Three Ways Your International Business Can Make More Money
The barrier between countries is now almost non-existent. People travel from one country to the other every day, make calls internationally and do business together from all over the world. Unlike in the days of old where countries stood alone, economies and unions are now being formed between many nations that allow for inter-dependency. Due to this, many countries have been able to work together as one in any sector.
Although the line is getting thinner, and things are getting easier, it isn't cheap doing business internationally. Many businesses spend a lot of money on logistics such as transportation, storage, foreign exchange, money transfer, and so on. And what better way is there to make more money than to prevent spending much more? Here are three ways to lower the cost of logistics thereby improving how much money your international business makes.
Use a Parcel Service
This is also called the courier service, and the ones that are engaged in the business of transporting parcels, and packages internationally are called International courier service agents. They make sure that packages get delivered to their destination on time and in good shape. International businesses can take advantage of this service to reduce the cost of sending goods to their customers that are located all over the world.
There are different companies/agents involved in this business, so you should compare three or more agents before choosing which service is better suited for your business needs. The things to consider when making this decision include the following;
- How many packages do you send daily/weekly/monthly?
- How fragile are your goods?
- Do you require insurance protection on your goods?
- How many countries do you deliver to?
- What continents are these countries located in?
- Who are your customers (other businesses or individuals)?
- How fast do you need your parcels to be delivered?
Once you have successfully answer all the questions listed above, you can then decide on what company you want to work with. Some international courier services also offer different delivery options to suit many business needs.
Different Parcel Delivery Options
The different delivery options include express delivery, export and import cargo, Overnight/Evening deliveries, economy, and onboard courier service.
- Express Delivery is the fastest of all the delivery options because they help businesses to deliver as fast as the same day or the next day. There are times for express delivery and when the time is past, the business would have to wait till the next day to send the goods. Some agents have their express delivery times at 8:00 am, 10:00 am, 12:00 pm and in the evening around 05:00 pm. While others have theirs at a close but different time.
- Export and Import cargo is for the transporting of large-sized loads such as cars, trucks, trailers, and so on. The charges are usually flexible, depending on how fast you want the package delivered, where it is going, and the company you are working with.
- Overnight/Evening service is slightly similar to express except that this is done during late-night hours from around 7:00 pm till 5:00 am
- Economy courier service is the best option for those that aren’t in a hurry to send their goods. The delivery days are usually fixed (does not deliver every day), and the prices are lower than the other options. However, you have to check to see if the agency delivers to the customer’s country.
- Finally, the onboard courier service is for fragile items such as glass, ceramics, tiles, and so on. These services engage in the use of attendants to help carry the goods by hand to the destination.
In general, international courier services saves businesses the stress of thinking about sending their goods to their customers, and the cost is cheaper than using many local parcel services or transportation companies (like airports).
Use a business FX specialist
No matter how small your business is, the exchange of money cannot be omitted. How much more international businesses? There will always be a need to transfer money during buying and selling. And because the business is international, more than one currency is involved. This calls for some knowledge on foreign exchange.
Converting a currency to another requires an exchange rate, which equates the value of that currency to the other. And most times, a bank is usually in charge of this. This is why most businesses use a bank while transferring money. However, banks are not the best choice because many banks are not transparent about the exchange rate. Some banks place a fixed fee on the conversion which is (most times) higher than the general exchange rate. In the long run, this can cause your business to lose money rather than make more money.
Business foreign exchange (FX) specialists help to lower the transfer fees, give customized advice that is tailored for your business, and help manage your currency risk. There is also a guaranteed speed and transparency that comes with the use of a professional business FX specialist. In most cases, the payments are even processed and completed within the same day (no delay). However, not all specialists are this heavenly. Take your time to compare two or more services before choosing one to work with. But a good business FX specialist can help save your business a lot of money in the short and the long run. You can read how to choose the best option for you in the MoneyTransferComparison.com’s business guide.
Create a Local Partnership with Local Storage/Local Services
Another area that eats up money in an international business is storage. Finding where to keep your goods after production can be expensive. But you can save all that money by partnering with a local storage service agency. These agencies are in the business of helping other companies preserve their goods before transportation/delivery.
The kind of agency you would partner with depends on the kind of goods your business produces, and how long your good would be in storage before delivery to the customers. The local storage service agent would be in charge of receiving the goods from your factory/ industry to their storage facility. Therefore you do not have to worry about transporting it to their facility.
However, ensure that the agency provides certain kinds of insurance protection to keep your products safe during transportation and storage. Also, double-check reviews, and records of the agency to avoid putting your products into the wrong hands.
The first step to making more money in your intentional business is to stop losing money. And the fastest way to lose money is during the process of taking care of logistics. Luckily, the three ways mentioned above can help you to reduce how much you spend on storage, money conversion, transportation, and delivery. After few months, step back and check your financial reports. You will see an increase in the total monthly/yearly income of your business.