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March 20, 2006

GSA. State. Fed. March 20, 2006. The Government as a Customer KI and AIS-putting the pieces together!. MGM. Govt Vertical Market Manager. DM for MidLantic Region. Introductions. Randy Hoople Manager of Government Sales John FitzPatrick, Manager of Government marketing

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March 20, 2006

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  1. GSA State Fed March 20, 2006 The Government as a Customer KI and AIS-putting the pieces together!

  2. MGM Govt Vertical Market Manager DM for MidLantic Region Introductions • Randy Hoople • Manager of Government Sales • John FitzPatrick, Manager of Government marketing • Our Special Guest Speaker today is: Mr. David Moorad, VP Government Sales/AIS

  3. MGM Govt Vertical Market Manager DM for MidLantic Region Government Marketing and Sales What exactly does this mean? • From a marketing and sales standpoint, we introduce, position, re-introduce and re-position the KI Brand to the Federal, State, Municipal, and local Government End-use Customer while training, leading, organizing, directing, assisting, educating and guiding the KI Sales Team in the norms, folkways and mores of Gov’t Selling. • All Feds, GSA 11 Regions, 50 States, and numerous local governments. • Take you someplace new in the Govie world • Re-invigorate or “jumpstart” an existing or lagging program

  4. Thank You Thanks Merci Thank You for Registering for our Government Market Session: We appreciate this opportunity to meet you, assist you in your Government Sales efforts and guide you through the Fed and State Government sales process! Our 2006 ISM Theme is: Putting the pieces together: KI and AIS

  5. This is an open forum- questions at any time!

  6. B B B The Three B’s • Be brief • Be brilliant • Be gone!

  7. GSA State Fed Agenda-a quick review! • Who is the government customer • Who’s the GSA • Who and What is State Government • Where are they • What’s the GSA Schedule and State Contracts • Who and what is AIS and how do we put the pieces together! • What’s the protocol-Package Rooms, the SBA, DAV businesses • How do we find them-how do we get to them!

  8. Want Understand Know The World of the Govies • Different but: • Profitable • Approachable • They Want Quality: • Products • Services • Installations • Innovation and technology • Fashion, design, color and quality • Sustainability-Greenness/LEED • Life-cycle costing / cost of ownership

  9. Speed Progress Recess Congress controls the Fed $s! • 2 speeds-Stop and Reverse • Recess- nothing succeeds like….. • Pro/Con-opposite • Show Business

  10. Real Peculiar Misleading The Fed Government Customer ... Most are real. Some look peculiar and are actual agencies. Some look real and are not! Government is: Immense, huge, Jagundo, vast, mammoth, etc. 1 Fed workers for every 70 citizens A mini DC in every State Most States mirror the Feds in organization

  11. Government Agencies- who are they!

  12. Gatekeeper Landlord Fed Property Mgt Schedules Property Mgmt Licensor Fed Hunting Lic Certifier of Product & Pricing Pricing MFC Contracts Public Bldgs Services Who’s the GSA and who’s the GS

  13. $$$ $$$ $$$ Federal purchasing • Federal NFC market size = $1.6B • 2003 office furniture purchases = $850M + • The Feds purchase $2M+ a day • States collectively purchase $2.5M a day • GSA – owns 7800 buildings and 300M square feet • Fed – owns 500,000 buildings

  14. $$$ $$$ $$$ State purchasing • State/local market size = $1B The GSA is one contract for 50 states… Therefore, on the State side, there are 50 individual State contracts.

  15. $$$ $$$ $$$ Where do we fit in? • #1 Herman Miller- $130M • #2 Knoll- $116M • #3 Haworth- $88M • #29 KI- $16M

  16. $$$ $$$ $$$ Why #29 Because we don’t have a Systems furniture offering on our GSA Contract! David will show us how we do and how to do it! • Goal- top 10 in 5 yrs

  17. $$$ $$$ $$$ Where does the Gov Mkt fit in KI? • #1 Core Market----Colleges & Universities • #2 Core Market-----K-12 • #3 Core Market-----Science & Technology • #4 Core Market-----Fed Government • #5 Core Market-----Healthcare • #6 Opportunity Mkt- State & Local Government

  18. $$$ $$$ $$$ Where does the Gov Mkt fit in KI? Government Federal & State touches each of the other Vertical Markets: • C/U- Military Academies, Training Commands, Fed Training Facilties i.e. CIA, FBI, USDA, Dept of State • K-12- military dependent educational facilties, and childcare • Healthcare- Military Hospitals,NIH, CDC, • Science & Tech-Command Hdqts, Agency CACs, Agency Hdqts

