international markets

Dear BettySue

5 Key Considerations When Exporting

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5 Key Considerations When Exporting From Frostproof, Florida After taking your class The Riddle of the Exporter™, we have become interested an in understanding the key considerations when exporting as we grow. Our store, Geeky Gastro Gadgets in Frostproof, Florida, specializes in finding unique gastronomic gadgets from new inventors around Florida and the U.S. We carry items that range from a crawfish cracker, to a jalapeño seed remover to a foolproof sushi rolling kit. We are considering adding some Florida seafood spice concoctions to the mix. Right now, we have a steady flow of international orders and an increasing number of inquiries from clients overseas. One inquiry is from a kitchen specialty store in London that caters to expats. Can we export? How can we tell if exporting should be in our future? Signed, Gastro Gal *Disclaimer: The names of exporters and their stories have been changed to protect their identity. The names and expertise of our advisors are very real and often understated. The story is funny, the advice is authentic. The Key Considerations To Global Trade, International Distribution, and Import-Export Compliance​ Dear Gastro Gal, Congratulations for considering exporting as part of your business strategy. Every company should, even if they decide that it’s not in the stars. A decision to start exporting should take a more consideration than looking into a crystal ball at the local fair. A friend and colleague, Mr. Hal Jacobson who is an International Trade Specialist with SCORE and North Texas SBDC, is just than man that can help you map out your next step… or not. Mr. Jacobson is a wealth of information, having served as the VP of Quaker Oats International for 37 years with a slight break in the middle when he performed his service as WWII Air Force pilot. (He asked me not to mention that he was awarded the Purple Heart but how could I help myself?)  So lets turn it over to the expert and let him guide us in determining our future. Signed,  Betty Sue, preferring fact to fortune telling *Hal Jacobsen was a global trade mentor to BettySue and many other new exporters. He is no longer with us but I am certain he is still a cheerleader forinternational trade in Heaven. Expanding into global trade is exciting, but before diving in, it’s crucial to assess whether exporting is viable for your company. I receive export questions from businesses nationwide, and the following five key considerations will help you navigate foreign market adaptation, international pricing of products, and how to get paid in international trade. #1: Can Your Product Be Adapted for Foreign Markets? Successful foreign market adaptation is essential for selling internationally. Consider the following factors: Regulatory Compliance: Certain countries require multi-lingual product labels (e.g., exporting food products to Russia requires Cyrillic labels). Technical Adaptation: Electrical products designed for 110V/60Hz (U.S. standard) may need modification to work in countries using 220V/50Hz.Expecting customers to buy a transformer isn’t practical. Metric System Adaptation: Many global markets require metric conversions for product specifications. Metricizing packaging, instructions, andproduct dimensions is crucial for success. #2: Understanding International Distribution Channels Selecting the right distribution channel is key to reaching your target market efficiently. Ask yourself: What are the preferred distribution channels in your target market? Options include:             Retailers vs. wholesalers             Third-party e-commerce platforms like Amazon Global, Alibaba, or Shopify How do international distribution networks differ by region?             Exporting retail products may require partnerships with foreign wholesalers.             B2B industrial products often use direct sales or authorized distributors. Every country has unique import-export compliance regulations that impact international distribution strategies. #3: International Pricing Strategies One size does NOT fit all when it comes to international pricing of products. Common mistakes include: Using U.S. domestic pricing in global markets:o This often fails because: Domestic prices include costs like U.S. advertising, marketing, and localdelivery.o Foreign markets require different pricing structures, factoring in import duties, freight, tariffs, and local taxes. Build pricing based on international costs only:o Currency fluctuations and the impact of exchange rates.o Competitor pricing in the foreign market.o Landed cost calculations, ensuring the final price reflects all expenses associated with delivery. #4: How Will You Get Paid in International Trade? A major concern in exporting is ensuring secure payments. You must establish a reliable international payment method to avoid financial losses. Options include: Credit card or PayPal – Suitable for small transactions but may have high fees. Advance payments – Often a deal breaker, as foreign buyers may hesitate to prepay. Letters of Credit (LCs) or Documentary Drafts – These banking instruments provide security by ensuring payment upon shipment or delivery. Trade credit insurance – Protects exporters against the risk of non-payment by foreign buyers. Without a solid payment structure, even a strong global trade expansion plan can fail. #5: Cultural Considerations in Exporting Cultural differences can significantly impact international business transactions. Consider: Translations: Poorly translated product names and slogans can damage your brand. Negotiation etiquette: Different cultures have unique approaches to business discussions and decision-making. Professional Titles Matter: In global business, job titles impact credibility. Instead of “Sales Associate,” use “International Sales Specialist” toestablish authority in negotiations.   Final Thoughts: Preparing for Export Success By carefully considering foreign market adaptation, international distribution, export pricing strategies, payment security, and cultural nuances, you can confidently enter international markets. All the best, Hal Jacobson Facebook LinkedIn Taranis, LLC dba Export Connector Contact Cactus, Texas & Dallas, Texas & Gun Barrel City, Texas Facebook Linkedin

