industry for the majority of their business, up to 95% of sales. And where are those companies now?

One good way to determine where your product might do well is, of course, to look at your Google Analytics. If you are getting lots of hits or even better lots of inquiries from a certain region of the world, start to investigate that area. But don’t assume that interest from a certain country can be viewed as a single market. There are many regional variations; cultural differences, diverse dialects, and views. That is the challenge, but it also the fun of it.

If you need help targeting markets based on visits to your website, check out our services under Consultation.

Don’t Pay Duties on Imported Parts

2010-03-30T17:47:00Z

The example given is China. China imports $146.00 worth of components adds their $4.00 worth of components but then has an export to the U.S. that is valued at $150. The author, John Miller, states that if only the value added by China, in this case $4.00, was the value of the export then the trade deficit would be 30% lower than it is now stated to be. He takes it one step further by looking at the issue from a political perspective when he says “inflated trade deficits with China stoke fears in the U.S. about job losses”.

So now on to the needless payment of duties by U.S. companies. In working with manufacturers, I find that they do not know they pay duties on imported parts. I always advise that they determine what duties they are actually paying on components that they then re-export. Not having to pay the duty could be the difference between being competitive in a foreign market or not. True or not, one thing is certain. If you are not required to pay the duty don’t pay it. Instead the U.S. exporter should investigate these two options: Duty Drawback or a Free Trade Zone.

1. Duty Drawback is where the company goes through a fair amount of paperwork an get most of their duty returned. You pay it since it is incorporated into the price of the component and then you get it returned to you. Duty Drawback requires the cooperation of the company who sells you the product.
2. Set-up or become a part of a free trade zone (FTZ) where you import the products into the FTZ and include it in the end product and then re-export. The manufacturing of the product is actually done in the FTZ. This is sort of a limbo area where there are no duties or quotas added to imported products.

Of course, you need to find out how much in duties you are actually paying to determine if this is a wise move. If you would like additional information, please e-mail me at kay@expertsinexports.com and I will arrange for your 30 minute free consultation.

Traveling Tricks of the Trade

2010-03-30T17:26:00Z

Another GREAT Example of Selling the Feel Along with the Product

2010-03-25T13:52:01Z

Imbalance of Trade between China and the United States

2010-03-23T12:08:00Z

I am not usually in agreement with Joseph Stiglitz but he MAY have a point about how to balance trade between the U.S. and China.

Click here to get Stiglitz views and then tell me what you think.

Communicating to a Global Audience

2010-03-18T16:51:01Z

Global Branding

2010-03-15T15:12:00Z

Blog on Exports to China

2010-03-11T19:09:01Z

National Export Iniative

2010-03-10T21:32:01Z

Please click here if you would like to opine.

Good News from Ex-Im Bank for U.S. Exporters

2009-11-17T12:53:00Z

Starting 1 December 2009, U.S. exporters designated as small businesses under Small Business Administration standards, and with annual export credit sales of $7,500,000 or less, now are eligible for enhanced coverage under Ex-Im Bank’s short-term small business multibuyer insurance policy. Previously the eligibility ceiling was $5,000,000. “This change is designed to increase U.S. small business exports by expanding the availability of financing to them,” said Ex-Im Bank Chairman and President Fred Hochberg. “Exporting is critical to creating and preserving American jobs, especially while the current global financial crisis is being resolved.”

Over the past year, Ex-Im Bank has launched a number of other initiatives to strengthen support for small business exporters in the face of the economy’s tightened liquidity. For example, the Bank opened its working capital guarantee program to indirect U.S. exporters. Companies that produce goods or services that are sold to U.S. companies, and are subsequently exported, are now eligible to apply for working capital loans guaranteed by Ex-Im Bank.

Ten Reasons Why YOU Should Export

2008-10-22T17:27:00Z

1. Reach a greater share of the market. You may be doing well in the domestic market but did you know that 95% of consumers live outside the U.S.?

