Trade is one of the oldest businesses around the world; it even existed in the early ages where humans used to trade fur for the food and other products. In this modern world starting an import export business is not difficult if you have the right amount of knowledge. In the export business, many exporters face difficulties due to lack of knowledge about trading and its regulations.
As an exporter finding buyers for your products could be difficult, and if you have a buyer, you face problem negotiating the deal with him. Selling your product to other country is not very easy you need to overcome the most common barriers like cultural norms, travel barriers, and language in order to succeed.
In this article, first I will tell you how to find buyers for your export product and after that, I will give you some tips to negotiate with the potential buyer.
How to find buyers as an Exporter
Nowadays technology has overcome the barrier of distance, and it helps you communicate with anyone in the world. Following are the ways through which you can find a buyer as an exporter.
- International trading companies
- Expos and Trade fares
- Commission agent
- International wholesaler
- Appoint your own sales person
International Trading Companies
Many foreign countries have government sponsored or government-operated companies for trading purpose, which import products from other countries. Do your homework and get to know the countries which you think have the potential for the product you have to offer. After that contact the embassy or the agency for the export product directly in their own country. These international trading companies help the exporter to sell its product or even buy the product itself.
Expos and Trade Fares
Expos and trade fares have great potential in meeting a buyer or supplier; it is the best place to know about the new trends and making connections. At the expos and trade fares, you can introduce your export product to the local and international buyers. These expos and trade fares help you advertise your product internationally. You can get all the information about trade fares and expos through Trade Development Authorities.
Many foreign agencies have appointed their own agents looking for your products, as you are looking for international buyers. The difference is these agents are middlemen, finding the right export products and buying on behalf of the foreign distributor. Working with a local agent can be far easier than working with a foreign-based agent. Commission agents are very motivated because they’re paid on commission.
There are wholesalers in different countries. Dealing with private corporations rather than government agencies could also be much faster, and letting them manage the procedure of imports is a huge benefit, too. Import-export organizations have lists of reputable foreign distributors, saving you the time of looking for them yourself. While your margins could also be smaller by marketing to a middleman, the time you save attempting to sell your exports directly to the market could also be well worthwhile.
Appoint your Own Salesperson
You can appoint your own salesperson in another country where you want to export your product. The salesperson will help you find international buyers, communicate with them, and make deals on your behalf. They help you get a good business in the foreign market, and you will be free to concentrate on manufacturing.
How to Negotiate with Potential Buyer as an Exporter
Negotiating with the potential international buyer as an exporter could be difficult, but if you do some research on him and know some tricks of negotiation, then you can seal the deal. Here are some tips for you on how to negotiate with the potential buyer as an exporter.
- Know the potential of the buyer
- What is important for the buyer
- Know the outcome you want
- Define the limit of the potential agreement
- Understand your strength and weakness
- Negotiate with facts and logic
- Work out different scenarios
- Have an exit strategy
Know the Potential of the Buyer
Do some research and know the potential of the buyer. Know the capabilities, and financial strength, and authenticity of the potential international buyer. If you know about your buyer, it would be a plus point for you to negotiate the deal with him because then you can make your proposal accordingly. Understand the business and the country of the foreign buyer for better negotiation.
What is Important for the Buyer
Understanding and estimating the buyer’s needs and objectives allows you to prepare feasible responses to objections, finding potential agreements that are mutually beneficial, and maintaining a comfortable climate of negotiation. Thus, the sales team must also consider what is important for the buyer:
- Is it price?
- Is it quality?
- Is it quantity?
- Is it exclusivity?
- Is it delivery?
- Is the duration of the contract?
Know the Outcome you want
Know the outcome you want from the potential buyer, what is your goal. Either you want to sell your export product to the buyer, or you want to build a long-term business relationship with them by establishing a connection. You have to clear about you exactly want from the deal.
Define the Limit of the Potential Agreement
Know the limits and have all the facts at your fingertips. It is important to set the limit of potential agreement. This potential agreement lies between the minimum price that the exporter is ready to accept and the maximum price the buyer is willing to pay. Accepting the negotiations outside the acceptable limits can place the company at risk.
Understand your Strength and Weakness
Understand your strength and weakness; never promise what you can’t deliver. Honesty increases credibility. The exporter should analyze whether its product or service is unique or hard to deliver. If so, this would determine the exporter-buyer relationship as important and might give the exporter a benefit.
Negotiate with Facts and Logic
Negotiate the agreement with facts and logic with the buyer. Don’t negotiate based on emotions. If you do, you will most likely get badly hurt. Do the business properly and make every deal with clear consent. If you negotiate with facts and logic with the buyer, it will increase your chance of making a deal.
Work out different Scenarios
Prepare for every possible request that the potential buyer might want to make. It will help you remain confident throughout the customer’s approach since you won’t be caught ignorantly by any terms or conditions given by the buyer. Develop methods to reduce costs together with the buyer to provide value, e.g. transportation.
Have an Exit Strategy
Make exit strategy; don’t get desperate to have an agreement that affects your business. Understand when you will get out of the negotiation. Don’t negotiate too hard to make it work at all cost. Desperation gives wrong signals about you and your business.