Brad M and Ray F

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Anonymous said:
Because they were selling product illegally remember? Worst "Sales force" ever.
The only reason they went back to distributors is so they can pretend they don't know how the stims continue to be sold...Illegally! Bad business
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Yes, back when Orthofix was great the direct reps were straight commission. And it was more like the best sales force EVER. You lost the best reps who had the relationships and now the business is gone. The business was there and coming in in greater numbers. You had some reps assisting on the paperwork, which was a violation and was addressed. That's it....they didn't fabricate orders. These were revenue producing orders, and real patients, produced by a well oiled machine.

Now when you turn the business over to distributors and if they have other product lines the stim loses 100% focus. If you turn a direct rep over to a distributor they now start picking up other lines and you lose 100% focus. That's a fact Jack.....dumbest move ever and the sales show it. Numbers don't lie. I also believe next month is 2015, the issues and the DOJ investigation was 5 yrs ago. But, lets blame why the stim numbers are way off from something that occurred 5 yrs ago and not on poor management, execution and bad decision making.
 






Anonymous said:
To answer that question, look broad spectrum, do you not see the silos being built between divisions? OFIx in it's entirety will not be sold. Particular divisions will be ported, or licensed out (READ ORTHO). That's what the whole set up is for, moving away from Ortho and focusing on the most profitable divisions. Word is they are actually willing to take less than sales to get the deal done and absolve the inventory carrying costs.
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Medtronic, Stryker, Zimmer all have silos. You need to separate out the different businesses in silos because all the businesses are different. That makes sense. As stated earlier nobody is going to buy caveman technology and me too products (Ortho). Unless like you say they give it away but then you're dealing with a distributor network. It's dicey for any company to buy a medical company business built on distributors. Buying a direct sales force is much safer and controllable. Renegade distributors......good luck to any company who's dumb enough to walk down that path. It can be very difficult to enforce a non-compete when the original contract is with the seller unless it was a well written contract upfront. And, I doubt Orthofix had that much foresight.
 






The company was doing just fine til they bought a me too spine company that bought all of its business. Even though their method of getting stim business was way offside (company strategy not the jailed 'rogue' reps) they would have stayed okay until they bought a company that was overrun with DOJ investigators on closing day. Then they were in the shit, fact. But it was all about the spine stupid. Been steadily cratering since.
 






Forgot to mention. Once they let all the top direct sales guys take the fall and go to the big house, they then cut commissions in half for the rest. Forced them out to the distribution model. Then they tooled a bunch of their their hard working foreign distributors, because loyalty amongst these management douchebags is not in their game book. These fuckwads couldnt balance their own checkbook never mind the accounting disaster they created.
 






Anonymous said:
Forgot to mention. Once they let all the top direct sales guys take the fall and go to the big house, they then cut commissions in half for the rest. Forced them out to the distribution model. Then they tooled a bunch of their their hard working foreign distributors, because loyalty amongst these management douchebags is not in their game book. These fuckwads couldnt balance their own checkbook never mind the accounting disaster they created.
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Not ONE top spine stim reps went to the big house or for that matter any spine stim rep. The accounting mess goes back to Darth Vaters and McCollum. Do you know how many orders you have to go back and review since 2011. Enormous job that pre-dates BMason.

The commission cuts were only on orders generated from 3rd party networking relationships that the direct OFIX reps did not generate. To think Ofix reps should get paid full commissions on orders that someone else generated is delusional. Let's face it, the spine stim reps were grossly overpaid. Nothing more than a glorified TENS unit rep.

Bottom line: ALL GOOD THINGS EVENTUALLY COME TO AN END.
 












Anonymous said:
insurance criteria was much more favourable to spine than appendicular, not necessarily reasonably. either way, reps played by company rule and paid the price.
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Yep. True. Insurance policies on spine so much easier for approval.

As far as a direct force vs a distributor model. I will say distributor reps have other products in their bag and pay less focus to long bone stims. A direct force for long bones needs to be Direct reporting to Sales Managers. Otherwise our market share will continue to dwindle.
 






