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    Big Money Selling to City Government
    Big Money Selling to City Government
    Big Money Selling to City Government
    Ebook137 pages3 hours

    Big Money Selling to City Government

    By John Perez

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    About this ebook

    Big Money Selling to City Government: How to Land Government Contracts by John K. Perez is a comprehensive “strategy guide” about how to market to cities with the aim of winning annual contracts and purchase orders.
    If you find yourself asking, “How do I sell something to the City of New York or the City of Los Angeles?” Or, secondly, “How do I find out who buys products and services for the City?” This book will enlighten you and your sales team about how to effectively bid on annual contracts for the supply of goods and non-professional services.
    This guide takes you through the intricacies of the competitive process known as the Request for Bid. It provides the reader advantages and advanced strategies for a successful bid outcome. It delves into annual contract research techniques, public information gathering, and provides winning strategies for getting that big annual supply or service contract. It also provides several marketing strategies for existing city contracts.

    LanguageEnglish
    PublisherJohn Perez
    Release dateFeb 9, 2013
    ISBN9781301950348
    Big Money Selling to City Government
    Author

    John Perez

    By occupation, I am a small business owner. For 8 years, I have operated my own growing electronics distribution company. I have over 25 years experience in the field of government contract procurement, as well as experience in the field of electronic and electrical component distribution in Southern California. On my off time, I am both an artist/illustrator and writer. Currently living in Southern California.

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      Book preview

      Big Money Selling to City Government - John Perez

      Preface:

      Despite the fact that most municipalities are the largest local or regional employers within a state, and for that matter the largest local consumer of goods, many small business owners know little about selling to these forms of government. City governments and their departmental sub-units tend to be so widely distributed that most small business owners do not know where to begin their sales efforts. A basic lack of knowledge about City government organizational structures, their supply chain functions and necessities keep many small business owners from realizing the fact that there are tremendous opportunities available to those vendors that do know how to sell to these municipal government entities.

      This book is a comprehensive strategy guide about how to market to cities with the aim of winning annual contracts and purchase orders. For those vendors pondering marketing strategies or sales approaches this book will provide a thorough step by step overview of effective annual contract capture strategies that will vastly improve your ability to do business with most large cities.

      If you find yourself asking, How do I sell something to the City of New York or the City of Los Angeles? Or, secondly, How do I find out who buys products and services for the City? This book will enlighten you and your sales team about how to effectively bid on annual contracts for the supply of goods and non-professional services. For most large and small vendors alike, approaching City governments is a daunting problem. Few vendors understand the organizational structures of City governments or have experience in developing optimal plans for winning large business contracts.

      Business owners interested in expanding their opportunities by selling to large City governments will want to purchase this book, because it provides numerous strategies for gaining an advantage over the established competitive bid process that many of these municipalities employ. This book is an advanced tactical strategy guide that identifies a series of aggressive annual contract capture techniques useful for goods supply and non-professional services contracts.

      This book is not a simple Guide about how to do business with City government. Any prospective vendor can obtain that kind of guide from any of over a dozen departments belonging to every major city in the United States. This book’s primary focus involves Annual Contract capture strategies that most Cities do not disclose in their handout literature or at any of their frequent public vendor seminars. This book is a strategic tool-set that will show you how to win "Annual Contracts’ from most major Cities, and any of their numerous departments and divisions.

      In essence, this book will provide the buyer an in-depth professional strategy guide at a far lower cost than hiring a professional business consultant.

      If you are marketing your goods and, or, non-professional services to City government, you will not need another guide to teach you about their forms and purchasing processes. What you will want is a Strategic Plan like this one that will allow you to dive in and get access to the thousands of Annual Contracts that are somehow mysteriously awarded to other companies every year. This book de-mystifies the public contract award process, but more importantly it provides a wide range of competitive approaches and successful strategies that can help you land Annual Contracts.

      This book outlines annual contract capture strategies that only a few successful vendors are aware of and actively practice. It summarizes a variety of strategies that in essence only a very small percentage of vendor’s are familiar with or have discerned after years of competitive bidding for a large volume of City contracts. Though there is a degree of content about annual contracts and the contracting process in this text, this general information is public knowledge and peripheral to the strategies that are outlined within. I hope that after reading this book that the buyer will realize that there are significant advantages to be had from the insights gained from the various chapters that follow.

      The author’s aim in writing this book is a singular attempt at providing the customer a Strategy Book geared toward winning more public annual contracts. The type of contracts that these strategies are geared to capture are generally those that require the supply of goods and non-professional services. These types of annual contracts can range in estimated expenditure from a few million dollars per year to $20,000. This strategy guide is not meant for the capture of professional service or construction contracts. This latter class of multi-million dollar contracts is not the focus of this book. This book is meant for both small and large vendors that want to sell their products and non-professional services to city government and beat the competition in the process.

      Chapter 1 Popular Misconceptions About Selling to City’ Governments:

      A variety of misconceptions related to selling to city’ governments hamper many vendors from obtaining desirable sales results. That is many vendors misinterpret the role, structure and organizational functions of city government and fail to focus their marketing efforts. Doing business with city government is fundamentally different than doing business in private industry. There are great advantages that can be realized by bidders that understand the nuances of the competitive bid processes employed by municipal government agencies. Stacking the deck in your favor as a bidder is a high probability gaming opportunity, if you know how the public purchasing system works and prepare your bids accordingly. Those successful vendors that win the majority of annual contract awards have discarded many common misconceptions concerning competitive bidding on government contracts. These successful companies actively bid city government agencies using a different set of rules, than do the vast majority of businesses submitting their initial sales offers.

      Successful vendors selling to the city teach their sales representatives about the most common misconceptions involving bidding city business. Most small business owners (vendors) approach cities and their myriad departments, bureaus, agencies, warehouses with the same misguided belief that they are just another potential customer similar to that of private industry. I say this is misguided, because it assumes a frame of thinking that pre-defines the client and in many ways sets limits that shut-off opportunities for information gathering and negotiation. As a municipality, city governments are actually easier to sell to than most private industries. Yes, there is considerable red tape, but once you recognize the advantages involved in the sales process, you begin to understand that there are tremendous opportunities in this market.

      The most common misconception about dealing with the city is that the vendor cannot or need not gather information about any prior sales. That is, most vendors take the approach of simply prepping a bid and submitting it in the hope that they are the lowest responsive successful bidder. Few vendors understand that they have the right to ask and derive research data from any entity belonging to the city. All departments belonging to the city are required to divulge pubic contract information, as part of their City Charter mandate of transparency in contracting. They can’t tell you what your competitors are currently bidding on a newly posted RFB (Request for Bid), but they are obligated to tell you what the old bid prices were for the last RFB award. So you can obtain historic price information about past purchases. As a salesman you only have to ask. And it is extremely important that your sales staff realize this singular information gathering opportunity. In essence, much of the purchasing data related to the historic buying performed by the city is fair game. Perhaps nine out of ten vendors fail to ask about the last bid (award) price for a commodity or service before they actually submit their bid. A small business (any vendor) should always ask for the historic pricing data before tendering any bid whether it is for a simple purchase order or for an annual contract. Remember commodity purchases most likely involve routine replenishment of materials. When a sub-purchase order, standard purchase order or annual contract is being solicited, there is a strong likelihood that a long history of prior purchases pre-date the current request for bid.

      A related misperception that is widespread among small businesses (vendors) involves the characterization of city departments as entities that are wholly impenetrable

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