Establishing business relations Chapter 2 Establishing business relations

Why it is important to establish importer-exporter business relationships? Increased attention has been given to the importance of creating value in importer–exporter relationships which can lead to mutual trust and create an effective marketing relationship To be an effective competitor in the global economy , one needs to have trusted cooperator in some network (relationship marketing) Both parties work together to achieve mutual goals Reduce cost and increase sales

sources to find directories of importers and exporters Chamber of commerce Online search (B2B website) Commodity affairs Commercial counselor’s office Advertisement in magazines or newspaper International banks. Bankers have access to vast amounts of information on foreign firms and are usually very willing to assist corporate customers. Yellow pages Clients Agents There is one more trick to find genuine exporters and importers, try to find the websites of FAIR ORGANIZERS, where you can find the details of companies participating in the fair. This will give you 100% correct data.

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Useful website www.globalsources.com http://www.europages.net/en/ http://www.rgxonline.com/english/utilidades_exportar/encontrar_importadores.htm#ue www.supplynbuy.com www.made-in-china.com http://www.ufindus.com

After you select prospective customers from the list, you can: Send a letter together with a brochure by mail/post to each company on your list. the research showed this to be the best and most effective way to introduce your product and find new buyers. Use postage reply mail. Include a business reply card for better response. Make sure it has pre-paid postage. Don't lose an inquiry for the cost of a single stamp. Include a guarantee. If you can offer a guarantee ---- be it your follow-up, delivery, customer service, or pricing ---- do it. By offering a guarantee, you offer integrity and credibility to your products/services. Include testimonials. Nothing speaks louder for your product or services than a satisfied end user. However, if you use names and companies, make sure you get a signed authorization from them.

. Sending an e-mail message is not a good way to market your company and product. Many companies rarely buy or sell from e-mail messages. Send a fax to each company on your list (Note: you MUST get their permission before sending a fax. Sending unsolicited faxes is illegal.) Telephone each company on your list. View their web site and send them a message through their site.

Points to note: Your written communication shall be polite, courteous, and friendly. However, it is important to avoid undue familiarity or slang. Personally sign all letters. Form letters are not satisfactory. Use letters to generate leads --- not sales. The goal of a letter is to generate a response, not a sale .The purpose is to open doors --- the sale is the next separate and distinct step in the process.

How to write business letters establishing business relations State the source of information --- to say where you found the recipient's name/address, identify the source that prompted your inquiry, for example, a magazine advertisement. General self-introduction --- educate and inform potential customers about your company and your products and services. The correspondent naturally wants to know something about the firm before a transaction takes place. The letter should introduce the firm sufficiently and establish it as a reliable supplier/buyer. Identify the purpose --- to say why you are writing to the recipient. Writer’s action or promise which may bring about the recipient’s prompt and positive reactions. The firm's policy on exports should be stated, including cost, terms, and delivery. Reference as to your firm’s financial position and integrity, etc. (including bank references and other sources that confirm reliability) Expectation or hope for a reply or for establishment of the expected relationship.

First paragraph : state the source of information Having had your name and address from the Commercial Counselor’s office of the Embassy of the People’s Republic of China in... We have heard from China Council for the Promotion of International Trade that you are in the market for Electric Appliances. Your name has been recommended to us by the Chinese Consul stationed in your city as large exporters of ... goods produced in ... From ..., we have obtained your name and address and understand that you are experienced importers of ... Through the courtesy of ... we have learned that you are one of the representative importers of ... Your name and address has been given to us by Messrs. J. Smith & Co. Inc. in New York, who have informed us that your firm has been recommended to us by the Chamber of Commerce in Tokyo, Japan. The ... Bank in your city has been kind enough to inform us that you are one of the leading importers (exporters) of ... and are interested in trading with China in these lines ... We are given to understand that you are potential buyers of Chinese ...,which comes within the frame of our business activities. Through your trade delegation that recently paid a visit to this country, we learned that you are well-established importers of …

Second paragraph: self-introduction and purpose Example A: We are a leading Russian manufacturer and exporter of socks and hosiery. The range of our product line, good quality, and competitive prices have made us one of the fastest growing companies of its kind in Russia. Example B: Floppy Textile Buying Agency, established in 1987, is one of the fastest growing agents in India. We currently represent a number of major European importers, such as Fe Fe LaMew Mail Order of France and others. Other Examples: Our company was founded in 1986 to serve the construction industry in New York state. Since then we have expanded our market year by year to where we now have customers in 12 countries around the world.

We are glad to send you this introductory letter, hoping that it will be the prelude to mutually beneficial relations between us. We have the Pleasure to introduce ourselves to you with the hope that we may have an opportunity of cooperating with you in your business extension. We take the liberty of writing to you with a view to building up business relations with your firm. As you are one of the leading importers in ..., we have pleasure in contacting you in the hope of establishing business relations and rendering you assistance in a wide range of your requirements. We understand that you are interested in both the import and export of ... and it is on this subject that we wish to introduce ourselves in the hope of establishing mutually beneficial business relations between our two corporations. We wish to enter into direct negotiation with you with a view to introducing your special lines in our market.

The high reputation, which you are enjoying as camera importers, has rendered us desirous of entering into business relations with you. Accordingly, we introduce ourselves to you by sending you our catalogs and price-lists. Specializing in the export of Chinese Art & Craft Goods we express our desire to trade with you in this line. The purpose of this letter is to explore the possibilities of developing trade with you. We are willing to enter into business relations with your firm on the basis of equality, mutual benefit and exchanging what one has for what one needs. We wish to establish friendly business relations with you to enjoy a share of mutually profitable business. We wish to enter into direct negotiation with you with a view to introducing your special lines in our market.

