success - Turbo Coach, achieve breakthroughs - Brian Tracy
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Maximize Profits<br />
193<br />
Market Profitability<br />
If you sell into more than one market, the same principle<br />
applies. Some markets will be more profitable than others.<br />
When dealing in foreign markets, for example, you may<br />
incur much higher advertising and marketing costs. Conversely,<br />
your manufacturing costs might be significantly<br />
lower. If you export your products into foreign countries,<br />
import duties or tariffs may apply.<br />
At times, unexpected costs in dealing in new markets may<br />
make the difference between a profitable venture and a financial<br />
disaster. An independent distributor of home electronic<br />
goods based in the United States decided to enter the<br />
Canadian market. He was shocked to learn that, in order to<br />
sell in the province of Quebec, he would have to redesign his<br />
packaging to feature French as well as English. Considering<br />
the size of the market, the additional cost was prohibitive,<br />
and as a result, he decided to abandon the entire Canadian<br />
venture. It pays to do your homework upfront!<br />
Examine your markets by asking:<br />
Are some markets more profitable than others?<br />
Do some require higher advertising and promotion budgets<br />
in order to reach your sales targets?<br />
Is there a difference in terms of product returns?<br />
What are the customer service costs after the sale?<br />
Do you incur any additional shipping costs, tariffs, or<br />
other extraneous expenses when you sell into markets<br />
beyond your locale?<br />
Take Action<br />
Based on your various profitability studies, you are now in a<br />
position to make decisions and take action.
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