1. Colorado Office of Economic Development & International Trade (OEDIT)
Five Keys to Growing Your Export Sales
Tom Binet

2. Core Objectives of the OEDIT’s International Division
Enhance Colorado’s brand in the global marketplace as a source for innovative products & services and a place for foreign companies to work, live and play.
Support Colorado companies through focused export promotion activities.
Assist foreign companies to establish operations in Colorado.
CO’s BRAND: Intl programs – Biz & academic community & govts
EXPORT: Throughout state, all sizes, all industries except ag
FDI: Site selection, local partners like SBDCs

3. Our Geographic Specialization
Sandi Moilanen
International Division Director
Jorge Diaz
International Program Administrator
- Regional expertise, language skills, primary focuses
Stephanie Garnica
Trade and Investment Manager
The Americas
Stephanie Dybsky
Trade & Investment Manager
Europe, Middle East & Africa
Tom Binet
Trade and Investment Manager
Asia-Pacific

4. #1: Proactively Select the Markets to Pursue
DO market research – DON’T just react to leads
Growth rates, pricing structures, competition
DO select target markets – DON’T embrace the entire world
FTAs
“Easier markets”
DO be realistic – DON’T except every venture to pan out
LEADS: s, your bf
MKT RESEARCH on your own: Will your product fit based on… > AND we can help
19 FTAs (LA: Colombia, CR, Honduras, Peru. AP: Australia, Korea, Singapore. ME: Bahrain, Israel, Jordan, Morocco)
EASIER MKTS: Canada & Mexico: 1/3 of US export (tariffs, language, physical)
“When the economy is bad in one part of the world, there are always countries that are doing better. You open up other markets.”

5. #2: Recognize That Different Markets Require Different Approaches
There are similarities between selling domestically and internationally…
…So, what’s different?
Product application
Marketing approach / strategy
Buyer / end-user
Business culture*
Logistics
Sales channel / distribution
Terms of payment
Compliance
SIMILARITIES 1. PRODUCT TO SELL 2. MKTING: You found what works for local mkt 3. LOGISTICS: You arranged from pt A to B 4. DISTRIBUTION: You set up sales & distribution networks to develop & service customers 5. COMPLIANCE: You learned & comply
DIFFERENCES
1. PRODUCT: pricing (India), parts (wheelchair), labels (baby food), regulations (CE Marking)
2. MKTING: online (Europe $344 B, largest, 4x in own language), trade show, ‘who you know and who knows you (ME)’
3. BUYER: Wholesale vs direct to end user
4. BIZ CULTURE: Alcohol, gifts, cards
5. LOGISTICS: Time-sensitive, more docs
6. DISTRIBUTION: More complex, more players
7. PAYMENT: LOC vs on credit
8. COMPLIANCE: US and foreign-country specific

6. #3: Patiently Cultivate International Relationships
Why?
Many insist on building trust before talking business.
Strong relationships may be more reliable when trying to:
market your product
resolve customer service issues
resolve disputes between you and your partners
Everyone has something to teach us about:
cultural “dos and don’ts”
differing negotiation styles across cultures
enjoying your international business travel

7. #4: Develop Partnerships
Why? Bigger markets require a local presence to enable sell-through and meaningful customer service.
OEDIT’s advice for new exporters: Evaluate potential partner(s) while gradually building interest in the market.
Assessing your options:
Should you emulate your competition’s approach to the market?
Can your U.S. partners introduce you to people in the market?

8. Positioning Yourself in a Market
#4 continued…
Positioning Yourself in a Market +
Branch office(s)
Distributor(s)
Market
Size
Sales agent(s)
Sales rep(s)
You will need to know how your buyers buy…this will take getting through market research.
Sales Representatives – An overseas sales representative is the equivalent of a manufacturer’s representative in the United States. The representative uses your company’s product literature and sample to present the product to potential buyers.
Agents – The widely misunderstood term agent means a representative who normally has authority—perhaps even power of attorney—to make commitments on behalf of the firm that he or she represents (it is important that the contract state whether the representative or agent has the legal authority to obligate the firm).
Distributors – The foreign distributor is a merchant who purchases goods from a U.S. exporter (often at a discount) and resells them for a profit. The foreign distributor generally carries inventory and provides support and service for the product, relieving the U.S. exporter of those responsibilities. Distributors can be exclusive or non-exclusive. (You won’t be waking up in the middle of the night to provide after-sales services for your product).
Foreign Retailers – You may also sell directly to foreign retailers, although in such transactions products are generally limited to consumer lines. The approach relies mainly on traveling sales representatives who directly contact foreign retailers.
Direct End Users – You may sell your products or services directly to end users in foreign countries. The buyers may be foreign government institutions or they may be businesses. The buyers can be identified at trade shows, through international publications, or by other trade consultants including the U.S. Commercial Service or the World Trade Centers Associations global network. -
Direct sales from CO - +
Dedication to the Market

9. #5: Utilize Your Government Resources
Colorado Export Development Grant
Up to $4,500, no match required, open now – Sept. 14th, 2012
Next Step Program
Up to $3,500, $1:$1 match req’d, open now - Sept. 3rd, 2012
Due Diligence Program
Up to $600, no match required, open now - Sept. 3rd, ‘12
Colorado Export of Innovative & Sustainable Technologies
Up to $9,000, for cleantech companies, open now-Dec. ‘13

10. Our Partner Organizations
#5 continued…
Our Partner Organizations
World Trade Center Denver ( ) The WTC Denver offers access to trade data, opportunities, contacts and training.
Colorado Department of Agriculture’s Markets Division ( ) The CDA’s Markets Division provides export counseling to new and active exporters of agricultural products and processed foods.
U.S. Export Assistance Center (USEAC) of Denver ( ) Export.gov is the U.S. government's exporting website, offering a global listing of trade events, international market research, and tools to help with every step of the export process. Offers the Basic Guide to Exporting for purchase.
U.S. Small Business Administration (SBA) ( ) Making it easier to obtain export working capital and other offerings by encouraging export trade financing through the banking system.
Additional resources available on our website.

11. Questions? Tom Binet Trade & Investment Director,
Asia-Pacific Ph:
Colorado Office of Economic Development & International Trade Broadway, Ste. 2700, Denver, CO 80202
Ph: ; Fax:
Web: