Exporting pays off - Heyco Inc. exports electronic components

Business America, Dec 7, 1987

EXPORTING

Pays Off

Exporting has enabled Heyco Inc. of Kenilworth, N.J., maker of components for the electric and electronic industries, to become more competitive. J. L. Holder, President of the company, explains that foreign sales have resulted in greater production which has reduced unit costs, putting Heyco in a stronger position against competitors both in the United States and overseas.

Heyco works primarily through native distributors familiar with the customs, culture, and language of their countries. Holder considers the distributors to be "a key ingredient in our success.' The firm keeps in continuous communication with its distributors by mail, telex, telefax, telephone, and annual visits. It received assistance from the Commerce Department District (ITA) Office in Trenton in building up its distributor network. (Asked by Business America what advice he would offer a firm desiring to export for the first time, Holder replied, "Visit your Commerce Department [ITA] District Office.')

Heyco's distributor system makes transactions easy for foreign end-users who can avoid such complications as letters of credit and customs duties; they simply go to the native distributor and buy Heyco products just as they would buy locally made products. Heyco requires that its distributors carry a full-service inventory and maintain a technically trained sales force.

Heyco assists its distributors with sales promotions. It helps with foreign language catalogs . . . provides sample panels for trade shows . . . offers information about its new products, together with photos . . . and discusses feedback about competitors with distributors.

Heyco, which began exporting in the early 1960s, now sells 20 percent of its production to other industrial countries.

This record won the firm the President's "E' Award for exporting in 1981. Continued export progress won it the President's "E Star' last year.

Photo: Japanese representatives of Heyco Inc. provide prospective customers with information about the company's products for the electric and electronic industries at a trade show in Tokyo.