Blog

Start Wine-ing And Get Exporting

Importing and exporting doesn’t have to be rocket science. Sometimes a simple idea can kick-off a successful career and doesn’t need to be over complicated.

In November 2017 a young lady, 23 years of age, enrolled on an online import export training course, which she completed and gained the understanding she needed to move goods around the world.

To Or From China?  Research Is Key

This young entrepreneur had been looking at China, as many do, to import goods to sell to Europe and on doing more and more research, came across an idea where she saw a gap in the market.  This gap however, was in the reverse direction, rather than import from China, she believed that exporting to China was more advantageous, in particular, exporting Spanish wine to China.

A simple product, a simple idea and something that can be relatively easily filled. Sometimes we don’t have to find some far out there, brand new product that no one has ever seen.  Keeping an open mind and let your research tell you what’s needed. Then trust your research and your gut feeling!

With alcohol sales increasing significantly year on year and China’s middle class expanding, finer wines are more in demand. Also the explosion of Chinese tourism across the globe means that Chinese are travelling further abroad and finding a taste for quality wine and spirits.

With further research, our entrepreneur selected 3 wine producers in Spain and was grounded in negotiation techniques, therefore able to negotiate a solid and successful contract with them.  The wine supplier as you may imagine, was  only too happy to help her penetrate the Chinese wine market and was very helpful.

Stockist Agents

In China, after talks with several potential stockist agents, she selected one that fit her personal criteria and potential future expansion plans.

The first deal was agreed and signed and the stockists agents terms of delivery were CFR  Chinese Port subject to Incoterms 2010.  Our entrepreneur was familiar with and understood these Incoterms and able to make the necessary arrangements for the delivery.

She promptly contacted a freight forwarder in the UK and negotiated a freight rate for collection from the Spanish wine supplier and delivery to the specified Chinese port.  Her knowledge of Incoterms 2010 and the research she had conducted ensured she accepted a fair price for this delivery therefore maximising her profits.

Method Of Payment

The final part of the contract was to negotiate with her Spanish wine supplier,  a 60 day payment against a Bill of Exchange, availed by her bank and a 30 day bill of exchange, availed with her stockist agent thus enhancing her cash flow, giving plenty of time to receive funds from her stockist agent and make the payment to the Spanish vineyard.

The initial trial order was for 4 pallets of wine by LCL service, with the bills of lading to be produced and forwarded to the stockist agent, together with other commercial documents as a Cash against Documents Transaction.

Bring in a Range

After this successful shipment, the first consignment was sold to one outlet by the selected Chinese stockist agent and a partnership has now been agreed and contracted to jointly finance and purchase a Full Container Load (FCL) of Spanish wine.

With the potential to supply a range of products, negotiations are underway to bring in more related products to maximise this business relationship as joint profit margins.

 Lesson Learned

You can turn a relatively simple idea into reality if you follow some simple rules:

  1. Identify the product(s) you wish to buy or sell through solid research.
  2. Research the market you intend to sell to.
  3. Research and find several suppliers. Just one is risky as if there are any issues or problems, you may find yourself with no stock to sell.
  4. Negotiate commercially and legally sound contracts.

No business and making profit, doesn’t come easy.  Be prepared to put in the hard work, stay focused and keep yourself driven. Once you’ve navigated your first deal and made your first delivery, you’ll continue to learn and it will get a little easier each time.

Above all don’t “wing it” get trained in the practical aspects of importing and exporting or the risks of losing money are significantly higher.

How to Become an Import Export Agent, The Wrong Way

The idea of becoming an import export agent to many is sold as a quick way to make money without having to do much work. Link up buyers and sellers, do a deal and get paid, this is how easy some think it is. The reality is a little different.

Two years ago I was in Dubai  lecturing at a local college and presenting our own import export training course at seminars and to various local trading companies.

I noticed in the hotel lobby, an advertisement for a course entitled “Become a Successful Import Export Agent”.  The title caught my attention and out of professional curiosity I purchased a ticket for $15.00.  The course was a half day course, from 9 am t to 2 PM with a 15 minute coffee break.

There were four very smartly dressed people, presenting the meeting and we were told in rapid succession by all four presenters there was a fortune to be made as an import export agent, with little or no financial investment and minimum knowledge of International trade. We were then told that once we enrolled in the course, we were on our way to success.  As one speaker put it “ The sooner you start the sooner you’ll be rich”.

