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SPEND MONEY TO SAVE MONEY

Monday, August 15, 2011
Dan Callahan

With this idea (i.e., Spend Money to Save Money), I am repeating Scott Lewis, a northern Virginia consultant serving the systems integrator market here in the federal arena.  He explains that “Without a compelling cost justification there is no way an agency will invest to reduce O&M cost”.  He is dead-on target with this… and it is becoming true, to an increasing level, with so many eyes looking for ways to cut the Defense and intelligence budgets.

 

The product sales professional get this (or should) in spades!  But I believe there is room for the services and integrators (to the DoD and IC agencies) to adopt this sales approach as well.  Just about everybody who wants to… can put bodies in seats, on IDIQ contracts.  But this is neither interesting or inspiring.  What gets me out of bed with excitement on any given day is high impact and interesting projects where I feel as if I’m helping organizations change for the better.  (Call me an idealist but I need something to inspire me in this crazy world!)  This means a new savings, a new capability, a new technology, a new and better architecture, a new level of security, etc.   However, the govies need to see the money (in savings) or see the benefit, even if you’re a services firm!  It’s time to show a cost justification for agencies spending their money with us, if we want to remain competitive.

 

Here are some ideas for presenting your offering to the DoD and IC agencies with an eye towards the benefits:

 

·         How does your company’s approach reduce costs, while increasing capability?

·         How can you reshape your offering to accomplish this?

·         Will a dollar spent with your company, deliver more than your competitor can deliver?

·         What does each of your projects have in common (in a positive manner)?

·         What makes your employees better than the competitor’s?

·         What costs will the agency avoid as a result of purchasing your product?  (Soft dollars as well as hard dollar     savings).

What have I missed?  Make a comment!

 

BTW:  I recommend Scott Lewis’ newsletter for any systems integrator that wants more from their B2B relationships: request it here: slewis@pspartnerships.com