  19. The Government Customers Disappointments Lack of tech info/ qualified technicians Lack of product information Over budget Poor quality/ construction Lack of follow-up Off schedule & Off Schedule General lack of SERVICE Premature replacement Multiple vendors/ orders

  20. LEED assistance What do they want-what KI has! Products and services-just like the private sector • Fashion • Design • Color • Quality • Textures • Solutions • IT Solutions • Selection • Performance Design innovation Trained professionals

  21. LEED assistance What do they want! Installation-just like the private sector • Minimal Disruption • Reconfiguration • Responsiveness • Problem Solving • Project Management • Trained professionals Design innovation Trained professionals

  22. LEED assistance What do they want! Service-just like the private sector • Information • Follow up/Follow through • Improved Life Cycle • Warranties • Project Management • Trained Professionals Design innovation Trained professionals

  23. LEED assistance What do they want! Sustainability-just like the private sector Solutions to Sustainability LEED Information and Assistance EPA Compliance Executive Order #13101 Design innovation Trained professionals

  24. LEED assistance What’s Unique about the Govies! • They buy on contract or “on schedule” • All prices are pre-negotiated • The Feds must be the MFC (the Most favored customer) • We give back .75% to the GSA in the form of an IFF (an Industrial Funding Fee) • US Treasury has pretty good credit • Types of schedules- MAS/Package • They want the same product and service as the “private sector”. • They are extremely loyal and low maintenance Design innovation Trained professionals

  25. PBS Where’s the GSA? The GSA is national in 11 Regions with the NFC in DC: Boston, NYC, Philadelphia, DC, Atlanta, Kansas City, KS, Ft. Worth, Chicago, Denver,Seattle, San Francisco…. • The Feds are the GSA Customer • The GSA will assist in finding Regional Feds • Because this helps increase the GSA’s IFF 11 Regions NFC

  26. Region 10 +Alaska Region 1 Region 8 Region 5 Region 2 +PR & Virgin Is Reg 9-SF +Hawaii Region 6 Reg 3 Region 7 Region 4 Reg 9 LA NCR-DC 7th & D STs SW Region 11 GSA Regions & AORs

  27. PBS Mini-DC • Mini-DC in every state • US Senators & Congressmen return $s to their States • Fed footprint is quite large in every State..check out the Fed & State listings Blue Pages • For example: USDA, USDHS, The Federal Reserve, and the Fed Courts • Trickle Down Fed funds to State: e.g. DHS, State National Guard, State/Local Law Enforcement Agencies + State Budgets 11 Regions NFC

  28. KI/AIS Putting the Pieces Together! • All AGI products will be under our KI GSA contract this year • KI’s GS-27F-8022H- is our Office Furniture GSA Contract • Special Use Furniture is under GS-28F-2002D • Household and Quarters-our Dorm Furniture-RoomScape is under GS-27F-0513H • Our new Case Goods products, DaVinci & Darwin, & Delsanti will be on our GSA contract by the end of the year! • AIS’s contract # GS-29F-0006K is where our systems furniture GSA products lies AIS KI

  29. KI/AIS Putting the Pieces Together! So why don’t we have our own systems furniture on GSA Schedule: • AIS is on the GSA Contract w/ our Genius Wall- now! • AIS is a small business • AIS Matrix compares to our WireWorks • MWall and AO2 are less expensive than our Systems 3000. • AIS lead times are 2 weeks vs. our 4-6 weeks. • Fed A&D requirements for fashion, design, color and selection for systems and walls make the KI/AIS Team a excellent match. AIS KI

  30. KI/AIS Putting the Pieces Together! David will tell us: • Who’s AIS • What the GS-29F-0006K is all about • How do we coordinate our Government sales efforts • How our Fed customers are buying “us” and not some high priced brand name systems! • Basically, for the KI/AIS team, “How do we put all the pieces together.” David Moorad! AIS KI

  31. The Obvious Choice & www.ais-inc.com www.ais-inc.com

  32. Considering AIS workstations? You’re in Good Company www.ais-inc.com

  33. www.ais-inc.com Smaller is better • As a GSA small business, AIS is the right choice! • Award winning manufacturing • Fast lead times • 4 Distinct Systems Solutions • Maximum Order Limitation of $300,000 List • Hurricane Disaster Relief Program • AIS is an industry leader. • Offers a GREENGUARD Certified product.

