Selling IT: Introduction to the Government IT Sector
Governments at all levels are
becoming citizen-centric in delivering services, e.g., developing Internet
portals that provide single points of entry for citizens and businesses.
Governments are recognizing the need for systems planning and integration,
standard enterprise architectures, and XML technology to provide citizens with
single points of access.
To accomplish these awesome tasks, most governments are initiating various forms of web-based e-government systems and are relying on the private sector to carry out the implementation.
Concurrently, the events of 9/11 have created a new focus on security and the use of information technology to defend against terrorism.
So, there’s good news for IT companies. The opportunities are there.
Plus, the process is not as fraught with red tape as in days past. Government procurement methods have been generally streamlined and simplified for two basic reasons: (1) commercial IT products and services are always cheaper and often better than those built to tight government-specifications; and (2) government officials want to buy more quickly, with less hassle and paperwork, in meeting agency goals.
Entering the Government IT Sector
If you’re with a commercial IT company entering the government market for the first time, it can be a bit like visiting a foreign country. The language is different (even though there’s less red tape). There are no familiar faces. And you may even find yourself bewildered and jet lagged.
The lead-time before your first sale is often long -- frequently over a year -- and the dollar investment is large.
You must have patience and perseverance in this market, especially if you sell complex IT products or services. Why? Here are just a few reasons:
Selling to Governments
Companies new to government sales think that once they land a GSA Multiple Award Schedule Contract, they’re set. The orders will start rolling in.
That’s wrong of course, for most companies anyway. (Almost no one sells something so unique, and in such high demand, that hard selling isn’t required.) GSA Schedule or not, the government does not come to you. You must be proactive, just like the commercial sector.
At the most fundamental level, a government sale is made just like a commercial sale. You identify a person needing your product or service, make a sales call, pay a personal visit, establish a relationship and sell after earning trust. (In a later installment, we’ll talk more about this.)
How could this be, you might ask, when large IT projects are put out for public bid and you must submit a voluminous written proposal to win? The answer is that not all IT projects are publicly advertised, and when they are, you must do advanced sales to win.
The trick in government sales is identifying the right persons to sell to. There are 85,000 public purchasing authorities in the U.S. and about 17 million end-users, so there’s no shortage of potential customers.
Use a laser-like focus to find a few (very few, maybe even one) target agencies and potential customers, sell the customer at a personal level, serve the new customer well, and then use the relationship to make that customer a major, ongoing customer. At the same time, ask the new customer to introduce you or point you to new customers.
This becomes easier after you have done it several times. But how do you get started and go through the learning curve? Hopefully, this installment series will help.
To accomplish these awesome tasks, most governments are initiating various forms of web-based e-government systems and are relying on the private sector to carry out the implementation.
Concurrently, the events of 9/11 have created a new focus on security and the use of information technology to defend against terrorism.
So, there’s good news for IT companies. The opportunities are there.
Plus, the process is not as fraught with red tape as in days past. Government procurement methods have been generally streamlined and simplified for two basic reasons: (1) commercial IT products and services are always cheaper and often better than those built to tight government-specifications; and (2) government officials want to buy more quickly, with less hassle and paperwork, in meeting agency goals.
Entering the Government IT Sector
If you’re with a commercial IT company entering the government market for the first time, it can be a bit like visiting a foreign country. The language is different (even though there’s less red tape). There are no familiar faces. And you may even find yourself bewildered and jet lagged.
The lead-time before your first sale is often long -- frequently over a year -- and the dollar investment is large.
You must have patience and perseverance in this market, especially if you sell complex IT products or services. Why? Here are just a few reasons:
- Relationship-building is the key and that often takes time, particularly if
you’re just starting.
- Related to that: IT projects that go awry can lead to agency shakeups. When
a state CIO, for example, contracts with an IT company that eventually screws
up, he could find himself out of a job. A lot is at stake, both politically and
economically. As a contractor, you’ve got to earn trust -- convince people you
won’t screw up -- before things start to happen.
- Getting a GSA Schedule contract (almost a must for IT companies in the
federal sector) can take six months or longer.
- Large public procurements can take up to a year or more from inception to contract award.
Selling to Governments
Companies new to government sales think that once they land a GSA Multiple Award Schedule Contract, they’re set. The orders will start rolling in.
That’s wrong of course, for most companies anyway. (Almost no one sells something so unique, and in such high demand, that hard selling isn’t required.) GSA Schedule or not, the government does not come to you. You must be proactive, just like the commercial sector.
At the most fundamental level, a government sale is made just like a commercial sale. You identify a person needing your product or service, make a sales call, pay a personal visit, establish a relationship and sell after earning trust. (In a later installment, we’ll talk more about this.)
How could this be, you might ask, when large IT projects are put out for public bid and you must submit a voluminous written proposal to win? The answer is that not all IT projects are publicly advertised, and when they are, you must do advanced sales to win.
The trick in government sales is identifying the right persons to sell to. There are 85,000 public purchasing authorities in the U.S. and about 17 million end-users, so there’s no shortage of potential customers.
Use a laser-like focus to find a few (very few, maybe even one) target agencies and potential customers, sell the customer at a personal level, serve the new customer well, and then use the relationship to make that customer a major, ongoing customer. At the same time, ask the new customer to introduce you or point you to new customers.
This becomes easier after you have done it several times. But how do you get started and go through the learning curve? Hopefully, this installment series will help.
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