Is Biomet getting rid of their distributors? Diamond, Ott/Gaines, now Hellman. Will this be an industry trend or is management just sick of the "big" distributors who make seven figures for doing nothing?
I know it obviosly depends on the sales rep performance, but what ball park figure are some of the better reps making in the CMF division, Spine, etc..
Getting rid of dead weight. Biomet needs their distributors to producer. If they don't, they will get someone who will.
The expectations have changed. Producing double digit increases year to year is impossible in an industry that has flattened as a result of pricing pressures and diminished surgical cases due to a poor economy. Look at each of the company's reported results. They are all flat to at best a small increase. The change from distributor model to direct model is an attempt to improve or maintain margins during a time that increased profitability due to sales increases are not possible. This is not a strategy to put in place a distributor to drive increased business, but rather to maintain business and reduce the associated costs. It is not a coincidence that Stryker is now at a mix of more than 50% direct operations, Zimmer recently converted 6 distributorships to a direct model and now the recent Biomet model change. Get ready boys and girls, it's all about to change!
Lets get real. Ott retired, Diamond retired, and Hellman didnt produce. Quit gossiping. Get to work and drive those sales!!
Even if that is the case, the fact remains that they weren't replaced with the distributor model. Besides, my sources tell me that Hellman's group was in top 10% in volume and growth and his contract still wasn't renewed. I hardly think any of these facts can be considered "gossip".
This is another reason any distributor out there just needs to start importing from China, get your own direct suppliers. Don't rely on a Biomet to import from China and mark it up then act like you should be honored to be there distributor. If they take your distributorship go get your own line and take them down. The big boys or small boys need to learn they are not in control. Also NEVER put your eggs in one basket. Joe Coen decides who stays and goes for distributors at Biomet. Find another way to play their game and take them down. Enough is Enough. In today's market there is no loyalty from the big orthos so as their distributor make sure you always have options. Never put your cards in one basket with them. Never trust Biomet it is a sinking ship.
You are so out of touch that you don't even know who is in charge of the Biomet sales force. Not Joe anymore.....better check your facts before you offer your expert opinion! Biomet is not going direct, but is holding its distributors responsible for their performance. That is the right thing to do. In this market, everyone better keep...and even more importantly.... grow their business. The ones who are gone...did't do either very well.
Any chance corporate could come out with some technology and release it properly so that we can grow our business? Still waiting on all the sizes for Arcos, same for Taperloc Complete, offset revision femur, resurfacing hinge, multi bearing cup... Any of this sound familiar? We used to be a technology company, now I don't know what we are or where we are going. I've been on stage many a time, something doesn't add up.
Lets get something straight here. Burt Diamond Did not retire he was fired without notice. His Distributorship grew over 23 % two years in a row and the year he was terminated they were on their way to growing in the high 20 % range. Burt Diamond was one of the most committed Distributors Biomet ever had and the second longest tenured Distributor. He was the complete opposite of "Dead Wood" and he made a good living working hard for his customers and Biomet Corporate. So whoever came up with the idea that he was dead wood or made a good living doing nothing get back to reality. Who fires a Distributor growing business like he did? Good question huh? If it could be done to someone like him with his history and his success it could be done to anyone. Enough said!
Expect more of a hybrid approach in North America, a combination of distributors and direct reps. The noose is shorter for the distributors that do not perform or walk the corporate line.
Nice Try? Well good luck now that all the people who lose their jobs because of the purchase of Biomet by Zimmer are out of work. All the people with kids and wives who gave their working lives to a company. And BTW if you don't think Corporate America fires people at the "top of their game" think twice they do all the time. You see when Distributors like Marx and Diamond grow at 23 percent and they get terminated it's because they have too much control. Remember Surgeons don't use product generally because they have a love for the Company. Surgeons use product because of service and loyalty to the people who have been there with them for many years. You say move on. Well who ever has the sense to say something like that is probably moving on now to the unemployment line!
It's always quite funny when someone who posts something anonymously says "who cares" until it happens to them. And it will happen to them if one stay in the Orthopedic Implant Business long enough. It's not about patients, it's not about caring, it's about money and how much a Company can make while ruining people's professional careers over bad decision making and bad judgment by people who never had to go out and sell something to eat. But you know what "every dog has it's day" and "what goes around comes around" and it did!
