Selling Products, Goods & Services to Government

A business exists for a variety of purposes, the most important ones being profit and continuity of its existence. Without profit, a business, whether big or small, would be unable to exist and possibly, become a financial liability to its owner.

A business can be deemed healthy if it can produce profit to sustain itself, its operations and its workers. Financial difficulties can be a constant recurrence in the life of a business and there are many ways to remedy it. In contrast, a business might be thriving but thinking of expanding. Either way, both situations need extra income. And the income can come from selling to the government.

Selling to the government is a little different compared to selling to the public. Businesses often cater to a public market or a particular industry. They have their target market which decides the industry trend, the product or the service offered by the business. As so, their product and services are available for everybody and the business uses advertising to entice more buyers/clients.

In comparison, there is only one client when selling to the government. Even if a business providers to a variety of government agencies or departments, it is selling to one entity. A business might also have a handful of competitors but the potential profit from a government contract can sometimes bring more compared to selling to a much larger scope like the public.

When a business sells to a public, it adopts a one-size-fits-all approach. It often uses various forms of media to transport its message among a big audience. Communicating with the government is the opposite – government often asks for proposals from potential vendors (business) before they award a contract. A business proposal is customized based on the government’s needs. In addition, it is often the only material given by the business to attract and convince the government as a client.

Another contrast is the presence of rules and regulations. The government has its own procedure on picking and awarding a contract to a business. The process of awarding or the business can be publicly scrutinized. This is a given since it is taxpayer’s money, not loose or personal income, being spent as the payment for the business’ goods and services.

Why Consider Government Procurement

One main reason why small businesses are competing for government projects is its stability. The government has the ability to pay for its needs – whether they are goods or services. Given that a government (in any level) is in constant need, small businesses can have the opportunity to provide their services or supply. There is an element of stability and continuity that small businesses can use.

In addition to continuity and stability, procurement for the government can also increase a business’ reputation. Given that the government is extremely particular when it comes to products and services (and in extension, its provider) the business can garner attention and a good reputation within its industry.

Selling to the government should be a method to be considered by many businesses. It’s one experience/transaction that could be beneficial for both parties.

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