SLED Sales 101: What is SLED Sales?
What is SLED sales? Our government sales consultants often get that question after they’ve shared what they do at cocktail parties or PTA meetings.
It’s simple! SLED is a jargony business acronym that stands for State, Local, and Education. SLED basically covers the sectors of the government that aren’t federal. SLED means everything from police and fire to transportation and from public works to parks and recreation.
As mentioned, the federal government is not covered by the SLED acronym. The military and the alphabet soup of federal agencies (FTC, FDA, FCC, USDA, etc.) are outside the definition of SLED. There are some similarities between selling to SLED and selling to the federal government, but there are enough major differences that each requires a unique approach.
Selling to SLED (again, State, Local, and Education) is our sole focus here at SLED Sales. So let’s get into it!
What is the SLED sales opportunity?
In a word, the SLED sales opportunity for your business is BIG.
The United States is home to over 90,000 different state and local government entities. That includes:
- 50 States, Obviously
- 2,000+ Higher Education Institutions
- 3,000+ Counties, Boroughs, and Parishes
- 12,000+ Public School Systems
- 36,000+ Cities, Towns, and Other Municipalities
- 38,000+ Special Districts
Each of those entities operates independently (or mostly independently) of the others. Each has different rules and regulations, different procurement schedules and timelines, different staff, and different budgets.
Combined, state and local entities employ nearly 20 million people. The 50 states combine to spend $1.92 trillion every year. Another $2.04 trillion is spent by local government entities annually.
So when we say that the SLED sales opportunity is big, we mean it. State and local government entities require a massive and constant stream of goods and services to serve their constituents. And it’s B2G businesses – from office supplies manufacturers to govtech startups – that meet those needs.
Two types of SLED Contracts.
There are two primary ways that B2G businesses engage in government contracting at the state and local level.
State and local government GSAs.
If you have a commoditized product that is purchased regularly (for example, office furniture or IT equipment), you’ll typically sell through a General Services Agreements. GSAs are regularly put out to bid, and interested parties, including the vendor of record, must bid for the contract. To win these contracts you’ll need to submit the lowest responsible bid.
State and local government RFPs.
If you have a non-commoditized product or service, you’ll likely engage in a public purchasing process via ITB, RFP, RFQ, etc. It’s easy to become mired in bureaucracy when engaging in this kind of process. This is where our government sales consultants can really help you.
What is SLED Sales? Here’s a crash course!
Wanna dig deeper into the world of SLED sales? Start with our whitepaper about the mindsets of government buyers. Download it for free!