Here is the continuing of the colloquy started last week. The names & location & product & urls are changed to protect the innocent... it’s the tools, tactic and attitude that matters...
On Nov 19, 2016, at 2:28 PM, J L wrote:
Hi John,
Thanks for sending over all the info for week1. Very insightful!.
So the product I have in mind is Specialty Snack Chips. You can read all about them here https://specialty*chips.com/ but in brief these are Gluten free, Non GMO chips containing only limited ingredients. I have tried them out and they are good. But I guess that does not matter :). This idea came from a restaurant owner in city state and he currently sells it to speciality shops in the area and through his website. I am originally from Ghana and have never heard of or had Specialty Snack (South Ghanian cuisine) chips before.
I went through the steps outlined by you to find the HTS number but I don't think I have one for something like this. This is what I got
• HTS 2005.20.0020 ( These are Potato Chips ) and the data came up with nothing which is very odd. Either I'm doing something wrong or data is incorrect
• HTS 2005.90.0000 ( These are Chips made from other vegetables) and the data came up with nothing
• HTS 2005.99.6550 ( These are Other Vegi Preparations ). I do get data for this which I have attached but don't think I have the correct 10 digit HTS number for this product. Any suggestions on how I should go about finding the correct HTS?
Regarding the above product, I guess here are my questions
• I guess after the data has been analyzed and once confirmed that there is an opportunity, the next step will be contacting the supplier just like in your sample letter. I don't have a registered company. Does that matter?
• Now I'm assuming the production capacity will be on the lower side for these chips. From an agent perspective and with the process outlined by you, is our supplier generally this small?
• Please let me know your thoughts on this idea
For me I love the breads (Dave's and Eureka) and chips that are produced in USA. I haven't travelled the world that much but love these products and think there is scope. I'll probably do some analysis on Eureka bread too after this :) but they are pretty big and I suspect might not need someone like me to export. What do you think?
And finally thanks for the blog today morning. Very timely. I'm a (job & location) and have a bunch of friends proposing a startup and leaving our jobs to concentrate on it after we get funding :)
Thanks,
J
On Nov 19, 2016, at 10:07 PM, John Spiers wrote:
Of course you don’t need funding, you need customers. Until you find customers, you cannot know what funding, if any, you need. It is rare for a start-up to require any more funding than what is lying around.
On Nov 19, 2016, at 2:28 PM, J L wrote:
Hi John,
Thanks for sending over all the info for week1. Very insightful!.
"Specialty Snack is a kind of pancake made from a fermented batter. Its main ingredients are (ingredients)." well, then they are a rice product, not potato.... nor veggie...
from http://rulings.cbp.gov/index.asp?sjeudjksed=Specialty Snack&vw=detail
"
The applicable subheading for this Specialty Snack will be 1905.90.9090, HTSUS, which provides for bread, pastry, cakes, biscuits and other bakers' wares, whether or not containing cocoa…other…other…other. The duty rate will be 4.5 percent ad valorem.
"
In export, the Sch B number seems to be....
1905.90.9090
But when I go to the report, it said "communion wafers...."
so I dropped back to 1905.90.9030 "..savory chips..."
and here is what I found...
John
On Nov 20, 2016, at 10:18 AM, J L wrote:
Thank you!. I started all wrong by doing a search for chips.
J
On Nov 20, 2016, at 10:29 AM, John Spiers wrote:
I searched Specialty Snack and was surprised there was actually that customs letter on the item...
So now try to do the USITC Trade Data analysis...
John
On Nov 22, 2016, at 1:03 AM, J L wrote:
• So the exports to Canada far exceed any other country, though the amount exported has been decreasing gradually since 2012. Also the Average selling price is less than the world average selling price
• Exports to Australia and Mexico have been increasing since 2012, with the Average selling price is higher in Mexico.
