1. Biz Smart Lunch and Learn Webinar ‘Creating and Converting Global Opportunities’ Tuesday 11 th August 2015 Email: steve@steveparkericd.com

2. ‘Creating and Converting Global Opportunities’ My background….. More than 30 years successfully exporting to markets worldwide and still do on a daily basis. Huge amount of time working in the Middle East, Far East, ‘Australasia’, USA, Europe, the ‘Africas’ and more, including as export sales director, MD and adviser. Established £millions of profitable export sales through almost every ‘route to market’, including helping to establish joint-venture manufacturing operations in China and USA. Predominantly work for UK companies but currently also doing work with and for companies in Singapore, UAE, Namibia, Seychelles and USA. Large network of trusted private and public industry contacts in the above markets worldwide, so familiar with current market conditions and can assess and make business happen faster. Regular speaker, panellist and mentor on international trade and new product developments.

3. ‘Creating and Converting Global Opportunities’ Fundamental reasons for exporting or being involved in international trade Or Why waste a sales and profit opportunity if someone finds you?!

4. ‘Creating and Converting Global Opportunities’ So how much does it cost to get Pip the pony rocking chair (excluding child?!) to……Beijing? Dubai? Bromsgrove?

5. ‘Creating and Converting Global Opportunities’ Why don’t we tell the client and make it so much easier for them to buy? Why don’t we improve the ‘value proposition?

6. ‘Creating and Converting Global Opportunities’ The route of all goods to any market…….. Like going abroad yourself …….. Paperwork and identity to leave the country and compliance with regulations including taxes and duties. Ensuring correct paperwork so goods can enter the country of destination and any on the way. Loading onto vessel or aircraft or lorry/vehicle Unloading from a vessel or aircraft overseas Inspection, documentation and clearance to allow into the overseas country Onward delivery to final destination. Countries have different import duties, regulations, documentation requirements with documentation including commercial invoices, packing lists, certificates of origin and occasionally inspection reports etc.

7. ‘Creating and Converting Global Opportunities’ Goods everywhere are classified by numerical references for trade purposes and for balance of trade calculations etc. HS (Harmonised system codes) can be found on http://madb.europa.eu and if you are unsure, you can get a definite decision from the Tariff and Statistical offices – or ask your trusted expert?!.http://madb.europa.eu You will now be able to check import duties and costs for every country in the world. See also the CIA world factbook (www.cia.gov)www.cia.gov Who is responsible for what stages of the sales and distribution process is defined by the use of Incoterms (International Contract Terms, originated and updated by the International Chambers of Commerce and applied worldwide) Typical examples…. FOB CFR (or C&F) DDU & DDP (Franco domicile)

8. ‘Creating and Converting Global Opportunities’ Getting your goods to market….. Post Road Sea freight – including LCL and FCL Airfreight Courier Documentation varies but can be advised by freight companies and chambers of commerce or e.g. Tates and Croners. Terms and costs and speed of delivery vary but are controllable. Beware of clearance charges in relation to freight costs Some documentation and methods such as sea freight enable you to retain ownership and title to your goods much easier.

9. ‘Creating and Converting Global Opportunities’ Getting paid….. How would you prefer to buy? Payment in advance Open Account Bills of Exchange Documentary credits Sterling or foreign currency Exchange rates and variations /protecting against fluctuations Credit insurance and recovering if anything goes wrong.

10. ‘Creating and Converting Global Opportunities’ So lets start to put together your offer…. Lets respond better… Lets see how much it costs to get Pip the Pony (excluding child?!) to Beijing….. Get some standard packing or be able to calculate packing quantities for a carton and at least One Pallet Load. You will be able to use these calculations for every market in the world. Length x Width x Height in cms or mms plus the Gross weight in Kgs, so you can quote the m3 volume and weight

11. ‘Creating and Converting Global Opportunities’ You can now check on websites like Parcel force, DHL, DPD etc. the cost of sending a carton anywhere in the world. You can use a local freight company to calculate the seafreight and airfreight costs for pallet loads. Example: we decide we can fit 40 cartons of Pip on a pallet measuring 100 x 120 x 90cms (1.08m3), it weighs 285Kgs and we get a freight cost of £300 from collected our office to Beijing port. We now know the freight cost per individual chair. I suggest doing pallet load calculations as this then avoids minimum charges for freight. You can also be aware that sending full container loads will save lots more.

12. ‘Creating and Converting Global Opportunities’ Hopefully following advice on an earlier slide, you already know your products HS Codes – the 4, 6 or 8 digit one. For Pip it is 9403.60. Let’s now check on the same site, any import duties……. We find that import duties are 0% in this instance – great news! It means that there are less extra costs and also indicates that the particular country is not trying to help its own local manufacture by imposing higher import duties! We can even find out the transit times from Bromsgrove to delivered Beijing

13. ‘Creating and Converting Global Opportunities’ Getting closer now! Decide our selling price ex works, then we can add on the freight costs per piece to the client or nearest port of entry and we can even suggest the price in local currencies if we wish…… Lets say we want to sell Pip the Pony for £60 ex works, plus seafreight at £7.50 per piece means we can offer a C&F Beijing price of £67.50. International trade in China is typically done in £stg or $ so we could even suggest the C&F price is 67.5 x 1.5 = $101.25

14. ‘Creating and Converting Global Opportunities’ e.g. Email “hello, I really love your Pip the pony rocking chairs and may need some for my chain of nurseries. I am based in Beijing. How much do they cost” “That’s great, we love Pip too and are always looking for new business partners and friends in China. The good news is that there are currently no import duties for our chairs into China and if you can order pallet load quantities ( 40 Pip or our other characters or mix thereof) the CFR Beijing price per piece by seafreight will be £67.50 each ($101.25 approx). Payment terms will be Irrevocable letter of credit at sight. Availability: currently in stock. Transit times 30 days “

15. ‘Creating and Converting Global Opportunities’ To summarise…… Ex works Bromsgrove or a price in your own currency delivered to your door or nearest port. Which would you choose as a buyer? Standard packing you can use for all markets Same HS codes for import duties Standard payment terms to make sure you get paid Easy to evaluate wherever you are in the world. At the very least a ‘value proposition’ that shows you want to do business with them, that is not just based around price and makes exporting and international trade easier.

16. ‘Creating and Converting Global Opportunities’ We will be doing lots more at Biz Smart to help you with ‘all things international over the coming months. Contact me: steve@biz-smart.co.uksteve@biz-smart.co.uk steve@steveparkericd.com Tel: 01384 893346 07854 655397 www.uk.linkedin.com/pub/steve-parker/6/40/226