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One
of the first moves a company makes in order to remain competitive in a
daunting global marketplace is to slash prices.
Oftentimes,
price-slashing is done at the expense of making a profit. If you don't slash
prices, how do you get a grip on global sales? It seems particularly arduous
during a recession, in the aftermath of two ground wars, a war on terror,
corporate corruption, and fears of nuclear proliferation.
Yet,
tough times call for bold decisions. Slashing prices does not have to be one
of them.
Offering
a lower price merely on the basis of a knee-jerk reaction to a rough
economic climate is not easily sustainable. On the other hand, if you
develop a well-thought out export action-plan that provides incremental
targets for building exports while at the same time cutting expenses, you
can create a wildly successful international sales strategy.
Here's
an easy, five-step approach on how to do it:
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Start
selling in new countries or territories.
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Develop
healthier relationships with your distributors and agents
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Create
a more innovative and effective international sales and marketing
strategy in general. You want something that you can measure results.
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Request
your staff take on more responsibilities.
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Sell
more on open account with export credit insurance and work more closely
with your credit manager.
Once
you've built up your export base, start cutting expenses. Here are eight
ways to start:
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Shift
your production to a lower-labor-cost nation.
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Cut
production costs. Eliminate unnecessary employees and hire temps or
contract out when you need to fill in.
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Build
your sales force according to the needs and demands of your overseas
customers. For example, if your customers demand extra service, make
sure they get it.
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Reduce
the U.S. content of your product to remain competitive overseas.
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Use
the best possible payment method. The one that works best is the one
that gets the deal done.
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Engineer
financing from a variety of sources (including the U.S. Export-Import
Bank).
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Work
more closely with your freight forwarders (consider going direct).
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Use
the Internet to increase efficiency.
If
you put all of the above into play, you will be able to offer more favorable
export pricing, maintain your profit margins, and increase your
international sales.
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