The worst mistake a trader can make in exporting their product is failing to use proper marketing tools or even worse, not taking any action toward marketing at all.
Not Investing in Marketing
Most people, due to natural human tendencies, look for magical and quick solutions so they can reach their goals in the shortest time like other successful individuals. However, all successful exporters have invested time and money to achieve results. What we see today is the outcome of months or even years of consistent work.
Many people are either producers or can source products from acquaintances or certain suppliers. Under such circumstances, they tell themselves: “I already have the product, someone will come and buy it. They surely will.” But unless you introduce yourself properly, no one will know who you are or what quality your product has.
In export markets, you face numerous foreign competitors. Successful companies that achieve high sales begin marketing longbefore entering the target market. Yet many Iranian traders are unfamiliar with spending money on marketing. Instead of using various marketing methods let alone speeding up their efforts they move in the opposite direction and allocate no budget to marketing.
This is one of the worstmistakes in exporting. As a result, when they produce or procure a product, it remains unsold. They eventually have to sell it at a loss to middlemen because no one knows them.
Even worse, sometimes products must be destroyed due to spoilage. All these problems arise because they procrastinate on marketing and put themselves in a difficult, forced position leaving all export profits to the middlemen.
Ignorance costs your money, not anyone else.
Starting Late
One of the biggest mistakes traders (and people in general) make in life is starting too late. Many postpone decisions due to fear or lack of knowledge. Exporting is one of the major milestones in a business career. If you start today, you may achieve results quickly, but if you delay, you give away all your opportunities to your domestic and foreign competitors. You may never regain those opportunities.
The biggest challenge for newcomers and even current traders is the weak commercial education system. Everyone has been raised with the mindset of seeking a “guarantee.” In the article “Guarantees Are the Surest Way to Fail” we explained why this mindset is harmful. In short, people who constantly seek guarantees never start anything and merely watch their competitors succeed.
Many companies could achieve successful export results by working with expert consulting firms. However, they need to start exports based on proper principles and inject a bit of risk tolerance into their work to witness significant and exciting changes.
Inconsistent Marketing
Marketing must be continuous and strategic just like a heartbeat. If it stops, restarting becomes extremely difficult. Consider the old “Pak Dairy Don’t Forget Pak” advertisements. The brand once held a large share of the market, but now other brands like Mihan and Kaleh have replaced it. The brand disappeared from consumers’ minds simply because its marketing and advertising were reduced and suddenly stopped.
Some may not consider this an export mistake, but when they are forced to spend multiple times more to regain market share, they understand its importance.
To stay in the customer’s mind and maintain your brand’s market position and sales growth, you must continuously market your product through various tools. Many individuals stop after one or two pieces of content, Google ads, or social media campaigns exactly when they are one step away from success. This is the secondleading cause of export failure.
Restarting later costs far more, and if things don’t go well, the company may go bankrupt. If you believe limited advertising will bring extraordinary results, change your mindset now because the market will teach you a harsh lesson.
So, stay consistent.
Dollar-Based Costs
Foreign companies allocate marketing budgets equal to the wages of dozens or hundreds of workers so they can sell millions of dollars’ worth of products and gain market share. But many Iranian traders hesitate to spend even the equivalent of one or two workers’ wages on marketing. Later, when their product gets damaged, they must sell it cheaply in the domestic market or even discard it especially in perishable goods like fruits and food products.
If we had to choose the deadliest export mistake, this would be it.
To export to any market, you must compete with both local and foreign competitors. Export profits are in dollars, your sales revenue is in dollars, but many traders wrongly assume that marketing costs should be paid in rial. In global markets, marketing expenses must be paid in dollars. Many failures happen because traders refuse to spend marketing budgets proportionate to the market’s requirements.
Incorrect Export Cost Calculations
Many traders misunderstand the meaning of export costs. It is not just the price of the product it includes all export-related expenses such as permits, packaging, shipping, insurance, production, and procurement. Many traders only realize at the end that their profit margins don’t add up.
For example, you may want to export to Iraq but be unaware of export regulations. Many traders ignore tariff changes and face high clearance costs at customs losing all or most of their profit, or even ending up in debt. Much of this financial loss and missed opportunity comes from poor planning and lack of proper market evaluation.
Incorrect Export Pricing
One of the most dangerous mistakes is announcing the wrong export price. Many newcomers face this issue. Incorrect pricing happens when traders conduct poor research. They may set prices so high that buyers walk away, or so low that they lose significant profit.
The first step is discovering the correct price. Then, with an export expert, you must calculate total costs including sourcing, packaging, and operational expenses to ensure profitability while maintaining enough budget for marketing.
Wrong pricing can cost a company an entire export season and lead to financial loss in the following year.
Lack of a Marketing Plan
A marketing plan is like a war strategy. Without it, you don’t know which marketing tools to use or what results to expect. A plan helps businesses know how to respond to challenges and achieve the best outcomes.
Many business owners skip creating a marketing plan because they believe it slows down market entry or is an unnecessary expense. Others simply dislike planning altogether. However, once a crisis occurs, they finally realize how essential it is though some never do.
Lack of an Export Plan
An export plan guides a company in preparing its product for foreign markets. For example, it clarifies:
- what packaging changes are required,
- which certifications or permits are needed,
- and what improvements must be made before entering the target market.
Without an export plan, companies often waste their marketing budget because their product is not actually suitable for export. This issue primarily affects companies dealing with non-raw products like food, pharmaceuticals, and industrial goods but eventually, all exporters need an export plan.
Insisting on Specific Incoterms
In many markets, FOB and EXW are popular, but some Iranian companies ignore sanctions, trust-building issues, and buyer preferences, insisting on receiving payments only under EXW or factory delivery terms. This leads to losing customers and reducing sales.
With proper cost calculations and by creating safe payment conditions, sales can be increased. Using tools like online order platforms, guest posting, or introductions through chambers of commerce can help build trust.
Insisting on specific Incoterms is one of the most common export mistakes and a major cause of missed opportunities.
Lack of Awareness of Rules and Regulations
Unfortunately, many new traders fail to research export regulations. They often realize major obstacles after signing contracts when it’s too late. The product may be blocked from shipping, require unachievable permits, or face long delays.
This mistake leads to increased storage costs or even spoiled/obsolete products especially for perishable goods.
All these problems can be avoided with proper market research, yet many ignore it until it’s too late and must pay a heavy price.