Doing Business in Germany is No Joke!

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Germany has a tradition of trading with the UK, but entering this market is not easy. The Germans have a reputation for being difficult customers - demanding specifications and exacting delivery standards - so is it worth the effort?

The answer is YES, providing you have the right product and are prepared to do the necessary groundwork. The Germans believe in doing business with established partners, so once you have built up the necessary trust, you can expect a long relationship. The 81m Germans have a high disposable income and like good quality products. So what must you do?

Start with your product. It has to be right for the German market. "Me too" products are not successful unless they have a definite price advantage. Your goods need to be of high quality and technically sound. They need to carry a CE mark and it pays to have them certified by the appropriate German standards agency, although this is not strictly essential. You must judge whether the additional cost and time are worth it.

Now sell it. Business in Germany is done primarily through agents; you need to find a good one, who covers the area of Germany you are targeting. Here you need professional help from an Independent Consultant, Business Link or Chamber of Commerce. Germany is fanatical about delivery dates, you should deliver on the day specified, too early gives storage problems, too late holds up production. Never agree to impossible deadlines - you only get one chance.

What about language? Most senior managers in Germany can speak English but will not do so in a business situation. You cannot become fluent overnight but your agent may help with interpreting. Better still, start learning the pleasantries and employ at least one fluent German speaker in your company. He or she can then deal directly with customers who call you for advice or help - and they will.

Business in Germany is serious, do not joke about your product or company, if you do, they laugh politely but you will lose a customer.

So, the essentials for entering the market are; a good product to the correct standards, the ability to meet delivery dates, a serious attitude to business and the ability to communicate in German. Above all, keep the information to agents and customers flowing - communication is the key to success.

John Dumbrell a regular speaker at Farnham Castle he has spent many years in Germany and worked in a number of locations. His last appointment was in Berlin as the Managing Director of the German subsidiary of a large UK company. Since then, he has worked on secondment at the Department of Trade and Industry as an Export Promoter, helping small and medium sized firms export to Germany. He is now a consultant, specialising in Germany but has retained some links with the DTI where he is a member of the European Trade Committee and Chairman of the German Country Group. He is also the UK Representative of the Hamburg Business Development Corporation. December 2002