We express our desire to establish business relations with your firm. We shall be glad to enter into business relations with you. We now avail ourselves of this opportunity to write to you with a view to entering into business relations with you. We are now writing you for the purpose of establishing business relations with you. We specialize in the export of Japanese Light Industrial Products and would like to trade with you in this line.

Paragraph three: Building Interest and Desire The third paragraph must convince the reader of the value of the product. When you have succeeded in getting the reader's attention, you must hold that attention. The letter should introduce the firm sufficiently and establish it as a reliable supplier. The best way to hold it is to build interest by describing your product so that the reader can virtually experience it. Use colorful, descriptive words. In this paragraph you must show the reader that he/she either - needs your product (a car) - could use your product (an easier inventory system) - should not be without your product (insurance) OR - would benefit from your product (a new line of clothes he/she could sell)

Example A: Located in Moscow, we produce a wide variety of socks and hosiery items in a cotton-woolen-nylon blend for men, women, and children. These socks are of good quality, are popular with customers, and sell well. Our total production averages 10 million pairs per year, 70% for export and 30% for the domestic market. Example B: We are happy to announce that we are now offering this same service to American import companies like yours. From our office in New Deli, the heart of low cost and good quality ready- to-wear garments, we can supply your company with whatever kind of apparel you would like.

Paragraph Four: Directing Favorable Action You have now reached the point where if your letter was successful, you must move the reader to act. Tell the reader exactly what you what him/her to do and make it easy to do. The desired action is go to your web site to get more information and, hopefully contact you for specifics or to sign a contract.

Example A: Our company is expanding its market to include the United States and we would like very much to do business with your company. Enclosed is our price list (brochure) describing our wide range of products. I would welcome the opportunity to introduce you to our line socks and hosiery. For more information, please visit our web site at www.nicesocks.com.. Example B: If you would like to take advantage of the services that Floppy Textile Buying Agency has to offer your company, please log on to our web site at www.floppytextile.com or contact us by fax at (56/324) 785 48 96. Thank you. We look forward to hearing from you.

We advise you to make use of our experience and special knowledge on trial. .We trust that our experience in foreign trade and intimate knowledge of international market conditions will entitle us to your confidence. Being closely connected with reliable wholesalers here, we shall be able to do considerable import business with you. We are able to quote you very advantageous terms.

A Typical Well Written Letter for An Agent Star Textile Exports, established in 1987, is one of the fastest growing agents in Turkey. We currently represent a number of major European importers, such as Blue Cloud Mail Order of France and others. We are happy to announce that we are now offering this same service to American import companies like yours. From our office in Istanbul, the heart of low cost and good quality ready-to-wear garments, we can supply your company with whatever kind of apparel you would like. The wide range of Turkish export companies that we work with insure you of getting just the items that you are looking for. Whether it be baby wear, children's wear, ladies and men's outer and underwear, leather wear, socks, belts, bags, shoes, or household items such as bed linen, towels, bathrobes, or table clothes we can make sure that you get the quantity you need at the best possible price. And our staff of quality controllers insure that the garments are well made. If you would like to take advantage of the services that Star Textile Buying Agency has to offer your company, please go to our web site at www.startextile.com, or contact us by fax at (90/212) 123 45 67. We look forward to hearing from you.

Dear Sir,   On the recommendation of your Chamber of Commerce, we have learned with pleasure the name and address of your firm. We wish to inform you that we specialize in the export of Chinese textiles and shall be glad to enter into business relations with you on the basis of equality and mutual benefit. To give you a general idea of our products, we are sending you under separate cover a catalogue together with a range of pamphlets for your reference. Please let us have your specific enquiry if you are interested in any of the items listed in the catalogue. We shall make offers promptly. We look forward to your early reply. Yours faithfully,

A Very Simple Sales Letter Dear Sirs, We are a Polish company that specializes in making men's shirts and would like to tell you about our line of products. Our products are special because they are made of good quality cloth . In the 15 years that we have been selling our products we have made a good name for ourselves in countries around the world. Enclosed is a price list and brochure. If you would like to receive more information, please log onto our web site at www.polishshirts.com, or contact us by telephone. Sincerely yours

sample letter 2.3.1 and 2.3.2 Read the letters to see how they are structured and worded to start a business relationship with prospect buyers

Recipient accept writer’s request Many successful importers first started doing business internationally by responding to an inquiry from a foreign firm. Thousands of firms receive such requests annually, but most firms do not become successful importers. Generally, successful firms: properly respond to inquiries; conduct research on foreign customers; build positive relationships with partners. Typically, a foreign firm will request product specifications, information, price, terms of payment, term of delivery etc. A few foreign firms may already be familiar with the product and wish to immediately place an order. Reply promptly, completely, and clearly. The reply should provide a short, but adequate introduction to the firm, including bank references and other sources that confirm reliability. The firm's policy on exports should be stated, including cost, terms, and delivery.

Dear Sirs, With reference to your letter of December 4, 2006, we are glad to learn that you wish to enter into trade relations with our company in the line of kernels produced in Thailand. In compliance with your request, we are sending you by air a catalogue together with a range of pamphlets and samples for your reference. If any of the items listed in the catalogue meets your interest, please let us have your specific enquiry, and our quotation will be forwarded without delay. We look forward to your early with much interest.