S&MM SoundOff

What Makes Selling to Government Different? Part I

Selling is selling, right?  Well, hold on just a minute there partner.  Sure there are fundamental sales skills that apply across the board, but selling to government is a bit of a different animal than selling to corporations.  In our years of experience, we have seen great B2B salespeople struggle in the B2G world, and vice versa.  So what is the difference?  Let’s begin looking at some basic ideas on what makes government so different from other selling environments.

Procurement Processes

Program managers and officials within government are spending funds received from taxpayers.  Despite the fact we've all heard horror stories about $400 toilet seats, procurement processes are in place to help provide accountability to taxpayers.  As such, buyers and vendors are required to jump through a number of procurement hoops to ensure waste, fraud, and other nasty practices are limited.

Unfortunately, these processes are also geared toward eliminating as much salesmanship as possible.  Buying committees, RFPs, contracting officers, all are in place to take any emotion out of the buying decision and focus on “just the facts.”  This adds a layer of complexity not found in B2B or B2C sales situations.  One has to learn ways to navigate these turbulent waters and support accountability processes while building recognizable value.  (We can show you how to thrive in this type of complexity and turn it to your advantage in our selling workshops).

Contract Vehicles & Teaming

Contract vehicles are simply pre-approved agreements that make it easier for government agencies to buy goods and services.  They can be both a blessing and a curse.  If you have access to the right contracting vehicle, your sale can go more smoothly.  If you don’t, you’ll need a solid teaming partner with the right contracts in place.  This adds to the complexity a bit, and you’ll give up a percentage of the sale, but it may be your only way in.  In the future, we’ll discuss teaming partners and how to manage relationships in order to achieve the greatest market coverage and benefit.

Long Sales Cycles

If you’re in government sales hoping to make a quick buck, you’re probably going to be in for a disappointing ride.  Government sales can be highly lucrative, but winning those deals don't usually happen overnight.  The same processes that add to vendor and buyer accountability also tend to stretch out the sales cycle.  It is not uncommon to see sales cycle range from one to three years.  For very large-ticket items within Federal government, five to ten years is more like it.

You need to enjoy the selling process and have some serious patience to be successful.  Fortunately, these long sales cycles provide opportunity for relationship development while serving to keep certain competition from playing.  Also, government customers may find ways to keep you around to avoid some of the re-bid headaches.

In future blogs, we'll look at other key differences between B2B and B2G selling.  Until then, happy hunting.

If you need help in building or developing your government sales team, let Galain Solutions assist.  See our blog at "www.sellingtogovernment.wordpress.com" or visit us at www.galainsolutions.com.

Sales Relationship-Building Strategy 1: Promoting Shared Values

Earlier we introduced five strategies for building stronger relationship commitment and trust in the selling process.  Now let’s dig a little deeper into one of these strategies:  promoting shared values.

What are “Shared Values?”

Shared values are simply beliefs or principles commonly agreed upon between exchange partners (customers, prospects, channel partners, etc.).  Strong shared values indicate two people are like-minded with regards to what is important or unimportant, and what is right or wrong.  While “shared values” sound like deep, complex sets of beliefs (they may be), they may also be fairly mundane interests like sports, hobbies or activities if they are truly important to the exchange partner.  Interestingly, shared values is the only component research has shown to impact both relationship commitment and trust at the same time. 

It’s a concept with which we’re all familiar.  Each of us has met people with whom we’ve “hit it off” very quickly.  Many times, the connection is made due to the discovery of some belief, practice or principle shared between us.  This can be as superficial as recognizing the person sitting next to you on a plane uses the same brand of computer, or as deep as finding yourself in the middle of a crisis and discovering another person  shares your same religious views.

Leveraging Shared Values for Enhancing Sales Performance

If you’ve been in sales for any length of time, you’ve probably heard the advice that upon entering a prospect’s office, you should look for ways to connect with what is important to him/her on an individual level.  Pictures of family on his desk?  Talk about your kids.  Golf trophies on her bookshelf?  Tell her about your trip to Pebble Beach.  Mercedes Benz emblem hanging around his neck?…(kidding).  All of these are indicators of some personal interest or value that could provide a connection point.  The goal, according to traditional thinking, is to establish personal rapport through aligning oneself with the prospect’s interest.  It’s sound advice, as honing in on personal interests is clearly an effective method for easing initial introductions. 

