Business Essentials: 'We want to sell to the new EU but we're Poles apart on language'

Jak sie masz? Confused? So is Andy Freer of Feedwater. While the Wirral-based firm would like to export to Poland, the language is proving a barrier.

Feedwater makes treatment chemicals for steam boilers, large-scale air-conditioning and heating systems, and cooling towers. "Having had success in a range of overseas markets - including the Middle East, Hong Kong and the Mediterranean - we are now looking to expand into the most recent EU entrants," explains Mr Freer, who is export sales manager.

"Our current target is Poland, but the language is proving problematic as it is so different to ours. If you go to a country like France, you can recognise various words. But in Poland that really isn't the case."

Another barrier is cost. "When I was in Poland, I found that they mainly buy from Germany when it comes to our industry. After all, it is just across the border and, when we discussed prices, I discovered they are a lot cheaper than us."

Feedwater would be prepared to drop its prices in order to compete against these companies in a country where the cost of living is lower. "But we would like advice on how to do this without losing out too much on profit," says Mr Freer.

A third problem is making contacts. "I went to UK Trade & Investment [UKTI - the government body that helps companies to trade overseas] and for £800 they did some research for me and came up with over 10 companies, which I contacted. But not one of them bothered to reply, even to say they didn't understand what I was saying. That is assuming they got my emails in the first place."

Mr Freer admits the correspondence was in English. "But in fairness, I think most people in the world of business would have some understanding of English," he argues. "And even if they don't, they would know someone who does."

To help with these issues, he could approach an agent that specialises in doing business overseas. "But we are a relatively small firm and our budget is limited."

Instead, he has joined UKTI's Passport to Export scheme. "I've gone on three- or four-day courses and I've got a mentor, both of which have taught me a lot."

China may be a more sensible option for expansion, he adds, "but it would be very costly to deliver there. Also, knowing the Far East as I do, whatever we provide them with, they copy. And then they deliver it themselves in a very short period. So we would get very little benefit.

"I decided Poland would be more advantageous because they work to EU standards and it is much nearer. But there are issues we need to get past, and I would really value some advice on how to tackle them."

And for anyone who is still confused, jak sie masz? means, "How are you?"

www.feedwater.co.uk

WHAT THE EXPERTS SAY

Stephen Pegge, Head of Communications, Lloyds TSB Business

"Poland is certainly an expanding market. But proximity, language and cost do give German rivals the edge, so Mr Freer needs to be very clear what his competitive proposition should be to Polish firms.

"In Feedwater's situation, there's little alternative to using an agent or building a relationship with a distributor, and it may be worth contacting the British Chambers of Commerce to get introductions to one.

"The alternative is to start from scratch and use the Department of Trade and Industry's export-research service to identify Feedwater's best market. It may be nearer to home than Mr Freer thinks.

"Product development for existing clients may be another route to growth. Are there needs that are unmet and could be supplied using its chemicals?"

Philip Wilkinson, Business Adviser, Business Link for London

"Mr Freer needs to establish himself in Poland with one or two customers initially, and there are a number of ways to do this.

"One is by targeting international companies that have located in Poland and are more likely to have English-speaking employees. Through UK Trade & Investment and the British Chambers of Commerce, Mr Freer will be able to get access to prospects in Poland.

"These sources can also assist in finding and assessing potential distributors. Alternatively, Mr Freer could consider a joint venture or licensing agreement, which will allow a local business to market and sell the product."

Andrew Cahn, Chief Executive, UK Trade & Investment

"Companies often miss out by underestimating the importance of language and culture when selling into an unfamiliar country. However, our commercial teams overseas can advise on translation and interpreting, and our Export Communications Review service, provided by the British Chambers of Commerce, will give useful advice.

"Mr Freer is right to look at pricing, but he could also consider using an in-country distributor. This could reduce both costs and delivery times, as well as helping to reach other new EU members such as Hungary and the Czech Republic.

"While China does present challenges, Mr Freer's experience in Hong Kong could help. Many UK firms have established joint ventures there to reach the mainland."