Government Market: Use Your Expertise to Win Customers

Editor's Note: In the third of this 5-part series, find out how you can be voted as a printing company the government wants to work with. Parts I and II dealt with the financial and health care markets.

With annual sales of more than $38 million, Gateway Press Inc., Louisville, Ky., was among the top three GPO vendors that supplied products and services to Congress, federal courts and more than 130 federal agencies in 2005. One of the largest printers in Kentucky and among the 175 largest printers in the country, Gateway has produced work for the GPO for more than 42 years. Darrell Embry, senior vice president, discusses opportunities in the government sector:

1. There's a requirement for all sizes and types. The government offers numerous opportunities to small- and medium-sized printers, and the possibilities are endless, Embry says. These include single to multicolor projects of various quantities at both regional and national levels. "You can get involved in printing only or printing, binding, and fulfillment," he says.

2. Familiarity breeds more work. The products and services required by state governments are fairly similar, Embry says. Almost every state requires tax booklets, highway maps, driver's manuals, travel guides and other promotional printing. Gateway Press offers these products to Kentucky, Virginia, Pennsylvania, Ohio, Arizona, Georgia, North Carolina and South Carolina. Once you've worked with a state government, it's easier to understand the needs of others.

3. Bigger budgets mean more printing work. Some federal agencies have bigger budgets than others. Keep track of them. Embry says the departments of Agriculture, Education, Defense and Health and Human Services had bigger budgets last year and generated more work for the company.

4. Events and changes in legislation and policies create work. Because of the sweeping changes in Medicare, Gateway Press is doing substantial work for Health and Human Services. Last year, the company did a tremendous amount of printing for FEMA because of Hurricane Katrina. Keep track of how events and legislative changes can create more printing work.

Benefits:
1. There are fixed rules that both the printer and customer (government agency) understand and follow. The printer knows exactly what the customer expects and it's highly unlikely that the customer will change its requirements.

2. Each government project has a definite schedule, making it easy for printers to schedule projects for other customers.

3. Government agencies and departments pay in a timely manner. The GPO usually pays companies within 20 calendar days—a great benefit to small companies aiming to improve cash flow.

Challenges:
1. GPO rules and regulations are demanding. It's essential to familiarize yourself with the GPO contract terms and conditions, sampling methods and paper codes. (To learn more, visit http://govprint.access.gpo.gov.)

2. GPO projects can be tedious. Most vendors working successfully with the GPO are relentless, Embry says. "You can't just jump in from time to time and hope to be profitable," he says. "Keep in mind that you will not be successful on every bid, and that the GPO is not for everyone. I find that most printers successful at [working with the] GPO also are successful elsewhere. GPO just complements their business."

3. Printing projects that materialize because of natural disasters such as Hurricane Katrina or changes in legislation have very demanding schedules, Embry says. Be prepared and flexible enough to incorporate them.

Next week, read about the opportunities in the education market.


© Copyright 2006 DMIA