Tag Archives: Buying And Selling

Become an Exporter – The Quick and Dirty Way

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I usually recommend exporters identify a domestic supplier before starting the hunt for foreign importers to buy the products. But there’s another way….

For many years I’ve shown newcomers to global trade how to profit as an international trader. My trade information products outline very specific steps a new trader must take to be successful as a trade intermediary.

This doesn’t mean, however, that there’s only one way to be an exporter, particularly if you want to be an exporter without actually taking title to the goods you’re exporting. As they say, whatever works, works! And if you’ve ever thought about dipping your toe into the waters of global trade, take a look at this simple step-by-step plan that has worked for some newcomers.

Step 1 – Find an importer from another country who is looking for a particular product. You can find these leads on Internet buy-and-sell sites or through various trade newspapers. Be cautioned, however, that many of the “buyers” and “sellers” listed at Internet buy-and-sell sites have neither the resources to buy nor the means to sell a product. Through communication with the presumed buyer, you should gain a pretty good idea if he can deliver.

If you work with a bank that has an international department, they may be able to do background checks on the other party. You can also use commercial background checks, if you like.

Finally, there are some buy-and-sell sites on the Internet these days that actually pre-qualify their contacts.

Step 2 – Identify a supply source (U.S. or non-U.S.) for the product the importer is seeking. You might find suppliers in directories available at your library or on the Internet at Thomas Register ( http://www.thomasnet.com// ). Another way to identify potential suppliers is to simply go to a search engine such as Google and type in the name of the product you’re seeking. Any supply source will do but as a newcomer, you might do better to target small and mid-sized suppliers who are probably too small to conduct their own export marketing. They’ll be looking for someone like you to sell their product.

Step 3 – Now it’s time to go back to the seller you identified earlier and request a firm price quote for the precise product he’s seeking.

Step 4 – Using your company letterhead, prepare a price quotation to send to this potential buyer. Add a commission of 5 to 15 per cent to quoted prices. Inform the buyer to issue a confirmed, irrevocable letter of credit if he accepts your price quote.

Step 5 – When you receive the letter of credit, take it to your international banker and ask him to issue a back-to-back letter of credit to cover the purchase of the items you plan to buy on behalf of your buyer. You may also decide to use an assignable or transferable letter of credit. Ask your banker – and preferably in advance of receiving the letter of credit from the buyer. This brings up an important point: it’s always a good idea to identify a banker and freight forwarder before you’re involved in a trade transaction. You don’t want to be under extra pressure when money is involved and time is an issue.

Step 6 – You may also use a freight forwarder to handle the details of packaging and insurance (ask him in advance) as well as other details associated with shipping. A freight forwarder can be your best friend and the modest fees he charges can be added to the cost of the sale. Again, this is something you should determine before you’re in the middle of a trade transaction.

Step 7 – Present your letter of credit to the seller. Once they have met the specifications in the letter, they will be paid for the goods and the freight forwarder will ship them. Congratulations! You’re an exporter.

How To Buy and Restore a Classic Car

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For many people classic cars are luxury. Hence it is only a dream for most of us. If you can’t afford to buy a new one due to its cost, be assured it is going to be a costlier affair to restore one as well. There are many questions to answer before you buy a classic car. Your budget situation as well as your willingness to spend on it to restore it are some the most important.

Spending the saving on a vintage vehicle is also done by many people. It is seen as an investment for many. After you restore a vehicle, the market value of it would be better than you imagined. Depending on its model and condition, classic cars can be a great potential profit maker. Car auctions are the place to look for classics. There are many classic auto enthusiasts out there willing to spend a fortune on these cars. However, before buying such a car you should consider the following:

Remember that what you want to buy would be described as a collector car.
Decide what vehicle fits your budget.

This will probably eliminate those vintages you drool about in major car shows, unless you are very rich. Just one of those cars you see in major car shows can cost you hundreds of thousands of dollars. Researching on where to buy classic cars is not easy though.

You need to spend a lot of time and effort just by searching one of these cars. Keep in mind that these cars are not manufactured anymore and you do not often see these on your regular used car dealership. You can even be lucky and find one on junk yards or on old people’s houses. They do sell or throw these classic cars away. You can even get such vehicles with a bargain price. Cars covered with rust with engines in bad shape are not new to people who look for the vintage ones. Vehicle auctions are a place to look for classics and you can even travel to get one in the auctions. Here you will get a chance to offer a bargain for it.

If you want to spend less in restoration you have to look for a classic vehicle that is in good condition. Comparison of the models should absolutely be done before you decide to buy the one you like. If you are a amateur mechanic you can probably do the comparison yourself. Otherwise you can take a professional mechanic along to help you decide which one to buy. Always remember that the less vehicle restoration required the better.

Next step after you purchase your classic vehicle is restoring it. Be prepared to spend a lot of time as well as some money on this phase, since good car parts for classic cars are hard to come by and are usually very expensive to manufacture. During restoration getting the parts for the old car can be a tedious task. You should be prepared to make many calls to the auto parts shop to get all you want. One way of easily obtaining classic car parts though, is by searching on the Internet.

Finding the hard to find parts for your classic automobile is made easy through a web search. If you can’t find it online, you can always ask a manufacturer to produce one for your classic. To do so, they may need to have the old part for reference. It is very smart not to do those repairs yourself unless you absolutely know what you do. There are great auto mechanics for this purpose and you can avail their service almost anytime. That is the absolutely best way to do it. Restoration of cars is a costly affair in the mechanic shops and hence it is avoided. If you purchase your classic for investment purpose then it is wise not to go for restoration since restored cars are valued less in the future. Also notice that the cost of restoration would be higher than the value of the car at the time of restoration. However, restored cars can be used and enjoyed for many years to come.