41 DOMESTIC SALES -Experience (sales of retail productss very different from bulk sales!) -Product development -Get working capital
6. COMPETITIVE PRICE
43 Pricing Make a good cost price calculation Get reference prices in target markets See if there is enough margin for the chain in between!
44 Margins Importer / distributor ( %) + Wholesaler (20 – 30%) + Shop (25 – 45%) + VAT (different in various EU countries) Reference prices coffee (250gr): Supermarkets: EUR 3,50 FOB $ 2.00 max Organic shops: EUR 5,00 FOB $ 3.00 max Gourmet shops/dept. stores: EUR 6,50 FOB $ 4.00 max
Centre for the Promotion of Imports from developing countries | May 27,
7. LONG TERM COMMITMENT
47 LONG TERM COMMITMENT -How to manage shipping small quantities in the beginning? -How to manage promotion costs? -At what point do you reach BREAK-EVEN?
8. STRATEGIC PARTNER
49 STRATEGIC PARTNER -Get (a) person(s) that can promote your coffee in Europe – preferably a European (culture, language) -Consider giving your strategic partner participation in the company (shares)
51 LOGISTICS -Just in time -Lead time? -Best Before dates: Wholesaler needs 1 year + Shop needs 6 months +
53 COMMUNICATION AND PROMOTION -Know your languages - respond within 2 days max! -Help your client at European trade fairs -Give your client relevant and quality promotional toos and information
54 Support for your client: -Professional brochures -High resolution photos -Videos -Multi-language website -Technical spec sheets -Free samples
EXERCISE: MAKING AN ACTION PLAN FOR YOUR COMPANY