How To Be an Importer and Pay for Your World Travel



"How much?"
"100 dirhams," answers the young boy, barely
looking up from his work.
You make a quick calculation in your head and
determine that the cost of the hand-fashioned silver
bracelet is about $10.  The workmanship is exquisite,
and you find it hard to believe that these young boys,
no older than 8 or 9, are able to create such beautiful
jewelry.
"I'll give you 800 dirhams each," you respond.
"And I would like to purchase 25 of them." The boy nods
excitedly and turns to fetch the wooden box filled with
finished bracelets that is sitting on the table behind
him.
You are wandering the dirt roads of downtown
Tiznit, a tiny pink-walled city of Berbers situated
along a caravan crossroads in southern Morocco.  You've
come in search of merchandise to ship back home and
resell.  You figure you can sell the bracelets back
home for about $35 to $40 apiece.  That's a profit of
300%.
Not planning to visit Morocco any time soon?
That's OK.  You could buy furs in Finland.  Finland is
the world's biggest seller of farmed furs.  The pieces
are well-made and inexpensive.  So you can buy silver
fox furs in Helsinki along the North Esplanade...and
then resell them for a warm profit.
These scenarios may sound exotic and far- fetched
at first.  But think again.  Purchasing unusual and
unique goods around the world, and then shipping them
to other countries, where they can be sold for
tremendous profits, is becoming increasingly common
among travelers who want to see the world but who can't
afford an endless vacation.
Setting yourself up as a small-time importer is
the next best thing.  It allows you to satisfy your
wanderlust while earning at least enough to pay for
your trip.  Plus, it makes all of your travel tax-
deductible.

One woman's story

Kathleen Rozelle, an interior designer from
Dallas, Texas, first thought of going into the
international importing business when she and another
designer were planning a trip to England to visit
family.  Once in London, they teamed up for a shopping
spree.  They shipped their treasures to Dallas, and
then sold everything to clients and other designers.
Within three years, the team made enough money to pay
for the expenses of their trip (including
transportation, accommodation, purchases, and shipping)
-- and earned a $14,000 profit.
Confident after that success, Kathleen and her
family teamed with two other designers for a three-week
buying trip in France.  They began their buying trip at
the March aux Puces in Paris, which is open three days
a week.  The March Biron section of this enormous
market is the place to search for antiques.
Another place to shop in France is Rouen.  All the
shops here are retail; they are clustered near the
cathedral and close from noon until 2 p.m.
In the south, visit Biot, known for its hand-blown
glass.  (You'll have to pay more to have these fragile
items packed and shipped.) Also visit L'Ile-Sur-La-
Sorgue, where the antique shops are open only two days
a week.  At Moustiers-Saintes-Marie, an open-air market
is set up every Friday in the main square.  This region
is known for its beautiful hand-painted dishes.
What lessons can you learn from Kathleen's story?

First, that you must begin by choosing a country
where you'll feel comfortable doing business.  England
is a good first choice, because there is no language
barrier.  (Of course, you should also pick a country
where you want to travel.)
Second, study the market back home.  Is there a
demand for the items you plan to purchase?  This is the
most important consideration when deciding what exactly
to import.  The second thing to consider when choosing
a product is personal experience.  What do you know
something about? What are you interested in shopping
for?
If you have a bit of experience with antiques (and
if you love poking around in the dark and dusty corners
of antique shops), then go with that.  In this market,
smaller pieces of furniture, such as chairs and end
tables, and knick-knacks and art objects that aren't
easily found back home are the best bets.  (Small
accessory pieces also make sense from the perspective
of shipping.  They can be stashed inside the larger
pieces to conserve space in the freight container.)
Always mix your purchases.  On return buying trips,
purchase what sold well last time, and then buy a few
new items to test.

