So as mentioned below, when exporting, create a universal, one size fits all FOB MOQ US$ (or the currency of your country) offer on your products. This no-strings low dollar value order allows the greatest number of people to test your product in their market with the least amount of difficulty. since, sadly, the rules cannot be known in advance (there is always something wrong in int'l trade) the buyers also test the system as well as the product.
To try to cover any bases in advance, let alone all bases, requires such overwhelming effort that many just quit. The logistics, labelling, payment terms.
The idea that your customer overseas is somehow ready, willing and able to take your product to immediate success is delusional. There is the problem of introduction, testing, modifying and so on, at least a year's worth of work based on small orders just to discover if there is any market. that you would have the time to pay attention to this overseas work, or the knowledge to contribute to the efforts is also delusional.
At best, you can, upon a re-order, inquire as to what the buyer overseas has found, and solicit ways that you might support their efforts. But any more than that, regarding what is going on overseas, is literally none of your business.
An exclusive assumes you do care, that you are intimately involved in the market overseas. It is delusional again that
a. you would have any insights to offer an overseas marketer
b. if you were to develop internally the capacity to contribute to marketing overseas it would be cost effective
c. your customer is the only or best marketer of your products in that market.
By having no exclusives, any and all potential customers in a market can and will test your ideas. Let a thousand flowers bloom, let the best take over by performance.
And once you begin to sell to a given importer overseas, their competitors see your product on their shelves and contact you. Sell to them too. And then watch.
Of course some will plead for exclusives. You job will be to say no. People who want exclusives are either malicious or delusional, they are either intending to tie you down by an exclusive, or not strong enough to compete without an exclusive. And ultimately, exclusives cannot be maintained in int'l trade. At the small business level, no American can enforce business agreements overseas. And the reverse is true.
If you have an exclusive in place right now, still put your universal MOQ online, and take orders from the country with which you have exclusives. (Since the MOQ offer is universal, the exclusive-holder will assume you'll honor your agreement and turn down any orders from that country. Let them think that.)
Should you get orders from the country with which you have an exclusive, fulfill the order in violation of the exlusive. Then watch what happens. Here are some scenarios:
1. You sell into that country for seven years before the exclusive holder finally notices. that rather demonstrates the "exclusive holder" is hardly penetrating the market.
2. Within 15 minutes of the goods landing in the country of exclusivity, your exclusive holder calls you outraged that the exclusive has been broken. Demure. Remember this is a tiny test order. Suggest they watch the shipment and see what they learn. Agree to give up any profits from the sale of the goods into the now salubrious situation. Then watch.
If the exclusive holder is not obliged to cut his orders to you, given that now there is more of your product coming in, then it rather proves there is more room in the market than the exclusive holder is serving. Affect indignation. Remonstrate. Regain the moral high ground.
The best way to get out of exclusives is to never get in to begin with.
Feel free to forward this by email to three of your friends.
To try to cover any bases in advance, let alone all bases, requires such overwhelming effort that many just quit. The logistics, labelling, payment terms.
The idea that your customer overseas is somehow ready, willing and able to take your product to immediate success is delusional. There is the problem of introduction, testing, modifying and so on, at least a year's worth of work based on small orders just to discover if there is any market. that you would have the time to pay attention to this overseas work, or the knowledge to contribute to the efforts is also delusional.
At best, you can, upon a re-order, inquire as to what the buyer overseas has found, and solicit ways that you might support their efforts. But any more than that, regarding what is going on overseas, is literally none of your business.
An exclusive assumes you do care, that you are intimately involved in the market overseas. It is delusional again that
a. you would have any insights to offer an overseas marketer
b. if you were to develop internally the capacity to contribute to marketing overseas it would be cost effective
c. your customer is the only or best marketer of your products in that market.
By having no exclusives, any and all potential customers in a market can and will test your ideas. Let a thousand flowers bloom, let the best take over by performance.
And once you begin to sell to a given importer overseas, their competitors see your product on their shelves and contact you. Sell to them too. And then watch.
Of course some will plead for exclusives. You job will be to say no. People who want exclusives are either malicious or delusional, they are either intending to tie you down by an exclusive, or not strong enough to compete without an exclusive. And ultimately, exclusives cannot be maintained in int'l trade. At the small business level, no American can enforce business agreements overseas. And the reverse is true.
The anti-exclusive points to remember...
1. why tie yourself down?
2. can't be enforced.
3. anyone can get around them.
I go into detail on this in my book, How Small Business Trades Worldwide, from both points of view. I might just reiterate a putative exclusive holder will also charge a super-premium price in his market, thus provoking competitors to bring economic justice to the market by getting around the exclusive.
If you have an exclusive in place right now, still put your universal MOQ online, and take orders from the country with which you have exclusives. (Since the MOQ offer is universal, the exclusive-holder will assume you'll honor your agreement and turn down any orders from that country. Let them think that.)
Should you get orders from the country with which you have an exclusive, fulfill the order in violation of the exlusive. Then watch what happens. Here are some scenarios:
1. You sell into that country for seven years before the exclusive holder finally notices. that rather demonstrates the "exclusive holder" is hardly penetrating the market.
2. Within 15 minutes of the goods landing in the country of exclusivity, your exclusive holder calls you outraged that the exclusive has been broken. Demure. Remember this is a tiny test order. Suggest they watch the shipment and see what they learn. Agree to give up any profits from the sale of the goods into the now salubrious situation. Then watch.
If the exclusive holder is not obliged to cut his orders to you, given that now there is more of your product coming in, then it rather proves there is more room in the market than the exclusive holder is serving. Affect indignation. Remonstrate. Regain the moral high ground.
The best way to get out of exclusives is to never get in to begin with.
Feel free to forward this by email to three of your friends.
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