How distributor reps can make the most of their equipment conversations with customers by utilizing industry partners.
Capital equipment sales take patience, preparation, asking the right questions, and – perhaps most important of all – collaboration.
In Part I of a two-part series, Repertoire highlights how distributor reps can make the most of their conversations with customers in this product category with the proper preparation and planning, understanding current market dynamics, how conversations with customers about equipment differ from other product categories, and collaborative best practices between distributor and manufacturer reps.
Part II will examine how to approach the financial aspects of the conversation with customers and follow up needed to ensure continued success.
Participating in this story are:
Kyle Allan, territory manager, MedTech MedCare
Kevin Barefoot, partner, director of Point-of-Care Lab and Primary Care, MedTech MedCare
Jake Barga, territory portfolio manager, Midmark
Jonathan Bowman, senior director of Sales, Alternate Care, ZOLL
Dominic Seymour, territory manager, MedPro Healthcare Sales Solutions
The long game
Kyle Allan knew he had his work cut out for him. His first month with MedTech MedCare was in November 2020. At the time, simply getting face time or virtual appointments with clients, much less developing relationships, was incredibly challenging. But bit by bit, by about the one-year mark, Allan said he was able to gain traction, and by year two, things began to click as he was able to convert prospects into customers that trusted him for his efforts.
Fast forwarding to this year, Allan said he’s been able to get a hold of how to work a long-term sale, especially for bigger opportunities because of how those processes work. He’s found a good rhythm with the messaging, identifying the right call points and partnering with distribution to deliver a consistent message, even if it means having to communicate that message repeatedly. “The work involved can seem tedious and repetitive, but it is necessary with some equipment that we have, where we have an uphill battle to fight for market share.”
Providers are more willing to meet in person, but those in-person opportunities can be a double-edged sword. Reps must make sure they have a firm appointment, up-to-date credentials, and then go through the necessary steps with each provider to secure the necessary follow-up appointments to close the sale. “From that aspect, relationship building is so important now to be able to secure those follow-up appointments and always getting that next meeting as your secure goal no matter what meeting you’re heading into.”
Times have changed
Pre-COVID, reps were free to walk around facilities, especially hospitals, to knock on doors and talk to people about products, services and projects. But post-COVID, everything has become far more guarded, making appointments difficult to get. “Couple that with staffing shortages post-COVID, it seems like every facility is running shorter staff, so healthcare providers and hospitals are stretched thinner,” said Dominic Seymour, territory manager, MedPro Healthcare Sales Solutions. “They’re so busy that it’s harder to meet with them if we walk around a facility without an appointment. Getting their time secured is paramount to having a good conversation. Building a relationship is very difficult without that.”
During COVID, facilities were reimbursed a lot of money by the government, making it in many ways a boom year for most healthcare manufacturers. “You can imagine there were needs all over the place and they had extra money at that time being offered by the government to buy a lot of it,” Seymour said. “It shook things up a little bit, where if a certain facility was on a path to replace a piece of capital equipment in the next couple of years, they actually did it sooner because of that extra money. Many sales teams had a terrific year during COVID, but after that it was almost like a hangover where things were slower because everyone had already bought so much stuff.”
Yet securing those appointments is paramount, said Seymour. “We’ve got to be in front of people. We’ve got to learn about each facility individually as far as what’s important to them. While we always did that, now we need to be in tune with what they can and cannot afford, their needs and their projects, and how they’re going to finance everything. We always did this, but it’s just increasing our frequency with meeting with these folks to ensure that we’re understanding what their needs are at that time, because things can change.”
Meeting prep and time management
Kevin Barefoot, partner and director of Point-of-Care Lab and Primary Care for MedTech MedCare, plans for his in-home office time several days in advance and targets specific manufacturers or product categories to call on. For instance, for two hours in the morning he may focus on exam room furniture, calling on supply chain sourcing and their equipment planners, or distribution partners to discuss the lines he represents and can work with them on.
“I may get through to two customers, and because we might have a very good discussion, there might be a couple of new setups,” he said. “Or I may talk to two distributors and make plans to visit a customer. But I make time to go down those rabbit holes.”
Fill the calendar
Having a full schedule is key to growing a territory. “Some of these manufacturers that fly into town to work with us are spending a lot of money to come here, so it’s nice to be able to offer them a full schedule full of appointments, confirmed appointments where we can have authentic conversations and build value in the relationship,” said Seymour.