The Peruvian sweater trade

Antiques is an obvious market for small-time
importers.  But it is hardly the only market.
Take Annie Hurlbut, for example.  She imports
alpaca sweaters hand-made in Cuzco, Peru.  It all
started as a birthday present for her mother.
Annie, then a graduate student at the University
of Illinois, was studying the market women in Peru.
She spent her days at the marketplace in Cuzco, working
with the Andean women, who make their living selling
handmade tourist goods, especially alpaca sweaters and
ponchos.
Annie planned to fly home to Kansas City for her
mother's 50th birthday party -- and she needed a gift.
She chose a fur-trimmed alpaca sweater-coat made by one
of the market women.  The present was extremely well-
received.  In fact, Annie's mother and friends went so
far as to suggest that Annie had stumbled upon a real
opportunity.  The Peruvian Connection was born.
Annie continued her graduate studies, visiting
Peru to do research, and then returning home with all
the handmade sweaters she could carry.  Her mother ran
the business end of the company from her farm in
Tonganoxie, Kansas.  Their first customer was a local
store, which placed a wholesale order for 40 garments.
"When my mother told me we had an order for 40
sweaters, I almost panicked.  I couldn't even remember
where I had bought the first one."
Annie began running small space ads in the New
Yorker and selling her sweaters across the country.
She personally visited the owners of stores in New
York, Philadelphia, Chicago, and California, asking if
they'd like to carry her line.
By this time, Annie had created her own design,
patterned after what she'd found in Peru.  She'd made
the sweaters of the market women into a classic fashion
product that appealed to upscale boutiques.
The business really took off in 1979, when a
reporter for The New York Times Style Section saw
Annie's sweaters at the Fashion and Boutique Show in
New York.  Annie and The Peruvian Connection received
front-page billing -- which brought in thousands of
requests for catalogs.
Annie has been running her import business for 10
years.  She spends part of each year at home in
Kansas -- and the rest of the year in Peru.  Not only
does her business bring in enough money to pay for her
regular trips to South America -- but it has grown into
a big-time mail-order company that provides a living
for both Annie and her mother.
Annie has organized 25 cottage industries in Peru
that work for her under contract.  She works out the
designs and patterns, and then hands over the
production to the Peruvians.  Everything is shipped by
air to the United States.
What words of advice does Annie have for anyone
considering getting into the international import
trade?
First, don't try to handle the production and the
marketing yourself.  You end up spreading yourself --
and your money -- too thin.
It's better to come up with a good product,
something that no one else makes as well, and focus all
your attention on the production.  It's not that
difficult (or costly) to set up the overseas production
of a product.  It's the marketing and advertising that
can drain you.  Sell yourself once to a backer, and
then let him handle it from there.
Annie's other piece of advice is that you should
give a lot of thought to where you set up shop.
Americans should think twice, she warns, before opening
a home office for an international importing company in
New York.  This city is overwhelmed with shipments, and
you can end up waiting a couple of weeks to see your
merchandise.  Things go much more quickly and smoothly
in the Midwest, for example.
Another thing to consider is customs regulations.
However, Annie assures all would-be entrepreneurs that
they won't have any problems with customs.  Importers
bring a lot of revenue into their home country and are
generally treated well by their home governments.
Nonetheless, you will have to pay import duties.
In the United States, duty is generally about 20%,
depending on the type of goods being imported.