• Philippines exports have somewhat remained constant but have the highest selling price among the top 6
• Exports to Japan and Korea have gone down and they also have selling price cheaper than world average selling price.
Based on the above analysis, the best target country appear to be Mexico
.[ Analysis attached ]
Thanks,
J
On Nov 22, 2016, at 1:18 AM, John Spiers wrote:
On Nov 22, 2016, at 1:03 AM, J L wrote:
• So the exports to Canada far exceed any other country, though the amount exported has been decreasing gradually since 2012. Also the Average selling price is less than the world average selling price
**Cheap mass production chips, but that means here is market for high end too...***
• Exports to Australia and Mexico have been increasing since 2012, with the Average selling price is higher in Mexico.
• Philippines exports have somewhat remained constant but have the highest selling price among the top 6
• Exports to Japan and Korea have gone down and they also have selling price cheaper than world average selling price.
Based on the above analysis, the best target country appear to be Mexico.[ Analysis attached ]
*** Very good... now to create the offer, the LCL MOQ FOB... you'll need to approach the supplier for that, let's discuss that...
John
On Nov 25, 2016, at 11:14 PM, J L wrote:
Hi John,
So the owner has closed down his restaurant until further notice but his voicemail says that he still does Specialty Snack chips and points to his website which only has an email address. I guess I’m left with only 2 options now, go meet him personally or email ( which I know you strongly recommend not doing ). Would it not be worth trying to email hom with the details and then calling in a few days?. What do you suggest?
Thanks,
J
On Nov 26, 2016, at 1:10 AM, John Spiers wrote:
Find a mailing address for him... google, google... real estate agent for location would know...
The second you say “call me” you give u conrrol of the process. Syat in charge of this business deal.
Find the mailing address and a phone number and then when you've drafted the letter, let me look at it...
JOhn
On Nov 26, 2016, at 6:46 PM, J L wrote:
Hi John,
Appreciate all the advise and help you're offering!. Done. I googled his home mailing address and have attached the initial draft of the letter. For the Company name, I have also included my brothers name as I'd like him to join me if/when this turns into something. I concluded the letter with the alternative of he contacting me as I do not have his direct phone contact. Please review and let me know.
Thanks,
J
On Nov 26, 2016, at 6:50 PM, John Spiers wrote:
the letter comes thru garbled on a mac...
Why not just call the company L ?
(What's it mean?)
John
On Nov 26, 2016, at 7:02 PM, John Spiers wrote:
On Nov 26, 2016, at 6:46 PM, J L wrote:
initial draft of the letter.
If you can send it as a .pdf, great...
On Nov 26, 2016, at 7:39 PM, J L wrote:
Attached is the pdf format.
The name L does keeps it short. So just L?. No Company or Corp or Inc after it? or maybe the old fashioned way L & Sons.
Are you asking what does L mean ?? ? I actually don't know. I'll have to ask my parents
On Nov 26, 2016, at 7:56 PM, John Spiers wrote:
Here are some notes... do you have your name spelling in (ancient script)? And the suppliers usually has a capital D.
Problems in the letter:
do we know "savory"?
I think price per kilo, but includes plain old potato chips...
Initially we'll discover what market there is in Mexico, and then whether we can work together building this new market,and after that...
best to find his phone number,. what was the phone number of the restaurant? do cached webpages say? Even if dead, name a phone number...
John
On Nov 26, 2016, at 9:56 PM, J L wrote:
Thanks John. I've updated the draft with your recommendations.
• "Do we know savory?". The chip is not sweet and is crunchy with little salt added. The HTS number 1905.90.9030 is for "Corn chips and similar crisp savory snack foods". I'd say these are similar to corn chips
• I found suppiers landline number and have listed both landline / restaurant numbers in the letter. John, I'm hoping he won't mind me contacting him at Home address & number. On specialty*chips.com, he's clearly mentioned the email address as contact info and that's the reason I'm being a little skeptical.
