Back to Basic Salesmanship: Penetrating the federal government market

Office World News, Mar/Apr 2005 by Palmer, Richard

Once a product becomes commoditized, it becomes far more difficult to sell. By definition, commodities are easy to come by. How then does a company sell commodities and differentiate itself in the mind of the consumer? By concentrating on the basics of salesmanship and person-to-person contact, sales can tip in your favor. This strategy works even better with the largest group of customers: the federal government.

Many companies have the misimpression that the federal market can be addressed just like the commercial market-not quite so. This article will explain the basics of the federal market, some of its pitfalls and rewards, and then bring it full circle to give you the tools to penetrate this enormous marketplace.

* STRAIGHT TO THE SOURCE

The federal government is the single largest group of consumers you can reach, and I can tell you from experience that many of the basic sales doctrines apply universally to the federal and commercial sectors. A few examples are: people buy from people they like; people buy solutions to their problems; you must sell to the decision maker; and past performance is important to future success, especially in the federal market.

There is one caveat when dealing with the federal government, and it all boils down to one person. The only person authorized to purchase anything is someone with a warrant. A warrant enables someone to commit to purchasing goods and services for government consumption. Despite what you might have heard regarding government credit cards and the expanded number of people that can use them, one fact still holds true: If the person with the credit card is not a Contracting Officer (CO), the size of a single purchase can be extremely limiting. COs have larger procurement warrants. Don't spend your time chasing small purchases. Invest your time working with COs and the large procurements will come your way.

* GETTING STARTED

Your first step is becoming registered to do business with the federal government. You need to become familiar with the Central Contractor Registry (CCR). The CCR collects, validates, stores, and disseminates data in support of agency acquisition missions. (The steps to register are listed on the CCR website at www.ccr.gov). You will also need to register with Duns and Bradstreet (D&B), the credit reporting company that will rate your credit worthiness after researching your firm.

Once you get a D&B number, you can register on the CCR , which will get you a Commercial and Government Entity (CAGE) Code issued by the Defense Logistics Information Services. CAGE is the unique code identifier for your specific company. This process will place you into the CCR "registered vendor" list. In order to bid, receive an award, or be paid, you must register with the CCR. This list is maintained in the CCR and the encrypted information stored therein must be updated annually.

Once you are registered, you have the license to hunt for business. Use the Internet as your strategic partner in identifying what business you want to pursue. There is one place you need to remember when it comes to hunting: the FEDBIZOPP website (www.fedbizopps.gov) of contracting opportunities. Think of this site as your gateway to the government market. This site will give you opportunities on which you can bid, but mure importantly will identify the buyer of your goods and services who have purchased in the past.

* BALES TACTICS

I have seen many variations of sales tactics to the government. Some salespeople sell directly and only to the CO - missing the opportunity to influence the sale before it gets to the contracting office. Other salespeople spend time with the end user who makes the requisition to the CO for the product or service. Spending your time with the end user will allow you to review the customer requirements and have the ability to make recommendations for savings or services that can differentiate you from the competition.

So many times the government purchases the same product or service out of habit without looking at other options. This is where you can beat the competition by providing local services that cannot be matched by large prime contractors or chain stores. Lookout for services that you can provide not specified by the CO or requestor, such as providing an inventory list of serial numbers of all the goods purchased by the CO or an annual statement of purchased products that shows recycled content.

* DEMAND COMPLIANCE

The Federal Acquisition Regulations (FAR) are the rules and regulations that control procurement activities within the government. These regulations also define the differences in public and private sector purchasing. FAR 1.1 specifies that all potential bidders be afforded the chance to bid on procurement. I highly recommend any dedicated federal sales professional to be well read on FAR regulations. Although most COs know their job and the regulations, there are those that will look the other way and simply don't abide by the law. Your knowledge of the regulations creates value within the federal market.