Success measured in meters.
POM, Inc. of Russellville is a familiar exporting success story to some aspiring overseas traders. When a company that has been playing the game, and playing it well, for twenty five years talks about it, we should listen.
Because the company has been exporting its parking meters and replacement parts for so long now, it has developed strong relationships with its customer countries, shippers and other export resources. And, it has learned the financial ropes well.
Terry Henderson, Export Administration Manager, says the company uses different methods of financing and billing depending on the customer. For example, a new customer would be required to provide a letter of credit, confirmed by a U.S. bank.
"We can relax the terms for more established customers," says Henderson. "We might accept an unconfirmed letter of credit or a sight draft."
A sight draft doesn't cost the buyer as much as a letter of credit - he must pay the seller before he can get the goods out of customs.
Henderson said it would be nice to always work with the same bank but that often depends on the buyer. When a foreigner needs a letter of credit, his bank looks at U.S. banks to see if a corresponding relationship exists with any of them.
If you know about an order far enough ahead, she adds, you might influence which U.S. bank is used.
POM, Inc. has worked with Worthern Bank in Little Rock, but more often deals with out-of-state institutions. Henderson mentioned a Tulsa bank and several from the Mid West.
Any other advice for the novice exporter? we asked.
"Get a good, knowledgeable freight company," says Henderson. "They can handle a lot of the documents and legal questions. And contact your local, state, and federal agencies. It's silly not to use them. Your tax dollars pay for their services."
"The Commercial News USA (see description on page 34) is the best and cheapest advertising a person can get anywhere." POM advertised in a special issue featuring Arkansas products this summer and has received more than 100 inquiries from the one ad.
The company, established in 1935, employs 115 in Russellville. Henderson estimates that one-third of POM's business is done outside of the United States. Australia, New Zealand and Malaysia are some of its biggest customers.
PHOTO : NICKEL ND DIME-ING: POM, Inc. of Russelleville exports parking meters and spare parts to foreign customers and distributors. Exporting accounts for one third of POM's business.
PHOTO : A CORNER ON THE MARKET: Between POM and another Arkansas company, the state supplies 85 percent of the world's parking meters.
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|Title Annotation:||POM, Inc., manufacturer of parking meters|
|Date:||Dec 17, 1990|
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