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The most important step to the international success
New business models
Increasing interest in international operations is giving rise to new business models, such as the business concept developed by Fargate founders Heinz Zürcher and Daniel Isler. They see themselves not solely as advisors, but also as business partners who search for openings to foreign markets together with their clients and share in the risks involved.
In autumn 1998 Zürcher and Isler started setting up a global network of partners comprising independent companies and individuals. These partners are, however, much more that just suppliers: the so-called ‘satellites’ enter into a comprehensive framework agreement with Fargate. Partners in the target countries are under an obligation to sign such a framework agreement. There is one simple reason for this: at Fargate, rather than being paid a fixed advisor’s salary on which he or she could live, a partner receives a modest contribution towards expenses. His or her other earnings are strictly proportional to the actual level of exports achieved. In specific terms: Fargate – the headquarters in the Zurich Technopark and the respective satellite – receive a turnover-related commission over an average of years.
Isler and Zürcher already have a few success stories to tell, one of which involves mattress manufacturer Fritz Nauer AG. Within a matter of months, Fargate had provided the Zurich-based manufacturer with a major distributor. Daniel Mächler, head of marketing and sales at Fritz Nauer AG, is enthusiastic about his new export partner: " Fargate got us into the Japanese market." Mächler is convinced that without Fargate his mattresses would probably only have reached the Far Eastern market via Japanese purchasers – the company was still a long way off being able to make its own exports to Japan.
Sales within 12 months
"We only make money when the client does ", says Daniel Isler, explaining the very essence of the Fargate business concept. Both partners have
specialized accordingly in products which demonstrate a definite ‘unique selling proposition’. They only advise companies and market their products if there are clear chances of success, i.e. where the products have the potential to become top exports even without Fargate.
Heinz Zürcher does not contest this fact but underlines the rapidity of the whole process at Fargate: "Within six to twelve months we bring our clients to the stage where they are able to generate their first sales." In the case of Fritz Nauer AG things proceeded even more quickly than that. Compared with conventional export models, this is nothing short of a revolution. Companies which try to set up export channels independently often require up to two years before they are able to achieve their first earnings – and approximately seven years until they reach break-even point.
Claus Niedermann and Jost
Dubacher
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