What is really involved in selling to the government? First, let's
define the government. For many, this is the federal government, which
includes the Department of Defense (Army, Air Force, Navy, Marines,
Army Corps of Engineers, Defense Logistics Agency). But there are many
civilian agencies in the federal government. Then we look at the state
government, not only our state, but the other 49 plus territories as
well.
Then we start looking at universities, hospitals, colleges, cities,
counties, school districts, road districts, and numerous non-profit
agencies that receive grants from any of the above. Any agency that
spends money on behalf of a governmental entity should be considered
as a source of potential governmental funds.
There are many basics to selling or marketing to the government. While
we know the government buys every kind of good and service imaginable,
the seller has to have a product or service of significant quantity
and quality to meet the government's demands. And these have to be available
when and where the government needs them!
1. Past performance. Experience in selling to the government
shows that businesses should have a really good track record in selling
to their commercial, industrial, wholesale, or construction clients
prior to marketing to the government. There are several reasons for
this. First, a government contract may take more time and paperwork
than a novice businessperson typically handles. Second, the government
is strict on paperwork requirements for administrative reasons. The
invoice, ship to address and all contractual paper work must meet
government contract requirements. Third, the government has strict
acceptance requirements (quality, time, delivery) for products and
services they purchase. Last, we hope that a profit-seeking company
will not underbid costs, just to get a foot in the door.
2. Unique requirements. Every governmental agency has unique
requirements to market to their buying and ordering offices. For instance,
the Department of Defense (DOD) requires that a firm be registered
in their computerized registration. DOD officials will NOT award a
contract to any business that is not listed on this computerized,
web-based listing of firms on the Internet who are willing to bid
and perform on government contracts. Some military bases require appointments
and passes to enter their secured facilities. Others allow easy access.
Other DOD buying agencies require first-article testing for items
produced for their agencies. Almost all buying agencies want to know
that your business will produce a high-quality item or service and
deliver it on time or earlier. One way they confirm this is to check
with the references you provide. (Good references make it easier to
sell to the government.)
3. Know who is really your target market. This is more important
than many salespersons realize. Contracting officers don't really
keep all that "stuff" they buy. The contracting officers
buy for the technical end user, consumer, or the using activity. That
is whom you must find. Then determine what service they really need.
Because any product you sell is actually a means of providing a service
to some portion of the government. Before you try to sell to the government,
you really need to know what service they are trying to buy. By interviewing
the end user, you can ascertain their needs, who your competition
is, what price /quality range they are looking for and any expected
warranties that are expected.
4. Computers and technology. The year 2001 is here. Computers,
faxes, Internet capability, answering machines, voice mail, and web
pages are now a basic requirement. While it is possible to market
and sell to the government without this technology, this is like carrying
an albatross around on your shoulder, making every part of your job
harder. Bidding opportunities can be on your computer when you walk
into the office in the morning. You can e-mail and fax to get the
solicitations on which you want to bid. Spreadsheets allow you to
calculate all the materials and labor necessary to make a profit.
Being able to correspond with clients, customers and suppliers with
exact specifications is extremely important with short lead-time requirements.
It is vital to have, and properly use, voice mail and answering machines.
Leave fully descriptive messages with a call-back name and number.
5. Web pages. This is mentioned separately because there are
three easy (free) web sites on which firms should register if they
want to pursue government contracts. First is CCR (Central Contractor
Registration), already mentioned as required for DOD contracts. Second,
the Small Business Administration provides a web site for small businesses
called Pro-Net. This site is extremely user-friendly and allows you
to list everything the buyer would want to know about your firm, even
reference! Third is the Missouri Market Place web site for Missouri
Business only!! All of these web sites allow for the buyer to find
your business by county, city or key words.
6. Research. Create a government marketing plan. Who among
your competitors is selling to governmental agencies? What prices
are they demanding? (Freedom of Information Act and Sunshine Law allow
you to know this!) What agencies are buying your product? This can
be determined also with a little research!
7. Market niches. Special categories exist for businesses
that meet certain qualifications. Woman-owned, minority-owned, Indian-owned,
African-American, Veteran-owned, located in a HUB Zone, Enterprise
Zone, hires certain types of employees, or uses only American made
goods! Each of these market niches gives the business owner an advantage
in selling to the government. State government also has minority,
woman-owned and disadvantaged business enterprise categories.
8. Registration. Register with every governmental agency that
might purchase your service. Many have special certifications or registrations.
Some firms may qualify for additional consideration based on characteristics
described in the above paragraph. Firms should use every advantage
available to them based on what the governmental body will legally
allow.
9. Portfolio. Many successful businesses already have a brochure,
web site and many business cards to hand out to prospective clients.
Another method is to create and carry a portfolio, which contains
several clear document protectors holding numerous items of importance
to a buyer. For instance, before and after pictures of projects you
have completed. Additionally you would have copies of your business
license, letters of reference, letters of recommendations, letters
of credit, licenses, insurance, bonding permits, government certifications,
resumes, (well you get the idea!).
10. Market. There is a great deal of work in this one word.
MARKET. Meet the right people. Listen to their needs. Find your niche.
What can you offer that helps the government? (Remember reputation,
quality, price, delivery, continuity.)
11. Network. The Missouri Procurement Technical Assistance
Centers provide numerous marketing opportunities throughout the state.
Attend these government marketing presentations and meet as many competitors
AND government buyers AND prime contractors as possible. Then keep
in contact with all of them that you can. Refer bid opportunities
to them that you are unable to perform. Look for sub-contract opportunities
with them. Join professional organizations that do what you do. Ask
for meetings about government opportunities.
The list of things a business should do to become successful in government
marketing is very detailed. For some, the effort is well worth it.
