How big is the government marketplace?

The government spends more than £400 billion pounds per annum. It is the single largest purchaser of goods and services in the United Kingdom.

Can my company sell to the public sector?

If you supply goods and services that are used by either local, regional or central government – no matter how large or how small your company is – you can sell to the public sector. In the past the government had set policies which dictated public sector organisations buy in bulk at the cheapest possible price whenever the opportunity arose. Because of the innumerable failings of this approach the policy was changed. Ever since the decentralisation of the NHS towards the end of the 1980s, a new perspective has been brought to the buying process. With the introduction of Best Value, the government has recognised that cheapest is not the best; it has to take into account whole-life costs if it is to get real value for money; that means whenever a purchasing decision is made in the public sector, not only will the initial price be looked at, but after-sales care and issues such as training and maintenance will be taken into consideration. If you provide a product or a service that is used by the government, you can sell to the public sector.

Isn't public sector businesss tied up in red tape?

The answer is no. Do not be deceived, there is still paperwork to do – whether it's for a one-off supply contract or a multi-million pound tender – the government has to justify all public sector purchasing decisions to the electorate; but an enormous amount of red tape has been eradicated since the publication of the 'Modernising Government' White Paper in 1999. We are in a new era with regards to public sector business, and the opportunities for companies large and small are greater than ever before. There is a structured process involved in selling to the public sector. If you understand that structure, you see will that there are tremendous chances for doing business in this market.

How can my company win contracts in the public sector?

By meeting the criteria of Best Value:

1.Offer a quality product or service.
2.Offer competitive pricing (which is not the same as the cheapest).
3.If after-sales training or support is required, provide guaranteed support.
4.Offer external references from previous clients or accreditation bodies that prove your company meets consistent quality standards.

Do you think you company is good enough to supply to the public sector?
Can you provide quality customer care?
Are your products or services competitively priced?
If you can answer 'Yes' to all these questions then the biggest marketplace in the UK awaits you.

Next: Winning Business