Don’t just ride around without a plan, he said. Have a plan and understand what the manufacturer or distributor’s initiatives are. “If a distributor is doing a SPIFF program with a certain manufacturer, that’s going to be something that they would need to make sure that they’re touching every customer with. It’s important to get in front of customers,” he said. “You’ve got to have onsite meetings. There’s nothing that builds trust better and a relationship better than a face-to-face meeting.”
Coach or influencer?
Capital equipment discussions usually involve more people to make the decision, said Jonathan Bowman, senior director of sales, Alternate Care, for ZOLL. This requires the salesperson to be more diligent in asking questions and carefully listening to answers to formulate more questions. The goal is to better understand the customer’s process for making a purchase.
Also key is determining if you as the rep will be a “coach” or an “influencer” in the sales process, Bowman said. “This differs from a customer just buying say a commodity or a consumable, they tend to have the ability to purchase some items below a dollar threshold. Capital equipment needs to be budgeted. This type of sale requires the salesperson to not be just an order taker but truly a partner for the customer by asking good questions, listening, and I can’t stress this enough, follow up quickly with accurate information.”
In today’s age, most customers use their phones/tablet for immediate answers to questions, and want one click to solve their problems. For a salesperson to prove their value, they must provide quick and accurate information. “To be the best, you must be an excellent listener, show that you really care about their problem/need and you see how it is impacting their job or how their supervisor/boss views them. As Jim Niekamp of 95% Share says, ‘Make them look good in front of the people they care about.’”
Gather the stakeholders
Capital equipment is often episodic (replacing equipment or new builds) and needs to be customized to meet the specific requirements of staff and patients. The decision-making process typically includes multiple stakeholders such as operations, physician/nursing leadership, IT and facilities management, said Jake Barga, territory portfolio manager, Midmark. More times than not, the decision-makers involved are not completely aware of all the latest technology and innovations available.
“It is critical to gather all stakeholders to ensure that everyone’s input is considered, gaining buy-in across the organization,” said Barga. “While this collaborative approach may extend the sales cycle, it enhances relationships within the account, especially when partnering with vendors who are experts in their field. Equipment purchases impact caregivers and patients, workflow processes and space so the decision stakeholders make on capital equipment will affect their care delivery for well over a decade.”
Including a manufacturer representative in client discussions offers significant benefits, Barga said. “They bring deep product expertise, providing tailored guidance that meets specific clinical requirements and regulatory standards. This can help ensure informed decision-making and enhance operational efficiency. A manufacturing representative can also identify additional hidden opportunities as well as grow the sale. Post-sales support ensures seamless integration and ongoing satisfaction, fostering a strong partnership built on trust and mutual success.”
Connect with sourcing
As a team lead, Barefoot likes to spend time with the sourcing people in a supply chain department. “We’re talking about capital, so obviously, the person who handles capital equipment, I would want to make sure I have a very good relationship with him or her.”
Sourcing people are always looking for cost savings. The younger sourcing team members or leaders are focused on the analytics of total cost ownership, not just cost savings. “The keywords they’re usually looking for aside from cost savings are warranties, reports to see how often things are getting repaired, or failures in the field,” said Barefoot. “They’re looking at all different types of analytics to make sure that yes, we could reduce the cost, but that the piece of equipment is also a very good product.”
That is sourcing’s job. “They have goals and KPIs to hit. That’s how they get incentivized and promoted.” Reps must show they can not only reduce costs with a very good product, but also enhance the offering with warranties or outcomes for end users.
Distributor-manufacturer partnership success
Successful distributor-manufacturer partnerships involve a few things, number one being trust. Allan said he understood that was a necessary hurdle for him to overcome in establishing connections in his territory. “Most distributor reps are dealing with such a bigger book of business than they ever had before, so when you’re able to gain their time and attention, it’s so valuable. They’re pulled in so many different directions and that first six months to a year is where I tried hard to develop trust with them to where they could understand that if I’m going into an account on their behalf, I’m going to make sure that we capitalize on everything for them and us together.”
That said, handling larger projects, or responding to a customer that has an urgent request or issue that needs attention can’t always involve the distributor rep. The burden is on the manufacturer rep to develop trust so when distributor reps aren’t included in the follow-up with customers, they don’t have to worry about issues developing. “You’ve got to be on top of everything for them,” Allan said. “It all coincides to gathering trust across the board, with distributors and customers. Their customers are important to them just like they are for us, and we have to work in tandem to make sure it’s a successful partnership.”
