EXPORT BROKER: "Tools of the Trade"
John Kennedy ITB
Interested in getting your first International Trade Transaction in motion?
In need of guidelines and instructions to complete the Export process?
If you are interested in getting started as an Export Broker then
http://www.export-brokers.com Associate Brokers Wanted
-Where to Start?
As an Export Broker you are not limited to any one Geographical Region or
Product Line but it is wise decision to choose one large Geographical Region
and a diverse Product Line, then narrow your focus down to a particular
Country & Product Line combination in the future.
-So where do you go from there ?
Taking into account the rudimentary home office supplies and an Internet
connection, you will need a general overview of Exporting and a working
knowledge of the "Export Process". The beginning of the Export Process is
obtaining Price Lists from Sellers (that you will mark up) and the end
result is getting paid from the Buyers Letter of Credit, in-between the
first step and the final payment is "Exportise."
Exportise translates to "Know How", when you possess the Know How - that the
other guy doesn't have - you will make money, in any Brokered transaction or
business in general.
-So where has this "Exportise Know How" been all this time ?
Well it hasn't been hidden away or anything like that, The United States
Department of Commerce (DOC) has ten thousand full time employees working
around the world to assist US Exporters. The Canadian government also has
similar service. The U.S. Small Business Administration has an office in
all 50 States, Canada also has a SBA counterpart. The World Trade Centers
Inc. are in every major city worldwide to assist International Traders. The
International Chamber of Commerce, State or Provincial International
Development Offices and your local Chamber of Commerce can help in providing
the "tools of the trade" for Exporting.
*Please note: I said Exporting, not Export Brokering.
"Know How" directly pertaining to Export Brokerage I don't believe you
easily will find.
-Generally, what "tools of the trade" will you need ?
a) A wide range of Sellers in the U.S, of Product Lines of interest to you
b) A database of Buyers overseas - of products your Sellers have available
and
c) Working knowledge of Pro Forma Invoices
d) Working knowledge of Transferable Letters of Credit
e) Working knowledge of International Terminology
-What is a Pro Forma Invoice?
A Pro Forma Invoice is much like a common Invoice except the Pro Forma uses
Terms of Sale (or shipping terms) like EXW, FOB, CIF, FCA etc., and sets the
payment method, Letter of Credit.(transferable ) A properly quoted Pro
Forma gives the Buyer two choices;
1- accept your offer, then open a L\C payable to you or
2- decline your offer, and you move on to another Buyer.
The Broker that doesn't know how to quote the price & performance of a
transaction will waste their time or end up chasing the Buyer trying to
force a deal.
If you deal with the same Buyers & Sellers on a continuous basis then the
first time you see how a Pro Forma and a L\C work together you won't need to
re learn the procedure over again the next time, with a minimum of $5,000
dollars profit contained in each L\C you will be surprised how fast you will
learn.
As a Broker will need qualified Buyers that have the money to open a Letter
of Credit, payable to you, not one-shot-wonder middlemen or endless Broker
chains. Many International Traders spend 90% of their efforts talking with
and trying to make deals only with other Brokers --> that are trying to make
deals with yet other Brokers. Doesn't make sense to me! I have found this
Broker to Broker to middleman to Broker to another middleman scenario to
many times on the Internet in the News Groups.
-So why the heck does ITB want to be so nice to Associate Brokers ?
ITB is located in Honolulu Hawaii, we are 2,300 away from the rest of the
planet and the only real Export Market we have in this State is tourist and
T-shirts. Most of ITB's Sellers are located in the mainland U.S.
More than half of the connections ITB establishes with reliable Sellers are
lost due to the fact that we don't have enough people a.k.a. Associates
Brokers in place in cities around the U.S.
The wages paid to assembly line & factory workers in the US is dropping
steadily, this means the U.S. is producing less expensive products for
Export and Exports are increasing proportionally each year.
Bad news for the workers - good for the Exporters.
Looking to break into new markets, but don't know where to begin ?
Interested in starting your own International Export Brokerage company ?
If you are interested in getting started as an Export Broker then
http://www.export-brokers.com Associate Brokers Wanted
Aloha -jk
John Kennedy
Int'l Trade Brokers
Hawaii 808.943.0146
Associate Brokers Wanted
http://www.export-brokers.com