Cashing in on Brazil's mineral rush

How much money do you need to go into the import
business?
Harvey and Michael Siegel, brothers born in Long
Island, New York, did it with about $400.
A boyhood fascination with rock and rubble led
these two to Brazil, where they filled their knapsack
with $400 worth of agate ashtrays.  This was the
beginning of Aurora Mineral Corporation, which is now a
leading wholesaler of semi-precious stone and mineral
specimens, with a client list that includes the Harvard
University Museum, the Smithsonian Institution, and H.
Stern Jewelers.
The brothers didn't fly down to Brazil with
armloads of research, deep pockets, and a long list of
connections.  On the contrary, this was a seat-of-the-
pants operation.  The Siegels' cousin had traveled to
Brazil for Carnival the year before, met a Brazilian
girl, and decided to stay.  He was their only
connection in the country, and he agreed to act as
their agent.
Having a reliable agent can really make or break
an import business.  The agent's role is to screen
products, accompany the importer on buying trips,
consolidate orders from multiple suppliers, and arrange
for a shipper to transport your merchandise back home.
You can work without an agent -- doing all the legwork
yourself -- but your job is made much easier if you
have someone working with you.
"It is invaluable to have someone on the spot to
shop the market constantly," says Irving Viglor, a New
york-based international trade consultant.  An agent is
independent and acts as an intermediary in a deal but
does not take title to the merchandise.  "Pay the agent
a commission to protect your interest," warns Viglor.
"Don't let the vendor pay the commission.  And always
check references."
Aurora Mineral Corporation mines for its minerals
(figuratively speaking) in the tiny towns of La Jeado
and Salto Jaqui in Rio Grande do Sul, Brazil's pampas
grasslands bordering Uruguay and Argentina.  Actually,
the local Brazilians do the mining.  They dig for
amethyst and agate with back hoes on land leased from
farmers.  The bounty is sold by the kilo from wood
shacks.
North of Rio Grande do Sul is the state of Minas
Gerais, where quartz crystals, rose quartz, fossils,
aquamarines, topazes, and uncut emeralds are mined.
The finest quality pieces are purchased in their
natural form and sold to museums or collectors at trade
shows.
In addition to the minerals themselves, the
Siegels also import decorative pieces made of amethyst,
agate, and quartz.  The stones are carved into birds,
grape clusters, coasters, spheres, book ends, ashtrays,
and clock faces.
These finished pieces are culled from one- person
workshops and larger factory warehouses.  "In Minas
Gerais, unlike in the south, you deal with many small
suppliers.  An agent is particularly important here,"
says Michael.
The recent craze for quartz crystal, believed by
some to have curative powers, has meant big business
for Aurora Minerals.  The World Prayer Center, a
Buddhist house of worship in Maryland, mortgaged its
real estate to pay for its collection of quartz
crystal, which it purchased from Aurora Minerals

Your Brazilian connections

All Brazilian exporters are required to file
annually with the Department of External Affairs in
Brasilia.  These records are accessible, free of
charge, from the Brazilian Government Trade Bureau, 551
Fifth Ave., New York, NY 10176; (212) 916-3200; fax
(212) 573-9406, or their offices in many major
countries.  If you're interested in going into the
import business in Brazil, it would be a good idea to
review these records to find out something about the
competition you'll be up against.
In addition, the Brazilian Government Trade Bureau
offers free consultations for anyone interested in
doing business in Brazil.  Other complimentary services
include use of meeting rooms, conference calls with
simultaneous translating services (you pay only for the
telephone charges), assistance with travel arrangements
to Brazil, and referrals for accountants, lawyers, and
agents who are experienced with matters of import and
export.
The deputy director of finance for the trade
bureau, Luiz de Athayda, can answer all your questions
pertaining to the Brazilian economy, banking, and
financial regulations.  Contact him at the address
given above.  Or contact the trade bureau's office in
Washington, D.C., (202) 745-2805.  The Brazilian-
American Chamber of Commerce publishes a listing of
trade opportunities for U.S. businesses in Brazil and
vice versa.  This international swap meet is part of a
bilingual business newspaper called The Brazilians.  To
submit a listing (which is free of charge) or to reply
to a posting, contact The Brazilian-American Chamber of
Commerce, 42 W. 48th St., New York, NY 10036; (212)
575-9070; fax (212) 921-1078.  To receive a copy of the
newspaper itself, call The Brazilians, (212) 382-1630
in New York or (55-21) 267-3898 in Rio de Janeiro.

Choosing an import

If you're intrigued by the idea of setting
yourself up as an importer as a way of paying for your
world travel, but you don't have an idea for what
exactly to import, attend the Frankfurt International
Fair.  This exposition, held every August, is known as
the Cannes Festival of Consumer Goods.  It is the best
place in the world to preview the latest European
trends.  Among the exhibits are clocks, tableware, home
accessories, lighting fixtures, giftware, housewares,
arts, and handicrafts.  For more information on this
year's festival, contact Messe Frankfurt Office,
Ludwig-Erhard Anlage 1, 6000 Frankfurt am Main 1,
Germany; tel. (49-69) 75-63-64.
If you can't make it to this annual fair, you
surely can make it to one of the other 16
internationally renowned trade fairs held each year in
Frankfurt, which has become a mecca for international
importers.  For a calendar of the fairs and more
information on how to make arrangements to attend,
contact Philippe Hans, Frankfurt Fair Representative,
German American Chamber of Commerce, 666 Fifth Ave.,
New York, NY 10103; (212) 974-8856.
And remember, if you attend any of these fairs to
do research for your import business, all the costs of
the trip are tax-deductible.
A publication that has provided many product
sources since 1963 is Worldwide Business Exchange, a
monthly newsletter with hundreds upon hundreds of
leads, contacts, sources, and resources
every month.  It covers not only import sources, but also business
financing, channels of distribution, franchises, new products,
finder's fees, mergers & acquisitions, venture capital, joint
ventures, partnerships and more.  Information and current
subscription prices can be obtained from Worldwide Business
Exchange, Dept. 70197, P. O. Box 5385, Cleveland TN 37320.

