Medical device sales are dying. What next?

Anonymous

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Many on this board believe the good days are gone. If that's your views, what is next for you?

The problem with most sales positions outside Medical is the pay is no where close. Before Med Device I was in Electircal Sales and then Financial (sure financial can be rewarding but GEEZE it's a burnout).
 








Many on this board believe the good days are gone. If that's your views, what is next for you?

The problem with most sales positions outside Medical is the pay is no where close. Before Med Device I was in Electircal Sales and then Financial (sure financial can be rewarding but GEEZE it's a burnout).

I am midst now in studying for my series 7. Why do you perceive this industry as a "burnout"?
 




I don't know about the "good old days", but I feel every industry has seen the same decline. From finance, real estate, retail, auto, software, med sales.

I've average 130k-150k for the past 10 years, which is not the cream of the crop but not bad for sales. I guess it all depends on the company.
 












I don't understand why people say medical device sales is dying? How? In what ways? Just because your not making $300k+ a year doesnt mean it's dying! These people become so accustom to making that money but if in my opinion, there are still lots of good money to be made here.. If your making 80k-150k a year, to most that still comfortable. It's all about you and if you can make them sales, you will make money. I know many orthopedic and spine reps still making great income. Correct me if I'm wrong? Maybe it's just certain areas??
 




I don't understand why people say medical device sales is dying? How? In what ways? Just because your not making $300k+ a year doesnt mean it's dying! These people become so accustom to making that money but if in my opinion, there are still lots of good money to be made here.. If your making 80k-150k a year, to most that still comfortable. It's all about you and if you can make them sales, you will make money. I know many orthopedic and spine reps still making great income. Correct me if I'm wrong? Maybe it's just certain areas??

It is really hard to take this post seriously given the grammar (your vs you're, "there are still lots of good money", "make them sales", etc) but I will post a serious reply.

First, you are right- everything is relative about income and what people feel is "comfortable." It is harder and harder to make over $300k in medical, but it's definitely still possible if you are in the right space. For me, having the ability to make that kind of money isn't so much about lifestyle, but instead it's about saving and investing so I can retire earlier or make a drastic career change and feel comfortable taking a substantial pay cut because I'm financially stable enough to do it. I would feel like a total loser for complaining about making what I make when there are so many other smart and hard-working people in sales and other industries dreaming of a way to crack six figures. Hence, I never complain, but that doesn't mean I'm content... nor does it mean I'm not trying to figure out other industries where I can consistently make over $300k. But the point of this thread (and your question) is to point out why medical is changing and where people may go.

First and foremost you have to understand that about 10% of hospitals are being reimbursed according to the ACA structure. The remaining 90% are simply posturing and attempting to get themselves into position to be ready for it. That being said, what you're feeling of docs losing influence and things shifting to VAT committees, materials management/purchasing, etc. is only a tiny preview of how much influence they will have starting late next year and certainly in 2017 when the ACA is in full-swing. So if you work for a company with a "me too" product, are not on contracts and/or not paying admin fees and your product is not producing better clinical outcomes, you are 100% screwed. Anyone on straight commission should be terrified of that scenario. Physician preference won't matter- you can count on it - as purchasing will be driving vendor and physician compliance and telling them which products to use based on national contracts. So you may want to hope that you have an all-star national accounts team setting you up for success... I believe some of our fate lies in their hands (and some people's fate lies entirely in their hands).

It's a new era - and my opinion is a lot of reps aren't necessarily complaining about not being able to make $200k, $300k, or whatever- but they're wondering how little they are possibly going to make staying in medical. So then the question becomes what other segments of sales do you look at that give you the ability to make more than the realistic "floor" of med device income. I've found several segments where you can make $

Those who choose to stay in medical sales need to find a company with a highly technical and highly differentiated product. I believe disposable products (catheters, pacers, orthopedic/spine implants, etc) will be hit first because hospitals do lots of volume here and can see exactly how much they spend per week/month with each vendor and seek alternative products easily. Capital equipment and highly technical equipment will be a little harder to pin down because they are typically one-time purchases that occur once every 5-10 years or more (depending on how long someone holds onto equipment). Large companies that offer capital and disposable products will be in a good situation to negotiate with the GPO's and purchasing teams.
 








Agreed. I'm in disposables and the shift has been pretty big. If you are in a state with a lot of rural hospitals, almost all of them are jumping on to bigger systems so they stay afloat. And those systems are looking to consolidate products in order to get the best possible pricing so they can save the most amount of money and keep those smaller hospitals running. If you get the contract you're golden. If you don't, well, you're locked out until that contract expires.

Bigger hospitals are still making that shift so there's still time to get your money-making products in, but they are moving in that direction. The 2017 mark mentioned above is probably pretty accurate. In the large centers, there are still a hand full of physician-preference products that are excluded from the contract, but those percentages have literally flipped. What use to be 75% physician preference and 25% contracted commodity items are now 75% contract and 25% physician preference.

