Germany Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in germany, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Selling Factors and Techniques
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Overview

Success in the German market—as in other international markets—requires a real, long-term commitment to developing the business and backing it up with strong sales support. U.S. companies need to overcome the disadvantage of being far from their customers, especially when competing with European rivals. Sometimes, Germans see U.S. suppliers as being more focused on their home market, or as likely to bypass local distributors to deal directly with buyers. Because of this, some German business owners may doubt whether U.S. firms are truly committed to the market or willing to provide good after-sales service. Nowadays, most U.S. companies entering Germany know what it takes to succeed and are ready to build a reliable support network. Even so, it’s important for them to be prepared to address any concerns or doubts that German clients or partners might have about their long-term commitment.

Trade Promotion and Advertising

Trade Fairs

Germany is home to major world-class trade fairs in nearly every industry, drawing buyers and exhibitors from across the globe. U.S. companies exhibiting at these events should be ready to make the most of the business opportunities available. Not only can U.S. exhibitors and visitors close deals on the spot, but all attendees benefit from the chance to conduct market research and observe global competitors.

The combination of large crowds and international reach makes German trade fairs an especially effective venue for American companies seeking maximum exposure for their marketing investment. These events also offer U.S. businesses a valuable opportunity to thoroughly research the German market and assess their product’s potential before making any major commitments.

Advertising

In addition to exhibiting at major German trade fairs, advertising plays a central role in most companies’ broad-based marketing programs. Regulation of advertising in Germany is a mix between basic rules and voluntary guidelines developed by the major industry associations. The “Law Against Unfair Competition” established legal rules at the beginning of the 20th Century. Although it has been modified over time, this law continues to be valid today. The law allows legal action to be taken against advertisers who “violate accepted mores.”

Many advertising practices that are common in the United States, such as offering premiums, are not allowed in Germany. Any planned advertising campaigns should be discussed with a potential business partner or an advertising agency in Germany.  

General EU Legislation

Please refer to our European Union Country Commercial Guide article on selling factors and techniques.

Pricing

German customers are often very price sensitive. Consequently, price is an important competitive factor, but quality, timely delivery and service remain equally important, especially in Business-to-Business relationships.

Sales Service/Customer Support

Germany

The German commercial customer expects to reach out to his or her dealer and have replacement parts or service work immediately available. American exporters should avoid appointing distributors with impossibly large geographic areas, without firm commitments regarding parts inventories or service capabilities, and without agreements on dealer mark-ups.

EU Legislation

Please refer to our European Union Country Commercial Guide article on consumer issues.

Local Professional Services

Business service providers active in Germany can be viewed on the website maintained by the Commercial Service at the U.S. Embassy in Germany.

Major German Business Associations

Bundesverband der Deutschen Industrie (BDI) 
(Federation of German Industries)

Deutscher Industrie und Handelskammertag (DIHK) 
(Federation of German Chambers of Industry and Commerce)

Bundesverband Großhandel, Außenhandel, Dienstleistungen (BGA) 
(Federation of German Wholesale, Foreign Trade and Services)

Verband Deutscher Maschinen- und Anlagenbau (VDMA) 
(German Association of Machinery and Plant Manufacturers)

Centralvereinigung Deutscher Wirtschaftsverbände für Handelsvermittlung und Vertrieb (CDH)  
(National Association of German Commercial Agencies and Distributors)

For industry-specific business associations, please visit our leading sectors section, which lists key contacts and resources by industry sector.

Limitations on Selling U.S. Products and Services  

We are not aware of any limitations on manufacturing or service sectors that prohibit non-Germans from owning or selling these businesses in Germany.