SALES PUBLIC ADMINISTRATIONS B2G

Accelerate your business with these expert tips on "B2G Public Administration Sales". Analyse and discover this TIP!

Sales to public administrations, also known as B2G (Business-to-Government) sales, refer to the sale of goods or services to government entities or government agencies, whether at the local, regional or national level. In this type of sales, the customers are governmental institutions and the procurement processes are often regulated by specific rules and procedures that differ from the procurement processes of private companies. Often, public tenders and a number of requirements are required in order to participate in them. B2G sales can be an excellent opportunity for companies looking to diversify their customer base and increase their revenue base. Examples of products and services that can be sold to public administrations include office supplies, software and information technology, security equipment, consulting services, infrastructure construction and maintenance, among others.

Some strategies that can be effective for B2G sales include

1. Research and understanding of government regulations and procedures related to purchasing and procurement.
2. Knowledge of the specific needs of each government agency and how the company's products or services can meet those needs.
3. Developing relationships with key government officials and representatives through industry networks and events.
4. Active participation in public tenders and submission of competitive bids that meet government requirements and specifications.
5. Establishment of partnerships and collaborations with other companies or suppliers that can strengthen the company's product or service offering in the government market.

A case study example for an entrepreneur wishing to apply B2G sales could be the sale of IT consulting services to a local government agency seeking to modernise its systems and processes. The entrepreneur must research the agency's specific regulations and procedures in order to submit a competitive bid and meet the requirements of the public tender. It should also demonstrate the company's ability to meet the specific needs of the agency and establish effective relationships with key government officials and representatives. Sales to government (B2G) have both advantages and disadvantages for companies engaged in this type of activity.

The following are some examples

Advantages:

• Large volume of purchases: Public administrations often make large purchases of goods and services, which can be very beneficial for supplier companies that can win high-value contracts.
• Stability: Government purchases tend to be stable over time, which can provide a certain degree of security for companies selling to this type of customer.
• Brand image: If a company wins contracts with public administrations, it can improve its brand image and reputation.
• Guaranteed payments: Public administrations usually have a high degree of solvency and guarantee the payments of the contracts they sign.

Disadvantages:

• Long negotiations: The process of contracting with public administrations can be lengthy and complex, which can result in increased costs and time.
• Regulatory rigidity: Public administrations have a number of rules and regulations that must be complied with in order to access contracts, which can limit the ability of companies to innovate or be more flexible in their offer.
• Low profitability: Public contracts are often highly competitive and companies may have to lower prices in order to win contracts, which can affect the profitability of the company.
• Dependence on the public sector: If a company specialises in sales to public administrations, it may become highly dependent on this sector, which can result in increased vulnerability to political changes and government decisions.

In summary, while sales to public administrations can present interesting opportunities, it is important that companies carefully assess the advantages and disadvantages before deciding whether it is a market in which they want to operate.

Practical examples of b2g

Here are some examples of companies that have been successful in sales to public administrations:

1. Amazon Web Services (AWS): is a cloud services provider offering a wide range of technology solutions for government agencies. In 2017, AWS received FedRAMP High certification, enabling it to work with government agencies in implementing cloud solutions.
2. Microsoft: is one of the world's largest software and technology providers, and has also been very successful in selling solutions to government agencies. In particular, its Azure cloud platform is very popular with government agencies due to its scalability and security.
3. Siemens: is a technology company that provides solutions for a wide variety of industries, including the public sector. It has had great success in selling technology solutions to government agencies, including the implementation of security, infrastructure and transportation solutions.
4. Oracle: is a technology company that provides enterprise software solutions for a wide variety of sectors, including the public sector. It has been highly successful in selling technology solutions to government agencies, including the implementation of data management and human resources solutions.
5. IBM: is a technology company that provides enterprise software and hardware solutions for a wide variety of sectors, including the public sector. It has been highly successful in selling technology solutions to government agencies, including the implementation of data management and security solutions.

The B2G (Business to Government) model refers to commercial transactions between companies and government agencies.

Here are some tips to improve sales to public administrations:

1. Know the regulations and requirements: research the specific processes and regulations for public procurement.
2. Identify key contact points: talk to decision-makers and establish a relationship of trust.
3. Offer a solution tailored to governmental needs: demonstrate how your solution meets the specific requirements and challenges of the public sector.
4. Demonstrate quality and reliability: ensure that your solution meets quality standards and offers a service guarantee.
5. Highlight efficiency and cost savings: show how your solution helps to optimise processes and reduce costs.
6. Demonstrate experience and success in similar projects: share references and previous success stories with government clients.

Public administration has different rules than the private sector. In this TIP we show you how toow to sell to public bodies. The term B2G always refers to selling to public bodies, such as municipalities, ministries, but also to large construction sites. Today we will look at the differences, similarities, and how to proceed.

