Commission cut pain, welcome to Stryker's world.
In reality, the distributors are very much overcompensated and should eat any commission cut. They really provide nothing but a buffer for ZBH and provide minimal value. This is especially true since the merge has occurred and they have be one even more greedy than they were previously. ZBH would be better off hiring area managers and pay them well $750,000-$1.5MM, lose all the current distributors that make huge $MM. Most distributors, regardless of company, are looked down upon by hospital admins as the greedy, Rolex wearing, BMW/Mercedes, 3 houses, plane owning/leasing, yacht owning asses they truly are. Lose them and our image will improve to C Suite. You know this is so true. ZBH has a huge multi-faceted PR problem (lack of experienced personnel, lack of inventory, selling items that were out of spec and probably not even properly sterilized, premature ejaculation with Persona launch, Biomet Sales Culture, Biologics that are overhyped, new Elbow that is marginal, trauma that is incomplete, sports medicine in an overcrowded market that lacks, Signiture Solutions, shoulder systems that destroy glenoids, surgical soft goods that are horribly overpriced, not enough instruments/implants, executive leadership that has lost touch with reality, etc, etc) that is real. This is turn makes all of our jobs more difficult as if we needed any more head winds