Winning Public Sector Business - a rough guide

2. Why is it so hard to win public sector business?

The public sector is the biggest market for goods and services in the UK. However it is also probably the most difficult to break into. Why?

2.1 Because the public sector does not operate as one market

For example, there are 388 local councils (ignoring the Parish Councils) all of whom have their own way of working. Within each council the Departments (such as Housing, Leisure, Social Services) have their own structures and cultures, apply their own pre-qualification rules, have control over their own budgets, operate different spending authority levels and appoint their own suppliers. And then there’s the thousands of schools and colleges, central government departments and agencies such as MOD, NHS, Police and the emergency services, all of which do the same – but all in different ways.

This devolved approach to purchasing is a consequence of the way these organisations have found works best to ensure decisions affecting their customers – you and me – are taken as close to the ‘coal face’ as possible. However it has made the task of locating the potential buyer costly and time-consuming for would-be suppliers.

The good news is that this chaos is gradually being brought under better control as part of the government’s modernisation programme. The bad news is that this rationalisation could actually mean less business for many smaller suppliers – read on...

For information or help in breaking into this sector or improving your market share, contact us for a free initial consultation.

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