Helpful Hints

These are just a few helpful hints to consider when selling to the USA for the first time:

• Unlike other export markets, the option of selling through an import-distributor may be too expensive in the US (distributor margin makes your products prices too high). While other options definitely exist, the other options require investigation, involvement and good research to form an effective strategy. Researching distribution options first will save money in the long run.
• Most US consumer product buyers will pay the freight from a US-based warehouse to their store or distribution center (DC). They will not pay freight from an overseas location to their store or DC. This may or may not be the case in non-consumer product industries, which vary in terms of who pays domestic freight.
• Contact freight forwarders who do business with the US to obtain freight costs. Be sure to provide a list of items for shipment along with descriptions, estimated weight and final delivery address.
• Develop two price lists to show potential US customers: one price list that is ex-factory and one price list ex-a US based warehouse (in US dollars).
• Research the market. Find out what competitive products are selling for, identify margins and mark ups, find out where your cost advantages exist. Pricing tends to be one of the key issues for Australian and New Zealand suppliers, when selling to the US market.
• Identify your product niche early. Be an expert in a narrow range of products. Showing buyers too many types of products in the first appointment will confuse them.
• Focus your market entry strategy on a region and/or market segment – without a focus, selling to the US can be exhausting and expensive.
• If selling through US agents or representatives, maintain a separate base to receive payment and for collections purposes. Keep customer payments and sales agents separated.
• Visit with key customers at least once a year. Even if a US-based agent handles the account, meet with key customers to hear what they have to say about market trends and your products. Regular market visits often provide new ideas for product development and new opportunities for expanding US export sales.
• Prepare to start out small. Let the learning curves occur with your smaller US customers. Larger volume customers will not have the same patience for mistakes or delays as the smaller customers – and there will be learning curves.
• Although the US market represents volume business, be patient. It usually takes at least two or three years before larger sales volume begins. Retailers need to test products, confirm your company’s credibility as a supplier and know that you will be around for the longer term before they will place volume orders. Meanwhile, sell to smaller retailers and continue to meet and persist with larger retailers.
• Have fun! Americans are charmed by the accent and the images of Australia and New Zealand. In fact, the curiosity will often help to set up first appointments. However, once in the appointment, make sure that you are ready to do business the way US buyers are accustomed to working with their other vendors… did we mention do your research?