Helpful Similarities in the B2G World
With purchases over $6 trillion a year, the U.S. government is the world's largest buyer of products and services. With the proper knowledge, your business could win government contracts to sell just about every category of commodity or service available.
The bright side for those switching from B2C or B2B sectors to B2G is that selling to the government is, in some ways, similar to selling in the private sphere. Procurement procedures may have stricter guidelines and regulations, but many of the marketing techniques and strategies you already use may help you win bids within the B2G world.
Differences that You May Encounter in the B2G World
Entering the B2G sector of the economy can be very lucrative and is generally based on the same principles as commercial contracting, but there are some differences compared to contracting in other sectors. When entering into contracts with state, local or federal government entities, the government is considered an "agent" of the people served by the agency or government. Keep in mind that, if you are selling a service to the government, you will usually be required to submit a proposal. This proposal will be your outline of how you will perform the job for which you are contracting. If you are selling a product instead of a service, the winning bid is usually not only the lowest price bid, but also the bid that followed the administrative guidelines.
In order to win government bids, it is suggested that you follow the rules and regulations that have been put in place. The process is largely open to public scrutiny and is very structured, which may be different from other types of bidding most companies are accustomed to.
To get bids, you need to know all the details of the bid and the bidding process in order to have the best possible opportunity to make your bid timely, complete and in compliance with all requirements. The services that BidNet provides can help firms accomplish this. BidNet offers a wide variety of resources such as notifications of upcoming bids and information on open and closed bids; resources such as these may improve a company’s success when bidding with the government.
In order to have the best chance of success, companies should obtain available information on past awards, quantities, costs and winners. In addition, becoming known to potential purchasers will help you succeed in the B2G world. If you are ready to work with the government, examine your company and consider what the government will look for when considering your company for a contract award. Factors the government may consider before issuing a contract include your financial status, staff capabilities and track record.
If you are informed, accurate, on time and professional, your bid has a much better chance of winning.