When Mike Farrell, the president and CEO of Sentry Equipment in Oconomowoc, Wis., began to sell globally, he worked through referrals from his customers, including such big companies as Bechtel and Westinghouse, which have plants in Brazil, Spain, Japan, and Taiwan. Founded in 1924, Sentry manufactures equipment that monitors the purity of steam and water used in manufacturing processes.
RECRUITING UNCLE SAM
Introductions to potential customers weren't enough when Farrell was ready to begin selling in Europe and Britain. He also needed distribution agents in each location who could handle negotiations and who understood the local language and customs. "It was hard to do," says Farrell. Eventually he found them by asking for referrals from current customers and by inquiring through the Commerce Dept. and the Wisconsin World Trade Center. Today, the 140-employee, $27 million company sells in about 60 countries.
As Farrell found, the Commerce Dept. and its trade arm, U.S. Commercial Service, can help you get established. The U.S. Chamber of Commerce has offices in cities throughout the world. Most states also have economic development agencies with international trade offices. All will help you find distributors, trading partners, and other leads.
Gael Coakley, co-founder and executive vice-president of Softee Supreme Diaper, made use of his state's Gold Key Service program, which links U.S. entrepreneurs with distributors around the globe. The Decatur (Ga.) company bought "off-spec" (imperfect) diapers from U.S. manufacturers, then sold them throughout Southeast Asia.
But in the late 1990s, big consumer goods companies began moving factories into Coakley's territory overseas and selling similar products. As manufacturing technology improved, Coakley found less off-spec to purchase. To guarantee his product supply, Coakley purchased a factory in Decatur and continued to tap his U.S. suppliers for cheap raw materials. That let him charge about 30% less than name brands. Even so, the market was getting tougher. That's when Coakley linked up with Gold Key, which helped him find distributors in Central America. Good timing: It was soon after CAFTA eliminated tariffs that had run as high as 18%. Now Softee Supreme sells in Guatemala, Costa Rica, El Salvador, Honduras, and the Dominican Republic. "In the last couple of years we have really had a hard-core presence in Central America and the Caribbean," Coakley says. The 65-employee company's revenues have jumped 35% since 2006, to $15 million, and about 60% of that comes from overseas.
No matter where you are based or where you are selling, technology can smooth the way. The Internet, videoconferencing, and mobile devices all help Pacific Plastics' Harkness work in several countries at once. She makes regular use of video conferences to keep her workers in sync, as well as computer software called IQMS that monitors, among other things, the flow of plastic parts through machines in facilities overseas. "It is crucial to our success," she says. "We run 24/7, and one challenge is everything there is upside down by about 12 hours. But we can hit the send key, and they will be working all night."
Similarly, Sepaton's Worhach says his team of far-flung engineers in Colorado, Boston, China, and India recently collaborated to fix a software problem using the Internet to communicate in real time. Sepaton also uses the Internet to act as an always-on billboard for new customers. "Technology allows us to operate sales initiatives seamlessly all over the world," says Worhach. And those global sales have never been more welcome.
