Distributors

Yea and then technically he could pick up another line. They gave him a boat load of cash so he'd sign a non compete and walk into the sunset. If not he could have easily grabbed a line from a reputable manufacturer and would do just fine.

 

When J&J eventually make all the reps direct....who is this bad for? The long tenured reps making big money with high commission rates? I'm sure the distributors themselves will get a nice payday. Whats the downside here? Prediction for when it will happen?

 

2018

 

100%. We've already seen it in spine, now Mitek. Recon only a matter of time.

 

Agree.Hope the deciders do a better job than the way they are doing it with our sports anchor division.This will be a disaster.

 

How did it go down with Mitek?

 

Let's just say I heard it was/is a disaster.those of us who have recon/ mitek get to keep mitek.

 

I'm sure Jim did fine, seemed like a nice guy, wonder what his flunky manager Frank T. will do now?

 

2017-18 for most.Some sooner than that.

 

This thing with ortho going direct is already in the works. It won't be 2017 or 2018. It will be happening this year and next. Spine and Mitek are already transitioned/ transitioning. I was a tenured (14yr) rep that worked for A Spine distributor and a separate Ortho distributor and got kicked to the curb. I made them millions- worked my ass off. They now have 25 year olds working for a $50k base and benefits with a different/ lower commission structure. People like me built the business and had good six figure incomes- gone.
It saves the company money to hatchet people like me. What they miss out on, is that a bunch of the young ones they have coming in are " box openers" "coverage reps" ..... They aren't selling! They are riding along on what was built by folks like me.
Hell, I'm still looking for a job- of course I have that oh so charming non- compete to deal with.

 

if you built the business go to a competitor and take it back…...

 

You obviously missed the part where he said non-compete. The contracts that most of are/were made to sign are onerous to say the least. The best bet is to get a lawyer involved BEFORE you sign it and not accept parts of the contract. Saved me.

 

Well it would have been nice to not sign parts of a non-compete but that's not reality. Singing it - everyone working for the Distributor- was what you had to do to get/ keep your job. To make it more complicated, in the last couple of years, Depuy required a non-compete to be signed with the Distributor and one with them to safeguard from a distributorship going out and joining a competitor and taking all the business with them.... Which happened several times before they wised up.
It's a bad situation. It's this icky shit that is the ugly, messy part of this business. The Distributor sure was happy to spend the money made off the back of people like me- jet setting the globe...... And callously cut my throat, hired box openers at a fraction of pay in order to line his pockets as long as he can before they take his business direct. Then he'll get a fat check and ride his fat ass into the sunset.

 

Same thing happened to me after 18 years and strong growth the last 2 years as well. Luckily I fought the contract they tried to get me to sign on the advice of a contract lawyer. No non-compete for me. Its actually fun working to take my business back. It makes me sick that they can profit off of the work I did. The customers in my territory did business with ME not the distributor. Every customer was someone I converted with one exception. (semi consultant)

I feel for ya man. Good luck. If you ever want to talk let me know. Ill give you my name and number.

 

who are you talking about?

 

Bro, if I revealed that then I sure as hell wouldn't remain anonymous

 

First name initial?

 

Man, I worked for two different distributorships in tandem. One for Depuy Spine and one for Depuy Ortho. Spine went direct last summer- I got my accounts given to a 25 year old rep and was told I didn't need to cover cases any more just to go ahead and "transition" the new guy in. For that, I was to stay on for some months on the direct payroll at a fraction of my commissions for my accounts. It was " in thanks for my many years of hard work" really!? WTF. Now then, Ortho is heading that way ... In preparation and in an effort to stuff his pockets further before they lower the boom and go direct I got the boot.
2 different guys- two different first initials. Really don't wanna go there. I mean, what the hell will it solve at this point!?

 

Philly?

 

Nope.