Forum Moderators: buckworks
I told the customer about the huge traffic fees, which I took from my UPS list. Although I think we have a considerable volume over here with UPS meanwhile, he said he'd prefer to do it with the FedEx account of the company he was working for (it was a b2c order basically). The official UPS lists start with more than 80 Euros for a package of 1 Kg up to almost 400 Euros for a package of 100 Kg. I am not allowed to talk about our discounts, but even if I'd get 50% that would be far too much.
I really do believe that we have some quite interesting products to sell worldwide. But if traffic fees double the costs, most customers are not willing to order. I might design some extra pages specifically in English or even an extra website for these products with different prices containing some of the shipping costs, but this would only be a workaround, not very satisfying.
What can I expect negotiating these shipping costs with UPS or any other service? (Don't forget that growth of those exports might be very very slow, so I can't promise anything). Does it make sense to seek contact to an established importer and tell him about the chances that lie in some specific product lines? What if this importer after a few months seeks for another, cheaper supplier?
Time doesn't really play an important role, but I have no idea whether "shipping" might be cheaper than "aeroplaning." I am not going to send containers full of stuff, just packages.
How did you get your first foot into the global markets?
Depending on your volume/transaction value, you would realistically be able to get up to about 60 - 70% discount on the guide prices for some carriers.
> If you are in Germany, the home of DHL. Maybe you should contact them for rates.
I'm afraid it doesn't makes sense yet to dilute discounts by spreading to two services.
> you would realistically be able to get up to about 60 - 70% discount
Yes, maybe. But even 60 % discounts would mean that for an average package of 20 kg with maybe 250 Euros order volume, my customer would have to pay about 100 - 130 Euros shipping costs. And I don't get 60 % yet. How would you present these facts to your customers?
Perhaps I should just keep it in the back of my mind until we really receive those 60-70% by simply growing with our inner-European volume. There are a number of other problems to solve (invoice translations, specific export forms etc, payment), so I might probably just do some minor things in order to prepare to start with this project in two years or so.
I'm afraid it doesn't makes sense yet to dilute discounts by spreading to two services.
Yes it does. Dividing business between two suppliers is a standard tactic used to keep both external parties on their toes.
The implied "threat" is that if one lets you down so the other will benefit. This works both ways, of course. On top of that, each supplier will be aware that you have the potential to double your business with them. Again, the implied scenario is that if they prove efficient and cost effective, you'll increase your business with them by 100%!
Of course, what happens in reality is that both parties never quite do enough to warrant you giving them all of your business...
If you have sufficient volume of trade they will be keen to negotiate. So it's down to you to gain - and maintain - the advantage.
Syzygy
You might ship in bulk by sea and redistribute the products through a partner in America.. Otherwise selling German items to Americans is not a plan that is likely to succeed due to the additional costs involved.
We can already get all kinds of dirt cheap stuff through Mexico without paying taxes due to NAFTA and the shipping is about $5..
You might ship in bulk by sea and redistribute the products through a partner in America.
Yes, as I said this is an alternative option. Any ideas on what to do in order to actively seek such contacts?
What about trust, insofar as I'd like to make sure this partner doesn't simply pick up my ideas and my product knowlegde, and skips me out as soon as possible? Perhaps this is simply a matter of personal relationship and having a glass of beer together. Another reason to sign up for Las Vegas pub con one day, maybe.
It would be a major pain, but you can't ignore the biggest consumer market and there's no getting around the shipping rates problem..
I think you are allowed to stay here for one year without a visa, but I can't imagine the government would turn you down for a visa if you needed one unless you have an extensive criminal record..
My only advice would be to do your homework before you get into LCLs.
I'll ask the UPS-guy about LCL next time.
They would ship a conignment of the products to the US and then use a fulfilment house to fulfil their orders. Obviously this is quite complicated and you have to work out your costs carefully.
Or you may register an LLC company in the united state, send someone here with an L-1 visa, to start your own distribution center.
