Starting import venture on the right path

It’s not easy for a small lighting company almost a half-century old to suddenly jump into the potentially treacherous waters of international trade.

But that’s just what Louis Hirsch, owner of Parker Lighting Inc. in Inglewood, has decided to do with his four-person business founded in 1965. It’s been a chilly swim so far.

The retailer has long sold fluorescent and high-intensity lighting for parking lots and offices, as well as specialty bulbs for industrial customers and others. But in recent months, he has been exploring the use of an energy-efficient bulb from China that he thinks will save his commercial customers money and provide a boost for his business.

Learning how to import these long-life, low-energy induction light bulbs from Shanghai has not been easy. Shipping costs were unexpectedly high and bulb breakage was a problem. And one order came with information printed on the bulb in Chinese rather than the English that appeared on the samples he was originally sent.

Hirsch also had to cross his fingers and hope for the best when he wired money to a manufacturer he found by going through the many old e-mails he’d saved from Chinese vendors soliciting his business.

“You are dealing with somebody that you are not sure of how reliable they are, how reliable their product is, yet you send off the money,” said Hirsch, 52. “For, like, six weeks I was pulling my hair out waiting.”

The lighting has received good feedback from his customers interested in using it in areas where it is time-consuming and costly to replace burned-out bulbs. That has encouraged Hirsch, who has set up a new subsidiary, Eco Induction Lighting, to run the import venture.

The product has promise, said Nancy Hiromoto, an international trade expert based in Torrance. But, she said, Hirsch could blow his chances if he doesn’t learn how to import efficiently and profitably.

“He has a potentially high demand for a product that could really take off for him,” said the trade expert, who is chairwoman-elect of the Japan America Society of Southern California, a past president of the Los Angeles chapter of the Assn. of Women in International Trade and a board member of several other trade groups.

“It’s essential for him to have the logistics in place to meet the demand and fill those orders promptly,” she said. Hiromoto met with Hirsch recently and made several recommendations.

Find an overseas agent. An experienced agent working in China can locate reputable manufacturers for Hirsch and negotiate the terms of sale, including product prices, lead times and logistics. “The agent fee is nominal and almost nil for the buyer,” she said.

Work with a bank to get a letter of credit. This bank-issued document guarantees payment for the seller, as long as the terms of the deal are met, and is required on most larger orders.

“It’s very important that an experienced banker write it up because they can cover all of the loopholes, make use of accurate data and word it perfectly so that it benefits both parties,” Hiromoto said.

Use a reputable freight forwarder to handle product shipping. These licensed companies will handle shipments from China for Hirsch, negotiate rates with carriers and ensure compliance with strict government rules. Hirsch also could save time and work by using the domestic distribution services offered by some freight forwarders.

Join an international trade association. This is a good source for workshops and networking that can benefit a new importer such as Hirsch.

The owner welcomed Hiromoto’s tips on learning how to understand and control importing costs.

“She has given me some much-needed feedback,” Hirsch said “That will help us get through the maze of importing.”

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