Trade Missions Can Be a Good Investment

By Joe Robinson

Wise exporters, large and small, utilize
overseas trade missions to expand their
marketing programs and sales strategy.

What Are Trade Missions?

Trade missions are pre-arranged working trips that are conducted by organizations set up to serve the interest of exporters. Organizers include U.S. Department of Commerce offices, state trade offices, industry associations and public utilities.

How Do Trade Missions Work?

Mission leaders and their support staff provide comprehensive assistance in pre-selected target-rich markets. Exporters benefit from valuable face-to-face contact with potential customers, representatives, and investment partners. The results of a well-executed trade mission are business leads that yield increased sales.

Why Go On Trade Missions?

Trade missions are the biggest bang for your buck. According to Dr. Joe Adams, a long-term successful mission leader for the State of Virginia: “You don’t have to worry about making appointments; you don’t have to worry about getting past secretaries; it is all pre-arranged. All you have to do is get a plane ticket and go.”

In terms of marketing, a well-organized and properly lead trade mission is a great leveraging tool.

What Do Trade Missions Offer?

• Qualify potential customers pertinent to your company’s product.
• Identify potential representation partners.
• Provide contact with government and public officials.
• Offer translation as needed.
• Arrange logistics, including local transportation, accommodations, appointments, and meeting facilities.

In many cases, trade missions will enable you to conduct more and better business interviews than you could do on your own. Surprisingly, some trade missions provide the service and assistance free of charge. In some cases, they are even partially subsidized by the organizers. In these cases, all you have to do is purchase your airline ticket, pay for your lodging and simply show up.

How Do You Get The Most Out Of Trade Missions?

Based on my many years of experience as both a participant as well as a mission leader, the number one criteria for producing optimum results from a trade mission is to clearly define your expectations for participating on the trip. Be sure to write specific, simple and quantifiable objectives.

The second most important criteria to get the most out of a trade mission is to provide your mission leader with a one-page profile. This should be sent as far in advance as possible. One page is preferred as it can be faxed, emailed and handed out in pre-mission recruiting activity.

The first item of your profile should clearly state a one-paragraph description of your company. The second item should be a paragraph explaining, in lay terminology, your product or service. The third item is an explanation of the type of company and person you need to meet with. The fourth item to include is a brief list of your most important expectations.

This one-page profile makes it easier for the mission leader to understand how to best help you. It will also be a constant reminder to keep you focused and on track before and during your mission.

In summary, a well-organized and clearly defined trade mission can be one of your best marketing and sales tools to help you grow your international business.

Mr. Robinson's bio

Why is it taking so long to get paid?

By Chris Lidberg

You have shipped your product, payment is due and the buyer claims they have made payment. As far as you can see, however, nothing has happened.

Does this sound familiar? I hope not, but if it does, let’s take a look at what might be causing the delay.

Of the four primary payment options—cash in advance, open account, letters of credit and collections—you can only really forecast when you might receive payment with two of them: cash in advance and letters of credit. The timing of payment under collections and open account is entirely at the discretion of the buyer.

If your buyer purchased your goods with the understanding that they were going to pay for them in advance, they know you are not going to ship the goods until you have received payment. The buyer is motivated to make the payment.

Whether payment is by cash in advance, collection or open account, let’s assume that the buyer has instructed the bank to make payment but you haven’t received it. What could be causing the delay?

If payment is being made via wire transfer, you might think that an electronic payment would be instant. Unfortunately, that’s not so. Let’s look at what might be slowing the payment.

• Every payment, world wide, has a two-day valuation period. Remember that these are international payments; someone has the foreign currency risk and, generally speaking, there is a two-day settlement period. These are two banking days, not calendar days. In other words, days when the bank are open for business.
  
• The number of banks in the payment chain can make a difference. If you have your business account with your small town bank, they may be looking to a larger correspondent bank to receive the payment from overseas and then transfer it to your bank. The reverse can also be true if the buyer banks with a smaller bank. The buyer’s bank may be looking to a larger correspondent to help with the transaction.
  
• The efficiency of the banks involved in the transaction will also impact how quickly or slowly payment is made. There are parts of the world known for their efficiency, while there are other areas that have a more leisurely attitude.
  
• Holidays. If banks are closed, payment delays will occur. In the United States, we celebrate July 4. The banks are closed here, but are open for business in other countries. Even if banks are closed on only one end of the transaction, that will still cause delays. I once saw a calendar showing holidays that are celebrated worldwide. Not one day was holiday free.
  
• People in the Middle East observe their weekends on Thursday and Friday. That leaves only three days during the week to transact business.
  
• Last, but certainly not least, the instructions received by your bank from the buyer’s bank must be accurate and complete. If they aren’t, your bank must receive clarification before payment can be made. Contact your bank to make sure you’re giving the correct information to the buyer in order for them to electronically transfer funds to your account.

Seven days is a reasonable time to wait to receive payment on a wire transfer. If it takes considerably longer than that, contact your bank to see if they can help streamline the payment process so you can get paid sooner.

The one payment option that we haven’t covered is letters of credit. Just how soon after the goods have left your facility should you be expecting payment? See next month’s article for a detailed look at what’s causing the delay!

Ms. Lidberg's bio

Questions about Shipping Solutions?

InterMart now offers an easy way to learn more about Shipping Solutions 2000, America's #1 selling export documentation software.

Exporters can register to watch a FREE one-hour demonstration of the software online. The live demos will take you on a guided tour of Shipping Solutions software, answering any questions you may have about the program.

The free online demo is available almost every Tuesday at 1 p.m. Central Time.  In addition, companies can arrange a private demo by sending an email to info@intermart-inc.com.

In addition, the Shipping Solutions  Flash presentation walks you through the entire documentation process using the software. You can view the Flash demo at the Shipping Solutions website.

And, of course, you can get a free demo version of Shipping Solutions 2000 from our website or by calling InterMart toll-free 1-888-890-SHIP.