Brämer & Partner International Project Management

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Sales

For small companies


Sale to Germany ...

... for smaller companies usually means online sales via an existing platform or a trading partner. But in some kinds of business a local sales partner can be indispensable, especially for technical or explanatory products. And the selection of the best platform for your own product has to be done carefully.

In addition, the mere presentation on a commercial site is not enough for a successful sale and supportive marketing measures have to be taken.

As a seller, you are not only facing the challenge of customer acquisition in the German market. Furthermore issues such as customs, taxes, patent law, payment transactions and payment security, currency risks, liability, permits, , necessary certifications, permanent establishment act etc. must also be considered. Therefore, a good preparation not only ensures sales success, but also gives you the necessary legal certainty.

The following chart of the project sequences shows you how our team of specialists plan and implement your sales project in Germany. So you can be sure that every question and every task will be solved by a professional in the respective area, possibly even directly on the spot.

We would be pleased to support you with our experience and contacts in the development of your cross-border sales to Germany. Or you can simply start your German project with our check for entering the German market. In this way, you get certainty about your chances at low fixed price and find out how you can perform your project optimally.

Blindtext

The first step is to evaluate the project according to its opportunities and risks. All influencing factors have to be determined for this. These are: target country preference, marketability of the product in the target country, incurring duties, taxes and charges, possible embargoes, local practices, BEPS, possible patent infringements in the target country, liability risks, necessary approvals, currency risks, supply chain and delivery costs, marketing expenses, and if necessary even more.

As a result, you will learn which of your products have a market chance in Germany and the information from the influencing factors form the basis for the subsequent calculation.


When all information are compiled, the products have to be recalculated for German market situation. In this way, we find out which goods are of interest under export conditions.





Next, we must decide for the right distribution channel and then for the best distribution partners. This can be platforms such as eBay or Alibaba, but also trading partners like Amazon. Via these distributors the goods can be offered to the customers directly. In addition, there is the possibility to sell through the local trade. In this case a wholesaler or retailer buys your products and then distributes them on their own account. The more technical the product is or if it needs explanations, the greater is the demand for personnel. Then it often makes sense only to enter the market with own trained sales staff.


Especially in international business, legal contracts are of particular importance. In the event of a breach of the contract, the contractual place of jurisdiction or of the competent court may already be of significant relevance.

Therefore all possible contractual objects have to be examined and negotiated carefully. These includes the terms of payment and delivery (INCOTERMS), the liability for damages as well as guarantee and warranty. Furthermore, the contract must be formulated in such a way that it can withstand a court in all participating countries. And beware of your general terms and conditions. Possibly these are ineffective in Germany.


Now there are some marketing questions to clarify. This is not just about the sales support of potential distributors, but also about the organization of own sales promotion measures. Depending on the scope of the project, online support can be sufficient, but larger projects often require the involvement of local advertising agencies.

Also other points of the marketing mix have to be defined. These are: customer service, public relations (PR), sales promotion, warranty extensions and last but not least the formation of local networks.


Another important factor is the organization of the supply chain. This means not only the selection of the best delivery service, it is also necessary to clarify which documents are necessary for the delivery and for the release of the payment. For nothing is more annoying than goods hanging in the customs warehouse, which cause hourly billed storage costs.

For smaller deliveries, many express services (DHL, FedEx, UPS, TNT, etc.) offer a complete door-to-door service, including customs clearance. But these also need the necessary export documents. In the case of larger deliveries, transport by freight forwarding is often more favorable. However, it may be that single subsections have to be organized individually. Such a delivery variant usually needs a customs service provider who also has a customs warehouse.

And remember: in transnational goods traffic to Germany between enterprises, you need the VAT ID number as well as the EORI number of the recipient company. In each business case (b2b or b2c), you must specify the customs tariff rate (TARIC) and the goods value for each product by pro forma invoice, which has to be placed outside at the package.


If all these items are clarified, organized and, if necessary, contractually fixed, then it is time.

Your delivery can be shipped.






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