The tips, tricks, and insights into a pivotal product category for distributor reps.
When speaking to Repertoire last year about the link between equipment and patient care, Tom Schwieterman, M.D., MBA, chief medical officer and vice president of clinical affairs for Midmark, said to visualize a Broadway show. The equipment manufacturer (in this case Midmark) would be the theater owner, not the show itself. “Our role is not script, orchestra music or cast. However, we would design the seating, orchestra pit and stage, lighting, concessions and the means for staging between acts. To create the perfect setting for the production, we would need to know the storyline and setting intimately.
“Within the theater, we would ensure that all critical elements were received by the audience in their fullest extent and are enjoyed in a comfortable and engaging manner. We would design the theater seats to avoid any barriers to a view of the stage so the cast can develop intimacy with the audience.
“If these things are not done well, the show will ultimately fail no matter how well the cast performs a Tony award-winning story.”
Through the years, industry veterans have provided a myriad of useful tips, insights and illustrations regarding equipment sales. We’ve compiled some of the best in the following article.
Problem-solvers
“Knowing how to uncover hidden problems and providing solutions is key to selling equipment,” says CME Corp.’s Cindy Juhas. Many customers don’t even know they have a problem. Asking questions and knowing how to sell solutions to potential problems is the only way to sell equipment.
“You need to know the customer’s goals when trying to uncover their problems, so the sales rep has to be knowledgeable about the customer,” she says. For example, some accounts may be more focused on patient satisfaction than others. The successful equipment salesperson knows which products in his or her bag will help them meet their goals. “That’s where good interviewing skills cross with great product knowledge.”
CME Corp.’s K.C. Meleski says, “The act of procuring equipment is complex, and as a customer, you will naturally gravitate to salespeople who can lessen that complexity for you. As our clients continue to consolidate, they are facing unique challenges with both the purchasing and deployment of their medical equipment. Our clients are concerned with maintaining system clinical standards, following their organizations’ branding strategies, adhering to contractual obligations, and the logistics of how their equipment will be installed.” The effective equipment salesperson can help his or her clients with all these concerns.
Equipment sales reps can bring additional value to clients by understanding how the equipment purchase may affect clinical outcomes as well as patients’ perceptions of the practice (as measured by the HCAHPS survey, or Hospital Consumer Assessment of Healthcare Providers and Systems), he says.
“You must be able to take on a consultative role with your clients and help them identify and specify products that will aid them with their long-term financial goals,” says Meleski. “When a health system partners with a distributor equipment salesperson, they typically choose to do so because of the variety of products and solutions that they can offer. As such, it is imperative that you maintain a firm understanding of the benefits and features of the product lines you carry, so you can provide advice and guidance to your customer.”
Finding the best fit
Successful distributor equipment reps are more like consultants than salespeople, says sales leader Larry Dawson. “The doctor tells the consultant, ‘This is what I do, this is how I practice, this is what I need,’ and the equipment rep says, ‘This will probably work best to fit your needs, this is the company, and this is the reason why you want to work with this company.’”
Just as consumers look to knowledgeable, confident experts for guidance when making significant purchasing decisions, so too do doctors look to their sales reps for guidance on equipment decisions, continues Dawson. “The dealer rep can look that doctor in the eye and say, ‘Doctor, I’ve worked with this vendor before; we’ve sold their products for many years; if there’s an issue, you will be taken care of.’”
Learn your customer’s objectives
Says Midmark’s Matt Bourne, it is a rep’s ability to solve their customers’ problems that separates the high achievers from the rest of the pack. “They think in a way that allows their customers to invest in products and services that are going to benefit their environment – the caregivers, the patients and the bottom line.
“To sell equipment in today’s healthcare, you can’t just present features and benefits,” he continues. “You can’t just present equipment in terms of return on investment. You need to learn as much as you can about your customer’s objectives; you must understand it deeply; you have to be embedded in what they’re going to need to do in the next three to five years to drive the measures they have put in place.
“A ‘deep dive’ has to take place to understand the customer’s environment before presenting solutions,” says Bourne. Things are changing so rapidly, that if the equipment salesperson asks his or her customers to articulate their challenges and needs, “by the time you present, things could have changed.”
He puts his comments in context. In some instances, the distributor will be asked by the customer to present several alternatives for a piece of equipment to put out to bid. “It’s easy for the distributor to say, ‘No problem; here are your A, B and C companies and the different price points,’ then walk away and hopefully pick the order up at a later date.