  34. www.ais-inc.com The Facts • Manufacturing • Winner of the prestigious Shingo Prize for excellence in lean manufacturing • Recognized by Industry Week as one of the top 25 plants in the US. • Quality • AIS has a undisputed reputation for quality • 99.7% defect free 3-year track record • Speed • AIS can ship up to 500 workstations in 10 working days • 95% of all products on quick-ship • Low cost • AIS consistently offers exceptional pricing, even on smaller projects • High automated manufacturing, and superior sourcing strategies make AIS the low cost leader in the industry – uncompromising quality.

  35. www.ais-inc.com The keys to the kingdom – www.ais-inc.com • Industry leading website offering: • Workstation Typicals • http://www.ais-inc.com/DealerNet/EBrochure/Index2.asp • Competitive Analysis • http://www.ais-inc.com/Products/Competitive/Compare2.asp • Project Profiles • http://www.ais-inc.com/Ipix/Ipix.asp • Project Registration • http://www.ais-inc.com/DealerNet/OpReg/OpReg.aspx • Design Checker • http://www.ais-inc.com/SpecSupport/QuoteNet/DesignChecker.aspx

  36. www.ais-inc.com Satisfied End Users

  37. www.ais-inc.com More Satisfied End Users

  38. www.ais-inc.com More Success Stories

  39. www.ais-inc.com Contact Information David Moorad Vice-President of GSA Sales Phone: 800.434.7400 Email: dmoorad@ais-inc.com Literature Requests: Kellie Weiland Marketing Assistant Phone: 800.434.7400 Email: kweiland@ais-inc.com Other Marketing Requests: Erin Cadieux Marketing Director Phone: 800.434.7400 Email: ecadieux@ais-inc.com Amy Beaulieu Marketing Coordinator Phone: 800.434.7400 Email: abeaulieu@ais-inc.com

  40. What? How? Where? What’s Is, What’s New, What’s Changed, What’s to Come • The GSA Schedule • Products • Package Rooms • Mandatory Use-FPI • Emphasis on Disable Veterans/WOB & the SBA

  41. GSA State Fed KI Literature • www.ki.com/literature • No charge • More than literature/ price lists • Videos • CD’s • Corner block samples • Finish samples

  42. Federal Govt Literature • Federal Government Solutions • Federal Government Contract Overview • Product Sell Sheets

  43. GSA State Fed Fed Govt. Market Website • http://www.ki.com/gov • GSA contracts • FAQ’s • Planning • Brochures • Events

  44. FPI UNICOR Mandatory Use UNICOR/FPI • UNICOR is a selling arm of the Federal Prison Industry (FPI) • Originally initiated for rehabilitation of inmates • Our OEI Div sells, markets,administers and manufacturers product for this contract • Very successful contributor to KI’s production and profitability • Presence is in Fed and State markets • Fed and State legislation mandated use of this process for DoD and Fed customer • As mandatory use supplier, UNICOR was primary product and services

  45. FPI UNICOR Mandatory Use UNICOR/FPI • FPI Mandatory Use has been relaxed • UNICOR is just another “bidder” • The playing field is now level • Fed Customers have only to review comparable offerings. • UNICOR is now challenged to prove their offer of product and services is comparable to the KI Brand offer. • If not comparable, especially based upon availability, then the CO is free to seek competitive proposals, esp. GSA • Purchasing control is back in the hands of the procurement officer • As a Market of One- it’s up to the customer!

  46. More More More Back to Fitz -What’s in it for You! • More ... • commissions • sales • volume • revenue • Service Opportunities • New customer • Profits • Growth • Increased Share Holder Equity

  47. Quality – Assurance & Control Design – Craftsmanship & Sustainability Long-term project integrity - Life-cycle cost savings - Cradle-to-cradle attention Single source - Market of One channel – Accountability - “Off balance sheet” costs Partners - Problem solving/ solution driven Pricing to the Gov Customer is MFC and pre-negotiated Partners Single source Integrity Gov Customer Benefits

  48. Targets Government A&D’s GSA/NFC + GSA Reg Offices Federal & State contracting officers Procurement specialists Purchasing officials Federal & State end-use customers Strategy Target Assault The Approach

  49. GSA contract KI Federal Government website KI’s prominent position in the Education (#1) and Healthcare markets Quality Market of One Customization Innovation and Technology Pre-negotiated Pricing Contract Reputation Expertise The Assets

  50. One source –Kick @$$ program that alleviates chaos Fascinate the customer with our KI product/ service offering Market of One Adapt to the customers changing needs Products Services Peace of Mind The Result

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