Territories Cut?

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Anonymous said:
This entire thread is BS!!!!!!!! There are no cuts and in fact there is an increase in head count going on. Sounds like a jealous pharm rep who couldn't make the cut into med device with a company like Covidien!
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No cuts?? Pharma rep??? Really??

Most out in the field have heard cuts are coming this week and next.

Who will give us the real story?
 


















Anonymous said:
All territories without at least 1.5mm are gone or collapsed. All team territories without 4mm are getting clipped. There are a load of them that fall into this category.
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What divisions does this apply to?

Sounds like about a 1/3 or more of territories would be affected by your 1.5m/4m Rule.

Is the company really going to fire that many reps?
 






It wouldn't surprise me. The majority of the business is controlled by contracts and at least 85% of the products are commodities. You give a surgeon a Covidien stapler or an EES stapler and he/she can make it work. The current business model just isn't sustainable in the marketplace and with the potential changes in the future insurance plans, it will be whoever has the cheapest product will get the business. You think that our company is going to keep a bunch of reps at >$100K a year when they have to drop price on products to keep business?
 


















They will keep you as long as you can sell it. If you can't sell it then you're gone. A stapler is a long ways from being a commodity. If you honestly think that, you have 0 grasp of the medical business. Look up what a commodity is? As far as paying reps 100k+ for selling "commodities" it happens everywhere. As long as you are selling then you will get paid.
 






Anonymous said:
They will keep you as long as you can sell it. If you can't sell it then you're gone. A stapler is a long ways from being a commodity. If you honestly think that, you have 0 grasp of the medical business. Look up what a commodity is? As far as paying reps 100k+ for selling "commodities" it happens everywhere. As long as you are selling then you will get paid.
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A stapler isn't a commodity? You're telling me that a GIA, TA, TL, TX, or TLC device cannot be used by anyone and get similar results? You give a Covidien or EES open stapler to a surgeon and they'll figure it out with similar results for both product lines. When's the last time you've sold the benefits of a linear cutter?

Endocutters have differences but overall, you can make either company's products work.

Clip appliers - commodities.

Trocars - commodities.

Why do you think that most of the business is contract driven? Because the majority of the products can be used with very little difficulty by a surgeon whether it is EES or Covidien.
 






Anonymous said:
A stapler isn't a commodity? You're telling me that a GIA, TA, TL, TX, or TLC device cannot be used by anyone and get similar results? You give a Covidien or EES open stapler to a surgeon and they'll figure it out with similar results for both product lines. When's the last time you've sold the benefits of a linear cutter?

Endocutters have differences but overall, you can make either company's products work.

Clip appliers - commodities.

Trocars - commodities.

Why do you think that most of the business is contract driven? Because the majority of the products can be used with very little difficulty by a surgeon whether it is EES or Covidien.
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First off, a commodity is anything that can be bought or sold. So by definition, everything is a commodity. What you're trying to say is that a stapler is a stapler and it doesn't matter who makes it, your docs will use it?

If that were the case, then why are only two companies in the market? You only have one true competitor and it sounds like they are kicking your ass because you can differentiate the value of your product against theirs.

Based on your rationale, it sounds like you are the commodity and Covidien can replace you with a fucking monkey and get the same results.
 












Anonymous said:
First off, a commodity is anything that can be bought or sold. So by definition, everything is a commodity. What you're trying to say is that a stapler is a stapler and it doesn't matter who makes it, your docs will use it?

If that were the case, then why are only two companies in the market? You only have one true competitor and it sounds like they are kicking your ass because you can differentiate the value of your product against theirs.

Based on your rationale, it sounds like you are the commodity and Covidien can replace you with a fucking monkey and get the same results.
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Sigh.

A commodity is a good for which there is demand, but which is supplied without qualitative differentiation across a market.

By that definition, trocars, clip, appliers, and the majority of the staplers are commodities which make up 75% of our bag. If trocars weren't considered a commodity, then why is Applied taking marketshare based only on price?

Tell me then, what is the value of a TA vs a TX stapler? You're telling me that a surgeon is completely incapable of using one product vs the other? As I've stated previously, give a surgeon a TLC vs a GIA or a TX vs a TA and they can make all of them work and get similar results.

The majority of the business that is won for either EES or Covidien is due to pricing or contracts. Look at the Cleveland Clinic or HPG. You think that if we had such a strong clinical standing with HPG they would have switched? They went to EES because of price and guess what? The majority of the business left and hasn't looked back. Sure there are a few pockets of list price but overall, they switched without much of an issue.

Now all either company does is create "me too" products and copy each other.

If Covidien was so much stronger clinically, then why haven't we owned marketshare since 1995?
 






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