Outsourcing Export Sales

The Economics of Outsourcing your Sales

Other agencies may advise and support, whilst we SELL for you in addition. Fees from £1000 monthly per agreed market.

Recent estimates put typical annual costs for a direct export managers' salary, incentives, office, travel, and other support services in the range of £100,000 to £130,000.

When sales in a given territory grow to the £2m point, then internal staffing is reviewed. Comparing the fees and commissions that the outsourced sales firm is being paid (and commission rates vary widely by industry and circumstances), it seems sensible to recruit and support staff dedicated to the company full-time.

The calculation ignores the costs borne by the outsourced export sales team, as well as the administrative and facilities costs that will have to be added at the manufacturer's end, both in the territory and the base office. Often overlooked too, is the probability that the outsourced team, with its multiple sales networks and regional relationships will grow the territory faster than can a single direct Export Manager.

The outsourced export team not only finances the sale, usually not receiving commission until after the goods have been shipped or paid for, but the commission also covers the cost of recruiting, training, employee benefits, travel, client entertainment, order processing and more. These typically add half again to the direct salary costs. The Export Manager takes on a much broader role than sales alone, whether this is editing, administering, and expediting orders, staffing a trade show stand, or resolving customers' problems.

We provide strong relationships in our specialist territories, have intimate market knowledge, and are prepared to share it.