Construction Contractors: Use the Web to Sell to the Government

Posted by Administrator on January 31st, 2008

In 2007, the Small Business Research Board conducted a study on how U.S. small businesses use the Internet and eCommerce. The SBRB/Business Today Small Business eCommerce Study surveyed over 550 small businesses nationwide on their current and projected Internet sales and eCommerce activities. Overall, 42.7% of study participants indicated that their companies had no web site at all, indicating a major opportunity for small businesses to add value to their marketing efforts by adding a web site.

The results of the study were especially significant for businesses in the construction and contracting industry. A whopping 57% of construction and contracting businesses said they do not currently have a web site, making it the industry with the least Internet and eCommerce participation. This lack of online presence meant very low forecasts of Internet sales growth, as well – only 14% of construction contractors projected increased sales due to eCommerce, compared to 29.2% overall.

What does this mean for the construction and contracting industry? With so many construction contractors competing for projects, any way to differentiate your company from the herd is a plus. As far as marketing tools go, a web site is longer-lasting and often less expensive than sales collateral, direct mail, or radio or TV ads.

Using a Web Site to Compete for Construction Contracts

Experience is an important factor in most agencies’ construction contract award decisions. Your company statement and resume will give the basic facts about your previous contracts, but you know what they say: a picture is worth a thousand words. Instead of spending a fortune printing out full-color sales collateral, invite agency decision makers and potential partners to visit your web site. You can post pictures of your previous construction work in various stages, as well as display glowing customer testimonials. A detailed, informative and memorable web site will also help keep your company at top of mind with decision makers. Put your web site’s URL on your business card and hand it out during trade shows and marketing meetings. You can also include your URL in your e-mail marketing campaigns (read our e-mail marketing tips for more on this subject).

Including your URL in your RFP responses will allow agency decision makers to explore and learn about your company at their leisure. Even if you don’t win the construction contract, the agency will have an easy way to investigate your company for future purchases – including those under the spending cap which may not have to be put out for bid.

Using a Web Site for Construction Supply Contracts

Of the small construction contractors that currently do have websites, only 50% sell their products and services through eCommerce. An eCommerce solution may require more setup than a website without eCommerce functionality, but for many construction contractors it is a worthwhile investment. If your company offers construction or building supplies, customers from the private and public sector alike can order and purchase them through eCommerce on your website. A growing number of government agencies are using micro purchasing and government purchase cards to procure supplies, and like private-sector consumers, government agencies enjoy the quick, no-hassle environment of online shopping. With only 21.5% of small construction contractors currently offering eCommerce sales, the ability to purchase supplies online is at attractive incentive to buy from your company.

More Information from Government Contracting Best Practices
To learn more about using a web site to sell to the government, read How a Web Site can Increase Government Sales. On the Onvia site, read construction case studies showing how Onvia’s services have helped construction contractors find and compete for more construction contracts.