Following the Money: How to Build a Winning Public Sector Sales Strategy

Following the Money: How to Build a Winning Public Sector Sales Strategy

Having a government contract—whether it’s a GSA schedule, an Omnia agreement, or a regional SLED contract—is often celebrated as the ultimate milestone in public sector sales. However, one of the biggest mistakes manufacturers make is believing that simply securing a contract constitutes a sales strategy.

As Michelle Warren, founder of Catalyst Consulting Group, puts it:

"The biggest myth... [is] that the contract will get you sales. You have to have contracts, but it's not going to get you sales. The strategy and relationships and the timing is what gets you sales."

In a recent episode of Catalyst Conversations, Michelle was joined by public sector data specialist Ryan Hay and guest speaker Holly Gack, Public Sector Market Director for Stance Healthcare. With over 30 years of industry experience across dealer and manufacturer roles—and as a U.S. Air Force Reserve veteran—Holly shared invaluable insights on using public data, analyzing budgets, and maintaining the discipline required to win long-term government business.

1. A Contract Is a "License to Sell," Not a Sales Guarantee

Many vendors secure a contract and wait for orders to roll in, only to wonder why sales remain stagnant. Ryan Hay clarified the reality of government contracts:

"Having a contract in and of itself doesn't mean you're guaranteed anything... That is just a license to sell. So you've been vetted, you can now sell to the government, now you have to decide: How do I approach the government? What products do I sell?"

Relying strictly on open bids or portals like GSA Advantage or eBuy can yield quick transactional wins, but it will not create a sustainable program.

Guest Speaker Holly Gack emphasized that public sector success requires commitment from leadership and a long-term horizon:

"I think that a lot of companies struggle with it because there's not a real commitment to the program. And it is a journey, not a short stop. And if you're looking for transactional sales, that's not where you're going to make your living. That's not what's going to keep your lights on. So I think that you really have to dive in. It's a commitment."

"If the normal... regular commercial investment is 8 to 12 months, a government opportunity is more of an investment of 18 months before you start to see the fruits of the labor."

2. Stop Chasing Everything: Be Strategic and "Follow the Money"

When setting up a strategy, attempting to target the entire government at once is inefficient.

"[It] is just so broad, it's like saying, 'I can eat the entire fish tonight,' when you can't. So you've got to slice and dice that, and be very thoughtful about where you go, and get the most bang for your buck." — Holly Gack

Holly compared target selection to a familiar everyday scenario:

"It's too broad. It's as if you are letting the dog out to go potty. Do you just let them go out anywhere in the yard or are you more strategic about it? Most people are more strategic, right? They don't want it next to the front door. So I think you need to approach your sales and your research and putting your plan together the same way. You really need to be strategic and know where you want to go."

Following the Funding Streams

To narrow down where to focus, Holly advises looking directly at the origin of the funding:

"Where's the funding coming from first? That's the most [important]. So is it being funded through executive order right through the White House, or is it through congressional approval and appropriations? Two different types of money."

This applies to higher education and research as well. Colleges and universities receive substantial federal funding for research, which trickles down into new facilities and FF&E (furniture, fixtures, and equipment) requirements.

"This is why it's so important to follow the money." — Holly Gack

3. Extracting and Analyzing Public Data

Public sector procurement is uniquely transparent because it utilizes public funds. Essential public data resources include:

• SAM.gov: The fundamental starting point for registration, PSC (Product Service Codes under 7110 for furniture), NAICS codes, and searching past and current award archives.

• USA Spending: Tracks written contract awards outside of credit card programs, revealing where agencies spent money and with whom.

• Construction Forecasts & Base Websites: Base-specific sites provide insights into upcoming local facility needs and liaison contacts.

Look Beyond the Surface Numbers

When analyzing large project budgets, Holly cautions sellers not to assume the total figure represents their addressable market:

"You have an all-in construction budget... that you'll see up front, and it might be... $200 million. Wow, that's a huge number. But out of that, you've got to be able to extrapolate what is actually represented by the FF&E, right? And then, of the FF&E, you're not providing all of that, because that equipment can include computers, it can include infrastructure, wiring, it can include a lot of additional things that have nothing to do with what you sell..."

4. Don't Compete Purely on Price

A common myth in public procurement is that the lowest bid always wins. Holly highlighted that technical compliance and responsiveness come first:

"The price is not the driving factor... They'll have salient characteristics or technical specifications that are their minimum acceptable requirements. You need to be meeting your technical before you even worry about price, because it's typically technical, then your shipping requirement. We need this in 10 days. Oh, well, I need 8 weeks. Well, obviously, that’s not going to work for you."

"Stay within your contract structure. Don't give the farm away, okay? There's no reason to. Especially if you've been working the client up front and you have a relationship. They know who you are. They even wrote the spec about you. That's a winner. — Holly Gack

5. Rapid-Fire Takeaways

• What free resource should you start with?

“The one you’ve got to start with is SAM.gov. So, if you’re not utilizing anything, you have to start with SAM, you have to register yourself.”— Ryan Hay

• What is the biggest mistake new public sector sellers make?

"Not doing their homework. Not being prepared. Just like in school." — Holly Gack

• If someone only has two hours each week, outside of their SAM registration, where should they spend it?

“If you have a GSA contract – eBUY. I live and die by that answer.” — Ryan Hay

• Where should you focus if you inherit a new territory?

"First thing I would ask for is all the sales for the last two years... I want to see where you've sold, who you've sold to, and how much. And if they haven't purchased in the last 6 months, why? What's happened?" — Holly Gack

Key Action Summary

1. Stop Chasing Everything: Narrow down target agencies based on product fit, geography, and niche strengths.

2. Follow the Funding: Identify whether funds originate from executive orders, congressional appropriations, or research grants.

3. Build Relationships Early: Engage end-users and designers 18+ months out before projects formalize into public bids.

4. Leverage Historical Data: Re-engage past government buyers who already know your brand rather than constantly searching for new ones.

"Don't chase opportunities, build a strategy that naturally leads you to the right opportunities."

Manufacturers: Interested in evaluating your organization's public sector strategy? Take Catalyst Consulting Group's Public Sector Pathfinder assessment to discover your team's public sector readiness.