Post NSM VP met with four established Agents and terminated their contracts. He wants the smaller territories with more control. Caught all four Agent off guard and going direct sales for control. Of course this will fail. Thoughts.
VP of Conmed trying to correct the ship.
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I personally know all four Independent agents. They are all happy with the terms of the separation and wish Conmed nothing but the best. Not sure what the terms were but I couldn't get a negative word from any of them. VP you speak of is taking their reps direct. This could prove to be more difficult than one would think as many of these reps have other lines and don't want to be connected to Conmed directly. Stay tuned....
A better question is will Conmed finally get sold? The lining up of a direct sales force when the existing direct sales force has been a revolving door does not make me think this was a sales growth move. Corporations like to buy companies with direct sales forces that are locked up on non-competes...just a thought. Any rumors our there?
JP is trying to catch Arthrex, Smith and Nephew and Stryker with a direct sales force and "more feet on the street." Also Conmed is self financing their capital deals and the debt has become a burden. All the capital deals in 2019 left small margins and they are trying to catch up with the widgets and MTF. This plan will not work since this is a relationship business. Conmed only controls a 9% market share with the Hall powered instrument line and pump and shaver accounts have been converted across the country.
4 years ago, 8 new RVP's were introduced to salesforce as managers that were going to "transform" Conmed Ortho. These individuals were a mix between Stryker and Arthrocare managers split down the middle. Today only one is left....and he is on medical leave.
Yep. There is a big difference between growing an RF company and trying to resurrect Hall Power and an outdated Video system. The Arthrocare managers did a great job of playing musical chairs with the Agents.