Should I set up my own shop ?

[trisswines]

I recently pivoted my lead gen company through cold email to the EXIM industry. Had great statistical success with cold emails so it was natural to find the highest ticket industry since my effort is the same accross the board.

By EXIM this is what I mean, helping 3rd world country's commodity suppliers find overseas buyers. I pay for all expenses and get a 6% commission on every close including every repeat order.

What drives me mad is how inflexible and close minded these manufacturers are:
1) they wont invest on a website (this is essential for a cold email campaign)
2) they dont want to make any changes on how they trade (not wanting providing a lead magnet)
3) mostly hate L/C and prefers TT

In short, not willing to make it easy for their clients to do business with them.

Ok enough rant. Heres a possible solution

Since I have the ability to generate leads consistently (buyers) it should be easier for me to sell even more if I implement the solutions to the above 3 things. But thing is, I hate the paperwork and leg work that comes with exporting something.

Im great at lead gen, all the tech stuffs and also has a pretty high closing rate but i despise the process that comes after.

I dont really handle stress that well (my weakness) and im not sure even with the margins, i'll be happier if i do the whole thing myself

By wholething; act as a trader. Buy from them then sell it to my buyers directly.

 

[aby]

@trisswines I am not familiar with this industry at all, but you said something that I see very frequently, so I will just probe on that:

You say these manufacturers are close minded and inflexible. That doesn't sound like a good market to invest time/capital in process change.

My typical question is: can you provide more value in your current role/process and generate higher margin (for example, can you do more backslapping, if that's what they're asking for, and charge 10%).

Also, I would say follow your heart on what you enjoy. Life is too short. Also, if you're a fantastic salesperson, go pursue that in higher paying industries or jobs.

 

[trisswines]

@aby Good point. No point in staying with them, besides I hold most of the bargaining power.

Thanks!

 

[freewater]

@trisswines

3) mostly hate L/C and prefers TT

Pretty normal. Suing a company in another country for nonpayment is beyond the means of most exporters. The problem is common enough that the Canadian government setup a crown corporation dedicated to helping Canadian companies with this exact problem, Export Development Canada. Basically a specialized/fancy form of insurance if I recall correctly.

 

[trisswines]

@freewater Sweet, I'm looking up on this now. Appreciate it!

 

[enoch27]

@trisswines Have you identified your niche?

You can act as a manufacturer's (or producer's) representative and take on the role of business development for the business entity supplying the "commodity."

The major risk here is that your supplier will allow you to develop the market for their products and then, at some point, stop doing business with you once you've validated the market.

You may want to look into the kind of agreements that are in use to protect your interests.

And you may also want to look into what's possible for imports to your client's country.

There are many governmental agencies on each end of the trade relationship that help (some hinder) the development of trade. Since they are specific to the goods in question, some research would be required.

Do take a look at what's going on in the shipping industry for the trading companies. Their are many ships and airplanes that may be returning to their point of origin with lots of empty space. Something to consider when starting up.

There are many interesting ways to leverage your trading activities to avoid non-payment.

 

[trisswines]

@enoch27 Yeah thats what Im doing right now. But you're correct theres definitely a risk of circumvention and the issue is its a pain in the ass to sue them not to mention they have more money than I do that its going to be a bloody battle that its easier just to move on.

I guess setting my own shop is definitely the end game. Just need to bear with it until capital suffices ig.

 

[enoch27]

@trisswines There are many "agent" type work that you can start doing while working on your larger project.

It's all about who you know, what you know and how you can help two parties connect and succeed.

Building a large network of contacts and building trust in your industry will make it much easier for you to take the next step.

 

[trisswines]

@enoch27 Thanks!

Are you in the exim space too by any chance ?

 

[enoch27]

@trisswines Looked into EXIM for a couple clients.

They didn't have an understanding of commodity markets and how they worked at the International level.

Foreign countries often have difficult business environments and it's important to factor in the risks. One client is a nonprofit looking build specialty fruit exports from Ecuador to world markets (particularly USA and Europe).

 

[enoch27]

@trisswines They're paying you to develop the market for their products/commodities.

And be sure to get a sense of the reputation of management for the company that you are negotiating with. Helps to find knowledgeable "third parties" to help you determine whether developing a relationship is worth the effort.

 

[trisswines]

@enoch27 Question:
How do a representative/broker build trust with the buyers personally so that theyd rather stick with me as opposed to the manufacturer

Completely blind on this lol

 

[enoch27]

@trisswines You are developing a market for the manufacturer. Having exclusive marketing rights by territory for a given period of time is common business practice.

 

[mikefromny]

@trisswines Could you consider a double silo arrangement in which you do the original service you mention (brokering and 6% option) and then offer a marketing add-on service where you take care of the 3 things you mentioned for an extra fee (idk maybe an extra 1.5-3% ?)

This way buyers don’t get sussed out and only buy (or buy more) from the manufacturers who opt for both packages- thereby showing the additional value for it. You’d create your own tiered market essentially for the buyers and the sellers. Perhaps with the extra charges you could hire someone to do it for you and take the extra stress off your plate

 

[trisswines]

@mikefromny Interesting take on the wholething. Ive considered adding it as an extra service but never in terms of commission play. Will sit on this idea, thanks.

The only viable thing is websites tho because number 2 requires free samples from them and things like that while 3 requires a huge investor willing to front the whole payment. If I connect the manufacturers with these investors I dont get anything in return since theyd take up all the fees.

 

[annsmooch]

@trisswines Given your expertise in lead generation and the challenges you face with manufacturers' inflexibility, consider focusing on what you excel at – lead generation.

Hire someone to handle the paperwork and logistics, allowing you to stay in your strength zone. This way, you can optimize your skills without getting bogged down by tasks that stress you out.

 

[joenlmi]

@trisswines Sometimes being able to do business with hard to do business with people will make you stand out. No wonder they work with you and not with others, beside very few dow what you do in this industry. I suggest you continue to do this and continue build your network and reputation, people will come to you just because you can handle difficult business and will pay money for this. You can set up your shop and be like the broker or trader as you mentioned, try and see how it goes. If you want to brainstorm ideas or how to better organise your business and work processes for your idea to work let me know.