In today’s global marketplace, customers want to purchase products and services made in the U.S. because they recognize that American products and services have a reputation for quality, value and customer service. Companies in the Kansas exported over $9.49B in 2018 in goods and services, many of which are small to medium sized companies.
But many companies who have not started exporting their goods or services yet are left with many questions about how to get started exporting, and if it even makes sense for them to do so. There both advantages and disadvantages to exporting your goods or services, and it is important to measure whether exporting your goods or services will be beneficial to your company or if it carries too high of a risk.
One of the advantages of exporting your goods or services are increasing sales. With 96% of the world’s customers living outside the U.S., it seems obvious to think that exporting would help increase sales as more customers would have access to purchase what you make or provide. Another advantage of exporting is diversification. By offering your goods or services on a global scale, there is a good chance you will find markets where your products or services will be wildly popular. It will also enable your company to overcome changes in the domestic market that may have negative impacts on your company.
Although there are numerous advantages to exporting, there are also some disadvantages that should be considered as well before making the decision to start exporting. Of course, there is the extra cost associated with exporting. For example, there would be a need to create more promotional material if you start exporting your goods or services in order to gain awareness in the new countries you are exporting to. Your company will also likely have to incur travel expenses since employees will need to travel to the countries you want to export to in order to negotiate with your exporting partners. Your company may also need to modify your products or packaging to meet different regulations depending on the countries laws.
So, should you export, or shouldn’t you?
KMS also has the resources to help you get your company and product or service ready to start exporting. Contact us and let's talk about how you can grow sales with exporting.