Delivery Van Driving International Exporting
Dear BettySue

How To Successfully Enter and Grow in International Markets

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How to Successfully Enterand Grow in International Markets How to Successfully Enterand Grow in International Markets How to Successfully Enterand Grow in International Markets Key Considerations for International Exporting From Bumblebee, Arizona Howdy from Bumblebee, Arizona. You’ve got us so excited about exporting that we’ve started our very own, Betty Sue Export Club. People from all over the area come together to share ideas on how we can export our products successfully. Like you, I have a food product Desert Dip Spice Mix. We are already in restaurants in the Phoenix and Scottsdale area. Since there are lots of “Winter” Canadians, our market is expanding up north. How is the best way to continue our organic expansion?. Should I start online or should I look for a distributor. Signed, Norma Spicey, creator of world famous Desert Dip Spice Mix *Disclaimer: The names of exporters and their stories have been changed to protect their identity. The names and expertise of our advisors are very real and often understated. The story is funny, the advice is authentic. Successfully Enter and Grow in International Markets Dear Norma and Members of the Betty Sue Export Club, My, oh my, there are some really industrious people in Arizona. Guess that desert air brings out the entrepreneur in ya. Figuring out how to get your product to international markets can be as befuddling as trying to find your boyfriend at the Texas State Fair when you’re at one end and he’s way far at the other. As my Mama says, if you’re missing a step in your plan, find an expert who can plan your steps. A good friend and colleague is Mr. Lee Mulkey, CEO of ALM Company, an advisory firm serving global manufacturers and distributors. Mr. Mulkey’s resume of success is packed like a mule horse heading out for a long trip. Lee has served as President and CEO of three global companies. He’s usually on the road dealing with some big company but as a favor to Betty Sue, he said he would love to help you prepare for next month’s export meeting. Signing off and tuning in to learn from Lee,  Betty Sue Dear Norma Spicey and the BettySue Export Club, So you are the woman behind Desert Dip Spicy Mix! My wife and I make sure to order anytime it on the menu. Delicious! Congratulations on considering exporting. It will be the best decision you make for your business. Before determining the any export market entry strategy, businesses must conduct export market research to assess the viability of international expansion. EXPORT MARKET RESEARCH Exporting Food Products: Regulations, Compliance, and Cultural Considerations Exporting food products is more complex than other goods due to strict international trade regulations. Many countries enforce specific import regulations for food exports, requiring: Certification of food manufacturing, safety and ingredients. This is outlined in the CCG-Country Commercial Guide provided at the government website www.trade.gov. or call your local USEAC-U.S. Export Assistance Center for help from one of their international trade specialists. Product labeling compliance (e.g., country of origin, ingredients, and nutritional information) Packaging requirements, including shelf life and storage standards Beyond regulatory concerns, exporting food products requires cultural adaptation. Different international markets have unique consumer preferences and packaging expectations. Localized packaging and branding are essential to succeed in diverse regions such as the EU, Middle East, and Asia. Next Steps in Global Trade Expansion – How will you reach your market? Expanding into global trade requires a well-planned export strategy to ensure success in international markets. Whether you’re exporting food products, exporting retail products, or expanding industrial operations, choosing the right market entry strategy is crucial. Below are some of the most effective ways to export and build a successful import-export business. There are two methods to export: direct and indirect. Direct exporting: In direct exporting, you handle all aspects of the exporting process. Using BettySue’s Riddle of the Exporter™, this means all 8 steps including market research, market entry, transportation and compliance. This method is good for experienced exporters who want full control over their markets. It also requires deep pockets to handle all expenses as you build up your markets. Indirect exporting: Indirect exporting is good for newcomers. You find a 3rd party platform and work with them to expand your market within their platform. It allows you to get into markets with less experience and less cash up front. If you a new exporter you may choose indirect exporting such as with a 3rd party-Amazon, Etsy and Shopify or eBay. These companies have streamlined their formats to help you set up key elements for exporting regulations and international shipping. E-Commerce Exporting: Selling Internationally via Online Platforms For many businesses, e-commerce is the easiest way to expand globally. Developing an export-focused digital commerce website allows businesses to reach international customers with minimal setup. Leading e-commerce platforms such as Amazon, eBay, and Shopify provide: International shipping options Pricing in USD or local currencies Export compliance alerts Translation and fraud protection tools E-commerce is an ideal strategy for exporting retail products, as it enables small businesses to enter foreign markets without establishing a physical presence. If you are an experienced exporter or have the type of product that needs on the ground sales assistance, you may prefer to go the long route with direct exporting. This would be through a foreign sales agent, a foreign distributor or with more complex methods such as licensing. Here are some of your options. Industry Trade Groups: Connecting with International Distributors Many industries have trade associations that facilitate export market research and connections with foreign distributors. These trade groups often have relationships with global trade networks, making it easier to find international customers and partners. Foreign Distributors & Licensing Agreements A key strategy for exporting food products and other consumer goods is working with foreign distributors or licensees. These partners: Have local market knowledge and distribution networks Can assist with government import requirements and packaging regulations Reduce the need for establishing a local entity However, finding a reliable foreign distributor

