Creating Your Export Plan Section 5 Part 1

Google

Export Readiness:

Your New Marketing Plan: Summary, Timeline and Updates

 SBA

Section 5 Part 1

As you continue to revise and update your exporting plans, it is recommended that you keep your Marketing Plan updated too. In this way, you’ll always have a current version available to share with staff, bankers, investors, and others. Set your calendar to return to this workbook approximately every six months (or more frequently in the case of major changes to your plans).

In addition, you can use the following Timetable Worksheet as an ongoing barometer of where you stand with your exporting plans, what steps are completed/yet to accomplish, and where changes to your plans may be needed.

Timetable Steps  

Worksheet Export Planning Timetable

The following worksheet can aid you in tracking the accomplishment of your stated Short- and Long-Term Goals. Completing it entails the following four steps:

1. Identify key activities. Compile a list of tasks that are vital to the ...

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Sample Export Market Plan

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How to Develop An Export Marketing Plan - The Balance

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Why Put it Off Any Longer?

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Your Export Plan Sec 4 Part 2 B

Google

Export Readiness:

Utilizing Technology for Successful Exporting

 SBA

Section 4 Part 2 B

Ecommerce Tools, Equipping Your Business With technology

Worksheet: Technology Tracker

Reminder: Some parts of the world are behind on technology Also, a customizable App that you can change out and send and receive unlimited SMS and push message may be a good communication tool.

Equipping Your Business with Technology

 At a minimum, your business should have an adequate telephone system and the ability to send and receive email. You should also have a website for global presence, and may wish to have faxing capabilities for transmitting international documents to those areas where an infrastructure of web-based technology is not as prevalent. There are some areas that do not even have faxing capabilities, in this case then it is the mail that you have to depend on..

Keep in mind that SBA’s loan program Export Express can help you with financing of equipment needed for building your export business, including the development/updating of an exporting website.

Google

Key Functionality to Consider:

Conference Calls Your phone system should support worldwide communications and the ability to conference with several parties at once. Communications can be more effective when you, your overseas customer and your overseas agent can be linked by a conference call. This can be through your actual phone equipment or through a call-in number and password. There are vendors to be found on the web through ...

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Equipping Your Business For Success | YouInc.com

How Does Technology Improve a Business? | Chron.com

Why Put it Off Any Longer?

ICANetwork

Your Export Plan Sec 4 Part 2 A

Google

Export Readiness:

Utilizing Technology for Successful Exporting

 SBA

Section 4 Part 1

Ecommerce Tools, Equipping Your Business With technology

Worksheet: Technology Tracker

Some of these tools will seem outdated to you, but you must remember there are parts of the world that modern technology has not yet found. For example, I have an established lawyer in Accra, Ghana that I use to handle my legal business responsibilities there. There are no fax machines or scanners for documents that need to be signed by me there. We have to use the mail, which sometimes takes two months. Once received, then I can scan and return by email and can be copied.

Most places of business will not ship items to Nigeria. It has to be shipped to me first and then I ship.  A shipment usually takes six weeks to get to my contacts. The theft problem has improved, but sometimes customs there will make a pickup very hard to get or sometimes even impossible. I never know what is going to happen.

My contact of almost five years in Nigeria, the first two shipments he stole. I finally made him understand that he could steal and make profit once, or trust me to do him right and he could make profit many times. We finally made progress.

Romania is a little bit better on the tools needed to run a business there, but some they cannot buy nor can they have it shipped by a company, but an individual can ship it to them. Again, expect a six week delivery time.

These are all small details that can make a difference on how smooth your operations may or may not be. There is much information here so it will be broke up into two parts. ~ MG

Google

E-Commerce Tools

Export-Focused Online Services

Trade leads from international companies seeking to buy or represent U.S. products are gathered by the United States and Foreign Commercial Service officers worldwide and are available at www.export.gov/tradeleads. SBA also offers information on managing and expanding your business, software for small businesses, and gateways to other online services.

