Today reminded me why relationships matter in government contracting.
One of the biggest lessons I've learned is this:
Don't stop at the first quote. Build the relationship.
This week I was working on pricing for a government opportunity. After receiving an initial quote, I continued the conversation and had the opportunity to speak directly with a decision-maker.
Instead of focusing only on price, we talked about building a long-term partnership, government contracting, payment terms, and how working together could help both of our businesses grow.
The conversation completely changed.
What started as a request for pricing became the beginning of a relationship built on trust, communication, and a shared vision for future opportunities.
Another important topic we discussed was payment terms.
Many new government contractors focus only on getting the lowest price. While competitive pricing is important, your payment terms can have just as much impact on your profitability.
For example, if a supplier is willing to extend Net 45 terms, you may be able to complete the contract and receive payment before your supplier invoice is due. Net 45 can improve your cash flow and, depending on how your contracts are structured, may help preserve your profit margins by reducing or eliminating the need for outside financing.
On the other hand, if you have to use a funding or factoring company to pay suppliers upfront, those financing costs become part of your overall project cost and can reduce your profit.
That's why I encourage people to think beyond the quote.
Look at the entire business relationship:
- Competitive pricing
- Payment terms
- Reliability
- Product availability
- Communication
- Long-term partnership opportunities
One thing I've learned over the years is that successful government contracting isn't just about finding bids—it's about building relationships.
Relationships with:
- Manufacturers
- Suppliers
- Teaming partners
- Contracting professionals
- Small business specialists
- Fellow contractors
Those relationships often become one of your greatest competitive advantages.
My advice to anyone getting started is this:
Don't think transaction. Think partnership.
Take the time to introduce yourself. Learn about the companies you want to work with. Let them know your long-term vision. Ask how you can help each other grow.
Sometimes one conversation can open doors you never expected.
I've also learned that every conversation doesn't have to end with a sale. Sometimes the greatest value is building a relationship that leads to opportunities months—or even years—later.
Keep learning.
Keep showing up.
Keep building relationships.
The contracts will follow.