Ten questions to consider before committing to an import/export program

1. Ten Critical Questions
Before Entering the US Market
Know the Risks and Rewards
Knowing the risks and rewards of selling in the US market before you start can save
you time and money and make the difference between success and failure. The
rewards are obvious: you may capture new sales opportunities, gain advantages over
the US competition and improve your bottom line profits overall. However, success is
not guaranteed. Failing to understand and comply with the overwhelming rules and
regulations can be catastrophic.
Here are 10 important questions you need to answer before you act:
1. What are the risks involved in selling products and services in the US?
The US market is enormous. It is a mature market with many entrenched market
leaders. To secure a niche for your products with US buyers requires a unique
marketing strategy and a considerable investment of time, resources, and money.
Before you begin the challenging and tedious entry process, you must calculate its
impact on your current domestic business.
2. What are the financial considerations?
The costs of physically moving your product to the US are considerable. The
investment includes the commitment of additional personnel and capacity as
well as the enormous brokerage, insurance, warehousing, reshipping, and sales
& marketing costs involved. Without sufficient financial resources, even the best
products are at a disadvantage.
3. What are the management considerations?
Does your company have solid reasons for pursuing the US market? Is
management committed to allocating the necessary resources for a successful
entry? Management’s desire to travel at company expense is not motivation
enough to risk the company’s future—nor is finding a quick fix for cash flow
difficulties by dumping excess inventory, or hoping for a quick jump in sales.
Understand that successfully competing in the US market requires taking a long
view that can tax your dedication and resources. It can be a fabulous opportunity,
but make sure that your management’s motivation and commitment are sincerely
in the company’s best interest.
Hamman Marketing Associates • PO Box 3852 • Johnson City, TN 37602-3852
+1 (423) 467-9864 • Skype: hammanmarketing

2. 4. What human resource investment is required?
The export business is a highly specialized field that requires a dedicated person
within your company who can manage it on a day-to-day basis. Is there someone
with the proper skill set already within your organization, or will you need an
experienced consultant? Your human resources are just as important as your
financial investment to assure the greatest opportunity for success.
5. What are the operational considerations?
A successful US market entry can strain your existing production capacity. Are
you equipped to handle an influx of US orders without disrupting your domestic
business? Will there be additional production costs? Are there product or package
design modifications required? How will those modifications impact your current
production process and capabilities?
6. What do you know about your product’s US trade channels?
Every US product has its own distribution channel. Often there are several
alternative channels available, and making the right choice for your product
can be confusing. It is vital that you understand channels, mark-up, and profit
expectations for each distribution layer. For example, in the US food business, there
are importers, brokers, distributors, and sales representatives involved in getting
your products onto the grocery shelves, and each group has different expectations
and rules about what will be required of your company in order to support sales
of your brand at the store level. Whatever your product category, make sure you
understand what will be required to go to market.
7. What are the regulatory compliance issues?
The Food and Drug Administration (FDA) sets the standards for food and medicine
manufactured in the US and around the world. The FDA also mandates very
specific ingredient, packaging and labeling requirements. You may be required to
register your factory and provide prior shipment notifications. The FDA, working
in conjunction with the US Customs Service and other regulatory organizations,
make certain that shipments are inspected upon arrival at US ports. A misstep in
packaging, labeling, listing ingredients, or shipment registration and notification
could lead to a refused shipment, resulting in enormous financial losses and
potential prosecution. Make sure you understand how your products are affected
by these organizations.
Hamman Marketing Associates • PO Box 3852 • Johnson City, TN 37602-3852
+1 (423) 467-9864 • Skype: hammanmarketing

3. 8. Who will carry your banner into the battle for a share of the US Market?
Failing to invest in sales support within the US is a critical error. It is a common
fallacy that buyers will simply stumble upon your product and immediately place
a purchase order with a Letter of Credit. Any market share you acquire will have
to be won away from your competition, which is not an easy task. To avoid pitfalls
and sure failure, it is essential to retain the services of a qualified sales specialist
for your industry niche. We can help you find experienced professionals who will
become an integral part of your US marketing plans.
9. How will you support your product in the US market?
Comprehensive US support for your products occurs on many levels. You need
business-to-business (B to B) and business-to-consumer (B to C) advertising, public
relations, trade and consumer publication exposure, trade show participation, and
often, trade missions to bring prospective US buyers to your factory to learn first
hand about your products and production capabilities.
10. What is the next step to sell your product in the US market?
Knowing beforehand what it takes to enter the US market—that it requires
patience, extensive financial and human resource commitments, and competent
US-based sales help is a good start in the right direction. Once you have answered
the above questions and are confident you want to proceed, take the next
important step toward the US market by contacting Hamman Marketing and
speaking to a USMEP professional: Call us at +1 (423) 467-9864, or contact us via
email at: info@help2market.us, or via Skype by adding hammanmarketing to your
contact list.
Hamman Marketing Associates • PO Box 3852 • Johnson City, TN 37602-3852
+1 (423) 467-9864 • Skype: hammanmarketing