TEN PROFITABLE TIPS FOR

EXPORTERS AND IMPORTERS

1. Trade in products you know and understand. Whether it's sporting goods or diesel locomotives, domestic sales or international sales, you have to know the product to be able to succeed.

2. Learn the basics first. You can't learn everything. Be an expert in your product. Learn the basics of international marketing, payment, and customs. Many community colleges have inexpensive courses. Contact the U.S. Department of Commerce, your state Department of Commerce, and the Small Business Administration. They have seminars and conferences, and can tell you about other resources.

3. Ask for assistance from the experts. Before you begin, talk with a bank's international department (at most large banks), and with a Freight Forwarder (exports) or Customs Broker (imports). These specialists are listed in the Yellow Pages.

4. Keep in touch with all of your sales leads. Put together a mailing list and make sure they hear from you three or four times a year. Don't let them go to someone else.

5. For success in exporting:

                A) Get the order.

                B) Make sure you're going to get paid for the order.

                C) Ship the order.

6. For success in importing:

                A) Figure ALL costs, including transportation, insurance, Customs duties, then double-and triple-check them.

                B) Pre-sell (have advance orders for) as much of the imported merchandise as possible BEFORE you place YOUR order.

7. Add an extra margin into your wholesale price. This will be to cover unforeseen expenses, or be a margin you can "give away" in negotiations.

8. Look both ways. If you're selling overseas, ask your buyer what products he has that you can look at for the U.S. market. If you're buying, ask your supplier what types of products you can supply to him for the market in his country.

9. Don't spend money until you make money. Don't pay for fancy letterheads until you can afford to. Be professional, but be a frugal professional.

10. Sell Quality Products. (People don't want junk.)

Be Honest. (You stay in business that way.)

Keep Your Word. (Only way to get a repeat order.)

Joseph Zodl is the author of Export-Import: Everything You and Your Company Need to Know to Compete in World Markets, now in its fourth printing.

For more information on Export-Import, click here.