Myths of Selling to Government

So, You Think You Can Be Consultative When Trying to Win Government Contracts?

June 30, 2021 Rick Wimberly Season 1 Episode 16
Myths of Selling to Government
So, You Think You Can Be Consultative When Trying to Win Government Contracts?
Show Notes Transcript

Ask pretty much any salesperson if they are consultative, they're likely going to tell you, "of course".  I guess that's better than, "I'm really a manipulative jerk".  But, when trying to win government contracts, being a true consultative sales or business development person is tough.  In fact, there are systems in place that, whether intentional or not, stand in the way of you being a consultant as you try to win government contracts.  

In this episode of Myths of Selling to Government, we talk about some of the things you've been taught about consultative selling, and why they don't necessarily work in the government space.

But, don't despair, we offer a solution that we think can work for you in this two-parter, inspired from research, thinking and beer-drinking we did to write our book on Myths of Selling to Government, which you can find on Amazon or at the Government Selling Solutions www.govselling.com website.



We’re about to take on another cherished concept…


<intro>>


Thank you, Gabby.  And, thanks, folks, for continuing to listen.  Our subscribers continue to grow at a nice pace. If you know of others who might benefit from the Myths of Selling to Government, please pass the word along.  


OK, ask a salesperson today in almost any industry if their selling approach is “consultative”, and most of them say, “Well, yeah.”  Tons of articles and training seminars have made us think that’s the right answer.  I guess it’s certainly better than, “No, I’m actually a manipulative jackass who cares only about my commission and making payments on my new boat.”  Hurump.  Well, consultative selling is not so easy to do…especially in the government space.  


We’re going to look at the challenges of consultative selling methods in the public sector. No,  we won’t throw it out totally.  Instead, we’re going to offer methods to better adapt this philosophy to government selling practices.  


The term “consultative selling” was first coined by New York Times bestselling author Linda Richardson in the mid-70s.  It was revolutionary. Up to then, selling was all about manipulating buyers—herding them like cattle through a chute until the exhausted prospect finally gives up and buys something.  Consultative Selling stepped away from the “buyer beware” approach.  Instead, it placed the customer in the center of the picture.  Sales folks starting learning to spend time understanding and diagnosing customer needs and pains. Then, and only then, would a solution to the customer’s problem be presented.


“Consultative selling” was hot…then, in the late 80s, a bright fellow named Keith Eades coined a new phrase and a modified approach.  It was called “solution selling”.   His books laid out a rather formal process for consultative selling…and a framework was born.  


That was then, this is now.


We are certainly not advocating a return to manipulative selling.  You couldn’t do that in the government space even if you wanted to.  However, for government salespeople, there are some serious potential problems with a pure consultative approach.  



Let’s, examine three of the problems…and weave where consultative or solution selling works best.  Then, we can focus our attention on our complementary process for government sales.  We call it VP Selling or Value Portfolio Selling. 


First problem <swoosh>, you won’t always get a chance.  You’re going to have a tough time finding an opportunity to do consultative or solution selling in the government space.  Now, settle down, don’t get me wrong.  There is absolutely no better strategy than getting to the prospect first, offering consultative advice and influencing requirements of the buy.  We’ve been preaching that for episodes. 


However, it takes an awful lot of resources to always be there first.  We rarely find government-oriented businesses able to always being there first.  In reality, you will find yourself often coming from behind. 


The purists might recommend you just not participate if you are coming from behind.  While good in theory…and heaven knows, we’ve been trying to help you get there first…you’ll get really hungry refusing to play come-from-behind all the time.  


Second problem <swoosh> relates to selling custom solutions versus selling off-the-shelf solutions.  The consultative approach can work when your company has the ability to “whiteboard” solutions.  You know, create highly tailored stuff for individual customers.  However, your company may not be set up for custom solutions.  Trying to do it can be a trap…which we’ll talk about in a later episode.


(Don’t worry, an alternative approach is coming up.)


And, the third problem <swoosh> relates to the skills of the sales organization.  True consultative selling requires significant personal strength, confidence, experience and insight.  The personality traits and skills required to be a consultant are fairly rare.  And, the abilities tend to be developed and honed over many years.  There are lots salespeople who just don’t have a strong talent for teasing out “big picture” patterns and connections at a high level, then translating those into “little picture” product or service features and function requirements.  (By the way, we’ll talk in a later episode about our study of the traits of top government sales performers.)



Soooo, If not consultative or solution selling, then what.


You know that stock portfolio you have…that thing you pour money in to only to see its value plummet.  (Ok, maybe that’s just me.)   It turns out, when making purchase decisions, government buyers go through mental processes very similar to those of creating a stock portfolio.  Buyers determine their end goal…and, their available resources.  They look carefully at which options will help them achieve these goals.  And,  they have to factor in the amount of risk—just like an investor. 


In effect, they view solutions as a “value portfolio,” a set of pieces that add up to something of worth.  A stock portfolio is made up of pieces like “stocks,” “bonds” and “mutual funds,”.  A government buyer’s value portfolio is made up of pieces like “features,” “price,” “service level,” and “company reputation.”  Let’s call these decision-factors.  


While the worth…or price…of individual stocks and bonds is determined by the market, the worth of decision-factors in the value portfolio is determined by buyers’ perceptions—their needs and opinions of vendor performance.   Through the buying process, a buyer forms an impression of the whole packages offered. They compare value portfolios across competitors…and, then select a portfolio displaying the greatest “return”.


Remember, a few episodes ago, we said the absolute best strategy for selling to government is to be inside the prospect’s office (and in his “head”) before the bid is released.  We gave you guidance on being a sales rock star so prospects will welcome you in.  So, you’re in.  Now, what do you do?  First, figure out what their ideal value portfolio looks like.  Then, plant seeds of new ideas that align with problems you can help solve.  


How about a little psychology?  No need to lie down on a couch—we are not talking about psychotherapy (although I know some good theropists).  We’re referring to buying psychology and how individuals (or groups) make decisions.  We may think government purchasing is a completely rational, objective process based only on the achievement of measurable end results.  That may be the goal, but, no matter the situation, buying behavior is still an emotional process.  It is rooted firmly in: the buyer’s desire to avoid negative emotions and the desire to foster positive emotions.

 

The psychological need to avoid negative emotions is especially powerful.  Fear, for example, is a strong negative emotion and a key driver of human decision making.  Fear of failure.  Fear of success.  Fear of being criticized.  Fear of losing one’s job.  Fear of losing votes.  Fear of no one listening to your podcast.  The list goes on and on.  It’s true for all settings--personal and business--but it’s especially true in politically-charged environments.  Someone up the government agency food chain can instantly change direction from just a single phone call from the media.  This can foster an environment of fear.  

    


Prospect fears are feelings we want to hone in on early in the process.  We want to…

• Understand specific problems and fears 

• Determine the relative importance of these problems and fears. (Not all fears are created equally.)

• Acknowledge these fears

• And, Build a Value Portfolio by reducing this negative emotion through proof of our ability to minimize any possible undesirable outcomes…in other words,  we reduce fear.  


How do we build a value portfolio and reduce fear.  Seems like a good topic for an upcoming episode.  By the way, don’t forget to spread the word if you like the podcast.