5 Key Considerations When Exporting
From Frostproof, Florida
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,
*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 for
international 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, and
product 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 local
delivery.
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” to
establish 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
