With the pound dropping 20% since the Brexit vote, UK export firms are going through a boom, with their products being the most competitive that they been in decades. This is leading UK manufacturers to expand their export teams.
Selling goods domestically is not the same as exporting them. Here are 5 facts that manufacturers need to consider when selling into export markets.
1, National Legislation
All products sold internationally need to legally conform to the national legislation, for example on fire safety etc. So need to check that your goods meet these standards, or that you can adapt them to become legal.
Obviously your goods will need to have instructions in the local language and you will need to be able to support your custom queries in their local languages.
3, Delivery Costs
The cost of international deliveries is higher than local deliveries. However to keep these as low as possible I recommend using an online international courier serviceCourierpoint.com. Here you get access to discounted branded courier services, with discounts up to 73% off list price tariffs with no minimum shipment commitment. Ensuing that is you are looking for a price for sending a parcel to France cheapest or for sending a parcel to USA visit www.courierpoint.com/parceltousa to find rates that will ensure your delivery costs are always competitive. As you will see options for various carriers and their services in seconds, allowing you to select the perfect option.
4, Currency Fluctuations
When you are selling internationally you will often have to sell in their local currency. As a result this can fluctuate with your domestic currency and to ensure that you understand the price you are selling for, you should always buy currency forward to avoid surprises, as you should make your margin from selling your goods and not from gambling on currency fluctuations.
5, Local Tastes
The style of your product might want to be adapted to meet the style taste of various international markets. This may involve doing specific ranges that are focused on export markets.
Each of these points needs to be considered, and along with the specific designs cost, delivery costs come the financial costs. Exporting is not the same as supplying the domestic market and each stage need careful financial management, from costing the work correctly, to then managing all of the costs of manufacturing the work so that it comes in on budget and the margin is realised.
The role of financial accountants within UK manufacturers is therefore expanding far and above the role of traditional bookkeeper.