The International Trade Data Network® (ITDN)

Provides access to export, import and other trade related information. ITDN is a non-profit data multiplier that provides the business community with the timely ...

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Trade Map - Trade statistics for international business development

International trade statistics 2001-2016 - ITC

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Creating Your Export Plan Sec 4 Part 1

Source Google

Export Readiness:

Utilizing Technology for Successful Exporting

 SBA

Section 4 Part 1

Ecommerce Tools, Equipping Your Business With technology

Worksheet: Technology Tracker

Exporting today is easier than ever before. This is largely due to advances in technology. In many ways, e-commerce–the buying and selling via electronic systems–enables you to do business with customers across the globe nearly as easily as with those across town.

E-commerce offers major advantages to you as a small business exporter. These include quick and easy access to tremendous amounts of information, and the ability to sell goods and services virtually anywhere in the world.

You are likely already utilizing e-commerce for your domestic business. But if not, this brief overview will introduce a new way of doing business and explain how you can use e-commerce to your advantage.

Key Elements of E-Commerce:

Online presence for your company (a website)

• Providing information in your target market’s native language(s)
• Key words embedded in your website, so that your company is found by online search engines
• Credit card processing

There is one caution for start-up exporters who plan online sales and ...

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4 Essential eCommerce Strategies for Manufacturers and Distributors

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Exporting: The Definitive Guide to Selling Abroad Profitably

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Export Readiness Creating Your Export Plan Sec 3 Part 6

Export Readiness:

Costing, Financial Forecasting and Product Pricing

 SBA

Section 3 Part 6

Methods of International Pricing

Worksheet Setting Your Price

Setting Terms of Sale

Price Quotations

The pro forma invoice is the most commonly used document to give price quotations to potential customers. If you and your buyer are in agreement, it is usually considered a binding sales contract, although prices may change prior to final sale.

• To prepare the invoice, you should give a detailed description of the product and an itemized list of fees and terms of sale.
• Prices should be quoted in U.S. dollars to reduce foreign exchange risks.
• The invoice also should indicate the period during which the price quotation is valid, the terms and method of payment, and delivery terms.

You should be familiar with the common terms of sale used in international trade before preparing your pro forma invoice. International Commercial Terms (INCOTERMS) are universally recognized in export and import contracts. These terms refer to the rights and obligations of each party, such as who pays ...

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INCOTERMS® — International Commercial Terms — are three-letter trade termsdeveloped by International Chamber of Commerce and widely used in internationaland domestic contracts for the sale of goods. They're accepted by governments and shippers worldwide, and are used to prevent uncertainty or misunderstandings.

SHAYER.COM

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INCOTERMS or International Commercial TERMS Explained 

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Terms of Sale | Different types of Quotations in International Trade

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Controlling the Terms of Sale

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Why Put it Off Any Longer?

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CREATING YOUR EXPORT PLAN Section 3 Part 5

Source Google

Export Readiness:

Costing, Financial Forecasting and Product Pricing

 SBA

Section 3 Part 5

Methods of International Pricing

Worksheets > Sales Forecasts—First Five Years > Cost of Goods Sold—First Five Years > Export Costing > Marketing Expense Costs > Projected Income—First Five Years in All Markets > Setting Your Price

In Section 3 – A, B, C, and D – We covered International Payment Methods. Section 3, Part 4 – We began to look at Methods of International Pricing and the different options for consideration related to your international pricing.

• The “cost-plus” method of international pricing is based on your domestic costs, “plus” additional exporting costs associated with international sales and promotion, product modification, etc.
• We looked at how the “marginal-cost” method will likely provide a more realistic means of determining true cost of producing your product for export.
• On variable costs, we looked at what should be considered
• After-Sales Service Costs Product warranties and service

The conclusion was that overall, no single strategy is ideal for every company. As a result, it’s common to draw upon a mix of options for each market or product.