• You're right. I checked the HTS for units and it is Kg. So then is the analysis correct?. The Specialty Snack chips, 1 packet is 5 OZ and cost ~ $5 (retail). For Mexico the average price is $4.55 per Kg!
• So my first name means "whatever" :) and here's the first and last name in Anciet Script.
On Nov 27, 2016, at 3:50 AM, John Spiers wrote:
On Nov 26, 2016, at 9:56 PM, J L wrote:
Thanks John. I've updated the draft with your recommendations.
• "Do we know savory?". The chip is not sweet and is crunchy with little salt added. The HTS number 1905.90.9030 is for "Corn chips and similar crisp savory snack foods". I'd say these are similar to corn chips
***Good... gotta be careful when using words and representing data, you have...***
• I found his landline number and have listed both landline / restaurant numbers in the letter. John, I'm hoping he won't mind me contacting his at Home address & number. On specilty*chips.com, he's clearly mentioned the email address as contact info and that's the reason I'm being a little skeptical.
*** He very well may freak out, but I doubt it. He already put himself waaaay out there opening a retail biz... as to the phone number, it's tactical...
1. He pre-empts you, calls you with a
a,. I'm interested
b. get lost...
With a, you proceed, humbly, with him in charge... with b, you find a new source for Specialty Snack chips...
2. The phone number is dead, THEN you email saying, "I wrote, I called, and now I email....
You are driving at a contact, and rather obliging him to answer yes/no...***
***
• You're right. I checked the HTS for units and it is Kg. So then is the analysis correct?. The Specialty Snack chips, 1 packet is 5 OZ and cost ~ $5 (retail). For Mexico the average price is $4.55 per Kg!
***Right, mostly chips... at costco chips are about that... he might say, that's too cheap, you reply..
a. that includes the cheapest mass produced chips too, it's the average, so skews very low give the mass amount of bad chips going in...
b. the bigger the mass market, the bigger the specialty market too...
It's the trends that tell... ***
• So my first name means "whatever" :) and here's the first and last name in ancient text.
*** Maybe your parents will answer first, but let's see what my sources say...
There are brand names like Ernest and Julio Gallo, and of course just a last name, Nordstrom. People read it first, then sound it out, and then maybe wonder what it means... You can always change it, maybe ask a dozen random people at a starbucks... I am starting a food biz selling Specialty Snack chips, what do you think of these two names (L and then brothers L and J & ? L... Indeed Brothers L J might be interesting...
*** As to the letter, make it Dear Mr. d’Daddy be formal...
clean this up...
what market there is in Mexico and then whether we can work together building this new market and after that can negotiate if we are the team to represent you.
maybe : what market there is in Mexico and then discuss (negotiate is too hard) if we are the team to help build market for Specialty Snack chips in Mexico.
I see now the two phone numbers, do just the restaurant one, avoid the home one if possible...
So now it is attitude - he'll want to know about you...
Answer matrix:
I am nobody, (Fedex driver?) hate it and love your chips... (what's your "conversion story"? keep this real short...)
I am Ghanian, but did not know about Specialty Snack of Specialty Snack chips... (south v north) it's Ghanian, clearly, but new to me...
"I'm hungry for change, you might be hungry for more customers, let's find people hungry for your chips, and then see if there is work for me too..."
Took some training on how to break into new markets, but no accomplishments yet, so no demands on my part: if I find customers, please sell to them, but if you don't want to work with me, OK, I'll find another product I love.... it really is not hard to find out if the customers are there...
(Also, who knows, "you may want to take mexico, and let me have France... way too early to decide anything because we know nothing...")
So once this letter goes out, you shift to attitude with the supplier... "you get free market info, I get a chance to maybe start my export food biz with you...***
Indeed, to use his very nice website to add the lcl moq fob would be ideal...
anyway, good to see this proceeding... your views?
JOhn
(Part Two Tomorrow)
Feel free to forward this by email to three of your friends.
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