Why North American Industrial Businesses Use The Exchange Rate To Increase Profit Margins
Canadian-based companies would have to have been living under a pretty large rock to miss the slide the Canadian dollar has taken the past year. Doom and gloom talk has littered the pages of major newspapers, websites, and social media feeds. And while the current situation no doubt has many manufacturers on edge, the sky is certainly not falling. In fact, as a North American industrial marketing company, we see a huge opportunity for businesses on both sides of the border. There is only one problem – in many cases, U.S. based businesses have not considered the buying power they have.
As is common thinking in marketing, no one cares as much about your business as you do. If you fail to tell customers about the advantages of your products, then who will? Outside of the states which border the 49th parallel, many industrial businesses are unaware of the significant savings they may be missing by purchasing Canadian products. And this makes sense. As the only truly “global currency,” the U.S. dollar (USD) is the de-facto standard when it comes to buying power.
So the responsibility to remind U.S. businesses of their buying power falls on the shoulders of Canadian businesses, which is a huge opportunity. Diversifying a customer base is essential to business longevity; however, this can often be a risky and challenging operation. The exchange rate presents a unique advantage. What better way to gain loyal new customers than offering upfront savings that competitors are unable to match?
And the good news doesn’t stop there. With advances in marketing technology, it is easier and more affordable than ever to target, reach, and connect with customers in specified locations, regardless of their proximity to your business. This goes beyond simply promoting your advantageous pricing on a website. The real power is in attracting U.S. buyers to a website by pointing out the favorable costs provided by the USD. The opportunities for online ads, email blasts, and social media content that highlight this advantage are also important, and should not be missed.
As a company that works on both sides of the border, we see a clear opportunity on both sides. Canadian businesses need to take advantage of the favorable exchange rate and develop marketing campaigns to diversity their customer base. American businesses should be looking north to take advantage of the USD strength and improve margins.
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About Fred Yee
Fred Yee is the founder and CEO of ActiveConversion, a company that makes online marketing work for industrial companies. Fred was voted as one of the 40 Most Inspiring Leaders in Sales Lead Management in 2017, and his work with ActiveConversion has helped hundreds of businesses succeed online. ActiveConversion is Fred’s third successful company, and he continues to explore the possibilities of technology in industrial sales and marketing.