We have returned to Destin for the winter(picture below).

Our Tradewinds Council © https://www.jimthomasintl.com/the-tradewinds-councilcopy.html meetings in December and January will focus on new product development for export markets (accelerating global product launches and conducting global product road mapping).  This blog will deal with how an organization may need to modify a “US domestic” product to satisfy buyer needs and legal requirements in a foreign market.  Some companies will export domestic products without significant changes, and others may seek to develop differentiated products more acceptable to all markets.  Adapted products may need redesign, support literature changes or revised packaging (to meet labeling requirements) to maximize sales opportunities in export markets.

Product adaptations will increase costs.  You’ll have to calculate the incremental sales vs. these adaptation costs as well as understand your longer term commitment to the market. Do you want to be perceived as a US company selling a domestic product overseas or a global company meeting individual market needs?  Either option is OK depending upon your product and market strategy.

What might these product adaptations be?

• Electrical standards can vary widely between international markets. Knowing these requirements can lead to revised spec changes that will optimize the operating efficiency of the overall product functionality.
• Metric product engineering measurements should also be provided so that integration with other pieces of equipment can occur seamlessly.
• Brand recognition may be important to your product. If it is important use your brand name and ensure your trademark is registered. You should assess whether a new brand or private label would enhance your product in overseas countries where your brand is not established.
• Product certification or regulatory approval may be different overseas vs. US e.g. UL testing and should be noted in your literature and perhaps your packaging.
• Consider whether labels or product instructions must be produced in local language or required by law.
  • Is information on product content required in that market?
  • Does country of origin information need to be provided with import documentation and packaging. 

Other product related considerations that should be made include:

• Product installation.
  • Are there qualified technicians available to make product start up easier? Are they at the end user or at your channel partner? How will they find your installation instructions?
  • Are local language web instructions available to the installing tech?
  • Should products be assembled before export in modules for easier installation?
  • Local language product information including training specs, training manuals, installation instructions and replacement parts lists should be easily available.
• Warranty
  • Is your warranty the same as your domestic warranty?
  • Detail your returned goods policy and practice because reexport costs may be significant.
  • Is there a service warranty? Service expectations in export markets may be higher than what we experience in the US.

These are a few of the simple questions and concerns to address prior to exporting.  It is always better to prepare for these needs up front rather than addressing them after product introduction and buyer first impressions are made.

Do you want to have a free fifteen-minute call on improving your current products sold overseas?  Sign up on my web site or contact me directly by phone.

For the season of Thanksgiving, I am especially thankful this year.  It has been over six months since my last blog.  I took a timeout for the hardest fight of my life-seven weeks of throat cancer treatments.  I’m happy to report as of October 29th, I am throat cancer free.  Lots of gratitude for family, friends and Mayo Clinic https://www.mayoclinic.org/diseases-conditions/head-and-neck-cancers/care-at-mayo-clinic/mac-20354174.  There will be some lifestyle adjustments, however, normal activities have resumed.  I will restart protocol for a bone marrow transplant to treat multiple myeloma tentatively scheduled 2Q 2020.  And as always-Good Selling!

My ultimate objective during the onboarding process and throughout my channel partner relationship is increase the mind share of my partners.  I want them to devote more time & resources to my product line. Their investment has to be earned and justified each step of the way so I advise putting your best foot forward from the outset., Starting out strong is important and relationship building is the foundation.  The three constituencies I try to reach with the distributorship/dealership are:

1. Owners/Top Management
2. Sales Management/ Field Sales Reps (FSR’s)
3. Distributor non line support staff

 
The initial onboarding process will occur at the distributor initially, plan on spending at minimum three days with the team or in the field together.

Owners/Top Managers
 
These people control the purse strings and determine the priorities of the organization so are key to mind share.  I don’t try to take too much of their time as they have competing principals jockeying for position.  I try to schedule their time at least a month in advance.  The size and importance of the distributor will determine the visit frequency and principal’s participating.
 
The types of matters we discuss are:

1. Annual goal setting.This a face to face exercise and usually results in an updated addendum to the business agreement with a review of the past year and an updated $ target and activity plan.This is usually reviewed mid-year either face to face or video conference.Use a basic agreement and put any market specific “peculiarities” into an addendum for regular updates.
2. Jointly review projected investments.This would include New Products, Headcount additions (especially field sales), Capital expenditures, Marketing investments (digital and traditional) and any types of trainings/distributor meetings involving cross border travel.
3. Annual rewards and recognition.Reward top performance, take pictures-share them within your distributor network and celebrate in some fashion.Review non- performance with action plans.
4. Review conclusions of distributor council if you have one and other discussions will ensue if they are involved.
5. Any major key OEM account factory visits they may require future planning and budgeting.

 
Get it started during the onboarding process properly and it becomes easier to set up the second meeting.
 
Sales Management/FSR’s
 
These are the doers.  Not all the FSR’s will be able to attend on site factory training so use this time to get every FSR trained.  This is a great kick off but the trainings can be delivered in modules over the course of time combined with field customer training visits.
 
The types of matters we discuss are:

1. Product training-basic training plus links to resources they can reference.Product competitive face offs should also be discussed with unique product positioning.
2. Application training-basics of proven applications and success stories so they know where to go.It is just as important to know where “not to go.”
3. Sales process training-use other experiences and your knowledge to show them how other sales teams have been successful “selling” the product on their non-technical aspects e.g. Sales tools.
4. Review leading and lagging sales indicators to ensure proven successful sales activities are in sync.This can be part of a monthly sales review with the sales management team.
5. Monthly project review.Target significant customer activities and updates.Build a joint template.
6. Monthly leads review of A and B targets.Start with global accounts with local operations.
7. Understand their current accounts need and if there are complementary product opportunities.
8. Regional and global distributor meeting schedules.Good opportunity for curriculum, networking.

 
Distributor non line support staff
 
These are also the doers, but handle multiple vendors so getting their time is fundamental to success during onboarding.  These support persons are usually not able to attend on site factory training so use this time to get everyone basic product and process trained. 
 
The types of matters we discuss are:

1. Customer service.Basic ordering fundamentals regarding logistics, pricing, delivery, warranty and the dreaded product return process.
2. < >< >Public recognition at distributor events.Reward both performance and tenure.Ensure long tenured distributors are performers.Group pictures at principal company events are usually proudly displayed at distributor and principal sites.It also tells you who enjoys these events.
3. Branding and bling-provide high quality corporate logoed clothing they can wear to customers.They are part of the team and need to proudly display the brand depending on local business culture.

 
Reward distributors openly and lavishly with mementos, plaques and pictures.
 
There is an associated I recommend for supplemental reading: http://www.upsizemag.com/business-builders/exporting-2.
 
I’ll be taking a 3-4 month hiatus from blog publishing to work on some personal projects this summer, but feel free write or call if you want to have a discussion and we’ll arrange a mutually convenient time.  Sign up on my web site or contact me directly by phone. 


Good Selling!