2. The value of the dollar. It might not be a good time to travel abroad but it is a great time to export. First make sure that your products comply with the Made in America designation? Show the rest of the world what they were missing not having your products.

3. It is easier to do business internationally. Whether you communicate via e-mail or telephone, it costs practically nothing to get to know your international customer. Tools like VoIP are providing more options all the time. And you can test most for free for 30 days.

4. Marketing data is at your fingertips. With all the information there is on the Internet, you can learn about your competition abroad. Just make sure that the information is up-to-date

5. Growing middle class. While there is great opportunity to target more consumers worldwide, don’t assume that your domestic marketing plan is transferable. Careful planning is required. You need to be as serious about your export marketing plan as your domestic marketing plan. For more information, see the experts in exports.

6. Privatization of industry worldwide. You may have noticed that emerging markets are privatizing industry providing U.S. companies with opportunity.

7. Grow jobs right here in the U.S. Producing more=hiring more. You build your sales and the workforce for a healthier economy. Though a few years old, BNET makes the point.

8. Diversifying is smart. Why target a single economy when there is at least one other market abroad where your products will do well. For help on where to start, go the this website: Ready to Export.

9. Your competition is doing it. Your competition isn’t just domestic any longer. Combine losing market share and Reason #6 and you have two good reasons to check out exporting.

10.Exporting can open up a whole new world. EXPORT...SEE THE WORLD. YOU WILL BE GLAD YOU DID.

Attention Ladies…it is time to go global

2008-08-13T15:36:00Z

Climb Aboard the Export Express

2008-06-18T13:06:00Z

Now the Export Express program is set to expire in a few months. In fact, there is a full committee hearing by the House Small Business Committee on Small Business Exports in the Current Economic tomorrow. If you have used this service you know how valuable it is. If you haven’t you can go on the SBA site and see all the benefits of the program. I think you will be impressed with the wide range of services.

If you agree that this is a valuable program and want to see it continue, you can help. And here’s how!

Contact the following influentials:

Luz Hopewell - SBA Office of International Trade
Richard Ginsburg- SBA Office of International Trade
Senator John Kerry- Senate Committee on Small Business and Entrepreneurship
Senator Olympia Snowe- Senate Committee on Small Business and Entrepreneurship
Representative Nydia M. Velazquez - House Small Business Committee
Representative Steve Chabot House Small Business Committee

All you have to do is click on the above names and send an e-mail. It only takes a minute. I know I have done it.

Come back soon. I will let you know what happened.

SBA Loan Programs for Small Business Exporters.

2008-04-01T22:29:00Z

CLIMB ABOARD THE EXPORT EXPRESS

Now is the time for exporters to learn if they are eligible for
a revolving line of credit from the SBA. The Export Express
Pilot Program may end 30 September 2008
if other loan programs are deemed sufficient to meet
the needs of small business exporters.

Another loan program that the SBA offers is the International Trade Loan
for companies that have “been adversely affected” by competition from imports.
The SBA also offers other services to help small business and small business
exporters.

Go on the SBA website for qualifications and information on how to apply for
these loans programs. While you’re there, check out the other services offered by the
SBA to help small businesses export.

Columbia Free Trade Agreement

2008-03-10T22:30:00Z

But the agreement also benefits the U.S. and here’s how:

1. Most U.S. goods going to Columbia pay a duty of 12.5%. This results in U.S. products being less competitive. And most products coming from Columbia to the U.S. are duty free. So the U.S. needs a level playing field.
2. Strategically Columbia is very important to the U.S. We need a strong friend in a region since Hugo Chavez, the president of Venezuela is doing what he can to de-stabilize the area and become the driving force in South America.
3. With a treaty comes greater intellectual property protection and more transparency transactions.

So this makes great sense economically and strategically. And don’t believe all the things you hear about free trade. While there may be displacement of some jobs,typically lower paying jobs, there has been an increase in better paying jobs as a result of NAFTA. For additional information on any trade agreement.