Globally, the American market is one of the most coveted by companies wishing to export. This is not surprising, since the country alone represents 25% of the world economy (UN).

In Canada, we are fortunate to be close to and experienced in trading with the US, which makes it all the more attractive, even without considering the Canada–United States–Mexico free trade agreement (CUSMA). This trade agreement greatly facilitates commercial exchanges with the US by removing tariff and non-tariff barriers as well as simplifying the transport, logistics and warehousing of products.

These conditions provide Canadian companies with a head start, but they do not guarantee their success in the American market. To successfully export to the US, you will have to adapt to how Americans do things and get to know the market extremely well. Today we’re sharing our seven best tips on how to do this.

Identify your added value

The US market is a niche market where you have to offer a value-added product. This is due to the country’s protectionist nature, but also to its expertise in many sectors, both in services and in manufacturing. At equal value, Americans will always favour a US-made product.

So, you have to ask yourself if your product is unique in the market. Is it less expensive? Is it better quality? Does it meet a need in an innovative way?

Perhaps you offer a product similar to one currently imported from Europe by the US. If you offer better service, faster delivery or if your product is less expensive (which is often the case thanks to the Canadian dollar), you’ll have a competitive advantage.

Get to know the market

The US is a huge territory with many different markets. They don’t all have the same potential for your products.

Canadian companies are in the habit of looking at more populated states, such as Florida or Texas, or territories that are close by, such as the Northeast for Quebec companies and the Great Lakes region for Ontario companies. However, before choosing a region, you should do a market study to be sure that your product meets the needs of the potential market, that the price is right and that you will be able to handle competitions.

As you get a better idea of the overall portrait, you could discover that certain less-known markets, such as those in the Midwest or Southwest, could be equally interesting entry points and less occupied by other new importers.

Develop your distribution network

The size of the Canadian market makes it easier for companies to sell their products without a distributor. This is not the case in the US, which invented the concept of distribution and still functions according to this business model. Distributors are often seen as a cost, but they bring great added value to exporting companies, especially when it comes to logistics, delivery, technical skills, established relationships, customer service and taxation.

The best way to enter the US market is to find a distributor that offers you the best coverage of your market and develop a long-term relationship with it. We share our tips for training and optimizing your distribution network in our recent white paper which should help you with this.

Adapt your products

Even if certain certifications are recognized internationally, the US has its own certification rules for several product categories. Americans impose some of the highest standards in the world, as well as trade rules to prevent, among other things, imported products from saturating their market.  It is possible that you may have to adapt your products to make them legal, or that you will have to take steps to obtain certain certifications.

As well, since you don’t speak to an American  like you do to a Canadian, you will also need to re-evaluate your marketing strategy to better reach your new audience.

Get help from experts

Even if this applies to all your international market development, it is even more crucial to surround yourself with experts in law, taxation, logistics, development and marketing as you explore the American market. American laws are very strict, especially in employment and taxation, and   entrepreneurs who do not have expert help can run into a myriad of problems and have difficulty moving their products.

Americanize your approach

To develop relationships with Americans, you have to adapt to their ways.

For example, they expect business partners to have a good command of English, especially when it comes to marketing and technical aspects, but above all they expect to be served well in their own language if they have a problem. They also tend not to develop personal relationships with their suppliers, unlike in other countries where distributors often invite their suppliers to their homes for dinner or even to get together on the weekend. In the US, developing personal relationships is not a prerequisite for successful business relationships.

Finally, Canadian culture is different from American culture in many ways: politics, culture, economy, etc. When dealing with American clients, Canadian exporters should avoid sensitive subjects that are not related to the business at hand.

Take advantage of available funding

The Canadian government program CanExport SME (federal) and PEX (in Québec) generously subsidize efforts to export to the US.  In Ontario, the Ontario Exporters Fund provides SMEs grants  to hire a specialized export executive. There are also many private and government investment funds that can help.

It is even possible to obtain financing from across the border. In the US, access to capital is very easy and inexpensive thanks to low interest rates. It is one of the markets for which you can access the most funding.

__

Exporting to the US has its share of challenges, but you can do great business there as long as you have a value-added product, select the right market and develop a strong distribution network.

Don’t hesitate to contact a member of our team if you have questions about the US market or if you wish to have the support of international market development experts as you seek to develop your exports.