Each of the four presenters in turn, told us that they were originally working dead end jobs making money for their boss, living the usual rat race, living week to week, hand to mouth.

Get Rich Quick, It’s Child’s Play

By becoming import export agents, this gave them  the financial freedom and lifestyle independence to do whatever they wanted.  All that was missing was the photos of each of them with a Ferrari.  As you may imagine, this went down very well with most of the paying audience.  Who doesn’t love the idea of making great money with no financial investment, little risk and you don’t have to study!

We were told it was so straight forward, a child could do it. All that was involved was find a buyer and seller, introduce them to each other and “hey presto” we get a big fat commission for little or no work.  For every buyer, there’s a seller and our job is just to match them and then wait for a chunk of money to hit our bank account.  Lovely!

No Investment Needed, No Risk…But…

However…even though there was little to zero financial outlay, virtually no risk to setup our new wonder business there was one small initial outlay that we would have to pay up for.  You’ve probably guessed it, $800 for their course that would teach us the golden secrets of how to get rich quick as an import export agent.

To prove just how simple this process was, we were given a photo copied sheet of paper with a list of names who were apparently “buyers”, of course with all their contact details blanked out, with a corresponding list of sellers and the products they have to sell but again with their contact details omitted.

Once we paid the $800 fee, we would get the full list of names and addresses and even an example letter that we can copy introducing our buyers to our sellers. What an offer, all the work is done for us, we just have to copy a few letters and send them off and we should be in business, ready for our bank accounts to fill up.

I had visions of myself as a dragon on Dragon’s Den, with stacks of cash on my kitchen table as I eat my breakfast each morning, contemplating what I’m going to buy next.

The final clincher was that by paying out our hard earned $800, we would also receive a fabulous “HOT TIPS” guide! Although we were not enlightened as to what any of these hot tips may be.

The audience at this point was not a rush to join up but these four presenters worked their charm for the next couple of hours or so, telling us that it was the best investment they would ever make and if they didn’t do it today, they will miss out forever.

Cut It Out

In an effort to try and shed some light on how this get rich quick scheme may not be quite so easy, I offered a question, “How can I be sure the buyer and seller don’t just cut me out after the first deal and deal directly with one and other?”  In a dismissive tone, the presenter replied, “This very seldom happens, so don’t worry”, then moved on to the next question.  Fantastic, let’s pay the $800 then as it hardly ever happens.

At this point after several hours of being told how easy life as an import export agent is and the riches it will produce, the sentiment of the audience had changed and they were on board. Who doesn’t love the idea of making an “easy buck” as they say.

At 2pm the presenters let us know that this was their last seminar in Dubai for another year so, just for us, they would make a special offer of $600.00 to enroll in this super duper life changing course.  I managed to leave the room soon after 2pm but as I left there was a line of people signing  up for the “special offer”, eagerly anticipating all of the profit they were about to make.

Import Export Agent Training – Realistic Expectations and Honesty

I felt for those people queuing up to make their fortune but first having to spend $600 of their hard earned money.  Not because they’re signing up to the course itself or because being an import export agent can’t bring you excellent  profits but because their expectations had been mismanaged.

If you want to become an import export agent, it will take some financial investment, it will take time and effort to build relationships with buyers and sellers, you’ll need to learn to negotiate with them, you’ll have to study and understand the implications of acting as a stockist or commission agent and you absolutely must understand in its totality how to trade on an International level.

You will encounter problems, as you will with any business and you must know how to solve these problems quickly and efficiently. You must know where your risks lie and once you grasp these concepts, then you can run a profitable business as an import export agent with a healthy profit margin.

Spending money on a course that promises you quick riches is probably never going to be a good thing. Sure, spend money on courses and educate yourself but also have realistic expectations.  Any business you setup is going to take some elbow grease, some investment, study and determination.  There is no way to get rich quickly or easily…or we’d all be doing it.

By the way, the correct answer to stopping a buyer and a seller from cutting you out as the commission agent is to include a “circumvention clause” in your contract, which is a fundamental clause in this sort of situation.

Import Export Training Course For £99

If you want to learn how to become an import export agent, check out our online course which teaches the aspects of international trade that you’ll need to know, now just £99.

We were voted Best Trade Education Provider in 2017 by Trade Finance Global and our course has been validated by the London Institute of Shipping and Transport.

Check out our reviews on multiple sites and let us know if you have any questions.