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Language barriers, exchange rates and paperwork are a few of the
barriers importers need to leap.
It was the women
in her new neighbourhood that inspired Michel Schuhmacher to become
an importer.
In 18 months,
Schuhmacher's business has increased in strength, as has her
confidence in dealing with the tricky world of importing.
The mother of
two is pretty switched on to the problems that can arise for small
and medium enterprises trying to negotiate their way around the
importing minefield and admits she made a few mistakes along the
way.
Her business,
Bella Bodies Shapewear, imports shaping or control underwear from
Colombia and since her first shipment arrived in February last year,
she has been inundated with orders for the product.
"I moved to
Berowra (north of Sydney) and found there was a lack of interesting
fashions up there - not that I am fashion plate myself," she says.
"I got the idea
of importing clothing to start a party plan business around this
area, but I didn't find anything interesting."
What Schuhmacher
did find was that the women at whom she was targeting her party-plan
idea were mostly over 35; mothers, working and wanting to look like
they did before children and middle age.
"We all have a
roly-poly tummy and most of the women I met were plodding off to the
gym or worked full-time," Schuhmacher says.
"I realised that
all they wanted was something that could streamline them - they
looked great in a pair of jeans and a nice top but needed a little
bit extra to hold it all together."
With that in
mind, Schuhmacher went scouring department stores looking at what
was available in control or shaping underwear - and found nothing
that most women would want to wear.
She obeyed the
first rule of importing and researched the market to make sure that
her idea was not already out there and that it was a commodity that
would work in Australia.
"The shaping
underwear I found was too uncomfortable and thick and was made only
to wear for a couple of hours at a time," she says.
Schuhmacher
started searching the internet for the type of garment she knew
would appeal to the average Australian woman and found a
manufacturer in Colombia.
After getting
some samples sent from one of the company's US distributors,
Schuhmacher tried to negotiate a deal to import the products into
Australia.
Like many first
time importers, she didn't realise she would run into overwhelming
communication barriers.
"It was not easy
getting in contact with the manufacturers because I couldn't find
anyone who spoke English," she says.
"I had to learn
enough Spanish so that I could send a fax with my phone number on it
and a few words to ask for a price list."
It was around
this time that Schuhmacher realised she might need some help in
finding the best way to proceed.
She contacted a
private company called XDOC®
and took a course on importing.
It proved
invaluable and showed her how much was involved in setting up an
import business - no matter how small.
"I was
floundering a little bit before then," she says. "I don't think I
would have survived without that expert knowledge.
"I was a
corporate travel agent before, so I had dealt with currency
exchange, but it was all the other things such as customs and
quarantine, negotiating prices, figuring out how to factor those
currency rates and customs duties into your end price so that
everyone gets a profit.
"I am not
incredibly money-orientated but I learned that I had to factor into
my end price things such as advertising, agents' commissions, travel
and international phone calls."
Schuhmacher
decided she should travel to Colombia to meet the manufacturer
before ordering her first shipment - a crucial step for importers,
she says.
"I got in touch
with the factory owner, who spoke perfect English and met him," she
says.
"He took a great
deal of care of me when I was there for five days and it made me
realise how important it was to touch base with him.
"Because of
that, I have been able to keep open lines of communication and
luckily since then I have had no major problems."
When her first
shipment of goods arrived from Colombia, Schuhmacher says she called
on XDOC® again to make sure
that she was doing everything correctly.
"The funny thing
is that it wasn't until I was up to the point of my first shipment
coming in that I called them to [go over] some of the things we were
told in the course," Schuhmacher says.
"It's not until
you have to do this that you realise the things you need to know."
Although the
high Australian dollar makes it cheaper to import goods, Schuhmacher
says importers have to realise that it's not always a win-win
situation.
"When I started
importing, the Australian dollar was around 72 cents but when it
started to climb, the manufacturer started to feel the pinch, so his
prices rose," she says.
"As an importer
you have to keep in mind that the fluctuations of the Australian
dollar also affect the manufacturer."
Since the first
shipment arrived early last year, Schuhmacher has brought in about
30 more and considers herself a bit of an expert at the job.
As the
Australian importer of the Bella Bodies line of shapewear, she is
expanding her business by looking at exporting to Malaysia
and New Zealand.
SCHUMACHER'S
TIPS
* Before you
make any decision, sleep on it.
* Keep your
ideas to yourself.
* Don't try and
do everything on your own; get expert advice, including from
government bodies.
* When doing
business with people who don't speak English, never assume that they
understood what you said.
* Never
underestimate the value of good relationships with customers,
suppliers and banks.
* Don't get too
angry and burn your bridges.
* Never keep
stock levels so low that you have not got enough to supply. Don't
promise what you can't deliver.
* When dealing
with a manufacturer, never transfer money through just the bank
without a letter of credit, especially when you first start dealing
with that manufacturer. There are lots of fly-by-nighters, so you
have to double check their history.
Things you must
do
* If you can
afford it, visit your manufacturer - they need to know you are
serious.
* Always check
the culture of the country but don't assume they will deal with you
in that way.
* If you don't
like dealing with someone, don't do it.
* Factor in all
your costs so everyone makes money - the middle man, the agent and
yourself.
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