Manufacturers of innovative medical devices – that is, devices that are too new to attract big GPO contracts or general med/surg distribution contracts – have three choices to get their innovation to market: They can hire a direct sales force, try to contract with a national specialty dealer, or use local or regional specialty dealers, such as those in IMDA, the association for specialty dealers.
Now, a trio of specialty dealers – all IMDA members – have created a consortium to deliver the technical sales expertise and personal relationships of the specialty dealer on a broad geographic scale, offering one point of contact for manufacturers seeking broader representation.
Solutions in Critical Care is the name of the organization, founded by Allendale, N.J.-based Martab Medical; New Orleans, La.-based Medical Specialties and Northridge, Calif.-based SRC Medical.
“We offer a solution to manufacturers that gives them all the benefits of specialty distribution with the ease of working with a national – or near national – supplier,” says John Marmo, president, Martab Medical.
“SICC offers an alternative to the national providers as well as poor performing local sales organizations,” he says. “SICC will offer national coverage with the benefits of local sales organizations. By offering a strategic alliance and taking the best in class from each region, we will be in a position to offer the best solution to our manufacturers, buying groups and our accounts.
“SICC is the best option, because we will offer the benefits of local specialty distribution with the continuity and clarity of a national provider.”
SICC will continue to recruit more “best in class” specialty sales and marketing organizations, he adds.
National strength, local presence
“We offer national strength with a local presence,” says Don Reiter, president, SRC Medical. “Manufacturers need that local presence, that is, people who know what’s going on in that particular territory, as well as the ease of dealing with just one entity across the country.”
SICC reflects a change in customer base as well, continues Reiter. “Our customers are consolidating – merging, forming coalitions. They are crossing our territories as well. They will look to someone who can bring them that national strength; but when it comes down to the local level, they want local support.”
And despite the national or near-national presence, SICC participants will continue to act as classic specialty dealers, he adds.
“We are our customers’ pre-screeners for innovative products. So when we bring something to them, we have checked it out, market-tested it, and have committed ourselves to it. If we have an opportunity to invest in that manufacturer, whether at the beginning of our relationship or down the line, we want to do that; that’s the level of commitment we bring.”
Adds Marmo, “We do not intend to have 20 product lines, but maybe four or five that we do very well. We’ll be comfortable spending the time and doing due diligence in the field to get the results we all want. And that will lead to longer relationships (with manufacturers of innovative devices).”
“Specialty dealers are the least expensive way for the new technology to be launched,” says Duke Johns, president, Medical Specialties. “We represent the best-of-class in bringing new technology to market. That is what we have been advocating. Now we’re going one step further, combining our strengths and putting some teeth into what we do best.”
“Over the last few years, I have noticed manufacturers going to national providers because they cannot find a specialty dealer in each territory, or the specialty dealer is overstretched and showed poor results,” says Marmo.
“I firmly believe specialty distribution is the best way to market and sell specialty solutions. We are offering manufacturers the best specialty-distribution sales with continuity of messaging and reporting. In short we will offer scale to the marketplace.”