Speak your Mind

Speak your Mind

Tuesday, April 30, 2013

How to Sell Expensive Products and Services to Public Agencies



WEB SITE

Provide a clear and concise web site showing the benefits, features, capabilities, costs, maintenance and other functions directly associated with defining the product or services; if possible, provide a demo or a working interactive display. The web site should enable the viewer to generate a Request for Proposal (RFP) by filling in all the necessary information (number of users, current admin requirements, desirable options, interface requirements, conversion opportunities, etc.)
Note that constant maintenance and upgrading of your web site is necessary. A good website is always a work in progress.

EVOLVE MAILING LIST
                                    
Select a lead contact emailing list, preferably consisting of the people most likely to lead the decision on the use of the product or service (Purchasing Directors for purchasing software, Business Officers for administrative software, Science Chairs for cyclotrons, Aircraft Maintenance administrators for titanium tool sets, Facilities Directors for mowing equipment, Maintenance Coordinators for pressure-washing equipment, Electronics Equipment Coordinators for audio-visual systems, etc.); the mailing list should have name, title, institution, address, email address and phone number.

Expend considerable time and effort identifying the correct lead contacts. Try to identify the primary person who is responsible for initiating the requirement for your particular product or service (notice that I did not say the primary user or the primary purchaser — you want to identify the person who initiates the requirement). Addressing all the following mailings and steps to the wrong individual is like throwing dollar bills out of an airplane — you might get lucky enough for a dollar or two to fall into the right hands, but it is highly unlikely.

EXEMPTIONS

Ascertain, at the outset, if your product or service qualifies for an exemption from public bidding. Many commodities and services qualify for such exemptions; that is, they can be purchased by direct negotiation from a sole source without benefit of a competitive process. A variety of exemptions exist and they vary from state to state and institution to institution. The most common exemptions are for copyrighted materials (this can apply to software if it’s only available from one source), total uniqueness of product, only one available source, intergovernmental purchases, commodities which have a short shelf life, degrade rapidly or are consumed quickly, and so on.
Check with the Purchasing Department specifically on this issue. If you believe your product can be exempted from public competition, state so in all your communications, but don’t belabor the point.

Send Email to Each Lead Contact

Send each lead contact an email announcing the availability of the product or service and stating three things:
a) The key uniqueness of the product or service
b) The availability of the website for more information
c) The fact that a letter and brochure will be arriving in two or three days and a request that the lead contact person read the letter and view the brochure

FIELD INQUIRIES

Be prepared to field a few (but not many) inquiries as a result of the email message.

SEND COVER LETTER AND BROCHURE

Send the cover letter and brochure, addressed individually to each lead contact, requesting that the lead contact view the website and call if there are any questions.

 FIELD INQUIRIES

Be prepared to field a few (but not many) inquiries as a result of the letter campaign.

INITIATE TELEPHONE FOLLOW-THROUGH

Telephone the lead contact a few days after the letter and brochure is received with the intent of accomplishing three things;
a) Answering any lingering questions;
b) Encouraging the lead contact to visit the web site; if the lead contact hasn’t visited the web site, ask if the person would be interested in a hand-holding, walk-through of the site or of the demo, in real time, on the phone;
c) Generating a verbal RFP (so that you can develop a proposal based on the needs of the agency or institution).
Note: the objective of all the above is to ascertain the lead contact’s level of interest, to delete from your list those who are clearly uninterested, and to solicit an RFP; that is, to enlighten the lead contact such that the lead contact asks you for a priced proposal to sell the product to the institution.
The disinterest may be for a number of reasons most of which may have nothing to do with you or your product or service. The most common reasons are that the user is satisfied with the current system, there is no funding available for an acquisition, and the needs are very different from the product being proposed. If possible, try to ascertain the reason for disinterest and if it’s convertible to inquisitiveness, attempt to do so. If there is a possibility, such as the potential for funding, place the lead contact on a recall list and state the month and year for re-contact. Never, never be obtrusive, overbearing or unappreciative of the lead contact’s time.


GENERATE PRICED PROPOSAL

Gather enough information, either from the web site RFP page, or verbally from the lead contact, to generate a priced proposal for the lead contact; this means ascertaining the lead contact’s needs, (quantities, qualities, technical requirements, number of users, departments, systems, compatibilities, services, maintenance requirements, and warranty issues, if applicable).

SEND PROPOSAL PACKAGE
Compile and send a priced proposal to the lead contact.

