Micro-purchases are a great way to help agencies spend their Q4 budgets.
We have an excellent on-demand webcast with Judy Bradt, Mighty Micro-Purchase: The Sole-Source Super-Power, where she shares how-to strategies to grow your government sales through micro-purchases.
As we enter the last month of the federal fiscal year, which ends on September 30th, many federal agencies are eager to spend their leftover funds. This year may be particularly lucrative for government contractors due to several exciting developments – specifically, the passage of the second biggest spending bill in history, larger budgets, and an increased micro-purchase threshold.
So, how can you take advantage of the federal agencies’ need to spend their budgets? The answer is MICRO-PURCHASE!
Q4 Micro-Purchase Strategies
Whether you’re new to government contracting, or have been at it for a while, here are a few tips for tapping into these end-of-year dollars.
1. Have a plan. Knowing that your federal prospect or customer may have an end-of-year surge of funding, what product or service can you offer that would require no competition? Think small – think “micro-purchases.” At this time of year, micro-purchases are the go-to strategy, especially in the last weeks of the federal fiscal year when agencies must expedite spending funds remaining in their budget.
2. Get on the “unfunded” list if possible. In preparation for a last-minute surge of dollars, many buyers create an “unfunded” list, which includes items that their end-users have asked for throughout the year but could not get due to a limited budget at the time. The name for this list may vary – some buyers call it “unfunded” list, while others may have a different term for it. If you ever have a buyer or an agency end-user say that they would love to buy your product but don’t have the budget for it, ask if they keep an unfunded list for potential purchases if funding were to open up at the end of the year.
3. Remember who creates demand! The end-users generate demand, and buyers purchase the requirements demanded. Hence, it is often a good strategy to contact the end-users of your product or service. Many end-users have a purchase card that they can use to make end-of-year purchases without having to go through contracting.
4. Create an end-of-year special. Buyers love deals, and this is a great time to create promotions and sales to generate buzz and capture buyer attention.
5. REACH OUT! If you’re not reaching out by all means necessary – phone, email, etc. – it will be hard for you to take advantage of the end-of-year opportunities. By the way, we have a great course with Judy Bradt from Summit Insight on crafting your micro-purchase strategy. In her course, Judy covers common “first win” obstacles and solutions, why sole-source awards are so hard to win, where micro-purchases are publicized, and more. Click here to learn more about this course.