Are You Selling to Your Favorite Uncle (Sam)?

This economy has driven many companies to the government market in the hopes of getting some of the stimulus package, or just a piece of the annual Two Trillion plus spent by federal, state and local governments.

For those new to the government market, you must understand that this market is very different from BtoB and BtoC, and you have to understand these differences and other market nuances to succeed. If you enter the market without experienced guidance, you will be severely handicapped.

For those of you doing credit card/transactional business, you may already doing business with your favorite Uncle. Credit card orders may not look like government orders, but they certainly can be. Government credit card activity can give you an idea about the potential you have in the government market.

On the federal level, there is a simple test- run the prefixes that only federal credit cards have. Federal Visa cards will begin with either 4486, 4614 or 4716 and federal MasterCard cards will begin with 5568 or 5565. These prefixes are reserved for federal government credit cards.

The federal SmartPay card (aka small purchase card) accounted for $20 billion in activity in federal FY 2009. Purchases made via the SmartPay credit card under $3,000 (the official micro-purchase level for federal spending) require no contracts which is why you may be doing business with the feds without knowing it! A federal cardholder can make a purchase from any legitimate business via the credit card. We know most state and local governments have similar programs, but there are not current statistics on usage.

Many companies want to learn how to start or grow their government business. So far this year I have had about 15-20 inquiries a month regarding either market entry or questions on how to expand existing government business.

In response to the demand, I have re-launched my Government Market Master consulting group. Since the early 1990s, I have advised over 200 companies on growing their government business and several companies still use my consulting services.

If you are interested in entering the government market or growing the government portion of your business, contact me today about the program I am putting together for 2010-2011. Mark@FederalDirect.net

This is a year-long program designed to help any company enter the government market successfully and help those already in the government market grow their government business.

Each member company will have an action plan customized to meet their specific needs in this complex market. This is the plan we will work from during the course of the year-long program.

This program will have a limited number of openings, so contact me now for details and to schedule a time to discuss your needs. There is no obligation on your part for the initial call. It is simply to determine if this program can help you.

So contact me me today- Mark@FederalDirect.net.

This program is designed to be affordable even for smaller companies. The information provided to each member can have a dramatic impact on your ability to grow your government business.

SmartPay! The Federal Credit Card Program ROCKS!

I have been a huge fan of the federal credit card program since it started in 1989 (IMPAC in the 1990s, SmartPay since 1999) . I have written about it, spoken about it, even did the lunch speech at the MasterCard Government Financial Summit for the card program a couple years back.

The SmartPay program encompasses the purchase card, travel card, fleet card and the integrated card (a card which can do 2 or all 3 of the above functions).

In FY 2009 the Federal government spent $30 billion through the SmartPay program, with two-thirds of that going to the small purchase card - $19.9 billion. There were approximately 25,100,000 micro-purchases made with the SmartPay card.

The SmartPay program is great for many reasons.

First, it allows front line government personnel (civilian and military) to purchase goods and services when they need it without the painfully slow procurement process. The per-purchase limit (micro-purchase) is $3,000, so these people are not out there buying cars, buildings, etc. They are buying stuff they need to do their jobs. This actually ends up saving the government money (a cost-avoidance situation) because paper-based procurement costs mount up in personnel time used to do the procurement. The use of the SmartPay card avoids those costs.

Second, because of the total volume the government spends, each agency gets a rebate from the issuing bank.

Third, it allows companies without government contracts an opportunity to get some government business, including direct marketing companies, catalogers (especially BtoB catalogs), and even small-town main street type stores.

Any purchase under the $3,000 per-purchase limit (micro-purchase) does not require a government contract. And the SmartPay card can be used for the ARRA (stimulus) program.

I have consulted with over 50 open-market (non-contract) companies since the early 1990s about going after open market government business, and the results have been extraordinary. Several companies were able to ramp up to seven-figure annual business via the open market targeting micro-purchases. At least one company went into the eight-figure annual open market sales arena. My track record in this niche is unparalleled.

I have an article in a recent DM News on this you can read here:http://www.dmnews.com/government-credit-hasnt-dried-up/article/160372/


Two things: if you want to discuss what I can do for you, simply send me an email and we can set up a time to talk. Mark@FederalDirect.net

or here's the deal for companies that don't currently sell to the government but want to, and for companies that are selling to the government and would like to fine tune their efforts.

We will:

1) review your product/service category to determine the spend, see who the competition is, and determine how much each competitor is making;

2) define who the actual buyers are and how to best reach your target audience (direct mail, web-based activity, events, etc) with specific recommendations targeted to your niche, prioritize the agencies and offices to target;

3) determine if there is an opportunity for you under the stimulus program, and what it will take to pursue the stimulus funds;

4) discuss in realistic terms the resources you will need to successfully pursue government (Federal, state and local) business, including staff, training and other outside resources;

5) our recommended step-by-step action plan for your company, including the information you need for your web site to attract online government buyers;

6) include a one-year membership at http://www.governmentmarketmaster.com/ (an Amtower & Company web site that provides ongoing education on the government market; $499/yr value) - in effect a year long graduate course in B2G;

and as a bonus I will include my 4 CD set, The Ultimate Government Sales Jumpstart Program (priced separately at $195). And of course a signed copy of Government Marketing Best Practices, the best selling book on doing business with the government.

This is not boilerplate stuff - each report and action plan is customized for the client company. It will be delivered via a taped 60-90 minute teleseminar (which you will be able to download) with both a written report with a recommended action plan and a PowerPoint to use during the call.

The investment for this a one-time only special is $4,995, prepaid.

This is a "first-come, first scheduled" offer.


Get in touch with me ASAP if you want to take advantage of this. The anticipated response will fill my calendar for the next couple months.

And we do take credit cards.

Email me @ Mark@FederalDirect.net or call me @ 301 924 0058
to schedule your customized B2G research project and reference this blog post.


May you have a successful B2G 2010!


Mark