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Top 10 tips for Successfully Exporting to Latin America.
1. Complete Company Involvement.
Export selling must be a co-ordinated action, not an individual effort.
The full collaboration of all departments, AND the absolute commitment of high management is vital for success in any export program.
2. Define Expectations.
You should answer some questions before you start:
a) What exactly is it that you want? Increase sales? Move old product lines? Compete for name recognition?
b) What are you looking for? Distributors, dealers, end users?
c) What are your customer expectations? Most buyers in Latin America see the US as the most technologically advanced country in the world. They expect top customer service and good pricing. Have you considered these factors?
d) What do you say when you sell? Are you offering the "best" or the "most advanced" product in your class?
e) Are you ready to meet the expectations you create? You might, or might not be ready to enter the export market. But if you are not, its better to wait and enter once you are ready instead of creating a negative first impression that will be almost impossible to change later on.
3. Anticipate.
The old cliché is valid: "Most business do not plan to fail, they just fail to plan."
How will you overcome language and cultural differences? Do you have someone on your sales staff that is fluent in Spanish? How about in your customer service and/or technical departments? Do you have a well-written FAQ in Spanish that that clearly answers all the questions related as how to do business with your company?
4. Be open.
Business in Latin America is done at a different level and on different ways. Most of the individuals you will meet are the owners of their own companies. On their business cards you will mostly see the title "Director General" that translates to "General Manager" but it is the cultural and practical equivalent to the title of "President" in US based companies. They expect to negotiate at the highest level in your company. You have to make sure that everyone at your company understand this and that they are treated as important customers.
5. Think outside the box.
Latin American economies are at a different level than the US economy and buyers are generally quality minded but very price conscious as well. Selling a line that has reached maturity in the US might be the perfect fit for your Latin American sales. Adjustments in price might be necessary, but generally speaking, simpler and less technologically advanced models or products sell very well.
6. Negotiate.
As a cultural issue negotiation is anticipated and expected. There is no such thing as a "fix-price". You should consider this factor in your pricing strategy. Your buyers are not expecting a credit line from your company, they will pay with a Letter of Credit that for them it means the same as paying cash. A 3% to a 5% initial discount is expected. Larger discounts will apply on future orders based on performance or volume.
7. Make it easy for your customers to do business with you.
Small details are constantly overlooked.
a) Make sure that regular (not 800 numbers) are listed in your stationery and advertising. Most USA telephone company 800 numbers can not be reached from outside the US.
b) Have your sales literature translated to generic Spanish and not to a localized version.
c) In your web page, make sure that there is a link where information in Spanish is presented, or better yet, establish a website in Spanish for this purpose.
8. Know when to say NO.
In many cases your buyers will express that they have the resources and facilities to become your exclusive distributors in their country, or a few countries or even throughout Latin America. As exiting and promising as this might sound, it very unlikely to succeed. Buyers will ask for a lot, including no quotas or exclusive territories… remember that they are negotiating at this level as well. Its better to express a clear NO at the beginning of the relationship than to change agreements later on.
9. Be willing to learn and adapt.
Each country has particular customs and procedures, and while they might be very different from country to country they are consistent, so learn and avoid mistakes that will only delay having your products on the sales floor of your customers. Consider that measurements should be in metric, not imperial system and be willing to do some changes in your packaging as well. Everyone at your company must understand that different approaches and procedures might apply in order to succeed.
10. Follow your plan.
Follow up constantly with your customers. If possible visit them. Open all communication channels and be ready to change and adapt in order to achieve your mutual sales goals. Your customers expect more a "partnership" than a "buyer-seller" relationship. If both parts have a clear understanding of what is expected of each one, and they communicate constantly, your business experience in Latin America will surely be a very regarding one.
Can we help?
Drop us a line now and we will contact you immediately.
exports@usa-autopartes.com
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Inteligencia Comercial LLC.