Taking exporting to the next level: Europe, Japan next
on list for Atikokan canoe maker.
by Ulrichsen, Heidi
Keith Robinson, who started Sour is River Canoes in 1985 along with
his wife, Arlene, has been exporting his high-end canoes to the United
States for about seven years.
[ILLUSTRATION OMITTED]
Now the Atikokan, Ontario business owner is examining the
feasibility of exporting canoes to Europe and Japan, although he knows
it will be a challenge.
He figures it would cost $1,000 to ship one canoe to Europe, when
his canoes are only worth $2,700 to $3,300 in the first place.
"It just makes it a little bit more complicated. But it's
a good challenge. I'm up for a challenge," he said.
"That's partly why I'm in this business. I think
it's doable. But it's going to take some time to set that up,
definitely."
Robinson currently sells 55 per cent of his products in Wisconsin,
Minnesota and other American states. The majority of the other 45 per
cent of his business goes to southern Ontario.
"We produce some of the toughest, lightweight Kevlar canoes in
North America," Robinson said. "It seems like the American
market is a little bit more open to new products. If they see something
good, they embrace it."
However, shipping and exporting products can be difficult for small
business owners, especially for those selling products as unwieldy as
canoes, he said.
"It's so hard to ship canoes by common carrier because
they get damaged, or it's too expensive," said Robinson.
"Because our volume is not very high compared to some companies
that produce lower end canoes, getting canoes out to California and
Florida is difficult."
Instead, Sour is hauls its own canoes on a trailer to both southern
Ontario, and its United States Distributor--Red Rock Canoes in Ely,
Minnesota. He has a trade broker to fill out the exporting paperwork for
his company.
Thanks to the business developed through exporting canoes to the
United States Robinson has expanded his operations significantly in the
last few years.
He already put up a large building for manufacturing a few years
ago, and an increase in sales is spurring him to add even more space
this summer.
When examining the possibility of exporting, the first thing a
small business needs to do is determine whether there's a foreign
market for their product, said Pamela Kanter, a manager with the
International Trade Branch of the provincial Ministry of Economic
Development and Trade.
Companies should also visit their target market and look for a
foreign agent or distributor, she said.
"Going to key trade exhibitions is a great way to start
getting your name out there, gaining profile in the market, and
establishing contacts," said Kanter.
"Meeting a customer is always great, but meeting a good agent
or distributor can be a critical way to maintain your presence in the
market, and have them do a lot of that legwork for you. If it's a
good distributor or agent, they have well-establish contacts, and they
can get doors open."
Hiring a good freight forwarder is also critical to reducing
shipping costs and making sure the product reaches its destination in a
timely fashion, she said.
"They can help you find the most cost-efficient way of
shipping your product. Perhaps you can consolidate with another shipment
so you're not just sending one thing in a big container."
The ministry offers a number of services for small and medium-sized
businesses looking into the export market, said Kanter.
There are 19 market specialists working at the ministry available
for one-on-one consultations with businesses. Kanter herself specializes
in the American and European export markets.
As well, a variety of seminars are offered by the ministry. For
example, a program called New Exporters to Border States (NEBS) is a
two-day program where company representatives go on a trip to either
Detroit, Michigan, or Buffalo, New York, and visit professionals like
border agents and freight forwarders.
The ministry also organizes several trade missions to various
countries each year. It also publishes resources such as the Getting
Ready to Export Guide.
While finding an export market is a lot of work, it's worth it
because the Canadian market is relatively small, said Kanter.
"There's an awful lot of companies that have excellent
products. In order to grow their business, they have to look to export
business. It's not for everybody, but it can be for a lot of
people."
www.sourisriver.com
www.ontarioexports.com
By HEIDI ULRICHSEN
Northern Ontario Business
COPYRIGHT 2008 Laurentian Business Publishing,
Inc. Reproduced with permission of the copyright holder. Further reproduction or distribution is prohibited without permission.
Copyright 2008 Gale, Cengage Learning. All rights
reserved. Gale Group is a Thomson Corporation Company.
NOTE: All illustrations and photos have been removed from this article.