“It’s much more difficult to say, ‘We can do that, but let’s bring these manufacturers together so you can experience how they are different and are going to enhance your environment based on how I understand the organizational vision to be.’” By asking the customer to pause and then offering a different perspective, the sales rep challenges the status quo and looks to become a problem-solver.
Says Medical Resources’ Randy Reichenbauch, “You have to understand what the particular physician does or is trying to do. You have to understand clinical outcomes. You have to figure out his problem and whether you have a solution for it.
“In the past, you would say, ‘This is the CPT code, and you’ll make this amount of money [with the equipment], and this is how it will benefit you,’” he says. “But today, it’s a matter of, ‘How will this affect that customer on a long-term basis? Will it have the impact on the practice they want, with accountable care networks?’” Customers are also looking at the impact of equipment on patient satisfaction, he adds.
Says longtime manufacturer sales leader Rob Saron, “The most effective question that I’ve heard is, ‘Doctor, if you could replace one piece of equipment in your office, what would it be?’” He cites the example of one rep who asked that question of every OB/GYN professional on which he called. The consistent answer was “my colposcope.” Having gotten that question answered, the rep would continue, “Are you happy with your LEEP system? Is it up to today’s standards? Is it safe? Reliable? And if it breaks, what happens then?” A logical line of questioning results in sales, he says.
Brian Sullivan’s Five Steps of Equipment PRIDE
Prospect:
So, whose job is it to prospect for new business? The answer is EVERYBODY. That means both manufacturer reps and distributor reps. To do it well, you need to focus on a select number of products each month (3-5).
Rep Communication:
If you are in distribution, take time in your office before the end of the year to determine which manufacturers you should be partnering with. Remember, not all manufacturers and reps are created equal. Look for well-known brands or cool new technologies that also have great sales reps to support you. By teaming up with the right partners, you will find that together you will create more leads, more meetings/demos, and more sales.
In the Call:
When manufacturer and distributor reps do a joint call or product demo together, it’s important that they discuss specific roles during that call. If they don’t, the risk is that they will be talking over each other, and the communication/meeting will be disjointed. Take a few minutes before you walk in (or turn on your Zoom camera) and split up duties.
Decision-Time:
Once you receive buying signals and buying noises (like hmm, interesting, I like it), somebody needs to control the call. Remember, the financial presentation is as important as a good clinical presentation, so you need to master it. The best time to deliver that financial presentation is NOW. When possible, don’t tell them you are going to get back to them with a proposal. Have three different product/pricing options available and present them immediately after you have built the emotional momentum. This means you need to prepare the financials before you ever attend that demo/meeting.
Explore:
The best time to explore for additional capital equipment opportunities is immediately after a prospect says “yes” to the capital equipment opportunity you just presented. Too many salespeople are so elated to sell something that they’re afraid they will sound too pushy by bringing up another piece of equipment.
It’s not easy
No one said selling equipment is easy. Mistakes will be made.
“Probably the biggest mistake made by distributor reps is not focusing on solving the customers’ needs or problems,” says one former industry sales leader. “Capital equipment can be a solution for many needs, from patient care, patient satisfaction, or financial benefits. Equipment can serve all of these needs, but addressing the most salient needs makes it easier for the customer to make the purchase decision.”
Longtime manufacturer sales leader Dick Moorman believes that selling categories of products can take the distributor’s focus away from the customer’s true equipment needs.
“Distributor salespeople have been trained to sell categories of products,” he says. “Virtually all of distribution has category managers, who are responsible for various manufacturers’ product lines.
“The reason for category management is certainly understood, and it is not an easy job for a distributor category manager to manage multiple manufacturers. That being said, what a distributor brings to a customer should be the best possible solutions with a manufacturer who truly understands the medical space they play in. One who can really deliver to the end user the solutions they need.”
Sidebar:
The value of time
Distributors shouldn’t miss the opportunity to demonstrate to clinicians how digital capabilities can enhance their practice, Michael Suits, senior marketing specialist, physical assessment, for Baxter told Repertoire. “Communication with digital images – and being able to send them directly to the EMR and other providers – is a significant step forward in physical exams. In addition, it has been demonstrated that a single digital image of the tympanic membrane obtained by a smartphone-enabled otoscope resulted in correct diagnosis of 96% normal tympanic membranes and 100% abnormal tympanic membranes. This provides assurance that quality care is being delivered to patients, likely resulting in improved patient and clinician experience.”