The Cost of Doing Business - Spotlight on Eastern Europe
We know people are talking about what Freshwater spends – so we thought we’d give you a glance into the cost of doing business.
Here is a spotlight on the cost of doing business in eastern Europe.
The seafood market in eastern Europe and the former Soviet Union is rapidly expanding, and ongoing annual expenses build the demand here for our products.
Attending the annual tradeshow in Moscow is expensive, but this important event helps increase Freshwater’s presence in the Russian market.
Transportation and food
Transport of fish samples for display
Meetings with customers and a Freshwater broker (including dinner and lunch expenses)
The travel required to attend tradeshows and visit with customers in order to develop business relationships may be expensive, but the payoff is worth it.
Face-to-face meetings not only strengthen our relationships with current customers but also lead to a high success rate in gaining new sales and customers.
Visits to fish companies, retailers and restaurants across the world improve our first-hand knowledge of foreign markets, which is critical in understanding our customers and finding new opportunities.
During a store visit while in Russia last fall, for example, we discovered a Russian fish that turned out to be Russian inconnu and one of the most expensive smoked items in the store. This led us to find a Russian customer for our inconnu who is willing to pay more than our current market price.
In only seven years, our sales to this market have increased ten-fold.
Investing efforts in the eastern European markets has proven to be very favourable for Freshwater’s commercial fishers.
Freshwater put a significant amount of time and resources into developing this market and we are receiving excellent rewards. Ultimately, we need to work harder in the future to manage and maintain our global markets – particularly Russia, a growing market where we strive to introduce new products.
And it seems to be working.
While we incurred some higher expenses in the first few years we dealt with Russia, the cost to continue our efforts is now much smaller – and the payoff is tremendous.