The value of a home-grown import

The import companies that prove most successful are those
that grow out of a native cottage industry whose product is
considered exotic or rare back home.  That's why Annie Hurlbut's
import business is booming.  She discovered a cottage industry
that was already thriving in Peru -- and then transported the
fruits of that industry back home to the United States, where
alpaca sweaters handmade in Indian designs are valued -- and not
easy to come by.
An idea for a similar import is handmade cotton clothing
from Guatemala.  The colorful and comfortable shirts and skirts
being made here can be bought for virtually nothing -- and then
shipped back home, where young girls are willing to spend a
pretty penny on these fashion statements.  We know of a couple,
living in Maryland, who travel to Guatemala several times a year
to purchase the handmade clothing, and then ship the pieces to
the United States for resale.  Like Annie Hurlbut, this couple is
not only able to travel to their favorite South American country
three or four times a year free -- but they are also making a
comfortable living off of the profits of their small import
company.
The ideas are virtually limitless ... handmade Mexican
blankets, which can be purchased anywhere in Mexico for a few
dollars and then resold in the United States for $30 or $35 ...
brass pots from Morocco, which can be purchased in any shop or
from any street vendor for about $15; these can be sold in the
United States for at least twice that...tiny wooden boxes from
Uruguay, useful as decorative objects or for storing jewelry;
these sell for $5 or $6 in nearly every gift shop in Montevideo
and can easily be resold in the United States for $10 or $15...
Similar deals can be made between any two countries.
Where do you want to go? Which country of the world are you
interested in exploring? That should be the primary determining
factor when trying to decide on an import.  Remember, the whole
idea
is to use the import business as a way of paying for your travel.

An unusual suggestion for the importer in Sulawesi

In Sulawesi, Indonesia, craftsmen make traditional wooden
sailing boats using methods little changed from those used
hundreds of years ago.  These boats, built without hand tools and
without electricity, come minus an engine, and they have two huge
steering oars instead of a rudder.
Known as an Indonesian pinisi, a boat of this type is a
cross between a junk and a 16th-century galleon.  The pinisi was
once the sailing ship of choice among the fierce Bugis pirates,
who ravaged the islands of Indonesia and conquered much of
mainland Malaysia.
It is possible to buy one of these boats for as little as
$5,000 or $10,000.  Of course, you must travel to Ujung Pandang,
the capital of Sulawesi, to do so.  But that's where the
adventure begins.
Once in Ujung Pandang, your first job is to find a reliable
agent, who speaks the language and who knows something about
building a pinisi.  One agent is a Mr. Rustum, who can be
contacted at Jalan 302/10, Ujung Pandang, Sulawesi, Indonesia.
But perhaps the most helpful person in the traditional boat
trade in Sulawesi is a Yugoslavian sailor named Ivo Rebic.  Ivo
speaks fluent English and Indonesian and has spent two years
researching traditional wooden boat building.  He is a good bet
for reliable and enthusiastic local assistance.  Contact him in
care of Evie Rumagit, Jalan Sumba 86/9, Ujung Pandang, Sulawesi,
Indonesia.
Once you have found an agent, the next step is to find a
competent builder.  The biggest boat building center in Sulawesi
is Tana Beru.  At any given time, there are 50 boats being built
along the palm-lined beach of this seaside village.
One of the most respected builders in this area is Usman
Hasan, an Indonesian Chinese who has the most Western-style
approach to the boat- building business of anyone in Tana Beru.
You can contact him at Jalan Tokambang 072, Bulukumba, Tana Beru,
Indonesia.
Now, you may be thinking, that all sounds intriguing, but
why in the world would I want to buy an Indonesian pinisi?
First, it is a wonderful excuse to travel to exotic
Indonesia and have the adventure of a lifetime.
But more than that, investing the time and money in building
a pinisi in Sulawesi makes it possible for you to see Indonesia
free.
Before you take off for Sulawesi, contact marinas and boat
clubs in your area.  Put up notices on the club bulletin boards
explaining what you're planning to do.  If you're lucky, you may
be able to arrange for a buyer -- or a sponsor -- before you
depart for your trip.  But at the very least, you'll build
interest in your venture.
Once your boat has been built and shipped back home, contact
all those marinas and boat clubs again.  And place small ads in
boating magazines and newsletters offering your rare and
authentic Indonesian pinisi for sale -- for several times what
you paid for it.  You should have no trouble finding a buyer --
these boats are beautiful and truly exotic in any other part of
the world.  Any boat lover anywhere would be thrilled at the
opportunity to own one -- and probably more than happy to pay
enough to cover all the costs of your trip to Indonesia.