PERFORM PHONE STATUS CHECK

The objective of this step is to generate an invitation for an on-site presentation; failing that, to fill any gaps from the previous steps that become evident. About a week later, if there has been no contact from the lead contact, telephone the lead contact and ascertain:
a) Did he/she receive the proposal?
b) Was everything in order?
c) Is any additional information required?
d) What was the reaction to the proposal?
e) Are there lingering technical issues, such as compatibility, interfacing and conversion?
f) Would an on-site presentation be of value to the lead contact and associates?
g) Does the lead contact have enough information to make an informed decision?
h) When can we expect a decision to be made?

ASCERTAIN THE MEANING OF “TIMELY”

If any answers indicate that additional submittals or responses are required, be prepared to furnish them in a timely manner. Ascertain what is “timely” in the lead contact’s view; bear in mind that for some people “timely” may be within a day or two, and for others, it may be months before a committee can be formed to address the issues raised by the proposal.


ANTICIPATE THE EFFECTIVENESS OF TRAVEL

If travel appears imminent or necessary, try to subtly ascertain how close the lead contact is to closing the purchase. This is one of the most difficult steps.
The following questions can be asked to ascertain how effective a costly trip will be toward cultivating a sale:
a) Who will make the final decision?
b) Will a committee be necessary?
c) Will the agency or institution be required to do an RFP or RFQ before a final decision is made?
d) How great is the need for the product (i.e., at what frustration level is the institution or department operating)?
e) Is funding allocated for this purchase (i.e., is there adequate budget authority to proceed with a purchase)?
f) If not, when is budget authority expected to be confirmed (bear in mind that the answer could be “a year... or two”)?
g) Do enough people understand the product to make an informed decision (i.e., has the lead contact shared all the forgoing information with a group, which will either become a committee or have a say in the final decision)?
h) if not, is more information required, especially before a presentation is appropriate?


PREPARATION FOR PRESENTATION

If you are invited to make an on-site presentation, ascertain...
a) How many people will be there?
b) What are their titles?
c) Which ones are decision-makers and which are observers?
d) How long should the presentation be?
e) What constitutes the environment (the room audio/visual/electronic attributes)?
f) The logistics of when and where.
g) How many others have been invited?
h) Do you have a choice of first or last place?

Try to be either first or last, never in the middle. If you are a strong presenter with every duck in order, go first. First sets the stage for all that follow. If you feel you might be less than strongest, go last. Last benefits from pointed questions based on what has been learned from the forgoing presenters (this can be a double-edged sword); but mainly, last remains most salient in the memories of the selection committee.


MAKE THE PRESENTATION

Always check in with your lead contact a day or two in advance of your arrival to ensure that nothing has changed. Again, revisit the decision-making process with your lead contact and ensure that you understand your relative status with regard to the process, the competition, the audience, the finances and the related issues. Discuss any recent changes in the environment (new budget allocations, recent software crashes, changes in selection process, etcetera).

Make the necessary final arrangements, and proceed with the presentation. Have appropriate handouts available .Use the website if possible but be prepared to operate off line if web access is not available (never be caught without this backup program because a local server goes down seconds before you begin and you have nothing to present to 30 people who are anxiously awaiting a clever and clear presentation of a product they might actually like to recommend)!

FOLLOW UP

Follow up with a note of thanks to all the audience members that you can identify. Offer to be available if any additional information is required. Do not offer anything else. Attach short commentary on any questions which you could not answer during the presentation and/or which needed additional research. DO NOT offer anything else. DO NOT send flowers, chocolates, company pens, pencils, clocks, flags, beer, wine, liquor, or favors of any kind.

CLOSURE

After all this, depending upon the need, the price, the competition, and the type of agency or institution, proposals will result in one of the following three options;
a) Complete rejection
b) You become one of many proposers in response to an RFP, an IFB or an RFQ
c) You become a sole suppler entering final negotiation for sale of your product

If you get Option a), and have trouble dealing with it, I can’t help you. See a counselor.
If you graduate into Option b), look for additional guidelines (possibly from me) on how to handle these eventualities and send me with a request that your firm is retained on the mailing list.
Of course, where you want to be is Option c). Warning, depending upon the product, its cost range, the type of institution, etcetera, it could take as much as a year or more to get to this point. Additionally, Option c) is the least likely outcome of the three.


CONCLUDING REMARK

Regardless of the outcome, always be courteous, respectful and considerate of the fact that those in public agencies are doing their absolute best and that they operate in an environment fraught with a myriad of political, governmental and cultural constraints. They do not and can not make decisions like private industry does.

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