Disadvantages of Using an EMC/ETC

• There are several disadvantages to using an EMC or an ETC.
  • Loss of control of your export strategy.
  • Loss of control of post-sales service.
  • Reluctance on the part of some foreign buyers to deal with a third party intermediary.
  • Added costs and higher selling prices because of gross profit margin requirements of the EMC/ETC.
    • Unless economies of scale off set this.
  • An EMC/ETC may neglect your product in favor of other products that are more profitable and easier to sell.

---

---

© 2004 John Michael Pierobon

Notes