Direct vs. Distributors

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Anonymous said:
Reduced overhead? How does going direct reduce our overhead? It will only increase our overhead! You sir must have an MBA!
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I think what the poster was trying to say is by going direct Zimmer will cut the distributor commission out of the equation,lower pay to reps overall. End result is more money sent back to the mother ship. Management will look good in the eyes of stockholder and get more stock options. The reps in the field will work harder for less,management will make more money, and your new company store manager will tell you the business you worked so hard to grow is Zimmer's, not yours. If the industry goes this route, all reps in the field are screwed unless we tell the manager to pound sand and make some phone calls and move your business. Any and all business is built on relationships, not corporate
 



Anonymous said:
I think what the poster was trying to say is by going direct Zimmer will cut the distributor commission out of the equation,lower pay to reps overall. End result is more money sent back to the mother ship. Management will look good in the eyes of stockholder and get more stock options. The reps in the field will work harder for less,management will make more money, and your new company store manager will tell you the business you worked so hard to grow is Zimmer's, not yours. If the industry goes this route, all reps in the field are screwed unless we tell the manager to pound sand and make some phone calls and move your business. Any and all business is built on relationships, not corporate
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The only problem with your thought is you don't consider the cost of expenses and benefits for all of those new direct reps. Not to mention leases for local office space and storage warehouses as well as distribution (shipping and logistics) charges. I have personally been through this process with the mother ship and the corporate store was costing more than 3x what the distributor model was costing.
With benefits and expenses, my reps did better with the direct model than they did with the distributor. This can vary as some distributors run a solid ship and treat their business like a real business and not a temporary checking account. At the end of the day, neither model is perfect and success will vary from market to market.
 



Anonymous said:
The only problem with your thought is you don't consider the cost of expenses and benefits for all of those new direct reps. Not to mention leases for local office space and storage warehouses as well as distribution (shipping and logistics) charges. I have personally been through this process with the mother ship and the corporate store was costing more than 3x what the distributor model was costing.
With benefits and expenses, my reps did better with the direct model than they did with the distributor. This can vary as some distributors run a solid ship and treat their business like a real business and not a temporary checking account. At the end of the day, neither model is perfect and success will vary from market to market.
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Well said, I can see your point. I'm new to this site and thought I would jump into the conversation. I have been in ortho for some time and I guess my main point is when corporate thinks the businees is theirs and not the reps i have a real problem with that mindset. Bottom line is Warsaw is a good old boy network when it comes to management. Jumping from company to company only to hide for a year at orthoworx or some other gig only to resurface down the street. ok, I feel better now that is off my chest
 



























Guidance- Jan 31, 2013

"The Company also expects to incur an additional $5 million to $15 million for certain acquisition and integration costs connected with the acquisitions of Dornoch Medical Systems, Inc., Exopro and third party distributors around the world."
 






Anonymous said:
Time to wake up, distributor model won't last. ZMH Executives are super control freaks plus thy hate seeing guys going home with multi million dollars pay cheques every year.
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In your opinion why won't the distributor model last? It would seem to me Cucolo would like to keep the distributor model being one himself.
 



Anonymous said:
In your opinion why won't the distributor model last? It would seem to me Cucolo would like to keep the distributor model being one himself.
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Bigger issue than Cucolo. Plus, why do you think Cucolo will be employed by ZMH in a year or two? He will push back in favour of the sales team and he will get punted right out. Bye bye VP,bye bye former bg deal distributor....
 



The issue of who sells a company's products is based on economics. Is it cheaper to sell directly and pay a salary or sell thru a distributor model and pay a commission. In today's market the latter is becoming a good option. The company believes that customers will stay with the products they are familiar with....with no consideration of the relationships that the salesperson has established. And who would blame them...over the last several years, most surgeons are now hospital employees, who will use whatever they are told to use based on price. The days of them sticking with a rep-friend are over. Surgeons will NOT fight for the rep if the price is unacceptable to their employer....the hospital. There is no loyalty in any aspect of the business; between the rep and the customer, the doc and the hospital and the company and the salesperson.. The model is changing and will change forever based on these factors.
 



Hey Zimmer kids, if Mr. Joey Cucolo is the best thing since time then why isnt he CEO? Dont keep fooling yourself, zimmer will be direct in a few years no matter who is in charge. Just go sell TM and Persona and dont worry about the rest. We are Zimmer, we are blue, we are bitches to the distributors, we are worker bee's. Now move on and start a new thread about something that matters. Lets go build some playgrounds and help others. Joey Cuculo is kookie and I need a toddy or a potty.
 



Hey guys,
Could someone tell me which sales force is selling the gel-one injection? Looking to pick this product up in my area, but not having much luck so far getting communication. Thank you!
 



Anonymous said:
The issue of who sells a company's products is based on economics. Is it cheaper to sell directly and pay a salary or sell thru a distributor model and pay a commission. In today's market the latter is becoming a good option. The company believes that customers will stay with the products they are familiar with....with no consideration of the relationships that the salesperson has established. And who would blame them...over the last several years, most surgeons are now hospital employees, who will use whatever they are told to use based on price. The days of them sticking with a rep-friend are over. Surgeons will NOT fight for the rep if the price is unacceptable to their employer....the hospital. There is no loyalty in any aspect of the business; between the rep and the customer, the doc and the hospital and the company and the salesperson.. The model is changing and will change forever based on these factors.
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"...who will use whatever they are told to use based on price" -- this is a bit leading. An implant is an implant. All are designed (and meet) based (on) basic human parameters. We the reps, have "won over" the surgeon based on our instrumentation and reliability of our support in the OR during surgery. Simple (to most).

Can YOU offer me a Femoral Component for 20% less AND a competent rep to help me in the OR?? If THAT answer is 'Yes', then I have to come on board. Simple, yes?
 



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