Selling equipment to today’s consolidated customers
It’s no mystery why many hospital systems and multisite physician clinics want to standardize equipment selection and purchasing. There are economies of scale, the desire to connect multiple sites to an electronic medical record, the benefit of ensuring that staff are proficient on the equipment used at all sites, etc.
Though consolidation and centralization may be good for providers, they can present challenges for non-acute reps, particularly those used to selling to small or independent practices. The people in the office on whom they used to call may be out of the decision-making loop. Purchasing decisions may be made by committee. Then there’s the temptation for a large organization to try online purchasing.
But successful reps have discovered ways – some of them time-tested, others specially suited for a consolidating marketplace – to sell in such an environment. They include:
- Identifying the decision-makers.
- Carefully listening to the customer and understanding their priorities.
- Demonstrating value after the sale, such as in delivery and setup.
- Working in tandem with manufacturers, who are, after all, the product experts.
- Serving as a credible, accessible resource of information and products on an ongoing basis.
Getting the right people involved
“We have been successful in standardizing multisite customers,” says Victor Amat III, president, American Medical Supplies & Equipment, Miami, Florida. “It is a longer process, and it takes getting the right people involved in the decision-making process.”
For one multisite customer, American Medical leveraged long-term relationships with clinicians to get in front of key decision-makers as they planned a new facility. “They made the decision to standardize to power examination tables with built-in scales, because those tables provide better patient care and reduce the equipment footprint in the exam room,” says Amat.
Some multisite practices simply aren’t as organized as others, he says. Equipment buying can be scattered, even haphazard. “You have to navigate the waters based on who your customer is.”
Amat speaks of one customer that had recently acquired several facilities.
“They were not standardized,” he says. “So now we’re getting phone calls for EKG paper. But there are three different EKG machines across their facilities. When I talked to their VP of operations, I told him, ‘It would behoove you to consolidate all this; I can get you a better deal, and you’ll spend less money on consumables and supplies.’
“Depending on how forward-thinking the practice is, they might say, ‘Let’s talk.’ Or they might say, ‘We just spent a lot of money buying practices, so let’s wait and see.’ Those with the foresight will be more receptive to standardizing equipment across their facilities.”
Like their smaller counterparts, recently consolidated practices are susceptible to an age-old malaise: sticker shock. “The value of workflow improvements and better patient care usually trumps price,” says Amat. “The distributor rep needs to know the customer and what they are trying to achieve, and then bring to them the products or solutions to those issues.”
The rep’s commitment – and opportunity – extends beyond the sale, he adds. “I believe that from the delivery to the installation, the distributor rep needs to be 100 percent involved, especially on major multi-exam-room projects,” says Amat. “We hear a lot about the ‘customer experience.’ It needs to be a good one in order to form a good partnership with the end user going forward.”
Decision-making teams
Eric Kessel, vice president of physician office capital sales for Medline, says that distributor reps can play a key role in the selling of equipment in any environment. “The only difference in those situations where decisions are made centrally is that the rep needs to ensure that he or she is dealing with the decision maker. This makes the process more efficient and impactful for both the customer and the rep.
“In general, most of the IDNs we deal with use a standardized list for capital equipment, and are pretty successful in standardization,” he continues. “Their clinical team has worked with the manufacturers to determine the best fit for their entire system and negotiated contract cost.”
Successful provider organizations have strong, centralized decision-making teams, says Kessel. “They gather input from the clinical leads/providers to determine what functions the equipment needs to perform in that specific portion of the continuum of care.” They reevaluate their choices periodically to determine if the equipment on which they standardized in the past still fits their needs. And distributor reps can help.
“Our reps have that day-to-day contact with clinicians in the offices,” he says. “They are in tune with what’s going on.”
For example, the distributor rep may hear complaints about a product or piece of equipment that isn’t meeting the needs of the staff in a particular office, says Kessel. With the equipment manufacturer’s help, the rep can help the customer identify what would make better sense, perhaps through an onsite product fair, and then bring that solution to the attention of those in charge of purchasing.
From logistics to training, the distributor is essential for a positive customer experience, continues Kessel. “Our customers have specific needs for every delivery, and every delivery is different. We handle everything, including tracking of items, staging in warehouses, delivery, setup, removal of debris or old equipment, hanging of items, and so much more. Our reps are also at every capital equipment delivery, and they provide training when necessary. There are many moving parts when it comes to the sale of capital equipment, and Medline is there to help.”
Working with the manufacturer
In equipment sales to large groups and IDNs, the manufacturer can serve as a resource to the distributor, and vice versa, according to those with whom Repertoire spoke.
The distributor acts as a liaison between manufacturer and end user to provide one point of contact, says Doug Harper Jr., an independent manufacturers rep serving the Northeast. “Distributors can provide white glove delivery that may not be offered by the manufacturer, and a single solution for post-installation supplies, reducing the number of purchase orders.
“As a manufacturers rep, I find it incredibly helpful if I can use the distributor rep’s relationships to talk to the right people to set up training,” continues Harper. “It helps to have that key point person I can be candid with.”
Harper also encourages alternate-site distributor reps to stay in touch with their counterparts who serve the acute-care side of the health system. “The acute care reps are the eyes and ears in the hospital,” he says. They learn about upcoming projects, including those involving outpatient facilities, and they can steer the alternate-site rep to key decision-makers, such as the CIO, biomedical department head and materials management.
David Bussa, executive vice president, The Brewer Company, says equipment manufacturers value the distributor rep as a “customer advocate who alerts them to all the choices available and brings credibility to the table.
“Customers standardize based on informative support and evaluation,” he says. “The distributor rep who drives and provides choice and consideration will, more often than not, be the one who wins the account.”
Bussa encourages distributor reps to leverage the product expertise of equipment manufacturers “early and often.”
Collaborative effort
“A distributor rep has a lot of experience in many things, but might not be as familiar or might find themselves in an uncertain situation with respect to a particular product,” he says. “The manufacturer’s rep, on the other hand, has likely been in this situation many times and is best suited to support it. The manufacturer’s rep is there for you to present, conduct evaluations, and construct a deal that works for all sides. There is strength in numbers and partnerships, and the earlier the collective engagement – distributor rep, manufacturer rep and customer – happens, the better the result for the customer.
“And the customer will appreciate, value and remember the collaborative team effort.”
Says Victor Amat, “The manufacturer rep needs to be involved in the sales process from the beginning.” He or she can assist with demos or mock exam room setups, and the manufacturer itself can offer some flexibility in payment terms to accommodate snags in the construction process.
Adds Kessel, “Medline values our relationships with our manufacturer partners. We rely heavily on this relationship to ensure our customers’ needs are met, from product selection to training.
“At a rep level, our reps work closely with their regional manufacturer rep,” says Kessel. “The manufacturer rep can help determine the right product for the solution needed, arrange demos, provide training, troubleshoot any issues after delivery, and is an integral part of the sales cycle. From a leadership standpoint, it is imperative that our goals are aligned and we are working closely to help facilitate our two teams working as well together as possible.
“Manufacturers play a key role throughout the sales process.”