Buy a Chinese junk

Years ago, the harbor at Hong Kong was filled with Chinese
junks.  These flat-bottomed, high- sterned sailing vessels with
square bows and masts carrying lug-sails served as floating homes
for thousands of the island's residents.  Today, these
traditional junks are disappearing from the harbor.  They are
inconvenient and uncomfortable places to live.  And few new junks
are being built.
But that is not to say it is no longer possible to buy a
junk.  You can get one for as little as $8,000 or $10,000.  They
are listed for sale in the classified sections of local
newspapers.
This gave us an idea.  You could travel to Hong Kong,
purchase an old junk, and then go on an extravagant shopping
spree in the myriad antique shops that line the streets of this
city.  Oriental carpets.  Porcelain and marble statuary.
Centuries-old Chinese vases.  Jewelry.  Carved wooden boxes.
Then you could pack up all your Chinese treasures, stash
them in the holds of your Chinese junk, and have your junk loaded
on to a huge ocean freighter and shipped back home.
While your treasure chest is crossing the sea, contact the
local media of the city where the ship will land.  Send out press
releases.  Alert everyone in the area that an authentic Chinese
junk, filled with valuable Chinese antiques, will be landing in
the city's harbor.  Make it a gala event.
All the press coverage of the junk's arrival will help you
sell the treasures it contains.  You should make enough to pay
not only for the antiques you shipped home, but also for your
adventure in Hong Kong.
What do you do with the junk? Well, you may decide to keep
it -- you'd surely be the only one on your block to own one.  Or
you could sell it.  A Chinese junk is a rare and valuable thing
outside its home country.  You could sell one back home for
several times what you paid for it in Hong Kong.
The real wealth angle here, however, is not buying a Chinese
junk.  It's using your imagination to unlock profits that no one
else ever thought of.  Ultimately, your imagination -- along with
your patience and energy -- is the key to your fortune.

Before you buy anything...

You can simply take off for parts unknown, with several
hundred dollars cash (or traveler's checks) in your money belt,
and buy up a few dozen of whatever strikes your fancy and you
believe will sell well (and for a premium price) back home.  It
really could be that simple.
But taking off blind can also be a bit risky.  Better to do
a bit of homework first.
Begin by reading everything you can get your hands on about
the country where you want to travel.  What do the local
craftsmen make there?  What do they make it out of?  Where can
you buy it?  How much will it cost?  Will it ship easily?
A good first contact is the embassy or tourist board for the
country where you'll be shopping.  Representatives at these
offices should be able to provide you with some of this
information over the phone; most are natives of the country they
are representing.
Also ask a staff member at the tourist board for a listing
of department stores or specialty shops in your area that carry
handicrafts or other goods imported from his home country.  Then
go to see for yourself what is being sold, for how much, and to
whom.
It is also a good idea to introduce yourself to the owners,
managers, or buyers of a few shops in your area.  Tell them about
your shopping trip and your plans for importing goods back home.
Ask what they would be interested in carrying and what prices
they would charge. (Remember, most retail outlets mark prices up
100%.)  You might even get an order before you leave.
The other things to investigate before you take off on your
grand shopping adventure are customs and rates of duty in your
country.  Explain to your local customs service what you are
planning to import and to where and ask that you be sent all
relevant information on clearing customs and paying the
appropriate duties.


