Why Companies Need a Core Government Sales Group
One for the money: that's the sales representative who markets to target agencies and brings in the deals. Two for the show: the techie who understands the agency's very particular needs for your products and services. Three to get ready: the contracts manager/administrator who handles order processing, collection, and routine contract compliance matters, so that numbers one and two can work trade shows and conferences. We're not going to emphasize "four to go," but for the record, it's the second sales rep who replaces number one, who got promoted to government sales manager after record sales to the feds.
Dealing with the federal government means a different way of doing business, including different institutional buying practices, regulations, and contract compliance requirements. As a result, one of the questions we frequently get asked is whether or not the company should establish a government sales group that has experience dealing with these unique issues. While of course our answer depends on your estimate of federal business, our general response is an unqualified yes!
The importance of maintaining a sales force that has a working knowledge of the federal procurement system is immeasurable. The right federal sales staff can be the driving force behind a company's federal sales by knowing where and when purchases are made, helping the ordering activity deal with unique technical aspects of the procurement, facilitating contract award, and then keeping the customer happy with the company's performance under the contact.
Despite these reasons, many companies entering or dabbling in the federal marketplace simply don't feel that they can afford a federal sales staff until federal sales take off and represent a fair share of the company's overall revenues. The problem with this viewpoint is that federal sales are unlikely to take off unless you have a core federal sales staff that is qualified to deal with the issues that are unique to federal contracting in the first place. It's the age-old question: Which came first, the chicken or the egg?
What these companies fail to consider, however, is that a company doesn't need to start out with a full-fledge government sales staff. Instead, a company can start small and add more experienced personnel as its federal sector business grows.
The number one person a contractor needs to hire is a sales representative knowledgeable in your industry with contacts in the federal agencies that most often buy your products or services. This is the keystone, the rainmaker who justifies your federal initiative. After all, without sales, why be in the federal market?
For this slot, it's more important that the federal sales rep have the ability to do the job rather than the perfect resume. Depending on your niche, industry knowledge can be picked up quickly, especially by someone who comes from a related sector of the market. Likewise, even if the hire does not have a rolodex of direct contacts at target agencies, a good hire has the proven ability to develop those contacts because he or she knows how federal agencies operate and how to talk the talk.
Of utmost importance is the federal salesperson that has the ability to get his foot in the ordering activity's door. The right federal salesperson will understand the agency's specific needs and procurement cycles, and know which agency is buying what and when with respect to the product or service your company is selling. The right federal salesperson will be a seasoned professional who demonstrates a working knowledge of the various procurement laws and regulations. Contracting officers appreciate a contractor that understands the procurement process with little or no hand holding, and will be more likely to turn to that contractor again for its needs in the future.
The number two hire is the technical person who can fine tune your goods and services to the very specific needs of your agency customers. The benefits of government technical staff should not be overlooked, especially in the AV equipment and services industry.
Although most commercial contractors have plenty of technical staff on board already, these individuals may not understand or appreciate the technical aspects that are unique to the federal government. Certain requirements apply to the federal government by law that do not necessarily apply in the commercial sector, such as Section 508 disability access requirements, UID and RFID tracking technology, or data encryption requirements. Technical personnel that can speak the same language of the federal government and, in some cases, help the federal government decipher their own needs, can prove invaluable in sealing the deal.
Finally, the number three hire is a contract administrator who understands the compliance issues related to government contracts. As we discussed in October, contract compliance has become a hot topic in the federal government arena. A good contract administrator will handle order processing, take care of mod, billing, and collection. He will also make sure that your GSA Schedule price list is up to date and listed on GSA Advantage!, and that your company complies with the quarterly and annual reporting requirements of your GSA Schedule.
While selling to the feds is less onerous than it used to be, it's still not the same as selling to the commercial customers. There are institutional, technical, and administrative differences. Developing a good working relationship with agency ordering activities is crucial to your successful penetration of the federal market. Establishing a core federal sales group that understands the federal marketplace from a sales, technical, and administrative point of view will get you there.
