Now the Small Business Administration (SBA) finds that it’s not out-of-pocket transaction costs keeping SMEs from bringing their products to the global marketplace. It’s the psychological, personal, and opportunity costs. The biggest psychological barrier to exporting is uncertainty about overseas markets, according to the SBA report “Costs of Developing a Foreign Market for a Small Business: The Market and Non-Market Barriers to Exporting by Small Firms.”

One of the most important component of the marketing process, is who will be the proper channel of distribution.

A company that decides to go overseas, must look and search for the proper channel, almost from Day 1 of starting the process, or even earlier, when the product is almost at the end of R&D, and before going into production (TTM-Time to market).

We sometimes forget that even we are at the virtual era, still, new so called “old economy”, products enter the market, permanently.

It is true that in the virtual era, “Brick and Mortar” products, are sold, in most instances, in both types of channels of distribution. Thus, when preparing a marketing plan, consideration, has to be given to , both types, and proper alloaction of time , sources, funds, etc, has to bebudgeted accordingly.

The customer or purchasing agent is vague, evasive, or inconsistent in providing information about the end-use of a product.

The product’s capabilities do not fit the buyer’s line of business or level of technical sophistication. For example, a customer places an order for several advanced lasers from a facility with no use for such equipment in its manufacturing processes.

A request for equipment configuration is incompatible with the stated ultimate destination (e.g., 120 volts for a country with 220 volts).

The product ordered is incompatible with the technical level of the country to which the product is being shipped. For example, semiconductor manufacturing equipment would be of little use in a country without an electronics industry.
The customer has little background in the relevant business. For example, financial information is unavailable from ordinary commercial sources and the customer’s corporate principal is unknown.

The customer is willing to pay cash for an expensive item when the normal practice in this business would involve financing.

The customer is unfamiliar with the product’s performance characteristics, but still wants the product.

Installation, testing, training, or maintenance services are declined by the customer, even though these services are included in the sales price or ordinarily requested for the item involved.

Terms of delivery, such as date, location, and consignee, are vague or unexpectedly changed, or delivery is planned for an out-of-the-way destination.

The address of the ultimate consignee, as listed on the airway bill or bill of lading, indicates that it is in a free trade zone.

The ultimate consignee, as listed on the airway bill or bill of lading, is a freight forwarding firm, a trading company, a shipping company or a bank, unless it is apparent that the ultimate consignee is also the end-user or the end-user is otherwise identified on the airway bill or bill of lading.

The shipping route is abnormal for the product and destination. Packaging is inconsistent with the stated method of shipment or destination. When questioned, the buyer is evasive or unclear about whether the purchased product is for domestic use, export or reexport.

The customer uses an address that is inconsistent with standard business practices in the area (e.g., a P.O. Box address where street addresses are commonly used).

The customer does not have facilities that are appropriate for the items ordered or end-use stated.

The customer’s order is for parts known to be inappropriate or for which the customer appears to have no legitimate need (e.g., there is no indication of prior authorized shipment of system for which the parts are sought).

The customer is known to have or is suspected of having dealings with embargoed countries.

The transaction involves a party on the published by BIS in the Federal Register.

The product into which the exported item is to be incorporated bears unique designs or marks that indicate an embargoed destination or one other than the customer has claimed.

The customer gives different spellings of its name for different shipments, which can suggest that the customer is disguising its identity and/or the nature and extent of its procurement activities.

The requested terms of sale, such as product specification and calibration, suggest a destination or end-use other than what is claimed (e.g., equipment that is calibrated for a specific altitude that differs from the altitude of the claimed destination).

The customer provides information or documentation related to the transaction that you suspect is false, or requests that you provide documentation that you suspect is false.