The CEO of importgenius.com has moved on, no doubt given the downward spiral inherent in the business model, to a new international trade service backed by Google, etc, called https://www.flexport.com/. Good luck.
About time, if true. Why Fedex nor UPS ever did this, I dunno, probably revenue yield issues. Flexport clearly is NVOCC (and maybe not even that...) UPS and Fedex have space to sell, and they want top dollar. but when the plane is leaving with some more space, they wheel and deal. Flexport may pull this off.
Now, as I see all of the credit backing this, and flexport will be able to take a loss for a long time while presently viable companies take a revenue hits. This is my standard criticism of capitalism: entities legally free to risk asset-less backed credit, with taxpayers on the hook for any loss, but profits to the capitalists, is bad business. This is just more "get big or get out" federal policy where asset-less credit providers are running profitable, productive small businesses out of business, and then will raise prices and limit options. Ikea for furniture, gap for clothes, govt for education and medicine, fox for entertainment, apple for computers, safeway for food, section 8 for housing, EBT for money, and those who drive this collectivization are rewarded by being exempt from it all, the one percent. Capitalism 101: kill or be killed. The feds will back your funding.
Smaller customs brokers and freight forwarders need to compete with this, and answer this criticism.
Download their eBook https://www.flexport.com/how-it-works
Quote:
True, and I've lectured for 30 years that it is not a black box. I am not sure anyone in the industry guards any secrets, jealously or otherwise, because I am just not sure there are any secrets. There is another problem, the business is one of moving parts and deadlines and logjams, and every day is unique, since the position of the parts globally are unique each day. It's like a house on fire, and the fire fighters are not inclined to stop and explain how firefighting works. It's not a problem of secrets, it's time. And I cannot think of any industry where time matters more than logistics.
As to price discrimination, it is no secret that it takes as much time and effort to arrange movement 2 pounds as two million, so yes there will be price variation on top of dynamic pricing, and yes yield is the name of the game. But it is a game of percentages, and in all instances you are paying a broker less than you would do it yourself.
Plus, small shipments are usually specialty goods, where the mark-ups are not as big an issue. I think this "gouging" argument does not resonate with active traders.
We have that now, and I've seen a dozen of these dot coms come and go since the 1990s, but this one may have the money to go the distance, plus the infrastructure for supporting the communications if far more built out and robust.
And this:
Very good. They are clear making money is up to you, and the logistics part is simple. Agreed. Farm out logistics, agreed. Excellent counsel.
Exactly! You'll be messing about, wasting time and money trying to make money. For most small business international traders, the work is lifestyle not money, although the money follows. The product is everything, not "well, whatever makes money."
As an aside, these people are not importers, so they do not say:
1. the most important thing is business is the customer
2. the hardest thing in business is getting the product (or service) right, as defined by the customers.
And, they do not say entrepreneurs never take risks (Drucker). All costs are known and covered in advance before anything is imported. Once all this ins in place, the importing rules, regs, logistics is easy, since we importers always farm it out. Importers bring in nothing for which they do not already have orders or customers.
But back on topic, the Importing 101 guide has advice and info running from pretty good to terrible. But then freight forwarders/customsbrokers ought not be advising people how to make money in international trade.
I think CHB/FF will read the flexport offer and realize flexport really cannot deliver all they say, and where flexport notes the importer is on his own, well, there dragons be. Flexport will encourage dilettantes in dilettantism, and they will get crushed when they meet the very points where flexport wisely will not attend. Solid business blows past these problem areas, and micro business can be solid too. Whole lotta whiny emails to flexport is in their future.
And there is the defensive position the small CHB/FF out to stake out against this well funded run at their business.
Signing up with flexport will no doubt yield lower freight charges, but to get there will be every bit as much work as not signing up. Flexport really cannot make anything easier or less work.
Flexport appears to be offering what any importer needs, and that is a pro-forma cost breakdown prior to importing, and they wisely advise that the uninitiated do several small shipments rather than one big. This is good advice, and where small CHB/FF are slow to help newbies. But these are a time killer, especially when the inquiry is coming from a dilettante.
So CHB/FF need to prequalify the likely prospects and then provide the proforma preliminary assistance traders need. Then these small CHB/FF need to co-brand with the traders. Success is symbiotic.
I've been working with a few small CHB/FF on this for a few years now, and it is quickening. For the CHB/FF to cobrand at trade shows and other opportune moments will enhance the image of the FF/CHB makes news as spotted, and thus grow the business. When flexport is just as much work as any other CHB/FF, the savings are the only advantage. When your business is well know to the CHB/FF, the cost of problems not encountered is literally incalculable. This is where the CHB/FF can beat flexport.
And as I reflect, this is analogous to the mortgage game. There are the banks originating loans, and brokers originating loans. Banks make all problems go away to get the loan booked, but mortgage brokers charge for each problem encountered to make up for the lower cost initially quoted. If I were a flexport competitor, I'd monitor that. Is flexport making up on fees after lower costs initially?
Time will tell.
Incidentally, I have some live start-up international trade seminars coming up, email me at john at johnspiers dot com if you want to get a solid start-up going....
Feel free to forward this by email to three of your friends.
Our mission at Flexport is to use the web to make the import-export process easier than ever before. As the first licensed customs brokerage built around a modern web application, we save importers time and money on every shipment, while helping them avoid some of the major annoyances and pitfalls of doing business globally.
About time, if true. Why Fedex nor UPS ever did this, I dunno, probably revenue yield issues. Flexport clearly is NVOCC (and maybe not even that...) UPS and Fedex have space to sell, and they want top dollar. but when the plane is leaving with some more space, they wheel and deal. Flexport may pull this off.
