KEY POINTS:
Q. How can a NZ company compete in such a tough, competitive environment?
A. Tallon Marine is fortunate - we're a unique product in the marine accessories market and don't have a direct competitor. This may change over time, so we made the decision to get to market as fast as we could. Know your target market and niche it. Be direct about who you try to go to and don't waste time. This will make it harder for potential competitors to muscle in.
Q. Does Tallon manufacture its products here in NZ?
A. Yes. While we rely on our raw material (plastic) being imported, design and manufacture is in NZ. We have control of our core system - total control of our tools, where they are and what comes off them. This is key in our product development and ability to produce what we want.
Q. How does an exporter cope with the fluctuating New Zealand dollar?
A. We started our business on a high dollar, and we've so far found time has balanced it out. If dealing foreign exchange isn't your strength, don't play it. Be an expert in what you're good at and get the right advice for the rest.
Q. Are trade shows really worth it, and what should I consider on top of the cost of a stand?
A. Having the opportunity to interact with customers and suppliers face-to-face is valuable. If you're going to do it, do it properly. Having the right presence at the right show is crucial. You need to allocate a realistic budget. There's your staff, clothing, merchandise, travel, marketing collateral, additional promotional opportunities - and the need to keep running your business at the same time. Picking a good trade show is down to knowledge and experience. If you don't have those, get advice. Talk to others in your industry and research your market. We're launching in the United States next month at the International Boatbuilders' Exhibition and Conference in Miami. I've learnt from the industry this is the best place.
Q. What are the perils of Kiwi companies exporting to the United States?
A. The sheer size of the market. Most NZ manufacturers have a fear of being too successful and unable to cope with demand - this can be disastrous. Understanding your liability and commercial risks are key. It's a litigious place so be prepared for this, and talk to your insurers. Getting a country distributor on board is a smart move. This removes an element of risk and increases credibility.
Q. Is it hard to sell high-end 'niche' products on a large enough scale to make money?
A. We worked hard with the industry to get our pricing right - 12 months before launching we asked the trade what they thought it was worth.
Q. Why aren't you swamped with cheaper products from big Asian manufacturers?
A. We're unique in our field. Ensure you get your patents and structure in place right from day one, ensure they are as broad as possible.
Q. What's your top tip for getting a manufactured product to market?
A. Make decisions and act on them. If they're wrong, so be it, but make them. So much time is lost making decisions by committee and writing summary papers. You have to be determined about what you're trying to achieve every step of the way and don't compromise on your vision.
