On Aug 15, 2014, at 7:11 AM, Steve wrote:
Hey John, Thanks for the responses. I appreciate it. I have sent out a supplier letter to discover interest in finding foreign markets and have set a time to connect via phone with them in over a week. I am in process of looking at other supply options and other avenues related to the pastries. However, as I prepare, I am thinking forward to my conversations with prospective suppliers. I could use some clarification/confirmation on my focus in these conversations. Please let me know if I am missing anything.
My understanding presently is that when I connect with the decision maker regarding the supply for my export possibility my main discovery should be whether or not they are interested in export or if they currently export. My desire revolves around their disinterest in export.
***Yes, in the context of being an export ageny, the irony is your best bet is someone who has conscisouly decided to NOT export. Any buyer worth his salt will try to go around you directly to the source. When your source is proven unavailable otherwise, then you are the defacto source. In this way you need no de jure “exclusive” because what you have is necessary and sifficient. It also serves your low impact approach to the supplier. It costs nothing (no legal considerations) to begin to work with you.***
If I find that they are not interested, I am to find out what they might do with their current export inquiries so as to obtain them as great sales leads.
***Well, come in with your own target market customers. Get the agreement, THEN go after that low hanging fruit. Prime the pump with your own contacts first. I am sitting on buyers in Hong Kong for USA beef, and in spite of the Russian ban on USA beef, the drought in USA has caused such a shortage here that customers go begging, and beefsters don’t care. Next year, el nino, no drought, the world changes again.***
Next, my consideration should be to find out the MOQ they would need to profit.
*** You make an export sale no more difficult and every bit as profitable to the producer. So, what is your client’s present USA Min order requirement? Then that is yours, or some rationale multiple thereof for export moq fob.***
My goal in the whole process of the call is to make the supplier feel at ease so that it really is no more difficult than a domestic sale.
***Perzactly!***
Is there any subject a newbie like me may need to stay away from?
*** No... the subject is your offer to test their product in what your research shows to be a promising market. YOu both get the same thing, solid market info upon which to decide what to do next. Age quod agis: You are selling the next immediate step: is there market overseas for their product. The only definitive test is mow fob.***
Also, how do I end the call? can you help me understand my process
***Yes, end the call quickly. As to the process, yes, let me send you a separate email tomorrow detailing this...***
if they are not only disinterested in export but are absolutely opposed (worst case)?
***Excellent information. Do an false door marketing campaign. See if you find market. If so, get a contract baker to produce under your brand. You’ll know for sure #1 is absolutely opposed to competing with you.***
As I understand things, if I simply wanted to look for buyers in Mexico then purchase the pastries myself, then they are my property so I can export them if I desire, right? Is there something I miss in that scenario?
***No. Customers trump all.***
I do have some uncertainty in constructing the MOQ FOB offer. This comes from reading the customs rulings in the research. They are so detailed as to percentages and such in the ingredients. I am not the expert in this area (yet) or in the product. But in order to construct that MOQ FOB offer, I would need that info (am I right?)
***Yes.***
So is that info that I would need from my initial conversation?
***No...***
Or is that obtained by me.
***After they agree, the owner tells the baker to give you the breakdown. The baker has it.***
Also, regarding labeling - Do I request that they not label the products for export as the importer would handle that according to their regs?
***Low impact, you sell as it is labelled for the USA market, the buyer overseas worries about this problem, if it is a problem.***
In the passive marketing of the MOQ FOB, does that really produce a significant amount of business to justify it. I do see benefit because it is simple enough and why not do it since their is ease - I get that, but I just am curious to the return generated.
***Exactly... great place to file it, it may rise on rankings, and when people check you out they see it. But I call it passive because websites are no place to base a business. Amazon cannot make money at it. Expect sales from the web marketing to be negligible, like ievery other website (or cost more that it is worth.)
Other curiosity - I took an import/export class about a year ago and the main teaching was for the teacher to explain what a freight forwarder does and to show you how the forms work and what is required. It was mostly informational rather than instructional. Additionally, he did not take the student in the direction of starting and building a business which is what you do (and it is awesome). But in the process, he mentioned that when dealing with the freight forwarder, there were certain 'fees' that were bogus and that you should dispute those specific fees and not agree to them (akin to a car dealer's vague fees). Is this the case? and from your experience are there any fees with a custom's broker / FF that should be disputed so as to better represent our buyer/seller?
***Ungh... freight forwarder fees are low in comparison to the services rendered... the problem is not bogus fees, the problem is unsaid fees... since people comparison shop, some FF leave out significant fees in the pro-forma phase of costing. The trick is not to find bogus fees but to find ALL the fees... who cares what the fees are? Ultimately all brokers tend to charge you the same, and the customer has to pay all fees anyway.
GEt the leader FF in your field, keep bugging them with “is this all the fees?” and add them to your price. show them you don’t care what they are, that you only want to know WHAT they are...”***
Feel free to forward this by email to three of your friends.
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