| The challenge - How to separate wheat from chaff
|
There is no user
manual or detail rules - but common sense, observation,
care and imagination will help you locate the more potential
leads and manage your time and resources that much better.
Following are some guidelines (based on my experience)
that you may consider: |
| |
| Find Reliable and Exclusive Source |
If you talk to
people who actually sell in foreign markets, they will
privately tell you that their best leads are the ones
which they generate themselves usually by direct mail.
It is far easier to cultivate a trade lead into business
when they come from exclusive source, not available
to zillion others or lying in some free bulletin board.
The options are clear - either invest in research to
locate buyers or take professional help. There is no
free lunch - there had never been any. |
| |
| Be wary of peeping Toms |
Look for keywords
that might indicate the intention - if the guy is gathering
information and has no intention to buy. Be suspicious
of companies who ask for detailed information about
manufacturers' prices but reluctant to identify themselves.
|
| |
| Be careful of large orders |
Be very wary
of companies who post trade leads for large orders and
are not easily located in any company or industry directories.
These are often small companies who will issue an RFQ
(request for quotation) for large quantities in order
to get a lower price and then will try to order a very
small quantity at that price. |
| |
| Mind the language |
Do not be unduly
influenced by flowery language or very specific requirement.
Do not pre-judge the lead - exercise all precautions
required in international business. Many small manufacturers
get trapped by this. |
| |
| Check the market |
If you are not
a manufacturer and outsource products - be careful of
locked market activities. This trade lead will specify
a particular product. Your company contacts the manufacturer,
hoping to make a commission on the sale, only to find
out that the manufacturer already has representation
in that country and will not sell the product to you
for resale to that market because they want to protect
their distributor relationship. |
| |
| Jack of all Trades ? |
Generally ignore
companies who claim to deal in any commodity traded
on world markets and who are placing trade leads. Traded
commodities such as coffee, sugar, urea, oil and gold
are handled by well established companies in well established
markets. These companies usually do not place trade
leads in order to do business. |
| |
| Do not Believe in Overnight Success |
Be very wary
of international business scams designed to separate
you from your money. Be suspicious of anybody who prefers
phone conversations to written documents. Do not get
sucked into fantastic business opportunities which promise
to yield you huge profits with no risk. Learn which
countries and areas have a reputation for spawning international
business fraud and avoid them like the plague. Never
respond to business opportunities which require you
to make wire transfers in advance of receiving goods
or services. |
| |
| Understand the virtue of patience |
Understand that
most foreign distributors do not make fast buying decisions.
It is not at all unusual for an initial order to require
9-18 months from the time of the initial solicitation
depending upon the cost of the item. |
| |
| Develop relationship |
Instead of treating
the leads as 'export order' with a hit or miss attitude
- use the opportunity to develop lasting relationship.
Understand buyer's requirements and offer solution accordingly.
Do not indulge in monologue on your products - make
it a dialogue on how both the companies can stand to
gain from a mutual understanding. |
|
Source: Archival Issues
of FAIDA |