• Differences and similarities: Every purchase has an emotional component, but it is very different to sell a product to change "how I am going to feel, or how I am going/will be seen" than a product that fulfils a specific function related to a public use.

How to sell to public bodies

In the latter case, the purchase always has a component of satisfaction - obligation, and another of fear. The satisfaction or obligation comes from the fact that the municipality or entity in question must acquire that product or service... and in that first stage, what predominates in the choice is one or several fears...

The main ones are:

• How to choose the right company.
• How to define all the details of the project in such a way that there is no randomness that could harm the project. final result.
• What happens if that work subsequently develops faults, etc.

And all of these respond to different fears: if they make a mistake they are going to have a very bad public image, they are going to look incompetent to everyone I know, the political party is going to be branded as ineffective... imagine that they build a bridge and after 2 months it falls down because they didn't put the right cement, they build a road with a thin layer of asphalt and as soon as trucks start to pass, it starts to turn into a field of craters...

Steps to sell to the public administration

STEP 0: PROPER PROSPECTING

One of the mistakes that many companies make is that the reference they have to apply for tenders is the publication of this through official channels... ERROR #1. A tender always includes the specifications, scope, description of what is desired, and this takes some time to be elaborated... that is why you better be prepared before it comes out... and for that, the first thing you have to do is to contact the different administrations beforehand. What will work for you is to contact all these municipalities beforehand, with a good telephone script and ask if they plan to carry out projects in the area of X, Y, Z for the current administration...

How to make such a script? The scripts for this type of clients, should be something like "we are offering a free consultancy in municipalities like yours, concerned about energy savings, which our luminaires achieve... understanding that it is of interest to you, could I demonstrate what I am saying" we would like to offer you a free urban assessment on road infrastructure that... etc. The idea is that in that script, you get to transmit authority, confidence and testimony. Authority because you have presented yourself as an expert, and confidence - testimony because you have already said that you are offering that to other municipalities.

IT'S ABOUT YOU GETTING ON THAT CALL:

1. Know who is responsible for that department.
2. To know if he/she is the only person responsible or if there are more decision-makers in the project.
3. Know if they have projects where you can serve them (you can't be travelling to every village because it would be a huge cost... it's about pre-qualifying). Example: You talk to the building department, and they tell you that this year there are no plans to build new public buildings, such as schools and so on.
4. Know how they relate to your competition: this is best explained with an example. 

When we have the guy in charge of that section of the municipality, let's say for example, electrical works, and he has told you that yes, he is interested in knowing the existing saving technologies, you can ask him: "since you have told me that you have a project in mind, what type of product have you defined? What type of sample have you taken him, so that I know which product to choose and, knowing that his time is precious, I can take him the most suitable product"... in short, creativity in your script so that you can be as prepared as possible.

These scripts should not be linear... it should be like a flowchart, be prepared for possible answers... however, if he has projects, the least you should do is to make an appointment with him... Prospecting well in advance will allow you to prepare yourself for the strong economic conditions that a tender demands from the suppliers, since in several occasions they ask you for an economic guarantee in deposit... also, it will help you to negotiate with your suppliers... but the most important thing is that, your accompaniment from the beginning with the prospect, will give him more confidence in your product and inevitably, the specifications of the project will be more oriented towards your product, so if we talk about a 100 meters race, you are only going to have to run 97 or 98... 

Ahhh... and by the way... take the whole day for that appointment... it is better that you have to wait for him to attend to you, than that he attends to you in a hurry. A little trick that might work for you is to visit him half an hour before lunch, since, as everyone has lunch, it might be a good time to invite him to discuss the matter further... and please, whatever you spend on lunch, let it be proportional to the scope of the project. All things being equal, he will remember you before anyone else.

STEP 1: THE FIRST VISIT...

And yes, I say visit, because there is nothing like physical presence. Physical contact when selling to public bodies is essential. In this first contact, you should talk to them in a short period of time about the benefits your product offers compared to the competition, and the endorsements you have. What will give more confidence is that you have already won tenders in the past. But above all, let the customer talk... sometimes he may know, sometimes he may not have a clue.

This is about confirming the information you got in the first call, or expanding on it. Remember: after he mentions the main characteristics of what they want, you must associate each characteristic with a benefit of the product... Example: we want an asphalt that is hyper resistant to heavy loads and that offers a long service life... Great: our additive asphalt has a compressive strength 2 times higher than XXXXXXX and on the other hand it has passed the YYYYYYYYYY ageing test, take advantage of this moment: show him these studies in the form of a report, a certificate, explain the standard...

STEP 2: SCHEDULE A DEMONSTRATION...

Have you ever bought a coat without trying it on? I guess not... socks maybe yes, because at the end of the day, they are not worth much... but a coat is a different thing... That demonstration, if you can, will earn you positive points, because you will gain trust because you demonstrate what you say, they would see with their own eyes the benefits they are going to have and, that is, because you must be skilled enough to know how to relate the results of that demonstration to the benefits you have quoted above... People believe what they see, much more than what they are told.

