How to Get Your First Export Order
by Arlene Eleanor E. Liberal
A study done years ago found that many managers of small businesses believe the myth that only large enterprises can handle the technical details of exporting. Many SMEs, including those with excellent products, see foreign marketing as distant, strange, and risky territory.
All too often, it takes only a first export order and going through the process of serving it for an SME to gather enough confidence to become a true-blue exporter. Once it takes the first crucial plunge and becomes successful in it, the small business in time becomes an expert global player.
Before it does this, however, the first crucial step is to get an export order.
This article will give the aspiring exporter with information and guidelines on how to get export orders.
Experiences of successful exporters show the following activities as important in getting export orders:
Participation in trade fairs
Prior to the participation in a trade fair, you must produce enough samples for display during the event. In addition, your firm must be ready to answer the questions on the price of the product and the volume you can produce over a period of time either daily, weekly or monthly basis.
It is better to participate in a trade fair with a brochure or product catalogue. Because space is limited during trade fairs, and not all the products can be displayed, your brochure will show the array of products you have available. Your customers can bring it home and place orders long after the trade fair is over.
The Department of Trade and Industry (DTI) through its various implementing agencies like the Bureau of Small and Medium Enterprises Development (BSMED) and the Center for International Trade Expositions and Mission (CITEM) facilitate the conduct of regular trade fairs. In addition, private groups especially the industry associations like Philippine Food Processors and Exporters (PHILFOODEX), Chamber of Furniture Industry of the Philippines (CFIP), Association of Negros Producers (ANP) and so many more also mount their own trade fairs. The DTI trade fairs are usually organized at the municipal level, provincial, regional, and national level and finally on the international level.
Sometimes a fair focuses on a particular sub sector such as food, handicrafts, fashion jewelry, etc. Very often it covers all sectors. The private groups usually follow the same pattern in holding trade fairs , although they may skip the municipal level and go for the regional, national and international trade fairs.
For those who have no experience in export marketing, the trade fair at the municipal level is a good start and “graduating” to the national level, means that the firm is indeed ready to export.
What can you get from by participating in trade fairs?
It is where you get to meet three types of customers :1) the ultimate consumers, who use the product for personal consumption, 2) the institutional buyers who represent institutions that will use the products for their schools, hospitals, government office or other organizations; and 3) other manufacturers, other service providers and traders who buy products for resale. Each type of customers must have a different “package deal” -- as they say, “different stroke for different folks.” For example, a trader with big volume order expects a different pricing from a customer who buys only once for his personal consumption. By getting in touch directly with customers, you can get the “feel” of their preferences. The volume sales you generate during the trade fair will tell you how good your products are.
At trade fairs you will also meet other businessmen with whom you can network for information and referrals. You will also meet product specialists, consultants and other agencies that may be able to help your firm improve its performance. The product specialist may be able to give suggestions regarding the design of your products. The consultant may help improve your production processes. Others may show you other services available such as training programs, sources of financing and sources of other technical assistance.
Usually seminars are also conducted at trade fairs, which will give you a chance to keep abreast with recent developments in market trends and technologies as well as other information that could lead to new business opportunities.
Write letters
The age-old practice of writing letters to prospective buyers still works and is much cheaper than traveling abroad to meet the buyers. Include a brochure with pictures and specifications of the products. If these catch their interest, prospective clients will write back and sales negotiation can begin.
The government through, the consular offices of the Foreign Affairs and DTI through the Bureau of Foreign Trade, as well as private industry associations, regularly publish business opportunities to buy and sell products. Check out their newsletters.
Meeting local representatives of foreign buyers
A number of foreign buyers have a local representative. You can arrange to meet these representatives in order to gauge what they need and verify if your firm can produce what they require. Check out the Foreign Buyers Association of the Philippines (FOBAP) and its directory of members.
Web-page or e-commerce facilities
Progressive businessmen today make use of Information Technology in managing and growing their business. The computer can be an effective marketing tool, especially if you get connected to the Internet and install your own webpage with the help of a service provider. Your own internet page will promote your company and your products to virtually the whole world.
Many industry associations also put up their own web pages. If your firm is a member of one, then your products can be listed and featured. This saves you the cost of putting up and maintaining your own web-page. Thousands of buyers around the world now surf the internet in search of suppliers. Presence in the web will tremendously help in getting orders.
Finalizing and closing the sales
All these promotional activities should lead to the closing of the sales and finalizing of the sales contract. This means that the prospective buyer decides to buy the product /service. After some negotiation. a contract should be drawn that will specify the technical description and properties of the product, volume requirement, prices and other relevant conditions to the sale of the product.
Just remember “opportunity is where you find it, not where it finds you”
There will be more about how to export in subsequent articles.
(For inquiries, please e-mail info.issi@up.edu.ph.)
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