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| Exporting in Tough Times |
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 This article first appeared in the Housewares Export Council newsletter (Volume 11, No. 9, November 2003). The author, Bill McNamara, is the director of international sales for Minuteman International Inc. The article is reprinted here with his permission.
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| The dollar has come down from its peaks, but much of the world's economy is still in a low-growth mode. Yet there is work to be done and there is money being spent out in the market. In these times, it is important to concentrate on the fundamentals of the business, bring in what sales you can, and position your company so it's ready when conditions improve. Here are some ideas from the perspective of a company exporting via distributors:
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| |  | Emphasize the structure of your business.
Concentrate on improving current distribution while appointing new distribution in markets and segments not yet represented. Upgrade your business infrastructure and position your company for the long-term.
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Be flexible with pricing, extended terms — give and take.
Top up orders and containers And introduce new-to-market products for better pricing. Consider better credit terms on bigger orders. Try tying discounts to exchange rate.
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Emphasize relationships.
Stress that you are with your distributors for the long-term and will help them through tough times.
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Communicate more and better.
Stay in touch with distributors more than you normally would and be aware of any sizeable potential opportunity. Work closely on each deal, "hand carrying" each deal to its conclusion.
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Focus on training.
Train distributors now when times are slow. That way, they will be knowledgeable about the market, educated and prepared, when business improves.
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Work the exchange rate.
If you are competing against other rivals from your country, understand that they face the same currency and business environment that you do. If they falter with pricing, delivery or support, be there to step in as needed. If the dollar moves in your favor, particularly against your European competitors, target their business.
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Find opportunities and go where the money is.
There are some corners of the world less affected by the global slowdown: China, parts of Mexico, healthcare markets and government markets, for example.
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Defend your distribution network.
Be aware that your distributors may be tempted to look elsewhere. Stay in touch to prevent losing them and avoid the consequent problems.
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You can always improve the process.
Your sales and order fulfillment procedures are ever evolving processes, and you can always find room for upgrading. For example, could you improve your sales prospecting? Start a dialogue with a potential new distributor now and develop some history with them before the market takes off. Now is the time to negotiate better freight rates.
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| | | It's a cycle.
The dollar won't stay where it is. As the economic environment changes, so will FX [foreign exchange] rates. Emphasize working with your distributor over the long-term, through all the ups and downs.
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The Trendletter team welcomes your comments.
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