Benefits of exporting

There are numerous reasons for exporting. Here are some key benefits of exporting products to other countries:

1. INCREASING YOUR SALES POTENTIAL

While importing products can help businesses reduce costs, exporting products can ensure increasing sales and sales potential in general. Businesses that focus on exporting expand their vision and markets regionally, internationally or even globally. Instead of earning money by selling their offerings on the local market, these businesses are focused on discovering new opportunities to present their work abroad.

Exporting products is especially good for medium and large businesses – the ones that have already expanded within the local market. Once they have saturated the market in their country, exporting products abroad can be a great opportunity for these businesses to increase the sales potential. Additionally, exporting can be one way of scanning opportunities for overseas franchising or even production.

2. INCREASING PROFITS

Exporting products can largely contribute to increasing your profits. This is mainly due to the foreign orders, as they are usually larger than those placed by the local buyers. While local customers buy a few products or a pallet, businesses abroad oftentimes order a container of products which inevitably leads to increased profits. Moreover, if your products are considered unique or innovative abroad, your profits can increase rapidly in no time.

3- EXPORTING CONTRIBUTES TO DECREASING TRADE DEFICIT

To be prosperous and successful in economic growth and to reduce national debt, EXPORT volume by dollars should exceed import for any fiscal year. When a country exports it brings in hard currency need to trade and buy imports with. Also hard currency benefits the local economy by investing in production facilities, manufacturing capacity, employment, research and development, and general growth in per capita income and standard of living. 

Importing and exporting products can be highly beneficial for businesses today. While importing can help small and medium businesses develop and expand by reaching larger markets abroad, exporting can increase the profits of medium and large businesses.

If you’re striving to make your business the leader in its industry, or you are thinking of lowering production costs, importing is certainly worth considering. Otherwise, if your local market is too small for your business and you’re searching for new opportunities to expand – exporting may be your key to success.

4- Lower unit costs

Exports help to put idle production capacity to work. This is generally achieved the more efficient utilization of the existing factory, machines and staff. What is more, because you are now selling more products without increasing total costs to the same extent, this has the effect of lowering your unit costs which represents a more productive overall operation. Lower unit costs make a product more competitive in the local marketplace as well as in foreign markets, and/or can contribute to the firm’s overall profitability.

5- Economies of scale 

Exporting is an excellent way to enjoy pure economies of scale with products that are more “global” in scope and have a wider range of acceptance around the world (in other words, they can be used in other parts of the world without much adaptation). This is in contrast to products that must be adapted for each market, which is expensive and time consuming and requires more of an investment. The newer the product, the wider range of acceptance in the world, especially to younger “customers,” often referred to as the “global consumer”.


With increased export production and sales, you can achieve economies of scale and spread costs over a larger volume of revenue. You reduce average unit costs and increase overall profitability and competitiveness. Long-term exports may enable a company to expand its production facilities in order to achieve an economic level of production. (This should not be confused with increased throughput on existing capacity, as discussed above.)

6- Minimizing the effect of seasonal fluctuations in sales

Being in the Northern Hemisphere, Turkey has seasons that are opposite to those in the Southern Hemisphere. For companies that sell seasonal goods such as fruit growers, and swimwear or suntan lotion manufacturers, being able to sell these goods in the Southern Hemisphere when our season ends, helps achieve a longer and more stable sales pattern. This increases the sales potential for these goods and also helps reduce risk.

7- Small and/or saturated domestic markets

One good reason to begin exporting is when the local market is too small to support a firm’s output or when the market becomes saturated. For companies that produce heavy industrial machinery or that have invested in large factories, they need to be able to sell enough of their manufactured goods to justify the investment and to insure that the unit price of goods are kept acceptably low. With relatively small markets such as Turkey, it is usually not long before the local market becomes saturated and offers limited additional opportunities for sales. 

8- Overcoming low growth in the home market

It is not uncommon for a recession in the local market to act as a spur for companies to enter export markets that may offer greater opportunities for sales. While this may have the benefit of offering ongoing sales potential for the firm in question, the danger with this approach is that when the local market improves, these companies abandon their export markets to focus on the now buoyant local market. Overseas importers become disillusioned with this type of exporter and often see all firms from Turkey being the same and will want nothing more to do with Turkey exporters, even if they are serious.

9- Extending the product life-cycle

All products go through a product life-cycle. In the beginning they are novel and sales increase quite dramatically, then sales level off and they become what is referred to as mature products and eventually sales start to decrease and the product goes into decline. Now, a product that has entered its decline stage may have a life elsewhere in the world and by finding a market where this product could be sold anew, you are essentially extending the life-cycle of the product. Alternatively, even if it is a fairly common product, it may also be nearing the end of its life cycle in other overseas markets (particularly in bigger markets such as Germany, the UK and the US) and they may decide to discontinue the product.

Although the market may have declined to a point that makes it uneconomical for these companies to continue manufacturing the product in question, the market may still be big enough for you to supply the declining market. This has the effect of making more efficient use of the existing factory infrastructure and other investment spent on producing the product. This extends sales, lowers the unit costs even further and may allow for higher margins to be generated. When you have a product that is nearing its life cycle, you should always strive to see if you can find a market for the product abroad.

10- Improving efficiency and product quality

The global market is a highly competitive place and by participating in this marketplace, you need to become equally efficient and quality conscious. It is generally the case that successful exporters are also very successful in their home markets because of their heightened efficiency and focus on product quality.

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