Importing products from other countries can provide businesses and individual’s with substantial savings through a variety of different factors but cost is always a challenge so what are the ways to save money on food importing?
Many businesses have been forced into looking at importing as a means of survival. Individuals who sell merchandise via online auctions, mail-order or in brick and mortar stores have found importing directly can help them keep their prices low and also improve their profit margins.
Ways to save money on food importing
Here are 5 ways to save money on food importing :
- Savings from cutting out the middle levels of logistics – instead of buying from a wholesaler who may have purchased from an importer, you are saving by eliminating those additional levels of cost.
- Foreign exchange rate savings – when the Euro was at it’s highest value ratio to the US Dollar a few years ago, may European food importers and individuals found USA products cost much less to purchase and ship to European countries, with great savings on imports
- Eliminating various levels of shipping costs – this ties in with the number one reason because each time an item is shipped to a different location or level of distribution, it adds shipping costs to that item’s cost and reduces the available profit margin – by importing and having the goods shipped direct to your storage facility, you save those costs.
- Lower labor costs – importers are often faced with a tough choice, stay with their domestically produced product and conceivably price them out of business or take advantage of the much lower labor costs offered in a foreign country.
- Overall cheaper production costs – many foreign production facilities are not subject to the higher taxes and regulations that domestic producers are often saddled with – in the area of regulations, importers must weigh the cost savings against potential safety and quality issues that can quickly devalue any savings this aspect may provide.
Another cost savings that is available to importers is the increased amount of competition for their business. Often, there are far more manufacturers of a product available in a foreign country than there are domestically.
Having multiple suppliers competing for your business means you have the opportunity of negotiating the BEST price and fastest delivery.
Overall, there are substantial ways to save money on food importing but one should never be blinded by the potential for increased profit margins by sacrificing safety or quality. Due diligence is important in all buying decisions and is extremely important in making the decision to import.
Blog credits to ImportExportBusiness