in this issue
Global Source Marketing, Inc.
Global Source Marketing, Inc. (GSM) is Klondike
Marketing's preferred distributor for all overseas
transactions. We have used GSM not only for our own
products and projects, but recommend GSM to all of
our clients as the distributor of choice.
No one has been doing it any longer, and no one enjoys
such a strong reputation for honesty. We have found
that is gold in the international currency market, and
bring that value to our clients. Most of the articles you
will read about International transactions in these
newsletters will be based on Global's knowledge and
expertise.
Please refer to the last newsletter-Issue 22: Part 1
about international distribution in order to catch up on
what Global is revealing in this issue: Part 2.
Issue22: Part1
Quick Links...
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Dear Reader,
Once you have established or created a credible
product/service and made the connections for overseas
distribution that will support your efforts, there is the
looming question-How much can I sell my product for in
the worldwide market?
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Get Out of Your Mind
One thing to remember is you must be able to get "out"
of your cultural and business mindset-and see this new
opportunity for distribution in a new light. First, unlike
the United States which is located on an extremely
large continent and represents a huge country-no
particular country of the world is any larger than one or
two USA states combined!
Check out Global »
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One Price Does Fit All
Yes, you are dealing with the world and the numbers
are staggering, however we are working in one-country-
at-a-time, and not the entire world as one entity. This
is important to remember, because at Global Marketing,
Inc. we negotiate one price for a product. No matter
how that product is distributed-TV, radio, print, face-
to-face, or retail the in-country marketer buys it for
one price and sells it in the numerous avenues opened
to him.
When an international marketer takes a product
overseas his costs are usually higher than that of his
USA counterpart. Why? Because initially there are
duties and transportation costs he must manage in
order to get the product in-country. Additionally,
international media time tends to be more expensive
than USA television time.
If a marketer in Germany wishes to distribute your
product he has a country of 65,000,000 to work with,
or approximately one quarter the size of the US
population. In Europe
and in the rest of the world there are fewer choices for
media outlets than the US, hence the cost of media
time is greater and more difficult to acquire overseas.
The German marketer may not make much money or
even break-even selling your product on TV, however
he is motivated to do that because he will make up for
this business expense when he sells to retail. His
motivation would be hampered if he had to purchase
the product at one price for TV, and a less desirable
price for retail. So the "one price fits all types of
distribution" becomes extremely important when
overseas marketers are dealing with smaller populations
in their respective countries.
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A Money Making Markup
The general rule for successful television sales in the
USA is a 5 to 1 or greater markup from cost of goods to
selling price. The same rule hold true for overseas, but
due to duty and transportation costs you can push
that mark up to a 4 to 1-that is tougher but potentially
a working mark up. So if you sell your product for
$39.95 in the USA the BEST working price to move it
internationally would be distributing it for $7.99
overseas.
The attractive features for overseas is it is a cash and
carry transaction. The overseas distributor buys the
product-cash-in-advance from you, you deliver, and
that is the end of the transaction/management of the
product. You simply supply the product and ship it to
the appropriate destination. Your costs of doing
business only lie in the cost of the goods and there are
no returns. If the volume of sales is great, then the
profit is great.
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