A variety of government agencies at the federal, state and local levels buy a variety of tools and equipment — many of which are sitting in a farm equipment dealer’s showroom.

Kristie Willet, senior government account manager at Doosan Bobcat North America, says government agencies and educational institutions purchase everything from compact construction equipment for road repairs to grounds maintenance equipment for schools and parks. Additionally, portable power solutions are needed for emergency response, and forklifts are often needed for municipal warehouses.

Chris Giorgianni, vice president of government and defense at JCB, says backhoes and tractors are especially popular with various government agencies due to their versatility and productivity. For agencies that need to build and maintain roads, asphalt pavers and compactors may also be part of the fleet, along with specialized equipment like JCB’s Pothole Pro.

Speaking of roads, Schulte’s rock-picking attachments have been popular items for public works departments looking to reconstruct roads or build new ones. “Municipal airports also use them when they’re building runways,” says Hal Carnago, vice president of sales and marketing at Schulte Industries.

Some of Schulte’s best-selling attachments to the public sector are rotary mowers for tractors. These are used to mow roadsides and other large public spaces. “Municipal airports also buy these types of attachments to help maintain their runway areas,” Carnago points out.

As you can see, dealers have quite a bit of iron they can sell to government agencies. The sales process is a different animal, though.

Even in the price-driven public sector market, dealers can add value by showcasing their product expertise and ability to help make buying agents’ jobs easier. Doosan Bobcat North America

“Selling to government agencies and municipalities presents unique challenges compared to working with farmers and contractors,” Giorgianni says. “Unlike private sector sales, where decisions can often be made quickly based on immediate needs, government procurement follows a structured process that requires careful navigation. Dealers who understand the process can find great success in this market.”

Dealership salesman Seth Strehler agrees that it can take quite a bit of time and effort to get the ball rolling with government accounts. But once that ball starts moving, momentum can build quickly if you do things right.

“Once you sell someone a piece of equipment and have the chance to show them your service, it will often lead to repeat business,” says Strehler, who handles government and municipal sales at Trueman-Welter’s Tractor & Equipment in Buffalo, Minn., a Case IH and New Holland dealer whose shortlines include Schulte attachments. “Another thing is that word of mouth among a lot of these counties and towns will travel pretty fast. If you do a good job and are honest, you’ll often have the chance to get even more business.”

Understanding Agency Needs

There are generally two ways government agencies go about buying equipment. One is off a pre-negotiated state or federal contract or co-op purchasing agreement. The other is through the old-fashioned bid process. Either way, it’s important for a dealer to never take anything for granted.

“A big part of a dealer’s value is knowing their local customers,” says Matt Nelson, director of municipal business at Diamond Mowers, a manufacturer of attachments for tractors, skid steers, wheel loaders and excavators. “It’s really no different than selling a tractor to a dairy farmer. The dealer has to understand the customer’s fleet and their needs, along with when they are expecting to make a purchase. The nice thing is that government agencies are typically very open about when they are going to have to make these types of purchases.”

One layer of government can be much different than another.

“Local governments may have unique ways they go about buying equipment based on their own bylaws,” says Grant Meinhardt, public sector sales manager at KanEquip, a dealership with 13 locations across Kansas and a 14th in Nebraska. “A lot of townships and cities have it in their bylaws that they want to buy local, which helps if you’re a local dealer.

Public works agencies at the state, county and sometimes local levels have a need for road-building equipment like asphalt pavers, such as the JCB VMT 430-130 shown here. For ag dealers who also carry construction equipment, this is yet another opportunity to bid for government business. JCB

“Additionally, some cities and counties may have several departments that all do their own buying, such as public works, parks and utilities,” Meinhardt continues. “Some leave purchasing up to each department, and others have a central purchasing department. It’s our job as a dealer to find all of that out.” KanEquip is a New Holland and Case IH dealer whose brands also include JCB, Kubota, Land Pride, Polaris and many others. 

Buying off a pre-negotiated contract is especially common among state and federal agencies, though local counties and municipalities are often able to do so as well. So first and foremost, a dealer needs to represent manufacturers that put forth their own effort in making sure their equipment is available on these contracts.

“There are a myriad of state and national contracts out there,” Nelson says, adding that Sourcewell is a common one. Regardless, “These contracts allow government fleet managers to choose equipment they need to do the job at a price everyone has already agreed is fair.”

Manufacturers hold those national contracts. The dealer’s role is to help fulfill orders. That said, there are also state-level contracts that Nelson says require local representation. “In these instances, it’s typically the dealer’s responsibility to make sure they get on these contracts, and that the appropriate equipment is listed,” Nelson points out.

