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A
Anonymous
August 16, 2018

Value Add proposition-how to overcome the obstacle?

  • August 16, 2018
  • 2 replies
  • 0 views

I own a retail/service business in Mexico and I'm facing the challenge of high cost to import goods across the border. Of course we are trying to find cheaper/alternative options to get items in without going thru US, but regardless I have to pass those costs on to the consumer.  The general argument I get is, I can drive up to the US and bring across myself. They drive up, risk not getting caught, and bring items across illegally to avoid paying duty.


So my question to you as business people, how do you overcome that objective of price to the consumers?  My biggest argument is that I am legally importing items and in order to comply I have to pay the fees to get the products you want. Most of my customers are retired so there time they spend driving is not significant to them.  Any insight would be appreciated.  

      2 replies

      EmilyCowan
      EmilyCowan
      August 17, 2018

      Wow @205240 - that's a tough one. It must be frustrating to lose business just because you're playing by the rules.

       

      I love that you're thinking in terms of your value-add. Yes, your customers could just run up to the US to purchase goods in hopes that they'll evade customs duty on their way back (although just the idea of getting busted for that would be enough of a deterrent for me!). But I guess there are folks who are willing to take the risk. So. What can you do to make your service so extra-amazing that your customers would gladly pay a bit extra for it? What are your options?

       

      @201192, any ideas?

      A
      Anonymous
      August 17, 2018

      This is the challenge.   I think one of the biggest up-sales is the convenience.  To drive to the US is 120 miles each way to the border (350 miles each way to closest distributor) as well as the fact that the weight of our product (batteries) is in excess of 120 pounds each.  Our average client is over 60 so not to many can lift that on their own.  Aside from that most vehicles cannot carry that much weight if they were to purchase multiples.  Gas prices here in Mexico is over $4 a gallon.  Maybe I need to do a side by side comparison showing gas and tax cost to drive up vs buying local?  That is a thought, yes

      Rustler
      Rustler
      August 17, 2018

      @205240

       

      I think you pretty much nailed it, find a cheaper source, and,  until then accept that you will have to sell at a lower margin.

       

      Try to make customer service and convenience the determining factor in where they shop.

      Maybe online pre-order, drive up, pay for it, and it is loaded up for you.
      or
      a customer rewards program where they get store credit or a surprise discount coupon at check out which they have to wait to use next time within x-number of days.
      or ....

        A
        Anonymous
        August 17, 2018

        Our product, solar, is really not a quick come back and buy in xx days business.  However I do like the idea for an online pre-order.  We are a partial seasonal business right now based on demand, so as the season is coming up, I could advertise so when the snow-birds arrive we have the items in stock.  

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