Setting a price

Don't wait until you've returned home, suitcases full of
silver bracelets and brass pots, to determine prices for all of
your exotic treasures.  If you leave all of this to chance, you
may be in for a very unpleasant surprise.
Instead, do a bit of arithmetic before you even get on the
plane.
Start with the purchase price.  What do you think you'll
have to pay for whatever it is you plan to buy?  Add the expected
costs of shipping and duty.  This gives you your total cost.
Double it, and you have the cost you can charge the retail
outlets you do business with.  Double it again, and you have the
cost the retail outlets will charge their customers.
Say you plan to buy wool blankets in Mexico for $8 each.
You know the cost of shipping each blanket will be $1, and the
cost of duty will be $2.  That's a total of $11.  Double this to
get $22, the cost you should charge when selling your blankets to
a retail outlet.  Double that again, to get $44 -- that is the
cost to the consumer.  Is the blanket worth $44?  Is it worth
more than $44?  Consider the market.  What else is available?
How much is it selling for?  Who is buying it?
If the total cost to the consumer you come up with sounds
like too much -- or too little -- make adjustments one way or the
other.  In the case of the Mexican blanket, for example, $44 is a
bit high.  The retail outlet may only be able to sell the
blankets for $35 apiece.  Thus, you can only sell them for $17.50
apiece.  This means that the most you can pay is $5.75.  It's
possible to buy blankets in Mexico for $5.75 apiece -- if you buy
a dozen or more at one time, and if you know how to haggle.  If,
however, once you get to Mexico, you find that you just can't
find the blankets you want for the price you can afford,
reconsider.  Maybe you ought to be shopping for silver earrings
instead.
Remember also that the whole purpose of importing the goods
in the first place is to pay for your trip.  So, once you've
arrived at a price, determine how much you will make if you sell
all of the merchandise you have imported back home.  Make sure
you'll come out ahead -- or at least even.  If not, reconsider,
both the pricing and the merchandise you're importing.

The shipping factor

One of the most important considerations for anyone in the
import business is shipping.
The shipper you deal with is responsible for picking up your
purchases at the shop, packing them, and shipping them back home
for you in 20-foot containers.  With some shippers, you can
arrange for a split-container.  This way, the shipper doesn't
send the merchandise until he has enough going to your city to
fill the entire container.  Shipping costs about 15% of the value
of the merchandise when a full container is sent; about 25% or
more when a partially filled container is shipped.
The shipper should provide you with stickers (one is
attached to every item being shipped), a shipper booklet (in
which you record the merchant's name, the agreed-upon-price, your
company name, and a description of the item), and the name of a
driver, if you need one.  (If English is not spoken in the
country where you're shopping, you'll need a driver to help you
find the markets and to negotiate with the merchants.  A driver
can be expensive -- as much as $75 a day.  But this is a
worthwhile investment.)
How can you find a competent and reliable shipper? Two good
places to try are your embassy in the country where you will be
shopping and the local chamber of commerce office.

Tricks of the trade

Always carry a Polaroid camera, a 35mm camera, and lots of
film with you when shopping for merchandise to ship home.  Take
two pictures of every item purchased, one Polaroid and one 35mm.
Keep two ledgers: one that lists prospects, another that lists
actual purchases.  This way, if you're unsure of something, you
can easily go back to buy it later -- you've got a record of
where to find it.
Europe does not have the same type of wholesale market, but
they do have large wholesalers.  They may not be willing to deal
with an individual, which is one good reason to form a company
first.  But if you tell merchants that you are buying for export,
they'll usually give you a 15% to 20% discount.
In some countries of Europe, especially France, the entire
country goes on holiday at the same time.  In France, it is the
month of August.  Plan your buying sprees around these holidays.
Always keep all of your invoices and receipts.  If your
merchandise doesn't arrive as expected -- or if you have to prove
the value of your goods to a customs official -- you will be lost
if you've accidentally thrown away your documentation.
What governments won't allow you to import Many countries
have passed stringent laws against importing many of Mother
Nature's souvenirs from foreign countries, and many of these
types of products are protected by international treaties.  These
laws have been established to protect endangered animal species.
Certain plant species are also outlawed as imports.  If you
ignore the regulations and try to import two dozen pairs of
Brazilian alligator pumps (because you're sure you can sell them
back home for a 200% profit, and you simply can't resist the
opportunity), you risk having your booty snatched.  You may even
be hit with a hefty fine.  So check the regulations of your
destination country carefully.



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