FINANCIAL SUCCESS (Continued)

Growth in Export Earnings Each Year

The following graph shows the annual export earnings between a company that has only 1 foreign representative over a 5 year period (Shown in blue) and a second company that starts with one foreign representative but adds a new representative each year over the same period (Shown in grey).

For the second company (grey), export earnings will rise by $216 thousand beginning in the second year after a one year adjustment period. This increase occurs every year and is cumulative, so in the fifth year the company will receive $1.08 million in export revenues.  Meanwhile, the first company still is receiving only $216 thousand a year.

Growth in Annual Export Revenues

Growth in TOTAL Export Revenues During the Five Years:

The effectiveness of the PowerExporting™ approach is evident by comparing total export earnings for the whole five-year period.

• Company A with only one representative receives $216 thousand each year. This amount remains constant for 5 years and totals $1.08 million at the end of the period.
• Company B appoints one new representative each year thus receives an increasing amount each year (after the one year lag). Total export revenues after 5 years will be $3.24 million by the end of the 5th year.
• The difference between Company A’s $1.08 million and Company B’s $3.24 million is $2.16 million – almost a quarter of a million dollars.

Of course, company A could also have appointed several additional representatives during this period via contacts received at the domestic trade shows, but based on past activity it is not likely!

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