What are your strengths? Cheap, quick or good? Choose two.

No business can excel in everything, and still make a profit. There is a saying in UK business that the customer can have the product 
   cheap, 
   quick or 
   good, 
but they can only choose two. Which two are you best at?

An exporter should consider what are going to be the relative strengths of the product or service in a new country. Will it be quality, price or the speed and reliability of delivery? What is going to be your strength in Russia? Will it be the same offer for the importer, as well as the end user? How can you prove the strength of your offer to a business partner who has never heard of you before? Here are some considerations.

Demonstrating product and process quality
How are you going to prove your quality to a new customer?  The usual options include:

  • References from other customers
  • Free samples (Cheaper than Trade shows)
  • Demonstrations (Trade shows, on site, at base?)
  • Various certificates of quality ranging from standards bodies to prize awards.

Dangers of low price
A low price is of course a straight forward offer to communicate in any language but is it sending the right message about value?  In Russia, low prices are often regarded as the sign of inferiority.  Is your quality message adding value to your price?

Low price also means low profits unless you have some special advantage, such as the highest manufacturing volumes in the industry, low costs for materials, labour, finance or delivery.

How will you suggest fast, reliable delivery?

  • What are your business processes for taking orders?
  • Are you ready to deal with Russian approval and certification requirements?
  • How will you deliver the goods?
  • Do you usually deal with end users or distribution channel partners?  Will you have a different policy in Russia?

Volga Trader will review all these issues for you.

Leave a Reply

Your email address will not be published.