Ohio dealer Ted Mallard says contract buying is becoming much more common, even at the local level. Even though price is pre-determined, there is plenty for a dealer to talk about when making a pitch for the business.

“When we need to send in a bid, we show all the equipment, specs and optional equipment,” says Mallard, president of American Equipment Service, a JCB dealer that also carries Claas, Mahindra, Rhino Ag, Exmark, Ferris, Scag and Stihl. “That makes everything transparent and allows the customer to pick out what they need. Things can get missed when a purchasing agent is only looking at price, and then they end up with something that doesn’t even meet their needs.”

Roadside maintenance equipment is especially popular among numerous government agencies. Pictured here is a mid-mount tractor boom rotary mower from Diamond Mowers that is used to push vegetation back from the right-of-way. Doosan Bobcat North America

Mallard, who has two stores in Sabina and Shreve, Ohio, says outreach to government customers is essential — even when they’re buying off a contract. This is especially true at the local level. “Just like with any customer, there is a relationship and a partnership you have to build up,” Mallard relates. “Contracts just make the final buying step easier and less time-consuming.”

Outreach is even more important when agencies are using the old-fashioned bid process, which is still quite common at the local level. Offering a competitive price is always essential, but isn’t the only influential factor.

“I’ve found that a lot of the people on township boards are farmers, or used to be farmers,” Strehler relates. “They like to get a few bids to see who can offer the best price and service. Parts availability is a big concern. Just going with the lowest bid doesn’t matter when a machine needs service and the local dealer can’t get the parts. Government customers understand that.”

Converting Needs into Sales

Most government agencies have a general idea of the equipment they need, considering how specifications are typically outlined when soliciting bids. That said, the real opportunity for dealers comes before the bid process even begins.

“Educating agencies on the total cost of ownership, not just the initial purchase price, can make a significant difference in how they evaluate equipment,” Giorgianni says, adding that things like speed, efficiency, durability, uptime and operator comfort all factor into what the typical government agency is looking for in a piece of equipment.

There is a lot of paperwork, follow-up and overall administration involved with government accounts. Highly organized office staff like KanEquip’s Sharon Toll play a huge role in cultivating sales. KanEquip

Mallard says the dealer should also highlight the support they’re capable of providing. This can factor into the customer’s decision-making when they’re sifting through the various equipment options available through a pre-negotiated contract. For instance, if a purchasing agent is more confident in the dealer for Brand A compared to the dealer for Brand B, that peace of mind could even offset a modest difference in price.

To lay the groundwork for fostering that peace of mind, Strehler likes to visit folks when it’s convenient for them. Pressing the flesh and building relationships is just as important with government customers as it is with farmers. Strehler says dropping off business cards and literature is like a farmer planting seeds. “Just don’t become that pesky salesperson who calls them every week,” he cautions.

It’s just as important to avoid bad mouthing the competition. Strehler realizes a municipality will likely be getting at least a couple of bids. “Most of the time, they come right out and tell us that,” he adds. “I try to at least ask for the brands and model numbers they are considering. Then I can look at our offering and bid something comparable in spec. That way everything is apples to apples when they have their meetings and compare all the bids.”

Roadside mowing equipment is a major purchase item for Strehler’s government customers. He says the Schulte brand has gained popularity in this area.

“These customers like the Schulte 10-foot cutter with a flex arm because they can keep the tractor up on the road, but that arm and cutter can reach down into the ditch,” Strehler explains. “It all depends on what that individual agency is mowing. Different areas of the state have different types of slopes and different size ditches. Some flatter areas might benefit from a 15-foot mower. We want to understand their situation so we can recommend the right mower, or any product, for that matter.”

Once your dealership is on the public sector’s radar, it still takes quite a bit of work to stay there. A government agency’s budgeting process can be long and painful.

“There’s a lot of follow-up involved with these types of deals,” Meinhardt says. “The buying cycles also take much longer than when selling to the typical farmer. With government customers, you really need to be planting that seed a good year out from when they’re actually thinking they’ll make the purchase. We use that time to make sure we understand their needs, and that they understand everything we can offer. Sometimes you can even work up an informal quote ahead of time to help them understand the true cost of what they’re looking to purchase. Then if they actually get the funding, hopefully you’re in a good position where they can buy it from you.”