However, deeper relationship building requires expanding this practice beyond the initial meeting.  Salespeople should move past thinking of the method as just an ice-breaking gimmick, and instead, focus on ways to build a deeper shared value framework between them and their prospect or partner over the long-term.   

 Practically, what steps do we take to make this work?  Here are some key steps in the process:

• Observe.  Make a concerted effort to become more aware of the interests and values of prospects and partners. 
• Capture.  Make notes about the interests/values you uncover and capture these in your contact database for future reference. 
• Review.  Revisit the values for your entire prospect list regularly so you’ll keep them fresh in your mind.
• Collect.  Be on constant lookout for things you know will pique your prospects’ interest or tap into mutually shared values.  Simple things like news articles or pertinent websites are great.
• Share.  Commit to passing along content that will be of interest to prospects and reinforce any shared values.  Don’t make a big deal out of your efforts, and don’t try to squeeze in a heavy sales pitch.  Just an “I saw this and thought of you” will suffice.

A word of caution is in order.  Trying to “force” shared values where none really exist will most likely backfire on you.  It is certainly fine to appear interested in your prospect’s passion for Bavarian enamel dinner plates, but pretending to have that same love without any real emotional tie will be easily detected, ultimately working against you.  Even if you don’t have a mutual level of interest in something, recognition of its importance to the prospect will go a long way.

You’ll be amazed at how much mileage you’ll get from tuning into shared values.  Practicing the simple steps outlined here will impress prospects and customers with your attention to detail and your personal interest.  Over time, you’ll build the relationship commitment and trust you seek, creating a long-term customer and a continuous source for new prospects and referrals.

All the best,

Lorin

For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Selling to Government: Getting the Most from a Pre-bid Conference

This morning, I attended a mandatory pre-bid conference for a client.  The project is a massive undertaking—one of the largest of its type in the country.  As I sit in the airport waiting for my plane home, I thought it might be interesting to describe some of the lessons we’ve learned over the years on attending pre-bid conferences such as this one.  Here are a few things to keep in mind:

Get there early.

You never know exactly what you’ll encounter with these types of meetings.  Parking may be tight.  Facilities and seating may be limited.  Get to the meeting at least 30 minutes prior to stake your claim at the table.  Interrupting the session because you are late is not the way to make a good first impression.

Dress well.

Even though you are not making a presentation, dress as if you are.  Again, first impressions count (for prospects, potential partners and competitors).   It may not make or break a deal, but why not command the most respect possible and let them know you're serious?

Strike up a conversation.  Work the room.

It’s interesting to watch how people act when competition is thrown together in a small room.  Many people choose to keep to themselves or huddle solely with their own group.  Break the mold and introduce yourself.  Sure you might be talking to a competitor.  Who cares?  You may realize some benefit down the road of making the connection.  And, if you are looking to serve as a subcontractor, don’t be bashful.  Stepping out is a great way to identify teaming opportunities.

Have questions ready.

Asking intelligent questions illustrates you’re prepared, serious and knowledgeable (of course, asking stupid questions probably has the opposite effect).  Do your homework with the RFP.  Even if you never get the opportunity to ask, you’ll be prepared.

Be prepared to submit your questions in writing after the meeting.

Some pre-bid conferences will go into detail and allow deep technical questions.  Others will stay at a high level and expect you to submit questions in writing (the latter is particularly true when prospect agencies are not comfortable with the project).  Don't be frustrated with this process.  Craft your questions carefully and you'll be prepared either way.

Don’t ignore junior people in the room.

When scouting for teaming opportunities in a pre-bid meeting, it’s often easy to bypass the young, junior professionals in favor of the seasoned senior-level people.  You might find, however, that the younger representatives are more forthcoming with information (or at least lead you to a great introduction).  Such a moment occurred today as I noticed a young man wearing the logoed shirt of a company that could make a great potential partner for our client.  I snagged him as he walked by and told him why we were there.  Within minutes, my team was being introduced to the company’s lead account executive. Our client is well positioned to fill a needed gap thanks to a junior-level guy. 

Don’t make the buying organization look bad due to oversights in the RFP.

Invariably, mistakes in the RFP document will be made, or confusing--possibly conflicting--statements may be made.  Do not hesitate to ask clarifying questions (if given the opportunity), but watch your tone and demeanor when doing so.  Some vendor representatives seem to delight in surfacing these inconsistencies.  While I suspect their motive is to appear knowledgeable and discerning, they come off as being critical “know-it-alls.”  The lesson:  don’t let your ego outpace your brain.

