If we focus on some questions which can help us in the investigation into the export market,and what are the products or services that are most profitable in today’s market, and in order to find the most profitable products and profit. The world economy today is focused on the export of different products and services, in order to better emphasize and provide better information on export, as well as the profitability of the export of different products unlike others, we will explain some important points to consider.
In many cases, we are dedicated to export and international marketing forget that the main objective of the company is to be profitable and focus on selling, whatever it takes and whoever falls, that’s what we get paid.
But the reality is quite different. There is no company that lasts for many years if it does not achieve a minimum profitability, which is demanded by its shareholders.
The most common questions that you will find, about the export and its profitability, as well as what is profitable to export or not, among which we will find more: What should we keep in mind for a profitable export? How to recognize a profitable market? What are the products or services with a high level of profitability? How to recognize which are the most profitable products and which are the most profitable markets? Which audience to target and who is the most profitable audience?
The questions are of high importance, and their approach is of high importance, so that the export can be optimized and better evaluate the market to which we are going and draw up different business plans, and not only based on the sales factor, but also on the profitability factor, and which is the best market to target, since for a good marketing and to get a better view of the different markets and which audience to target, a marketing research, market evaluation and analysis of these is needed, In the end, what interests us is to obtain profitability and cover a larger market, thus reaching a larger audience of potential clients.
If we think, and analyze profitability in export, we may discover that it’s like a puzzle or another game which we must analyze carefully, so you get the most profit possible.
What should we keep in mind for a profitable export?
Every company that sells its products in the international market must have an export plan that answers the following basic questions: How do I get my product to market and how will I be paid?
Finding out that selling your product abroad poses several challenges. The first thing to consider is the method of transportation. There are several options: train / rail, sea, air cargo, express or couriers loading the goods in physical form. Oftentimes, shipping may require multiple methods of transportation. Determining factors include the size of the shipment and the time required for goods to reach customers.
If your customer is relatively close and you have several days to ship the product, trucking may be the best option. However, if your customer needs the product sooner, air cargo is usually the only option.
Next, you must decide if you need to hire an export broker or agent. Many countries require an export declaration for controlled goods and high value shipments. In the United States and Canada, anyone can go to a free government website and file a return online, but this is not the case in many other countries where an export agent will be needed. The procedures usually require that the goods be classified according to a Harmonized Tariff code. Your broker or export agent can help you with this classification. In countries like Mexico, which have export duties and taxes, the declaration allows clients to properly assess costs. Another rationale for using an agent is that, due to the volumes they contract and the relationship they have with the carriers, they can get better rates than one could get by negotiating directly.
How to recognize a profitable market?
Much is explained and commented on the importance of extensive external market research to identify potential export markets for our products. Undoubtedly this is a central question and on which there is abundant theory in this regard. However, we must act with pragmatism and common sense, so that this phase is not an inexorable obstacle.
Ask yourself: which of the 180 markets that operate in international trade can demand our products?
The answer, in general, is: choose those markets where there is a flow of trade, that is, where from the analysis of import and export statistics at the international level, you observe that there is a lot of countries that are clearly importers of these products, that There are import flows from their country in them, which have a behavior of establishing a growth in imports of the product in the last three years, as central elements.
The product’s tariff position is known (number that identifies the merchandise to be exported in the Customs Nomenclature).
At this point it is crucial that you do not think of groups of countries or countries geographically very large and, therefore, susceptible to being segmented into sub-markets (for example, Europe) as markets.