August 10, 2010

Two Tips For Doing Business With A Government

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We tend to associate governments (and big business) with bureaucracy. Mark Twain exposed red tape brilliantly in The Facts in the Case of the Great Beef Contract.

Governments also buy thousands of products and services. Why not get them to buy from you and your network?

I attended a three hour seminar on how to sell to the provincial and federal governments. The same basic ideas probably apply in other other countries and with other levels of government.

The Seminar

The room was filled with over 100 attendees seated at 12 tables with eight seats, and in chairs at the back. There were many meaningful audience questions, an excellent sign of interest.

The presenters were sincere and knowledgeable. They wanted to help. Questions were recorded to help improve the answers. Isn't that a great idea?

Two Tips

Here are two key tips
  1. eliminate surprises
  2. follow instructions

Eliminate Surprises

Buyers don't like surprises. They've spent time deciding out what they want. Give them credit for figuring out their own requirements. If they wanted help, they would have asked.

If your bid goes beyond the scope of the request, you won't get credit. In a sense, you're wasting the time of the reviewers by giving other options. You might not agree with what they want since we see as we are. If you were looking for a particular house, would you like your architect to propose something else? Maybe early on, not when you're ready to make your final decision.

Do your proposals include surprises? A "free prize" is fine because that's a bonus. I mean a twist where the client is expecting Q and you propose R? In a competitive situation, you may want to surprise the competition at the last minute when they can't react. That's a bad strategy when dealing with governments. They want to make sure all bids are on the same basis.

Follow Instructions

Following instructions is boring but helps the buyer by accommodating the structure they prefer. For example, there are different formats for dates. Does 3-11 mean March 11 or Nov 3?

Rules needn't confine you. Think of how creative a 140 character tweet can be.

You want to stand out but breaking the rules isn't the path to distinction. For instance, proposals must be on time. Why not submit them in advance to allow for potential delays?

Have you ever completed an RFP (Request For Proposal)? I've worked on several that were successful. Each time, we focused on answering the questions as written and got thorough reviews from colleagues. That's the power of teams. That's also exactly what the buyers wanted.

Attend A Seminar

Governments may not buy your category of product or service, or they may not buy from a company your size. That's okay. By attending a seminar, you'll get a better idea of how to market your offering in general. That's valuable since we may get sloppy and take shortcuts.

Losing bidders might even get a private debriefing to help them improve. Do you have a process like that when buying or selling?

You probably have people in your network who could sell to governments. Why not help them by sharing what you've learned. You may open up a major source of revenue for them (and perhaps yourself).

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August 3, 2010

Do Your Clients Feel Cheated?

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Your clients may have difficulty leaving you, but that doesn't mean they're happy or believing you.

We'll use mobile phone rates as an example.

Here's a text message that Bell Canada sent me when I entered the United States on a recent trip:
Free Bell Msg: While travelling in United States STD roaming rates are $1.45/min, $0.75/sent txt msg & $51.20/MB for data
The data rate is shocking, especially in 2010. US partner AT&T's new monthly charges for mobile data are
  • $15 for 200 MB [Bell roaming costs: $10,240]
  • $25 for 2 GB [Bell roaming costs: $102,400]
At least the text message was free and sent before any charges were incurred. My Blackberry is set to turn off data while roaming. That's an ideal since applications running in the background could Bell US roaming rates (click to enlarge) inadvertently run up hefty bills.

If you click on the screenshot to the right, you'll see the Bell website doesn't disclose the mobile data rates clearly or offer a travel bundle. What's the meaning of "billed according to US roaming rate"?

Actual Size

Maybe the data rates make sense to Bell and AT&T but how would you feel if you received an expensive surprise on your next phone bill?

In three days, a traveller created a $7,763.70 bill before service was cut off. The reader comments aren't sympathetic to his I'm-ignorant-give-me-a-break argument. However, the bill was reduced to only $2,000.

Your Clients

What do your clients think about your prices?

They may not tell you. They may not even leave you because of the hassle or cost. But would they recommend you? Would they share their woeful tale?

It's risky to underwhelm clients. There's so much information online and so many opportunities for feedback. For example, websites like The Consumerist or bloggers like Ellen Roseman have many reader comments.

Differential pricing gets spotted easily. Did you get Microsoft Office 2010 yet? The Home and Business edition costs $280 US or $349 CDN (25% more). The Professional edition costs $500 US or $669 CDN (34% more). There's no explanation for the inconsistency.

Explain

Maybe you've got solid reasons for an unfriendly policy, high prices or slow service. Maybe hefty taxes or government regulations or heightened security are the true culprits. How about explaining this?

For example, AT&T's iPhone reception in San Francisco may be lousy because approval for a new cell tower takes three years. This wasn't known until Steve Jobs told the world last month. The explanations may help the affected understand.

In my case, I survived 75 hours without Internet access. There were no withdrawal symptoms. I could have gone to Starbucks with my netbook but didn't even take it out of the case. The biggest consequence was spending more time with my family. Oh the sacrifices …

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