Currency exchange is the most obvious thing to consider when selling in the global marketplace, but it’s hardly the only one. There’s no guarantee that you’ll make a hefty profit just because you sell in several countries — not unless you research what will influence your product’s success. Research may seem tedious and complicated up front, but you’ll find it’s worth the time invested.
Consider the Local Economy
No matter what you offer, you won’t sell anything if no one can afford it. What price point is best for your product? Research the local economy with a focus on median income and local preference. What do the residents spend their money on, and how do they spend it? Before anything else, you have to discover your target market. On a global scale, it’s risky to produce and market something on the hope that consumer interest will follow. The global market is not your field of dreams: Consumers will not buy your product solely because you built it and it’s there.
Calculate the Cost of Production
Picking a successful price point depends on how well you familiarize yourself with the economies where you launch your product. What raw materials do you use to make your product? What is the cost to buy or import them to global locations? Look into the overhead for distribution, advertising costs, and labor prices. Perhaps it’s possible to set up local production in each area. Your research will help you understand costs and project demand.
Study Currency Fluctuations
You can never precisely predict fluctuations in global currencies due to the many factors that affect both global and local markets. You can, however, study fluctuation patterns in every location you consider. Talking to a forex trader or researching the platform yourself can hone your business skills, insofar as predicting the rise and fall of various currencies. Traders turn profits on global currency fluctuations, and you can take advantage of them, as well. Once you become familiar with changing patterns, you can potentially earn extraordinary profits.
Observe the Competition
Oversaturation never did anyone any good. In each global market, pinpoint your competition and scrutinize their marketing practices. Find out how much they advertise. If possible, discover their production costs. That way, you can figure out their profit margin once you research what similar brands charge for their products. Remember that local businesses operate differently. Their manufacturing regulations aren’t necessarily like yours, plus they’re both established and familiar.
Get to Know Local Regulations
Upon entering the global market, you became an exporter. It’s critical that you familiarize yourself with government regulations in every global location. Different countries have pricing regulations of their own. You also need to study taxes and any customs duties.
You have the potential to make money and become a well-known brand abroad when you introduce your product to the global marketplace. It’s not something to enter into lightly, however. Have you taken steps to launch your product globally?
Photo by kimubrt on flickr – some rights reserved
Guest Author Bio
DJ Miller is pursuing his MBA from the University of Tampa. In his spare time, he writes and plays soccer.