How much does it cost to develop the US market for my product?
It takes time and money to establish a presence in the US market. Traditionally international companies have had to establish a US office, support it with full-time personnel, and deal with expatriate employee issues including social taxes, payroll tax, unemployment insurance, and FICA withholding. This made the normal entry cost more than 220 000 €/year, many times more than what our clients pay for the same (or better) results.
Our business model makes it possible to start your US market and business development efforts at an appropriate and affordable level for your business. It will take at least 6 months, and more likely 10-14 months before you sell a product in the US. During that time you can spend as little as 4 000 € per month after the introductory period of the engagement to develop the market and establish relationships here.

How does the weak US$ help or hurt my US marketing efforts?
A weak US dollar will increase the price pressure on your products. A weak US dollar also means that the cost of market development is far lower than it was when the US dollar was a stronger currency. The ideal strategy is to invest in US market development while the dollar is weak, and then have your products well established in the US as the dollar strengthens (which it eventually will). This will give your company an advantage over competitors who wait until imports begin to increase before approaching the US market.

Do I have to pay any social taxes for my Country Manager?
No. Our clients have a service contract with our parent company Market Plan Engineering, LLC. MPE takes care of any issues relating to employee compensation and social taxes. Your relationship with MPE is one of customer to vendor, you will not have an employee relationship with your Country Manager.

Why does it take so long to sell products in the USA?
There are a number of reasons, but the most important thing to realize if that you have to start early to get established here. The US market is competitive, and waiting until you can afford to launch in the US in a traditional manner will put you well behind the competition. Our clients introduce products in the US while they are unique, highly profitable, and maintain a competitive advantage. This puts them in an excellent position to keep other competitors out of the US.

Can I make a lot of money selling my products in the USA?
Yes. Americans spend huge amounts of money on imported goods, but they are not willing to look outside of the USA for products. You have to launch your products here to get USA sales revenue.

How do I establish a Country Manager engagement with your firm?
Just contact us via email with some basic information about your firm. If your firm qualifies, we will send you some more information, and will arrange for a Country Manager and our sales staff to call you and discuss the details. If there is a solid interest, we will produce a draft engagement letter outlining the terms of the Country Manager engagement.

Will I need a full-time Country Manager as my business grows?
Maybe, it depends upon the distribution model for your product. Often only a part time Country Manager is needed; the savings in using a part time Country Manager can make a marginal product substantially more profitable.
If your business does need a full time Country Manager we can find candidates for that role.

Is there a US Sales tax?
In the USA sales taxes are collected at the state and local level, and are paid only once, by the final customer. The seller does not pay the tax, although it obviously becomes a pricing issue in areas with high local taxes. Most states tax only goods, not services. There may be import duties associated with your products; we can offer guidance on import and redistribution issues.

Is CountryManager.US an import/export firm?
No, we do not handle imports and exports through our company. We do import demo equipment for the purposes of establishing and supporting sales channels, but we do not broker sales of goods through our company. We can offer advice on shipping, tariff schedules, and letter of credit issues.

Will I have to pay income taxes in the USA?
That depends, but most likely your company will ship containers of product "EX-Works" or CIF from your factory to US distributors and resellers. In this case the transaction is between you and the distributor and does not materially differ from the way you do business in your current regions.



 


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