Trading with Southern Ireland

[rsccford]

Hi,

I've got the opportunity to attend a Buying Group show in Dublin, an opportunity too good to miss. However, I have only ever sold to UK retailers so I have some questions that need answering that I hope you guys can help me with please.

1) Typically I would charge shipping to UK retailers, or free for orders over £500. I expect though that shipping to Eire is going to cost more. Will Eire retailers be expecting that additional shipping cost or will they expect a more competitive product cost to absorb the shipping fee?

2) With Irish VAT being 23%, do Irish retailers look for that delta between UK/Irish VAT rates in the product cost to compensate?

3) What else do I need to be aware of with trading with Eire?

My concern here is that if I need to take into consideration the above points, my already tight margins will suffer even more. Any advice welcome as always.

Thanks, Rod

 

[Scalloway]

If you are VAT registered when you export goods to Eire you will zero rate them if the customer can quote an Irish VAT number.

 

[GraemeL]

Hello Rod,

The Irish are well used to paying extra for freight.

The other points to keep in mind are
a) The typical Irish business person is charming and savvy
b) The Irish market is not the same as the UK market - don't worry about the differences, just don't tell any Irishman that the UK and Irish markets are the same. They will appreciate you saying that you want to learn about their market
c) the Euro - decide how you will invoice them and they will pay you. One party will have to take the currency risk.
d) Returns, faulty etc

G

 

[rsccford]

Hi,

Useful info, thanks both.

Scalloway - re: VAT - yes I am VAT registered. So to confirm my understanding, you're saying that I won't charge VAT to an S.Irish VAT registered company ? I don't think it's relevant in this particular case but out of interest, what if they are not VAT registered?

Graeme - I planned to charge in £ to save me the hassle of a Euro account set up and adding currency complications. Generally would that be acceptable for the Irish businesses? From what I've seen so far, I'm getting more aware of how savvy the Irish are. This is a great opportunity for me so willing to learn what I can from the Irish about their market and how to best do business with them.

Cheers, Rod

 

[Scalloway]

If the customer is not VAT registered then you must charge 20% UK VAT.

 

[GraemeL]

I planned to charge in £ to save me the hassle of a Euro account set up and adding currency complications. Generally would that be acceptable for the Irish businesses?

They are used to this from the Yuk's, it won't present a problem but neither will it show you really want their business.

By the way, its just 'Ireland', not Eire and not definitely not Southern Ireland.

G

 

[Nathanael Jones]

Is the Irish market big enough to be worth the hassle? I'm in Ireland & do most of my selling in the other direction simply because the market is so much bigger & clients easier to find...

 

[rsccford]

Having been invited to a Buying Group with 30 retailers in the same room I'm sure it'll be worth it.

G - "Ireland"..noted !

 

[Stuart Bailey]

why don't you contact your local chamber and commerce group the are very good a helping businesses with export problems.

 

[GraemeL]

Having been invited to a Buying Group with 30 retailers in the same room I'm sure it'll be worth it.

Yes, I agree Rod. As a minimum objective you can set out to learn about their needs.
Tips that might be of use:
Are you giving a talk/presentation? If so, have a glass of Guinness under the podium, not water.
Be ready for silly questions about minor issues, but treat each one seriously. They care about how individuals are treated by others, though they might maul each other.
Presumably you are ready for a request for funds to go to the Group centre for marketing etc
Be ready for late night drinking. That's when you will get a lot of information. If you can remember it!
Emphasise that you are not all certain about their market and want to learn.

Good luck!

G

 

[rsccford]

GraemeL - I could do with you onboard for this trip ! ; )

Thomas - that's a very good idea also. Thanks

 

[Donkeyford]

Yes, I agree Rod. As a minimum objective you can set out to learn about their needs.
Tips that might be of use:
Are you giving a talk/presentation? If so, have a glass of Guinness under the podium, not water.
Be ready for silly questions about minor issues, but treat each one seriously. They care about how individuals are treated by others, though they might maul each other.
Presumably you are ready for a request for funds to go to the Group centre for marketing etc
Be ready for late night drinking. That's when you will get a lot of information. If you can remember it!
Emphasise that you are not all certain about their market and want to learn.

Good luck!

G

Are you for real? What kind of rubbish are you trying to feed people. Have a glass of Guinness under the podium and late night drinking?? way to go with stereotyping there... Have you ever done business in Ireland?

 

[Donkeyford]

GraemeL - I could do with you onboard for this trip ! ; )

Thomas - that's a very good idea also. Thanks

You don't want someone like GraemeL on this trip with you. He is exactly the type of ignorant UK business person coming over to Ireland that the Irish don't want.

 

[Donkeyford]

Hi,

Useful info, thanks both.

Scalloway - re: VAT - yes I am VAT registered. So to confirm my understanding, you're saying that I won't charge VAT to an S.Irish VAT registered company ? I don't think it's relevant in this particular case but out of interest, what if they are not VAT registered?

Graeme - I planned to charge in £ to save me the hassle of a Euro account set up and adding currency complications. Generally would that be acceptable for the Irish businesses? From what I've seen so far, I'm getting more aware of how savvy the Irish are. This is a great opportunity for me so willing to learn what I can from the Irish about their market and how to best do business with them.

Cheers, Rod

Sorry now Rod, but if you were selling to say France or Germany would you ask the same question? Why do you think it would be acceptable to the Irish for you to charge in £? You do realise that Ireland is a completely separate country from the UK?

 

[rsccford]

Donkeyford - Yes, I do know that Ireland is outside of the U.K. The fact is that I don't sell to anyone outside of the UK. As a customer, I buy from the U.S. in USD, not GBP so it's not such a ridiculous question to ask if a non-UK customer would buy in GBP rather than Euro's. Isn't the point of these forums to be able to ask these types of questions?
Interested to hear any other constructive advice you have for trading in Ireland. Thanks

 

[GraemeL]

Are you for real? What kind of rubbish are you trying to feed people. Have a glass of Guinness under the podium and late night drinking?? way to go with stereotyping there... Have you ever done business in Ireland?

Several million Euros, over many years.

Have you anything positive to add?

G

 

[GraemeL]

You don't want someone like GraemeL on this trip with you. He is exactly the type of ignorant UK business person coming over to Ireland that the Irish don't want.

Donkey - to gain credibility (as a new poster just before midnight on New Years Eve), suggest you incorporate meaningful suggestions in your posts. This one comes over as personal criticism, not an aid to Rod.

I have sold a lot of products to Ireland and am using my experience to help someone new to the country.

G