black and grey camera
Dear BettySue

Export Compliance

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Export Compliance From Confidence, California Hello from Confidence, California, the home of American ingenuity going global. We design and manufacture the soon to be famous Diva-On-Demand state of the art camera for professional photographers. Of course, it comes with faux leopard carrying case. We receive inquiries daily from around the world. We are ready to start shipping internationally today but our freight forwarder put up a big YIELD sign. He says we might need an export license and to learn about following export compliance for our camera. He gave us a copy of The Riddle of the Exporter™ Workbook (excellent workbook by the way) and sent us to Step 5 – Compliance. It says there that we need to ask four questions: what is the product; where is it going; who is it going to and how will it be used? That’s a lot to answer! Do we really need a license for this automatic air brushing camera? Signed, Arnie Leibovitza, Inventor of Diva-On-Demand Camera *Disclaimer: The names of exporters and their stories have been changed to protect their identity. The names and expertise of our advisors are very real and often understated. The story is funny, the advice is authentic. BettySue Response Dear Arnie and the good folks in Confidence, California, Isn’t it exciting to invent, design and sell—all from the good ol’ U.S.A. We always want to encourage companies to sell overseas but we agree with your freight forwarder- slow down and do it right. As my mama always said “tackle trouble before trouble tackles you.” Glad you are using the workbook. The one thing Earnie Earl and I believe in as strongly as hot dogs and fireworks on the 4th of July is that we always call the experts, especially when learning about export compliance for your growing business.  In this case, our expert is Cesar Reyna of Trade Consulting Services. Cesar is a real “go-pro” in assisting companies with all of their compliance needs. We got in touch with Cesar and he will take us through the next steps to determine if you need a license. My friend Cesar Reyna the president and founder of Trade Consulting Services, LLC. wanted to chime in and offer a helping hand. What do you think Cesar!? Cesar Response Dear Arnie, Betty Sue is right, you always want to make sure you have all of your t’s crossed and your I’s dotted before you export. Following export compliance is crucial to maintaining a consistent export output. The Export Administration Regulations, EAR, is the regulation you will want to comply with when exporting your camera.  Determining the Export Control Classification Number (ECCN) for your product is one of the most important steps for exporting. The ECCN is a 6 digit alpha-number that tell us what the product is and why it is controlled.  The ECCN along with the country, end-use and end-user will help you determine if a license is required to export your product. After reviewing your specifications and consulting the Commerce Control List, (CCL) we have determined that your camera is controlled under EAR99. EAR99 is used to control items that are not found in the Commerce Control List and is generally used for low-level technology products and will not usually require a license. But wait a minute; don’t get too excited just yet….there are still other steps you need to take even when exporting EAR99 products. Export compliance for your camera business is just getting started. Embargoes and Sanctioned Countries   Now that you know your products is controlled under EAR99 you still have to determine if you are exporting to an embargoed or sanctioned country, to a prohibited end-use or a prohibited end-user. Betty Sue calls this-checking the “Bad Guy Lists”. The list of embargoed and sanctioned countries can change so the best source is to check Supplement Number 1 to Part 740 to find a list of the Country Groups and review Country Group E. If you are shipping to any of the countries found on this list, give us a call and we can go from there. Anytime you export the camera you should verify that the parties involved in the transaction are not considered parties of concern on the “Bad Guy Lists”.  The Department of Commerce provides a great resource that allows you to check your parties at https://apps.export.gov/csl-search#/csl-search.  If the companies you are doing business with come up in one of these list you should place your transaction on hold until you verify if the party you are doing business with is the same party that comes up on the list.  Double Check Documents   There are several lists this resource checks and depending on the list it could mean that the export is prohibited, a license would be required or there is a red flag associated with this company.  Be sure to document that you have performed this screening as part of your due diligence process by printing a copy of the results for your records. Lastly, you have to ask yourself if the end-use is prohibited. Start out by going through the General Prohibitions (Part 736 of the EAR), the General Prohibitions will walk you through some of the things we just talked about and will refer you to Part 744 of the EAR to determine if your product is going to a prohibited end-use.  Some of the prohibited end-uses include if your camera will be used for nuclear activities or for missile technology end-use but Part 744 will give you more details on this and other prohibited end-uses. Conclusion   Now that we know your camera is going to France to Vogue Magazine for use in fashion shoots and we have screened all the parties involved, we can safely say that your camera does not need a license to export.  Following export compliance for cameras and any product for that matter is a staple of exporting. We covered a bit but there is more to learn. You can learn

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