Is this all a bad thing? Depends on who you work for. Full commission jobs it's terrifying. Small niche-product companies it's frustrating. Bigger broad-product based companies it's hit or miss. You get the contract you're good for a few years. You don't, well, ride it out or jump ship. But jumping ship and staying in the industry isn't exactly as appealing as it once was, and that is largely because of the changes in the industry. If you jump on to a company that is negatively impacted by the shift in healthcare then you'll lament not playing it safe and just living off salary with lower commission. I pulled in $150 last year and don't see ever being able to get above $200. That's a combination of what I sell and who I work for. But I'm not about to try and move to a make-it-break-it company at the prospect of more money when I can have good-enough money that's guaranteed. I think the overall mentality is the biggest change. Doesn't necessarily mean it's dying, it just means there are going to be different motivations in wanting to work in this industry, and big money won't be at the top of the list.
 




It is really hard to take this post seriously given the grammar (your vs you're, "there are still lots of good money", "make them sales", etc) but I will post a serious reply.

First, you are right- everything is relative about income and what people feel is "comfortable." It is harder and harder to make over $300k in medical, but it's definitely still possible if you are in the right space. For me, having the ability to make that kind of money isn't so much about lifestyle, but instead it's about saving and investing so I can retire earlier or make a drastic career change and feel comfortable taking a substantial pay cut because I'm financially stable enough to do it. I would feel like a total loser for complaining about making what I make when there are so many other smart and hard-working people in sales and other industries dreaming of a way to crack six figures. Hence, I never complain, but that doesn't mean I'm content... nor does it mean I'm not trying to figure out other industries where I can consistently make over $300k. But the point of this thread (and your question) is to point out why medical is changing and where people may go.

First and foremost you have to understand that about 10% of hospitals are being reimbursed according to the ACA structure. The remaining 90% are simply posturing and attempting to get themselves into position to be ready for it. That being said, what you're feeling of docs losing influence and things shifting to VAT committees, materials management/purchasing, etc. is only a tiny preview of how much influence they will have starting late next year and certainly in 2017 when the ACA is in full-swing. So if you work for a company with a "me too" product, are not on contracts and/or not paying admin fees and your product is not producing better clinical outcomes, you are 100% screwed. Anyone on straight commission should be terrified of that scenario. Physician preference won't matter- you can count on it - as purchasing will be driving vendor and physician compliance and telling them which products to use based on national contracts. So you may want to hope that you have an all-star national accounts team setting you up for success... I believe some of our fate lies in their hands (and some people's fate lies entirely in their hands).

It's a new era - and my opinion is a lot of reps aren't necessarily complaining about not being able to make $200k, $300k, or whatever- but they're wondering how little they are possibly going to make staying in medical. So then the question becomes what other segments of sales do you look at that give you the ability to make more than the realistic "floor" of med device income. I've found several segments where you can make $

Those who choose to stay in medical sales need to find a company with a highly technical and highly differentiated product. I believe disposable products (catheters, pacers, orthopedic/spine implants, etc) will be hit first because hospitals do lots of volume here and can see exactly how much they spend per week/month with each vendor and seek alternative products easily. Capital equipment and highly technical equipment will be a little harder to pin down because they are typically one-time purchases that occur once every 5-10 years or more (depending on how long someone holds onto equipment). Large companies that offer capital and disposable products will be in a good situation to negotiate with the GPO's and purchasing teams.


Nice post. I was a spine rep for over 10 years and ended up getting screwed. I never wanted to be a pharma rep, but if I have to be completely honest it is the easiest job I have ever had. No I don't make 200K like I once did, but 135-170K and PTO w benefits. I could probably have 2 jobs with my work load.
 




I would agree with a few people on this forum in that it is relative. If you are a medical device salesperson whose final income is highly dependent on commission, then it may feel like opportunities are diminishing and the max amount of money you could potentially earn does seem to be decreasing. However, this holds true to many other sales jobs outside of medical device. I think this is why we've seen big companies like Salesforce kind of take over our world and every company and their mother is going to these solutions. To their credit, I have used some different software tools and they have helped me in generating more sales by making me more efficient. That can be hard to believe since giants like Salesforce are so freaking complicated to use...but smaller systems like Map My Customers (highly recommended) help speed up my day and track all of my info of my clients.
 




What are typical medical device sales representative salaries? Do some companies pay a lot more for this position than others? What does a top earner make in this field?

What skills should you learn to increase your salary?
 




I've been in device sales for about 15 years and my base salary is only $50k. Last year I made more money than I've ever made north of $325k. That being said, I work my ass off, and I'm on call every weeknight.

I recall back when ACA was passed and companies began laying off the field force, and everyone was flipping out that our industry was doomed. Change is inevitable. I went and got my MBA, just in case. However, my goal is to do this another 10 years, and then move to something a bit more laid back.