The Awful Truth about the Future

Discussion in 'Zimmer' started by Anonymous, Apr 30, 2014 at 6:31 PM.

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  1. Anonymous

    Anonymous Guest

    I am amazed there has been no attempt on this site to predict the future for hundreds of sales reps, distributors, managers et al. I'll take the first stab. Three separate levels: 1. Corporate sales managers. Their lot is the most simple, put all the names in a hat, pull on 5 or 6 and it's done. Most are recycled guys who failed carrying the bag. 2. Sales Reps. Most will be offered a position for several reasons. Physician loyalty remains even though it is not as strong as it once was. The new company does not want to consolidate business under fewer reps, that would result in a rep making too much money. Also, the goal will be to keep business, not pacify individual reps. Alternately, this would be a great time for reps with solid business and a surgeon following to shop it. Stryker or Depuy are the logical suitors. I would imagine that each is shoring up a competitive rep program. 3. Distributors. This will be the biggest area of change. Zimmer management will be making the decisions, thus the Biomet distributor is in trouble. Zimmer has previously taken several areas to a direct model as has Stryker. The Biomet distributor has no leverage as they gave up the sales rep contracts to corporate. If Zimmer must, a few million $$ to make this go away is chump change in a $13B transaction. The resulting sales structure will be direct operations. So long, distributors, it's over and frankly, that's sad.
     

  2. Anonymous

    Anonymous Guest

    All I can say..and I am not the smartest guy or the best sales rep in the world! I just go about my business in my territory and work hard. That being said...what the previous post brought up about the distributor model and the direct model...I find interesting. Will Zimmer go direct everywhere in the US so they can control their new 13.5billion dollar purchase and just buy out their distributors contracts? Will they just consolidate some areas direct and have some distributors? No one knows..no one can pretend to know..but definitely food for thought..or I am just a dumb ass! Lol
     
  3. Anonymous

    Anonymous Guest

    Both dumb asses. It would cost several million to buy out distributors.
     
  4. Anonymous

    Anonymous Guest

    As I said, a few million $$ to go forward with a $13B acquisition is chump change. By the way, Biomet distributors would not HAVE to be bought out. They have no leverage, the company owns all of the rep contracts and the distributors have non-competes. The Biomet distributors will simply go away or accept a rep position if they control significant business.
     
  5. Anonymous

    Anonymous Guest

    not true
    every distributor agreement has a clause in case the company is sold
     
  6. Anonymous

    Anonymous Guest

    Smart distributors have both non-compete(s) for their distributorship and the company they represent..i.e. Biomet. If they are not happy with the buyout they can threaten to halt sales by their employees which the employees must then cease and desist. I have personally seen this happen in a similar situation and it didn't bode well for the employer, however this distributor was doing about 9-10% of the companies total sales.
     
  7. Anonymous

    Anonymous Guest

    not necessarily true! companies learned their lessons and many rep contracts are automatically assigned upon termination of the agent principle agreement
     
  8. Anonymous

    Anonymous Guest

    touché....hopefully the distributors lawyer would pick up on that and suggest a larger buy-out agreement...% of sales.
     
  9. Anonymous

    Anonymous Guest

    I think Zimmer's direct distributorships were an experiment and because no distributor would take what they were offering. I think the experiment has largely failed and Zimmer won't run from the distributor model very quickly. They'll combine distributorships for sure, but they'll still exist.
     
  10. Anonymous

    Anonymous Guest

    The direct trauma sales force tanked before it got off the ground. That was after they hired 50 reps and mangers, put them up at the Z for a month, paid for weekend trips home at the 2 week mark and them paid them a "salary" to sit home and do nothing for 2 months while they tried to get their act together. RSD's and Scott Schwartz were totally ...........