There are two important points here: make sure you invite all the people who will make the decision to buy, because you will have a team of allies later... invite them to ask you... In this step, Take as much time as you need until you can bring together all the decision-makers, or at least the most authoritative one, which is usually the mayor.

STEP 3: A KEY TO SELLING TO PUBLIC BODIES IS DEMONSTRATION

Explain it as simply as possible. If you know that your product is the leader, and there is another product to compare it with, do it... obviously you have to know how to refute all the objections, because at this stage of the film you have to know that objections are opportunities... if you have to make a comparative calculation, give them pen and paper and let them be the ones to give the result. Going back to the example of electricity: if you have instruments that measure consumption, and you make a comparison with the two values, let the decision-maker do the calculation, as long as it is not difficult and you are the one who tells them what to do... Generally, the comparisons are to make percentages and it is very simple... It is about achieving the "wow effect" on the decision-maker, not making him look stupid because he doesn't know how to do a simple operation. And that effect is greater when the prospect writes it down on a sheet of paper because he takes it as real data that he has done, not that someone else has told him.

STEP 4: NOW IT IS ABOUT APPEALING MORE TO THE EMOTION OF THE DECISION-MAKER.

How to sell to public purchasing bodies. At this stage, we are no longer talking so much about the benefits of the product for the municipality as you are appealing to the recognition that everyone likes to receive for a job well done. Generate a link. Look it up on social media and see if there are links through hobbies, football teams, etc. There will be some who reject this, but the idea at this stage is to sell yourself, as people buy from people, and they need to see you as the knowledgeable and expert advisor who has understood their needs and who provides them with the best pill for their pain, and if you are also their friend, so much the better....

Make sure at this stage that they will accept your advice on how to prepare the guidance document for the project. One of the things that will work very well for you is to offer them your complete guidance "to relieve them of their work"... fill it with paperwork: attach a copy of the standards for the product characteristics, the regulations that apply by law, etc. You are a helpful advisor at this stage, not a salesman. It is always better to visit him for the delivery of physical documents, rather than sending them by mail. The more contact he has with you, the more the bond will be strengthened and the more compelled he will feel to decide to buy for you... If you are someone who listens to these sales podcasts, you are probably already familiar with terms like NLP, neuromarketing (+), etc. Apply what you know at the appropriate stage.

SOME TIPS FOR SELLING TO PUBLIC ADMINISTRATIONS IN THE B2G MODEL ARE AS FOLLOWS:

1. Get to know public procurement processes in depth: Familiarise yourself with the laws and regulations governing the purchase of goods and services by public administrations. Each country has a law that regulates public procurement.
2. Sign up for an alert service for public tenders and public bids to be selected and notified (if you are a mentorDay alumni take advantage of our perks, hire Gestboes in Spain).
3. Identifies the needs of the administration: research the needs and problems of the administration you want to sell.
   1. Below a certain amount, it can make a direct award, "a dedo" without a tender (in Spain 15,000 euros).
4. Create an attractive proposal: prepare a proposal that highlights your strengths and solutions to the administration's problems. Normally, you will have to adapt your proposal to the requirements of each public call for proposals.
5. Meet the decision makers: identify key people in the administration who can help approve your proposal.
6. Follow up on a regular basis: keep a constant follow-up with the administration and be ready to address any concerns or questions they may have.
7. It demonstrates a high level of professionalism and expertise: the public administration values experience and professionalism in the companies it works with.
8. It offers an exceptional service: Good after-sales service can help you establish a long-term relationship with the administration.

case study for an entrepreneur to apply B2g

Clara is an entrepreneur who has created a company specialising in providing technological solutions for local governments. Her goal is to offer a comprehensive system that allows municipalities to improve their efficiency in the management of public services and communication with citizens. To implement the B2G strategy, Clara must identify the specific needs of each local government and adapt her service offer to the particularities of each case. To do this, it is important to research the procurement processes and legal regulations governing public procurement in your country, as these are often more complex than in other types of sales.

Once Clara has identified the local governments that can benefit from its solution, it should develop a marketing strategy to raise awareness. This may include attending trade fairs and government events, sending presentations and proposals to procurement officers in each municipality, and creating an online presence through social media and specialised websites. When presenting its offer to local governments, Clara must be able to demonstrate how its solution can contribute to improving the quality of life of citizens and optimising the management of public resources. This implies not only presenting the technical characteristics of the system, but also emphasising the concrete benefits that its implementation can generate.

Once Clara has closed its first contracts with local governments, it is important that it maintains close communication with them to ensure that they are satisfied with the solution and to identify opportunities for improvement. In addition, as public procurement processes are often lengthy and complex, Clara must be able to manage its resources efficiently and maintain a cost structure that allows it to be competitive without compromising the quality of its solution.