In this recent article in B2B Magazine (“Weak dollar lifts some firms”), writer Sean Callahan investigates some of the factors helping to drive foreign sales for some smaller US manufacturers. While the weak US dollar (versus the euro and British pound) is certainly one factor, it’s not the only factor driving sales volume.

As it turns out, ease of communication is a key factor in developing a preference for US-made goods versus other foreign sources of products for EU-based customers. Companies are finding an advantage in diverting resources into communications in order to make their products features and benefits more apparent in various European markets.

According to Callahan’s story, the Internet, in particular, has created favorable conditions for US-based manufacturers. E-mail and simplified communications that when combined with the American’s “sense of urgency” helps speed transactions and product delivery.

“It’s not necessarily the weak dollar [that attracts business from Euorpe];” writes Callahan in an interview with Bill Gilber, president of Serville, NJ-based Branch Environmental. “In part, it’s the Internet, because it’s much easier to reach us.”

The Winning Formula
So, what seems to be important in order for US manufacturers to compete effectively in Europe and other parts of the world? Price alone is not that important. In fact, as China continues to grow and its manufacturing capacity continues to increase, the US will have problems competing with China at almost any price.

Production capabilities, quality and capacity are important factors. But where those factories are located and who staffs and runs them will vary from US manufacturer to manufacturer. Heavy manufacturers, like Deere or GM or Caterpillar will probably continue to find and locate plants in Europe to produce product for sale into the market. Lighter manufacturing companies may decide to maintain a domestic production operation in the US and ship to markets that express a demand. Either method can work, but demand must be created and maintained.

And in order to create and maintain that demand, US companies must learn how to market their product in a way that’s slightly different from how it’s done in the USA. Marketing for any product, especially B2B products, can’t be done on an international basis by merely setting up distributors or indepedent sales representatives.

American marketers must consider making a long-term investment into the markets that are most appropriate for them. Whether that investment is in advertising, public relations, events, trade show support, etc., those decisions remain the purvue of the client. But three general rules applly in this situation:

1. Take your time. One of the early lessons taught by US-based marketers who attempted to establish their brands elsewhere is that Americans don’t have a lot of patience. In some countries, they’ll deliberately avoid buying US-made products for as many as five years to make sure the American company’s management has a true interest in their country.

2. Remember to “tell” before you “sell”. To us, your product’s benefits might be obvious. But in places like Europe and Japan, consensus is vitally important so you must win over a number of people on the client side, first, before you even ask for the sale. This is especially difficult for US-based companies who are competing in an RFP-based, bidding system. A native counsellor is highly recommended in these situations to give the US company a clear view of where they stand in the cutlural understanding.

3. Be aware of cultural filters. Cultural filters for both parties in a negotiation (or sales pitch) can completely derail a conversation and make working together an near impossibility. Spending time with a knowledgable marketing advisor in the market would be tremendously helpful in identifying and addressing the various cultural biases that are likely to cause problems for a US manufacturer.

Of course, this would be the best opportunity to talk about our international network of business partners and our free search and selection services – but I won’t do more than that. If you want to know more, just follow the links.

Good luck to you all.

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