None of these tips on pre-bid conferences are earth-shattering.  However, applying them just may open new doors or provide a competitive edge.  We could all use a little more of that.

All the best,

Lorin

Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, Inc.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Government Selling: Dealing with a Tough Year

"It's going to be the toughest year yet", said the head of the National Governors Association (NGA) to the Associated Press when asked about state budgets.  Higher education, the arts, and economic development will be particularly hard hit, according to Raymond Scheppach of NGA.

So, what's a state government salesperson to do?  Here are several suggestions:

1.  Tighten your value proposition.  No, don't think this is another way of saying cut your prices.  This is a way of saying you'd better be certain that your product or service can be seen as a way to help state governments get through this crunch.

2.  Keep building the pipeline.  You would think this would go without saying, but it needs repeating - over and over, it seems.  As you know painfully well, closing cycles in government are long.  They'll continue to be...perhaps even more so.  But, government is not dying; it's just sick.  Buys will still be made during this crunch time...and, when it's over, buyers will be listening to those who were around during the crunch trying to help.

3.  Keep your eyes on the federal programs.  Economic stimulus, bail-outs, grant programs will become even more important to state (and local) government.  Be the one who can help your prospect obtain funding from "other" sources. 

4.  Be thankful you're not in the automotive or banking business.  Still, government sales is a good place to be...particularly considering the alternatives.  Show your appreciation by being a creative problem-solver for your customers, your prospects, your company, and yourself.

Rick

Selling to Government In Difficult Economic Times

As covered in our Galain Solutions blog, a new report from the National Conference of State Legislatures says thirty-six states are currently facing budget shortfalls of more than $28 billion.  And it's going to get worse.  Historical analysis shows state budgets continue to struggle long after a national recession ends.

What can state-focused government contractors do as budgets lag behind the rest of the economy?  Here are a few suggestions for driving more business during tough times.

Learn the Ropes

If you are new to government contracting, take this time to develop your go-to-market approach, learn how the process works, and begin implementing your plan.  You may find today's slower pace helps keep you from making discouraging mistakes, and you'll be ready when the recovery hits full swing.

Build Relationships

Business is still about relationships, and now is a great time to make and enhance those connections.  While competing vendors may be diminishing their "field efforts," take the opportunity to fill the gap.  Connecting with decision-makers when there is no immediate opportunity says you're committed to the market and the customer.  You'll find yourself getting a "shot" when things turn around.

Save Them Money

Products or services that reduce customer operating expenses or increase efficiencies can actually thrive in down times.  Expenditures can be justified if a clear ROI can be established.  Develop marketing and sales messages around the concept of cost effectiveness and value.

Consider Creative Financing

While procurement rules vary across states, it may be possible to win deals through creative financing.  For example, multi-year deals with accelerated payments toward the end of the contract (buy now--pay most of it later) may get customer's attention.  Leasing arrangements may be well received.  Consider creative ways to help customers get what they want (your product) while dealing with the current cash crunch.

Target Well

All states did not enter the recession at the same time; they will also not all emerge at the same time.  Be aware of activities in states less affected by the recession, and pursue areas that are recovering the quickest.

Go Where Others Aren't

In addition to pursuing recovering states, you may find opportunity in places competitors are abandoning.  Governments continue to procure goods and services even in lean times.  Less competition may increase your odds for success.

Target Other Government Buyers

While states may experience budget difficulties for some time, other government buyers may have more resources.  For example, many federal agencies have operating budgets in line with last year.  Some even have new infusions of money due to the American Recovery & Reinvestment Act (ARRA), also known as the "economic stimulus."  Now may be the time to expand beyond state or local buyers and target bigger fish.

Clearly, states are not out of the recessionary woods.  However, contractors with the drive, smarts and creativity can still excel in difficult times. 

Happy hunting and all the best,

-Lorin

To receive Galain Solutions' FREE REPORT "Five Sales Rules to Break When Selling to the Government," email [email protected] or visit http://galainsolutions.com/economicstimulus.html and complete the form.

Understanding Grants in Government Business

We often see confusion from businesses interested in selling to the government surrounding the concept of grants.  Small businesses in particular often have a misconception they can receive free money from the government just for opening their doors.  While a few grant programs aimed at businesses do exist, most funding sources are actually loan programs—not grants. 

The grants we’re interested in (and those important to companies selling to government) are those providing funds to a government customer, allowing them to buy the vendor’s product or service.  Many government agencies rely heavily on grants to support or augment their operating budgets.  They often have personnel on staff to create, submit and track the significant paperwork associated with grants. 