“It’s a process, that’s for sure,” Strehler adds. “It takes a month to sometimes 3 years before they make a final decision on something. A lot of paperwork and patience are a big part of government selling. They usually provide some basic specs of what they’re looking for, but then we put our own bid proposal together. 

Snow blower attachments, particularly those that mount to tractors, are ideal for government agencies looking for both power and speed to clear streets, parking lots, and other areas. Shown here is the Schulte RDX-117. Schulte Industries

“We like to find out what all they’re looking to do with that tractor or piece of equipment so we can offer options and configure it in the best way possible for them.”

The typical dealership sales rep will have a tough time staying on top of everything without some assistance.

“Keeping track of all the requests coming in and bids going out takes a lot of effort,” Meinhardt says. “There are always a lot of i’s to dot and t’s to cross, especially when it comes to federal bids. We could never keep up without a great office assistant. Luckily we have one in Sharon Toll.”

As an example, some contract language disallows setup and delivery charges. Some contracts require a description of where parts on a machine come from. “Sharon plays a huge role in making sure these bids are filled out correctly so we’re not disqualified,” Meinhardt says.

Adding Value for Price-Driven Customers

All of the effort that goes into securing government business might sound like more trouble than it’s worth to some dealers — especially considering how price-driven the public sector can be. However, good dealers can still sell their value to win bids and cultivate longtime customers.

As Nelson explains, many purchasing agents have a clear understanding of the types of equipment their departments need to complete their work. But unlike a farmer or specialized contractor, these purchasing agents are often in charge of highly diverse equipment fleets. Becoming an expert on asphalt pavers, tractors, mowers, excavators and brush-clearing attachments can be a difficult task.

“That’s why a lot of these purchasing agents don’t always understand the new types of products and technologies available to help crews do their jobs better, faster or cheaper,” Nelson says. “It’s the role of both the manufacturer and dealer to educate the customer on what’s available.”

An efficient way to educate numerous public sector customers at once is by participating in events. Carnago says some states have their own conferences that are dedicated to government agencies, such as the Minnesota Fall Maintenance Expo presented by the American Public Works Assn.’s Minnesota Chapter. Exhibiting at trade shows helps put your equipment and people in front of equipment users and, in some cases, purchasers. Dealers can also inquire about sponsoring workshop-type events where they could educate this audience on product advancements, equipment maintenance, etc.

Any government agency with jurisdiction over highways and/or rural roadways is a prime candidate for a tractor-mounted rotary cutter, such as the Schulte XH-1500 shown here. Also shown is the unique Flex-Arm that allows the tractor to safely remain on the road while the mower extends into the sloped ditch. Schulte Industries

Another way to add value is by offering alternative methods for acquiring equipment. As Meinhardt points out, leasing larger, higher-dollar wheeled equipment can be an attractive option for some government agencies. Some even request it, from state-level agencies right down to local municipalities. Even when leasing isn’t requested, Meinhardt says KanEquip sales reps like to present it as an option. Equipment uptime and controlling repair expenses are big deals to these types of customers.

As a side benefit, leasing to government accounts gives KanEquip another option for their core customer base. 

“When we get that leased equipment back from government customers, it gives us something to sell to our ag customers at a little bit lower price point,” Meinhardt says.

On that note, Nelson says equipment rental can be an appealing option for some government agencies, particularly municipalities with smaller budgets and intermittent equipment needs.

“Mid-mount tractor equipment rentals is an under-served area,” Nelson relates. “It’s a very real opportunity for a dealer who wants to take rentals seriously. The other thing is, having a rental unit gives the dealer something they can do demos with, which can help generate future sales.”

Speaking of future sales, Mallard says you can never forget about parts and service. From what he has seen, government agencies often view equipment maintenance as an operating expense. Thus, the miles of red tape associated with capital expenditures (i.e. equipment purchases) typically don’t get in the way. More intensive and expensive equipment repairs may sometimes require some kind of committee approval. But for routine maintenance, he’ll typically offer service contracts either separately or as part of the equipment bid. Then his service staff will tailor that service delivery to the customer’s needs, such as providing on-site maintenance and delivering parts.

At the end of the day, the public sector market is quite price-driven. But these customers are still looking for value, and their needs are similar to farmers, contractors and other professional customers.

“Most government agencies want to do the best job they can for the taxpayers who employ them,” Meinhardt says. “To some, that comes down to finding the lowest price. To others, it’s about finding the most value. That’s why it’s so important to understand how each agency wants to go about buying equipment. If they just want specs, it’s about price. If they want a bid or proposal, they want to know how you’re going to help them and provide some real value.”