Guide on Exporting to Europe [Part 4]

We have reached the final part of our guide on exporting to European countries! In the previous article, we mentioned who your buyers are in the European countries, what different types of platforms are available in helping you reach potential buyers and what ways you can use to approach buyers.

Now, let us continue knowing how to negotiate while dealing with your global buyers.

Step 10: How do you negotiate a deal?

A business deal requires both you and your buyer to oblige towards each other.

Here are the five sales negotiation strategies you can use:

1. Sell first. Negotiate second.

The rule is to sell first and allow the customer to reject your unique selling proposition twice before even thinking about negotiating.

2. Do not negotiate on price.

Negotiate the services you can provide at a low cost, but the customer will perceive it as high value. 

3. Never interrupt a customer and, by all means, always allow the customer to speak first.

4. Time is the best negotiating tool you can have.

The more you know about a customer’s timeline, the better.

5. Do not start any negotiation until you know accurately what a customer wants.

You need to find out your customer expectations and objections before offering a high-value proposition to your customer.

Finally, if the negotiations between you and your buyer are successful, that means your agreements will be confirmed and signed. A contract includes at least the following: 

• Product Description

• Logistics 

• Price

• Payment Documents

Step 11: How do you organize logistics and customs procedures? 

Shipping your products to European countries and clearing them through customs means putting your business deal into practice. You must make sure that everything is organized well for the entire process to run smoothly.

For shipping and logistics, you will need to understand what Incoterms are. Then, where the goods are supposed to be delivered. Next on the list, who arranges transport and takes responsibility for insurance and payment as well as who handles customs procedures and the duties plus taxes.(if any)

For more information about Incoterms, click here.

The following are the documents needed for customs clearance in Europe: 

1. Commercial Invoice

2. Customs Value Declaration

3. Customs Import Declaration (SAD)

4. Entry Summary Declaration (ENS)

5. Freight Documents (Transport Documentation)

6. Freight Insurance

7. Packing List

If you are looking for logistics and supply chain vendors, click here.

Step 12: How do you grow your export business to Europe?

Honest communication is the key when you are trying to build a good relationship with your buyers. Honesty means that you do not over-promise while keeping your buyers updated. Keep your buyers informed of developments in your company. Transparent communication leads to more opportunities for your business.

Lastly, be there when your buyers need you. Make sure they can reach you and reply to their enquiries and emails within a day. The faster you act, the stronger the trust buyers have in you. You may also set up a bot in your conversation chat. The bot can deal with a broader range of customer requests. They can also automate repetitive and tedious tasks, such as answering FAQs, leading buyers to your website and many more!

To recap…

Good negotiation contributes significantly to business success. It helps you build better relationships with lasting, quality solutions and also helps you avoid future problems and conflicts. Supply chain and logistics procedures are often complicated, so you need to understand the Incoterms. First, you need to ask yourself, the number of responsibilities your business is comfortable with. When it comes to the transport and safe delivery of goods, it is important to decide whether your business wants to engage a transport company responsible for the shipments or pass this on to your buyers. Finally, to be successful, you need to be aware of cultural differences, to learn their culture to help you offer them the right products at the right time.