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Federal Market Penetration Tips

You have heard me harp about the Amex Open study that found that of firms that do business with the federal government, the federal government is their largest customer, and is over 20% of the firm’s revenue. However getting from the starting point to a firm achieving a meaningful percentage of its revenue can be a confusing process for firms that have never done business in the federal marketplace before. Therefore this week I have put together some Tips:

Tip 1: Determine if the Federal Government purchases your goods and services and if you can sell your goods and services at the typical contract award pricing on GSA. (If you are lost by this it is something we can help you with.)

Tip 2: Your competitors should be analyzed especially if they have beaten you to the Federal Market Space and have reasonably strong sales volumes. Visit their GSA Schedule offerings on e-library as well as their company websites to view their government landing pages. This can often yield valuable insight as to the capabilities or market niches they are targeting which will reduce your learning curve as a second mover.

Tip 3: Determine what contracting vehicles Federal Agencies use to buy your product. In most instances a GSA Schedule contract is your gateway into the Federal Contracting arena. After your GSA Schedule has been established and sales made moving to specific Agency IDIQ (Indefinite Order Indefinite Quantity Contracts) as well as BPAs (Blanket Purchase Agreements) become your next targets. Knowing your endgame in the Federal Market Place from the beginning will greatly reduce the time it takes to maximize your sales volume.

Tip 4: Your GSA Schedule comes with a listing on GSA Advantage. This listing if optimized can lead to greater sales of your product. Like a person performing a google search, user’s seldom go multiple pages deep. GSA Advantage is they typical location Federal Buyers visit online when looking to do market research. Using keyword descriptions is critical as part of this listing.

Tip 5: When first attempting to sell to the government, your sales and marketing teams should communicated often and be engaged. Resistance sales meets in the Federal Space should be communicated to marketing to adapt current product offerings. This will lead to marketing reacting quicker and move the company into valuable Federal Niches.

Tip 6: Setting google alerts on your competitors so you can be notified of changes or press releases your competitors make regarding government contracting is a good idea. This can greatly reduce your businesses reaction time to an emerging niche.

A GSA Schedule is your first step in entering the federal market place. If you would like for me to run an analysis for your firm to see what type of impact a GSA Schedule could provide your business, give me a call and I am always happy to discuss. Knowing the size of the federal marketplace in your industry is the first step in making a strategic decision as to whether you should view the federal government as a growth are for your business. Please feel free to give me a call at 303-810-4580.

 

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