I am part of a management team that toured the Medical Sales College a few weeks ago. Let me start by saying that the idea is not only brilliant but also a matter of time before more entities like the Medical Sales College will appear.
In my 21 years in the device business, I cannot remember an upcoming year that will have more of an effect on our industry than 2013. This week the IRS finalized the details and exemptions as to the Medical Device Excise Tax:
http://www.irs.gov/uac/Newsroom/Medical-Device-Excise-Tax
The ramifications will extend well past innovation of medical devices; it will include how we market those products today! The impact related to industry selling organizations will be greatly noticed. This once great industry will certainly evolve into a much lower paying profession. Gone are the days with representatives making HUGE commissions. The average income will probably settle barely into the six-figures. A sales rep could become more of a hospital service rep requiring less selling and more case covering. Although total number of representatives should remain or experience minimal growth, the industry is set for serious consolidation as the smaller providers will find it impossible to profit under this new law:
http://www.fool.com/investing/general/2012/12/07/the-taxman-cometh-to-medical-robotics.aspx
So let me get back to the reasoning’s for this post. Our executive management team has been preparing for this impending tax for the past several months. Several of our distributors and direct hiring managers have had experience with the Medical Sales College. Internally, we have been looking at ways to reduce or eliminate unneeded or replaceable expenses. We have used both internal talent specialist as well as outside recruitment assistance. From a budgetary standpoint, we spend a very large dollar amount in these areas. In the opinion of our company, the Medical Sales College can really benefit our organization in multiple ways. Obviously they can eliminate all fees associated with recruitment and allow us to downsize internally in that department. Equally if not more important, they offer a trained sale rep that frankly, is a much more affordable hire. Again, my opinion is that the industry will materialize into a lower paying model that the more experienced device representative will find it hard to swallow. Hiring an eager selling representative outside the industry at a lower compensation cost will be wave of the future. If that individual has related medical sales training experience and we have not participated in the cost of such training, even better. It was unanimous amongst the management team in support of utilization of the Medical Sales College.
I hope this helps those interested in feedback on the Medical Sales College or the industry.