As a key source of revenue, contractor sales and marketing professionals must understand which grants are targeted by customers, how they work procedurally, key deadlines and critical grant parameters. 

Practical advice on grants:

A customer’s grant funding source can make or break a deal.

Grant requirements are very specific and can potentially derail a sale before it gets started.  For example, in the technology world, certain grants allow for agencies to purchase computer software, but prohibit them from leasing or subscribing to the same software.  A vendor with the “software as a service” model will struggle or be excluded in this situation.

New grant sources could mean “new money” for a buyer.

  Government buyers may be accustomed to dealing with grants for which they rely on apply and annually.  However, creative thinking and work by a vendor might also uncover non-traditional grant sources capable of funding a project not included in the budget.

Vendors may need to do more than simply uncover an alternative grant.

Grant writers within buying agencies are already swamped with work.  Suggestions these workers should manage yet another grant application may be met with resistance.  Vendors should instead consider developing a “grant template” for non-traditional funding sources.  With this approach, the vendor does much of the work required for completing a grant application.  While the vendor cannot submit the application itself, it can provide the template to the buying organization as a resource—easing the administrative burden and making it easier to buy.

Next time, we’ll look at another important government selling concept—the purchasing vehicle. 

All the best,

Lorin

Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Basic Secrets to Government Selling

We frequently talk with business professionals who want to pursue government markets but are not sure where to begin.  Whether you are new to this segment, or a seasoned veteran, here are three basic secrets that should be kept in mind when selling to the government.

First, solve the problem.  You might think this is obvious, but many times sales people propose canned “features and functions” instead of real solutions.  In order to solve real problems, you must get prospects to reveal their true pain points.  This means being there before the RFP is issued whenever possible, and it means establishing good rapport and strong credibility.  

Once the problem is well understood, the solution offered must clearly provide a legitimate fix.  “Smoke and mirrors” may win you the occasional deal, but real solutions create a long-term business.  If you can’t solve the problem, move on.

Second, follow the rules.  Policies and procedures are fundamental elements of government procurement.  Successful contractors will be adept at following them.  That doesn’t mean a contractor can’t have some degree of influence over the process.  It does mean any influence must come in the early stages of the procurement cycle. 

Third, make it easy.  “Ease” builds value in the government market (in all markets really).  So even if your product solves the problem, and you’ve followed all the rules, your solution still may not make the cut if another vendor illustrates they require less hand-holding. 

The opportunity for winning government contracts has never been better.  Keeping these three fundamental secrets in mind will help move the odds of success in your favor.

All the best,

Lorin

Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Selling to the Government: Does Your Company Have What it Takes?

--In our previous post we examined some key qualities of government salespeople.  Today, we’ll look closer at characteristics of companies with success in selling to the public sector. --

Government selling is all the rage today; companies are rolling out plans across the country to bolster their government business.  However, not all companies are cut out for such an endeavor.  Even those that fill knowledge gaps with experienced government salespeople may not achieve the results they seek because of their culture, organizational design, business model, etc.  Let’s examine a few characteristics of companies that tend to fare better in government markets over time.

Ability to handle complexity and customization.

While there is some movement within the government sector to buy more “off-the-shelf” products and services, the fact is, much of what is purchased at the government level is fairly specialized in its design or service requirements.  Government is big on specifications.  Many times requirements are understandably more rigid than those for consumer or commercial applications.  As such, companies must be able to deal with the demands of customizing products and services.  Companies pursuing government customers must be aware of the potential impact of this complexity.

Longer-term Commitment.

With complexity comes the need for long-term commitment to the market sector.  Government customers often expect to see product road maps and growth plans to assure them investments will not be short-lived.  Multi-year contracts and service level agreements are not uncommon.  Effective government vendors build supporting organizations for the long-haul.

Organizational patience.

Government sales deals can be lucrative, but they are often not immediate.  Customer budgets may be cut.  Projects stall.  Leadership and directions change as political tides come and go.  Successful government contractors treat selling to this market as a strategic initiative, not a quick-win, cash-generation tactic (although over time, it’s nice to know your customer WILL pay you—and typically when due). 

Clear differentiation.

Differentiation is always desirable, but it’s critically important in government markets for two primary reasons: 1) companies with highly unique capabilities may be able to “sole source” deals, allowing government procurement departments to forego the competitive bid process, and 2) when participating in a competitive bid process, unique positioning will stand out in the vendor evaluation process, increasing the odds of winning the sale.

