Different Countries, Different Vendors, Better Terms

On Tuesday , NY Report produced “International Business Opportunities: 3 Success Stories,” a panel discussion sponsored by HSBC Bank. The event featured three successful business owners who discussed how they have been able to grow their small businesses overseas and handle the conditions of international markets.

One of the many takeaways the attendees got from the event came from Rhona Sutton, founder of RhonaSutton.com. The apparel and accessory entrepreneur deals with vendors in the Far East and has learned that becoming acclimated with local customs and standard business practices all over the world has helped her bottom line.

For example, when Sutton buys from China, factory owners there share the mentality that they require a 30 percent deposit pre-shipping and negotiating payment terms with them is very difficult. However, when she buys from Thailand, she feels the vendors have more of a business mentality, and she generally can negotiate 30 or 60 day payment terms. “When you are looking for vendors, you are not only looking for a vendor that can produce what you want at the price that you want, but you also want to try and find someone who can supply you at terms that are favorable to your business,” Sutton said. “I’ve found supplies from different markets and recognize the abilities and mentalities of those markets so that I’ve got a balanced supply base that also suits my cash flow.”

More highlights of the discussion will be featured in the July issue of NY Report.