Now, as I see all of the credit backing this, and flexport will be able to take a loss for a long time while presently viable companies take a revenue hits. This is my standard criticism of capitalism: entities legally free to risk asset-less backed credit, with taxpayers on the hook for any loss, but profits to the capitalists, is bad business. This is just more "get big or get out" federal policy where asset-less credit providers are running profitable, productive small businesses out of business, and then will raise prices and limit options. Ikea for furniture, gap for clothes, govt for education and medicine, fox for entertainment, apple for computers, safeway for food, section 8 for housing, EBT for money, and those who drive this collectivization are rewarded by being exempt from it all, the one percent. Capitalism 101: kill or be killed. The feds will back your funding.
Smaller customs brokers and freight forwarders need to compete with this, and answer this criticism.
Download their eBook https://www.flexport.com/how-it-works
Quote:
For too many people, importing is a black box. Those on the inside, especially in the freight and logistics industry, jealously guard their secrets from new importers. The entire industry seems to pride itself on its ability to price discriminate, gouging at the little guys while reserving their best deals and service for the big companies that know the game.
True, and I've lectured for 30 years that it is not a black box. I am not sure anyone in the industry guards any secrets, jealously or otherwise, because I am just not sure there are any secrets. There is another problem, the business is one of moving parts and deadlines and logjams, and every day is unique, since the position of the parts globally are unique each day. It's like a house on fire, and the fire fighters are not inclined to stop and explain how firefighting works. It's not a problem of secrets, it's time. And I cannot think of any industry where time matters more than logistics.
As to price discrimination, it is no secret that it takes as much time and effort to arrange movement 2 pounds as two million, so yes there will be price variation on top of dynamic pricing, and yes yield is the name of the game. But it is a game of percentages, and in all instances you are paying a broker less than you would do it yourself.
Plus, small shipments are usually specialty goods, where the mark-ups are not as big an issue. I think this "gouging" argument does not resonate with active traders.
Our mission at Flexport is to empower importers of all sizes with the knowledge and tools to compete in the global market. We want to help make a world where any two humans can trade with each other without regard for geographic, cultural, regulatory, or logistical boundaries.
We have that now, and I've seen a dozen of these dot coms come and go since the 1990s, but this one may have the money to go the distance, plus the infrastructure for supporting the communications if far more built out and robust.
And this:
We can’t promise you’ll make money. We can’t teach you how to find great products from other countries that will sell well in your home market. But we can shed light onto a process that is far too confusing, and help you avoid pitfalls and setbacks that can be painful--even catastrophic--when you’re first setting out.
In our view, the process of importing goods is actually quite simple. The money is made in selecting the right goods, at a price that leaves sufficient room to cover all your costs and then some, while building up the distribution channels you need to move the product in sufficient volume. That’s just basic business, and there’s nothing easy about it. But the actual importing part? That’s pretty easy.
Very good. They are clear making money is up to you, and the logistics part is simple. Agreed. Farm out logistics, agreed. Excellent counsel.
If you’re not sure what to import, but just like the idea of getting into the import-export game thinking you’ll make a lot of money, you’re probably not ready to get started.
Exactly! You'll be messing about, wasting time and money trying to make money. For most small business international traders, the work is lifestyle not money, although the money follows. The product is everything, not "well, whatever makes money."
As an aside, these people are not importers, so they do not say:
1. the most important thing is business is the customer
2. the hardest thing in business is getting the product (or service) right, as defined by the customers.
And, they do not say entrepreneurs never take risks (Drucker). All costs are known and covered in advance before anything is imported. Once all this ins in place, the importing rules, regs, logistics is easy, since we importers always farm it out. Importers bring in nothing for which they do not already have orders or customers.
But back on topic, the Importing 101 guide has advice and info running from pretty good to terrible. But then freight forwarders/customsbrokers ought not be advising people how to make money in international trade.
I think CHB/FF will read the flexport offer and realize flexport really cannot deliver all they say, and where flexport notes the importer is on his own, well, there dragons be. Flexport will encourage dilettantes in dilettantism, and they will get crushed when they meet the very points where flexport wisely will not attend. Solid business blows past these problem areas, and micro business can be solid too. Whole lotta whiny emails to flexport is in their future.
And there is the defensive position the small CHB/FF out to stake out against this well funded run at their business.
Signing up with flexport will no doubt yield lower freight charges, but to get there will be every bit as much work as not signing up. Flexport really cannot make anything easier or less work.
Flexport appears to be offering what any importer needs, and that is a pro-forma cost breakdown prior to importing, and they wisely advise that the uninitiated do several small shipments rather than one big. This is good advice, and where small CHB/FF are slow to help newbies. But these are a time killer, especially when the inquiry is coming from a dilettante.
So CHB/FF need to prequalify the likely prospects and then provide the proforma preliminary assistance traders need. Then these small CHB/FF need to co-brand with the traders. Success is symbiotic.
I've been working with a few small CHB/FF on this for a few years now, and it is quickening. For the CHB/FF to cobrand at trade shows and other opportune moments will enhance the image of the FF/CHB makes news as spotted, and thus grow the business. When flexport is just as much work as any other CHB/FF, the savings are the only advantage. When your business is well know to the CHB/FF, the cost of problems not encountered is literally incalculable. This is where the CHB/FF can beat flexport.
And as I reflect, this is analogous to the mortgage game. There are the banks originating loans, and brokers originating loans. Banks make all problems go away to get the loan booked, but mortgage brokers charge for each problem encountered to make up for the lower cost initially quoted. If I were a flexport competitor, I'd monitor that. Is flexport making up on fees after lower costs initially?
Time will tell.
Incidentally, I have some live start-up international trade seminars coming up, email me at john at johnspiers dot com if you want to get a solid start-up going....
Feel free to forward this by email to three of your friends.
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