Time to sell your products in Europe?

The Euro has risen over 40% against the dollar in the past year, creating superb export opportunities.

With the dollar to Euro exchange rates at 4 year lows, US manufactured products have never been a better value to European businesses and consumers. The Euro has risen over 40% against the dollar in the past 12 months and is now a prime target for aggressive US Exporters. This change in relative values has created highly competitive pricing opportunities for US manufacturers and this could be the right time to introduce your products to the EU.

If you are considering selling in Europe, you should first consider if your product or service is suitable for the European market and if your business is ready for international expansion. Lets have a look at some of the issues associated with a move into new markets.

You and your company

In todays economy, small and mid-sized businesses need to take advantage of any process that improved incremental revenue. Competition from larger, more established firms as well as domestic producers in the EU, and the need to control costs can make the idea of setting up in Europe a daunting one.

The first step in properly evaluating any major expansion, such as moving into the European market, is to generally assess the overall health of your current operation and how you will be able to support the new customers you will be signing up. Your companys ability to maintain relations with its customers is equally as important as its ability to capture them in the first place. You have to have the financial strength to establish a presence in the region with knowledgeable sales and support personnel and show a commitment to your new customers. No easy task.

Next you should think about how to effectively deploy a sales plan in the new target market from inside the United States without creating an unmanageable cost structure.

Leveraging outsourced sales agreements

Controlling costs will be critical to the sustainability of the expansion and by assigning the sales function to an outsourced sales company with in-depth regional expertise, you can create an agreement that caps the capital cost of the sales program. Through outsourcing sales, companies can maintain focus on their particular business while building revenue streams in new markets. Outsourcing can reduce cost, limit risk, and can improve your flexibility, helping you to rival the impact of larger companies.

Outsourcing your sales is a form of Business Process Outsourcing (BPO). In a good BPO relationship, procedural control (i.e. the day-to-day function) is managed by the service provider while you to retain strategic control of the operation.

It is important to remember that BPO isnt really a new idea. It is something that used to be called "subcontracting". In fact, organizations have always outsourced some functions in one-way or another. Taking specific business processes and handing them over to professionals outside the main corporate structure is standard procedure for most companies.

Deciding what your new European presence should be

If your company is interested in evaluating the market before any full scale ramp up of offices and personnel or, if you would like to shy away from traditional Brick and Mortar", you may find it best to seek out a professional partner familiar with your target market to assist you in developing a true picture of how things operate in Europe and how to kick-start sales operations at the lowest possible costs. Often an outsource provider will offer to generate leads, and then sell you representative time to follow-up those leads, allowing you to explore the market without a committing to fixed infrastructure.

New opportunities dont have to mean new headaches. Local partners can help you through critical cultural issues and make sure your products are positioned appropriately in the context of the target market. They can deal with your customers in real-time", not time-delayed replays from half way around the world. Tax, Employment and Legal issues can also be off-loaded to your local partner if you feel those are concerns you dont wish to face in the early stages of your companys International expansion.

It is important to ask prospective outsource provider how they will execute your sales plan. Do they work in a coordinated way? How do they report on the progress, what resources do they have and how these will be deployed to your benefit? Most important is accountability. Make sure that the provider has dedicated sales people on his books, and that you know who is servicing your account and how. Many outsourcers" are really a loose collection of independent sales agents, although these companies may offer work based solely upon revenue commission, they may also damage your reputation.

A good sales outsource provider should offer to create a local point of presence for your company. This should at the very least include dedicated phone support, answered in your companys name as well as a mailing address in your target market. It is important to your European customers to see that you have a base in the region. The outsource service provider should supply dedicated sales reps that are integrated into your existing sales organization, whose services are transparent from the end customers perspective.

Leveraging BPO relationships can give smaller companies the ability to match the resources of larger competitors. In the past, taking company functions outside the corporate structure was a question of cost; teams of experts - lawyers, accountants et cetera - were expensive to outsource. But today, thanks to increased automation and the subsequent geometric rise in individual productivity, functions that can be readily automated, like payroll, can be outsourced at a sustainable cost for smaller and mid-sized companies.

If you had ever considered selling in Europe, it is important to consider taking advantage of the strong Euro and the weak dollar while the opportunity is available. Building a business in Europe has never been more affordable and US manufactured products have never been a better value to their European customers. If you limit your risk, and create a sustainable budget, revenues from Europe could soon become an important part of your overall business.

Please feel free to contact Consalient for more information.

About Consalient Representation
Consalient builds outsourced workforce solutions that maximizes impact in Europe while controlling operational expenditure. From sales and marketing professionals to field technical support teams, Consalient creates an effective European presence.

Toll Free from the United States 1-888-667-8997, or in the UK+44-208-584-2268.

Consalient Professional Representation
174 Parkers House, 48 Regent Street
Cambridge, England CB2 1FD United Kingdom
>From the US: 1-888-667-8997
Global: +44-208-584-2268
graeme@consalient.com
http://www.consalient.com/