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Effective Sales Strategies for the Federal Government Market

by on March 20, 2014

Fed GovernmentThe basic goal of any emerging company is to drive sales and penetrate new markets. For technology companies such as software, cyber security, mobility, etc, the window for rapid sales growth is extremely narrow. Newer technologies are coming onto the scene every day, so if your product is not widely adopted or has a visible path to significant sales, its existence will most likely be short-lived.

Lucrative Federal Market

For technology companies that are well capitalized from a long list of outside investors, the pressure is that much greater to achieve sales growth because the investors want a substantial return on that investment. The federal government provides a marketplace that is commonly sought after because of the potential for substantial sales impact. With enormous contract values that are locked in for five years, the revenue opportunity should not be ignored.

The problem is that the U.S. federal government is the most complex and demanding marketplace in the world. Less than 5% of companies who go after sales in the government sector ever succeed to a meaningful degree. So how can a company develop an effective sales strategy to penetrate this behemoth?

Penetrating the Market

The most important thing to understand is that the quality of the product or the solutions the technology provides sit at the bottom of the qualifications list as far as the government is concerned. What they are mostly concerned with is WHO they do business with. That is why the same companies are awarded contracts time and time again. The contracting officers know these companies well, they typically hold a preferential business status (ie: veteran, woman, minority), and they also have contracting vehicles. These contracting vehicles are extremely difficult to obtain, but are essentially open lines of purchasing authority between the government and contractor.


So how can a technology product company take advantage of this? By teaming with these selected contractors. Teaming allows the technology company to rapidly access the government market and take advantage of the contractor’s past performance, reputation, business status, and contracting vehicles. Teaming is also beneficial for the contractors because they typically cannot offer any kind of innovative technology to help them stand apart from their competitors on a particular contracting vehicle. As a result, the contractors are looking for technology companies to team with.

By making these partnerships, a company can create strong distribution channels into a highly selective market and have a realistic model for sales growth. Additionally, because of the difficulties of the government, there is a high probability that competitors will not see the same success. This sales strategy and competitive advantage can allow a technology company to break from the pack and become an industry leader.

A firm that specializes in this teaming model is K3 Strategic Development Group. K3 has a definable process to identify the appropriate sales channels, market a product to various contractors, and orchestrate strategic partnerships with these kinds of companies. K3 has built a large network of contractors who have a high marketing proficiency in the federal marketplace and can execute this sales model very efficiently for technology companies.

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From → Strategy

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