My friend Richard Mackey (www.CapitalReps.com) negotiates and manages GSA Schedules for a variety of companies. Several years ago he ran a report on Schedule 70 that had some remarkable statistics (I used this data in my first book Government Marketing Best Practices), so I asked him to run the numbers for me for 2008 (Schedule 70) to see if anything had changed. Things have not changed.
Total FY 08 Schedule 70 Sales were $15,901,412,897 (down from past years)
Total # of comapnies on Schedule 70 in FY 2008: 5,615
Dell's market share has dropped to 6.43% - years ago, they had almost 10%. 6.43 isn't bad though!
Top 50 Market Share 53.63% - about the same as the past
# of Firms Selling less than required $25k 45.97% - up a lot
# of Firms Selling less zero 38.62% about the same as the past
We have run these stats for several Schedules over several years and the general results are:
-the top 2% of the companies on any Schedule take over 60% of the $
- the middle group takes about 35%
- the bottom third usually take little or nothing.
Now keep in mind that the GSA Schedules only account for about 15% of the toal federal spending.
But what does this tell us?
1) Most companies in the government market are in a passive mode, sitting by the phone waiting for it to ring because they have a contract.
2) Most companoes with GSA Schedules do not know how to leverage these into sales.
3) That the very proactive companoes out there understand how it is done.
If your company is not in that top tier, y0u need to start your education process NOW!
Take a look at www.GovernmentMarketMaster.com to start that education process.