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mar·gin·al cost

the cost added by producing one additional unit of a product or service.

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Marginal Cost Of Production Definition | Investopedia

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Average and Marginal Cost - Boundless

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ICANetwork

CREATING YOUR EXPORT PLAN Section 3 Part 4

Source Google

Export Readiness:

Costing, Financial Forecasting and Product Pricing

 SBA

Section 3 Part 4

Methods of International Pricing

There are different options for consideration related to your international pricing. Cost-Plus Method The “cost-plus” method of international pricing is based on your domestic costs, “plus” additional exporting costs associated with international sales and promotion, product modification, etc.

Remember: costs associated with insuring or deliveries are usually “pass-through costs” that do not have a markup component in arriving at a selling price.

• The cost-plus method allows you to maintain your domestic profit margin percentage, and thus to set a suitable price.
• Any costs not applicable, such as domestic marketing costs, are subtracted from the overall cost prior to markup to arrive at your selling price.
• This method does not take local market conditions into account.

With cost-plus pricing, different marketing costs and/or modifications to the product could change the cost basis dramatically, making the product either more or less costly for export.

Source Google

Marginal-Cost Method

The “marginal-cost” method will likely provide a more realistic means of determining true cost of producing your product for export.

To use the marginal-cost method:

• Determine the fixed costs, if any, of producing an additional unit for export. Fixed costs are costs that occur whether or not you are selling anything. For example: mortgage payments on land or buildings. — If your company is operating at a profit, and additional assets are not being used for exporting, then fixed costs have been covered.
• Any additional costs of producing products for export are termed variable costs.

There may be instances where additional ...

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Cost Plus Pricing - AccountingTools

Cost plus pricing is a cost-based method for setting the prices of goods and services. Under this approach, you add together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a markup percentage (to create a profit margin) in order to derive the price of the product

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Cost Plus Pricing 101: The Necessities and Your Pricing Strategy

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How to Determine the Mark-Up on Cost-Plus Pricing | Chron.com

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CREATING YOUR EXPORT PLAN Section 3 Part 3 D

Source Google

Export Readiness:

Costing, Financial Forecasting and Product Pricing

 SBA

Section 3 Part 3 D

International Payment Methods

This section of the export planning process also has a lot of detailed information. It will also be broke down into parts A,B, C  etc ...

First post the worksheets covered in Section 3 Part 3 A

• Sales Forecasts—First Five Years
• Cost of Goods Sold—First Five Years
• Export Costing
• Worksheet: Marketing Expense Costs

On the second post Section 3 Part 3 B we covered worksheets

• Projected Income - First Five Years In All Markets
• Sales Forecast worksheet
• Cost of Goods Sold worksheet

Section 3 Part 3 C we covered

The primary methods of payment for international transactions, ranked in order of most secure to least secure for the exporter, include:

1. Payment in advance
2. Letters of Credit

Today in Part D, we will finish the terms available for payment options

1. Documentary collections (drafts)
2. Open account

LC Terms and Conditions and Documentary Collections

With Non-Conforming Documents: Be Aware of Potential Dangers

1. Non-acceptance and non-payment by the buyer
2. Bank’s refusal to honor the presentation or seek approval from the buyer, and sending of the documents back to the beneficiary
3. Acceptance by the buyer, but delayed payment (could be up to six months or more)
4. Acceptance by the buyer, but negotiation of a lower payment price
5. Penalty for late shipment
6. Incurring of discrepancy fees
7. Settlement in court in a foreign country

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A documentary collection is a process, in which the seller instructs his bank to forward documents related to the export of goods to the buyer's bank with a request to present these documents to the buyer for payment, indicating when and on what conditions these documents can be released to the buyer.

en.wikipedia.org

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DOCUMENTARY COLLECTION Credit management World ***Difference between Documentary credit and Documentary Bill ICANetwork