The Best Closing Mechanism

From GOVSALESWIKI

Installment [ 32 ] The Best Closing Mechanism By Richard White

GSA Schedule contracts are the best closing mechanisms for small and medium-sized businesses that cannot afford to hold several multi-vendor contracts. Under a GSA Schedule contract, the federal government and the vendor agree to pre-approved prices for the vendor's products and services. More importantly, such contracts are quick and easy for any federal agency to use.

Keep in mind that GSA Schedule vendors still need to sell the end user just as they would in the commercial sector. Newcomers should start the process of obtaining a GSA Schedule contract immediately upon deciding to enter the market because it can take three to nine months, or more, to get an award of such a contract.

A variation on the prime contractor/subcontractor approach to closing a sale is to become a subcontractor to a small business under one of the federal government's many small business preference programs. These programs allow quick purchases with preferred types of small businesses under rules allowing limited competition.

A sole-source contract is another alternative for closing a sale; however sole sourcing is extremely rare unless there is truly only a single source for a product or service. Among other challenges, sole-source contracts require special, hard-to-obtain approval from above. The government does its best to keep such contracts under the public's radar.

This article is an excerpt form the new book "Rolling the Dice in DC," http://www.fedmarket.com/salesGame.html. The book is written for managers and sales people and describes the day-to-day dogfight of competing and winning in the federal market. Read this book if you want to know the good, bad, and the ugly of the federal market, what it takes to enter the market, and the potential returns.