Global Trade Base Trends
May 20, 2009 - Buyer Beware - Patrick Donnell, President.
- International trade always and will always have a side to it with ruthless people trying to take advantage of the less informed to part them from their money or product. My advice is simple... Buyer Beware.
- A recent trade show in Chicago was the target. One of our employees was present and stumbled across a company trying to represent themselves as an export management firm. While we welcome and encourage competition within the export arena because it is good for the domestic economy, it is not fair to conduct ruthless business practices including misrepresenting experience, providing false documentation or lying about competition. There is enough business for all legitimate companies.
- Here is what a potential export client should know:
- It is common for export companies to have an upfront fee. The U.S. Department of Commerce also charges up front fees that begin at around US $10,000. Adequate representation cannot be done if there are not enough funds to cover the effort.
- It is common for export management companies to not disclose who their clients are.
- Do not take any verbal reference about how good a company is. These are too easy to fake.
- Do your due diligence and demand the following:
- Show me a certification from a foreign country government that rates the export management firm.
- Show me a product label that has the export company name printed on it. (See Example.)
- Let me talk to your company banker to validate your company.
- How many clients does the company represent? (Less than 50 - beware.)
- How many years (not months) has the company been doing export transactions? (less than 3 - beware.)
- How many International Letters of Credit has the company worked with?
- Ask for a Dunn & Bradstreet company report.
- Show me proof that you meet with buyers or represent products overseas. (Actual travel itinerary.)
- Have you ever been the receiving party to a lawsuit for professional reasons? (This is public record.)
- Remember that it is too easy to fake a good or bad profile on the internet. Do not believe everything you read and ask the export management firm for proof as to what they do.