Sales Discrepancy in earnings

[Fisted&frustrated]

Anyone care to answer this: why do the robotic reps make significantly more $$ than the aquablation reps?

 

[anonymous]

It seems to be a lot harder job with larger geography. Robotic reps are selling a $400k+ piece of capital equipment with a minimal (but improving) commercial payer coverage. They also rarely do surgical demos before the sale. The capital rep has to convince a urologist to want it, then a hospital to buy it, without an OR trial. You can bring them to a lab or have them observe an experienced surgeon, but they don’t get to use it in the OR until they own it. I am not clear why this is their selling model, but it is. Seems like a tough sell and a long process.

The Aquablation reps are responsible for driving utilization once the system is sold. It is much easier to get a surgeon to try new technology that is already owned by their hospital. After a positive case or two you likely have a user for life (or until the next best thing comes along). The flip side is also true, after a negative case or two, they will be unlikely to use it again for a very long time. I suspect that there is a learning curve that has everything to do with hemostasis. Both seem like good opportunities if the device works as advertised, but the capital gig is for pure hunters. In general, hunters eat better if they are any good.

 

[anonymous]

Is the money rumor actually true on the capital side? Word is average is around $500k with some reps over a $million

 

[anonymous]

It seems to be a lot harder job with larger geography. Robotic reps are selling a $400k+ piece of capital equipment with a minimal (but improving) commercial payer coverage. They also rarely do surgical demos before the sale. The capital rep has to convince a urologist to want it, then a hospital to buy it, without an OR trial. You can bring them to a lab or have them observe an experienced surgeon, but they don’t get to use it in the OR until they own it. I am not clear why this is their selling model, but it is. Seems like a tough sell and a long process.

The Aquablation reps are responsible for driving utilization once the system is sold. It is much easier to get a surgeon to try new technology that is already owned by their hospital. After a positive case or two you likely have a user for life (or until the next best thing comes along). The flip side is also true, after a negative case or two, they will be unlikely to use it again for a very long time. I suspect that there is a learning curve that has everything to do with hemostasis. Both seem like good opportunities if the device works as advertised, but the capital gig is for pure hunters. In general, hunters eat better if they are any good.

This is accurate. It’s not unique to this company either. Capital reps typically make the most at any company. You need to be not only clinically proficient but business as well as the main focus of capital is dealing with the C-suite and selling them the value prop with ROI etc.