Selling Risk Aversion

Federal end users hate risk. Commercial end users are risk averse but not to the extent of federal end users. Federal end users are measured differently that end users in the commercial sector. Federal end users don't like to rock the boat; they don't like change; and they don't like the visibility that comes with an operating problem.

For example, an information technology infrastructure contract supports thousands of federal employees using an agency's national network. You are the chief technology officer and the infrastructure contract is up for rebid. Think of what it would be like if the network goes down under a new contractor and what that would do to the CTO's career?

New Contract Opportunities
The primary way to sell risk aversion when pursuing new opportunities is to get to know the customer; the more you know them and they know you the better. There is nothing riskier than awarding a contract to someone you don't know. Find out their requirements and convince them that you can meet the requirements with minimal risk. Stress value and proof that you are the answer to their prayers.

Rebid of Ongoing Contracts
Why do incumbent contractors usually win? Federal end users do not like risk and changing contractors is a risk; even if the incumbent is a "B" performer.

What's the message here? Win new service contracts which repeat themselves and become the incumbent contractor.

All successful federal contractors sell risk aversion.


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