|
Sandberg
Furniture, Los Angeles, received the 2002 Global Marketer of the Year
award from the Woodworking Machinery Industry Association for its
exporting and marketing efforts abroad.
Phil
Sweet, vice president of manufacturing for Sandberg, accepted the award
from WMIAâs John Park.
Sandberg
uses high-technology equipment from WMIA members, including a Delmac
point-to-point machine, Giben panel saw and Holz-Her edgebander, to make
promotionally priced adult and youth bedroom furniture. The company goes a
step beyond the basic ãsell-and-shipä philosophy when dealing with
international markets that include Mexico, the Middle East, Russia, South
America, Canada and Asia. The companyâs exports represent approximately
20 percent of its business.
ãWe
learned early on that we had an advantage when it comes to exporting to
foreign markets because we build to inventory,ä says Lori LeTourneau,
vice president of sales for Sandberg. ãBecause we do that rather than
build to order, weâre able to supply people on an as-need basis. Whether
weâre shipping across the country or out of the country, the time
element is very important.ä
Sandbergâs
current ship time is roughly within 48 hours of receiving an order. The
company has a 120,000-square-foot warehouse to store inventory prior to
shipping.
Because
Sandberg manufactures inexpensive bedroom furniture, its products are a
good fit with the companyâs efforts and ability to market its products
abroad.
ãAnytime
you ship overseas, it adds a tremendous amount to the cost,ä says
LeTourneau. ãBy the time the product arrives overseas, itâs quite a
bit more expensive than what it would be sold for domestically. In our
overseas markets, our products fall into the medium-price range rather
than promotional.ä
Building
relationships with contacts and agents in foreign markets is another thing
that Sandberg uses to its advantage, and the company relies heavily on
partnering with the right agents and contacts to build its foreign
customer base.
ãWe
rely a lot on our independent agents abroad,ä says LeTourneau, ãFor
example, in Saudi Arabia, we gear our marketing efforts according to our
agentâs suggestions. If he needs a particular marketing piece or
product, he communicates that to us and we respond accordingly. If we have
success in one region and learn enough about another area that is similar,
weâll pursue contacts there. Itâs important to establish strong
relationships to be able to sell those types of accounts.ä
LeTourneau
says that other domestic manufacturers who build to inventory likely share
the same export opportunity that Sandberg has.
ãI think the best
thing companies can do to expand their businesses abroad is to do market
research to find out consumer preferences in a particular region, then
examine their own product lines and see if there is a match,ä says
LeTourneau. ãI think itâs easier to look and see where the gap is and
how you might fit in than it is to develop something new for a particular
region.ä
|