Ability to manage partnerships.

Many government contracts can only be fulfilled through “teaming agreements,” (i.e. partnerships between two or more companies).  Whether the reason for teaming relates to expanding one’s overall capabilities, or simply for “passing through” a deal through a third-party due to their status as an approved purchase vehicle vendor, successful government contractors are generally adept at working with outside partners.

These are a few key company characteristics that relate to success in government markets.  What do you think?  Are there other traits successful companies must possess?  We’d love to hear from you.

All the best,

Lorin

Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Selling to the Government: Do You Have What it Takes?

There are many qualities of government salespeople that mirror those of sales professionals in other sectors.  Ambition, drive, lack of fear, competitiveness—all are characteristics that help a government salesperson rise to the top.  However, there are also a few personal qualities we believe are unique to government-sector sales success.  Let’s examine a few of these.

Sense of Mission

Whether selling to the Department of Defense, Federal agencies, or local officials, a sense of mission is prevalent in most of the great salespeople with which we’ve worked.  Generally, this is made up of a couple of things: 1) the strong belief that the product or service being represented will truly help a community or country achieve some greater goal, and 2) a respect for the fact that funds used for acquiring products and services ultimately stem from citizens in the form of taxes.  While we’re not suggesting every top salesperson we’ve encountered is the proverbial Boy or Girl Scout, we do see a correlation between success and deeper internal motivations and character.

 Process Orientation

Government procurement most often follows defined and detailed processes.  Such processes are in place to minimize biases in purchasing and ensure the government spends taxpayers dollars wisely (or at least that’s the theory).  This can be frustrating for salespeople skilled at “winging it” or accustomed to winning deals based on pure charisma.  Sure, a winning personality and outstanding presentation skills will give you an edge over competitors.  But, if you’re sloppy with details or irritated by “confining” procurement rules, you won’t win in government selling. 

Team Facilitator & Player

While lone mavericks may be held in high esteem in other sales sectors, government selling requires an inordinate amount of team facilitation and collaboration skills.  Customer solutions are often complex and customized, requiring diverse expertise just to put together a proposal.  Customer-preferred purchasing vehicles may mean a partner or reseller must be brought in to secure a deal.  While a government salesperson is typically the primary relationship manager, he/she is typically not the only one involved in making a sale.  If you don’t play nice with others, government selling is probably not the place for you.

Patience

Salespeople are not generally known for their ability to wait.  In fact, they’ve been taught to constantly move and “make something happen.”  While government selling requires substantial energy, activity, persistence and focus, there are times when a salesperson must deal with inactivity.  Procurement processes can bog down.  Elected or appointed officials may go in and out of office.  Budgets may be cut or held up for approval.  The government salesperson must not let these situations discourage him or her, but continue driving activities associated with pipeline building and relationship development--even while specific deals may appear to be stalled.

Up Next:  Does your company possess the characteristics required to thrive in government markets?  We’ll examine key predictors of company success within this sector.

 Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.

Introducing "Selling to Government--Secrets of Success" Blog Posts

There are billions of reasons why you would want to sell to the government.  Literally.  The stimulus package, passed earlier this year, amounts to $787 billion in new spending.  Add this to the billions already budgeted each year at the local, state and federal level and you know why so many sales and marketing professionals are scrambling today to “up” their government game.

To many businesses, government selling is a mysterious and confusing process.  Some may see the potential opportunity, but have no idea how to begin.  Others may have dabbled in the sector at some point, but found their traditional methods of selling and marketing simply didn’t bear fruit.  Still others may currently have a thriving government business, but realize continuous improvements must be made to overcome increased competition. 

Whatever your position, we hope to provide relevant and useful information for capturing government contracts through this new series of blog posts.  Based on more than 20 years combined experience in sales and marketing to all levels of government, we will reveal many of our “secrets” to success, while dispelling common myths about this market. 

We hope you will make frequent visits as we explore the many facets of selling and marketing to all levels of government.  We appreciate your comments and questions as well.  Thanks for joining us, and happy hunting.

Best wishes,

Rick Wimberly & Lorin Bristow

Up Next:  Do you possess the personal characteristics required to excel in government markets?  We’ll examine key predictors of personal success within government markets.

Rick and Lorin help companies increase government sales and marketing effectiveness through their firm, Galain Solutions, LLC.  For a FREE report entitled “Five Sales Rules to Break when Selling to the Government” email [email protected] or visit www.galainsolutions.com.