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Foreign companies often underestimate the peculiarities and distinctive features of the US market. For more than 30 years gatc LP has been analyzing and categorizing the most common mistakes in order to safeguard its clients from them. Hereafter we compiled some misunderstandings with respective comments. For queries and further information, please do not hesitate to contact us.

"Our products are so good – they are going to be successful in the US just like that as well."

Wrong! Without a firm base in the US and without strong marketing, even top-quality products have virtually no chances.  That said, underestimating the quality of US competition might prove fatal, considering the technological advantage in many areas. 

"Made in Germany should be half the battle."

Wrong! German products certainly have a better valuation than those from most other countries, but US buyers often times prefer domestic products. Taking on an American company name and demeanor would be the better strategic approach. 

"My English is not so bad, is it?"

Maybe! But dealing with people, that perceive English spoken by an Englishman as a foreign language, one should have cut one’s teeth understanding the language and mentality.

"Our distribution system functions smoothly. We only have to transfer it to the US market."

Wrong! The expanses and distances surpass all European expectations (Texas for example is bigger than Germany, Switzerland and Italy combined!). Multiple time zones need to be bypassed – even ignoring Hawaii. Transport- and communication channels are not under central supervision, but controlled by many different companies.

"To begin with, the best bet is to set up office in New York City."

Wrong! Only one office won’t win you the US market. Furthermore New York is not the best address for everybody: Atlanta for example was chosen as the Top Location by the CEOs of the ‘Top 100’.

"Contract is contract - That is the same everywhere."

Wrong! The US legal system does not comprise BGB or HGB (German legal codes) counterparts: Every contract has to comply to the specific federal state’s law and terms. Similar intimate knowledge is required when dealing with patents, trade marks, guarantees, liabilities, the Internal Revenue Service, banks, insurance companies, and last but not least the unions.

"After having set up the US, Canada and Mexico will be child’s play."

Wrong! Those three states (ca. 470 mio inhabitants) make up NAFTA, but in contrast to the EU every partner holds on to its individual import- and export regulations towards third party states – only the NAFTA-internal tariffs were dismantled. Through partly producing in the US you can profit from these terms and develop the two other markets.

"First we will only set up agents and therefore open the market on a minimal budget."

Wrong! Our experiences point to the conclusion that this approach is not working. Traders and consumers expect domestic headquarters with capable contacts (just like in your country!).

"Like they say in America: Learning by doing!“

Wrong! Entering the American market without professional help and preparation is as risky as it gets. Every step could be the last!