Would have to say that a "Direct" sales model out trumps a distributor sales model when it comes to DME. Management has better control over direct reps, distributor reps will move on to other products and spend less and less time on stimulators due to the stresses of paperwork and dealing with denials.

Best way to increase sales is to have a direct sales force divided up into regions reporting to a salary plus bonus paid manager who reports to an RM. Otherwise, continue to have decline in market share.
 






Anonymous said:
Sales decline under direct. Are you serious? Sales were much higher at OFIX when it was direct than it is right now. Why do you think companies like Danek have shifted from distributor model to direct. They are bringing it back in house and buying out alot of the distributors. Paying distributors 23% is a cost savings compared to direct? Obviously, math wasn't you're strength. Plus you're selling about $15-$20 million less than when Ofix was predominately direct. That sounds like a great decision.
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Who gets 23% commissions???
 






Anonymous said:
Who gets 23% commissions???
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There are many reasons sales are not what they were - poor management over many years, loss of many good reps to competition, fraudulent reps being fired, declining reimbursement, selling to large distributors who compete with direct and distributor reps. Direct or distributor does not make any difference. The company is focusing on selling physio after ignoring it for many years. New reps are trying to sell physio against newer technology with 20 year old studies.
 






Anonymous said:
There are many reasons sales are not what they were - poor management over many years, loss of many good reps to competition, fraudulent reps being fired, declining reimbursement, selling to large distributors who compete with direct and distributor reps. Direct or distributor does not make any difference. The company is focusing on selling physio after ignoring it for many years. New reps are trying to sell physio against newer technology with 20 year old studies.
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Well first of all, all stims have old data. It's been proven that bone stims are pretty effective with compliance.

Physio deserves to be market leader for many reasons. But reps will come and go under a distributor who pockets 23% and doles out less share to hard working reps who are 1099 and covering risks.

To be a market leader again, the company needs to make reps direct with benefits. Otherwise we are a joke to the customer due to high turn over.
 






























Anonymous said:
Always the verbage for managment. Just keep that attitude rather looking to produce solutions that address inherant problems.

It can be better much better but it takes a lot of effort and managerial skill.
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No, not verbage from management, just an outsider sharing with you the facts of any situation/company that you might be working for.
 






Bone Stim division needs to be 100% direct sales force if we want to increase the business.
1099 reps have too many other products to sell and are not fully engaged due to paperwork and reimbursement issues.
 






Anonymous said:
Bone Stim division needs to be 100% direct sales force if we want to increase the business.
1099 reps have too many other products to sell and are not fully engaged due to paperwork and reimbursement issues.
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I called this some time ago. The strategy to go from direct to distributors was a very incompetent decision/strategy. On a million dollar territory paying out 23% = $230k. A tremendous amount of money for a million in sales. Someone would give a limb if you paid them $120-$130k plus a car allowance and health ins. ALL DAY LONG for a million in sales. And, you would have laser beam focus on OFIX products and have control. With distributors as we sit here are looking for other lines to carry which takes the focus off of stim for all the reasons mentioned above. Now try cutting that 23% commission on distributors and watch the tail start to wag the dog. As you convert direct to distributors you then drop more people off of OFIX insurance. Less people on the ins.plan means a decrease in coverages, higher deductibles and cost more. The more people on the plan gives you more leverage and better deals on plans. Have you seen the movie Dumb & Dumber ???
 






Totally agree.

A distributor selling other lines will walk away from the madness of all the paperwork required for long bone stims and clinic politics. They just take the orders that come their way and won't get dirty converting or building the business.

Hiring a 100%direct force for stims would increase focus which would result in growth.
I'd do a salary of 50-70k based on medical sales experience and access) and provide around 10+commission with kickers if they increase monthly quota and bonus for tiers of annual quota achievement based on revenue and growth.
 






Only way to grow bone stims is to have a direct sales force who doesn't sell other products on the side.

A 1099 distributor rep sells too many other things that are less hassle.
If this company is serious about bone stims it will go direct like our competitor who has the largest market share.
 






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