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Chapter 2
Basics of Selling
By Richard White
President, Fedmarket.com
At a fundamental level, selling to governments is no different than selling to private
companies: you must identify a potential customer and sell to that person directly.
Focus Your Sales Efforts
If you are new to government sales, focus on one target agency (or at most a few if
you have the resources), make a sale, and then nurture your new, small customer into
a large customer. Government agencies tend to be loyal customers. In many cases,
they’ll return for your product or service again and again if you serve them well.
Suppose that a government has a local office in your city, where you own a small
business selling office supplies. You need to call on that office and talk to the person
there that purchases office supplies. Find out where he or she is currently buying
them. Find out what that person is buying and how much that person is paying for
those products. Drop in and pay the buyer a visit, leave a catalog and contact
information, and take with you the buyer’s contact information.
After the initial sales call, it’s up to you to close a sale by analyzing the prices of your
competition, making more personal visits and telephone calls, and providing
additional product/service information until you receive the first order or sign the first
contract.
Remember this: federal, state, and local government agencies have issued over
800,000 credit cards to government employees so that they can efficiently buy
virtually anything under $2,500 on a single source basis. This market segment is
much like the commercial world and should not be intimidating, even for the firsttime government contractor.
So stay focused. Find success in a few places first. With too broad an approach you
can end up with some broad and diluted brand identity, but little or no sales.
Establish a Personal Relationship
It's common sense, but it's worth emphasizing: government buyers and program
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personnel (or "end users") want to feel comfortable with the people with whom
they’re doing business. As you deliver products and services effectively, they
become more and more comfortable with you and keep coming back to you.
Generally speaking, government buyers-•
Abhor poor product quality or service performance because they reflect poorly
on them. (Vendors behind such products or services go into the "bad vendor"
file.)
•
Want to do business with a vendor who makes life easier with no hassles,
even if this means a higher price. (Such vendors go into the "good vendor"
file.)
•
Want to be dealt with in a truthful, straightforward manner.
•
Want to be productive, play within the rules, avoid problems and get to the
much-sought-after "next grade level."
End User vs. Official Buyer
For complex products, the most important person to sell is the government end user.
For example, a scientist in a government research organization would be the person to
focus on if you sell scientific instruments. This person usually knows exactly what
his or her specifications are for a particular instrument and, in fact, may already have
a brand and model number in mind -- perhaps yours or perhaps a competitor’s.
The end user will formally or informally communicate requirements and desires to an
official buyer. If the instrument must be compatible with other instruments, the end
user will formally communicate this to the buyer, and a brand name and model will
probably be specified for the purchase. If the end user has been "pre-sold" by you or
your competition, he or she will probably communicate the preference informally,
and an "equivalent to" the preferred model requirement will end up a part of the
purchase document.
The official buyer in the purchasing division or contracting office is the focal point
for sales of commodity-like products. For example, end user requisitions for office
supplies will usually not specify make and model, and it will be up to the official
buyer to make the purchase from companies he’s dealt with in the past -- or from you
if you’ve made those important sales calls discussed earlier.
Services are similar. An end user would be the focal point for the sale of complex
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computer networking or security services. For boiler maintenance services, the
official buyer would probably look to one or more local plumbing companies that she
knows and has dealt with in the past. Again, one of these companies could be yours
if you’ve called on the buyer.
Vendor Diversity
Many buyers feel that their pool of vendors from which to purchase could be larger.
Generally speaking, it’s a buyer’s job to find more vendors to increase purchasing
efficiency and lower prices. So think of it this way: by calling on them, you’re
helping them -- that is, if you sell a product or service they need.
End users will also welcome your sales call if you’re selling solutions that fit with
their program objectives. You should, however, make the sales call before a
procurement is formalized. Generally, end users are not allowed to talk to vendors
once a procurement requirement is documented.
Identifying the Customer
Identifying potential customers can be one of the most difficult aspects of government
sales. But it depends on who you are. Here are two examples from opposite ends of
the spectrum:
•
The number of individual markets for IBM is nearly the entire universe of
federal, state and local agencies. IBM is probably registered to do business
with a majority of the over 80,000 governmental entities.
•
The number of individual markets for a specialized service or product firm
may be only a handful -- e.g., veterinarian care for laboratory animals or a
specialized speech recognition software product.
We'll talk about the challenge of identifying the customer in later chapters.
Summary of Keys to Success
•
Identify agencies buying your product/service
•
Call on the customer
•
Bid with knowledge and insight until you win
•
Nurture the new customer into a reliable, ongoing customer
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