Two-pronged communication strategy
Sales has changed in numerous ways, not the least of which is the opportunities presented through technology such as AI and mass marketing emails. “Back when I started, there really wasn’t a whole lot of that, and we’ve been able to integrate newer technologies over the last few years to help us have a broader expansion into our territory,” said Seymour. “You can imagine with the states that I cover, I can’t be everywhere at once. So having a two-pronged approach of using digital marketing along with face-to-face relationship building has been something I have keyed in on. I don’t think that was a product of COVID, it was just more the evolution of technology.”
Most reps are using some form of digital marketing. Seymour said adding a personal touch can go a long way with clients. “We like to send out handwritten thank you notes rather than emails to differentiate us and cultivate better relationships,” he said. “In some instances we’ve progressed with the way we do things digitally, but on the other hand, we’ve backtracked to offer a personal touch.”
“Do you have a minute?”
Barefoot always asks the person he is calling if they have a minute when they answer the phone. “That was something my father told me, to make sure you ask if they have a minute.” Most people will say, “maybe a minute,” which Barefoot can expertly turn into 10 or 15. “And if they say they don’t have a minute, I say, ‘Okay, I’ll see you,’ and that’s it. If I don’t get them on the phone for a minute, so be it. It’s a marathon. I might miss a sale or two, but I’d rather not irritate them in any way.”
Answer the bell
Capital conversations usually involve many different people and decision makers within a provider. There’s often an approval process involved and a budget the customer would like to stay under. While disposables and med/surg products are important to the daily flow of healthcare organizations, capital equipment is always considered a different type of investment. The keyword being investment. There are usually a handful of times within a year where customers review capital equipment, clinical needs, and price points that need to be met in order to do business with a vendor. “Be ready to answer the bell when it comes to these specifics on your equipment and why working with you is the best investment in the long term,” said Allan.
Don’t go in alone; don’t be negative
Doing deals without the manufacturer rep involved is not ideal, because pieces of equipment, especially high dollar capital equipment, are not really apples to apples with different manufacturers. They may have the same name and do the same thing, but their clinical ability can be vastly different. Their longevity could also vary. Those are not things that everyone knows about. “I recommend going in with a consultative approach to understand truly what their needs are, making sure we’re checking all the boxes to get them what they need,” Seymour said. “That way they are satisfied and don’t come back six months later thinking they’ve got something and they really didn’t, or they got way too much.”
Another pitfall is speaking ill of competition. “It might fly OK in the meeting, but I think it just leaves a bad taste in everyone’s mouth if we’re speaking ill of the competition. It’s better to just highlight your best aspects that accommodate their needs rather than putting another manufacturer down.”
Avoiding missed opportunities
If an order gets placed without first asking some essential questions, you’re missing an opportunity, Barga said. Many customers tend to replace equipment without fully exploring the latest trends and offerings that could significantly enhance the level of care they provide. Not seeing their space and capturing the voice of the customer can lead to assumptions and missed opportunity within their current state versus ideal future state.
“Evaluating equipment and technology without a trial, demo, simulation/workshop or proof of concept is a missed opportunity to make a fully informed and confident buying decision,” said Barga. The time spent upfront can eliminate many headaches, costly mistakes and buying regret later. Taking the initiative to make a quick in-person meeting ensures that the requested product truly aligns with their needs and budget while strengthening the relationship with the account. This proactive approach not only promotes better decision-making but also demonstrates your commitment to supporting your customer’s long-term success.
Equipment sales vs. other categories
Equipment sales are relationship focused. “These are long sales cycles as opposed to a disposable type of sale where you can offer them samples and they can trial it for a month and then move forward with it pretty quick,” said Seymour. “Some of these pieces of capital are in there for 10 years or more, so they can become very expensive.”
Being able to establish the relationship is important so that they trust what you’re saying, but for the distribution rep, the capital rep partnering with the manufacturer rep is just as vital.
“Distribution reps have a lot in their bag,” said Seymour. “They simply can’t be an expert on every piece of capital, because some of them can be very intricate. When they have these meetings, bringing in a manufacturer rep to talk through it would definitely increase their clout with the customer, and ensure they’re providing the best solution. That’s going to increase customer satisfaction in the end if you can nail down exactly what they’re looking for.”
Some equipment pieces are north of $1 million, so reps may start working on those sales three years in advance. “You must maintain contact with them and understand truly what their needs are.”
Reps must stay on top of client relationships at multiple levels. Say someone is replacing all their patient monitors within a facility. They’re going to start talking about that a couple of years in advance, and it’s going to be multiple rounds of meetings, not with the same people, but with many different department directors and department heads to make sure that everything important to them is captured, and all the models of equipment are going to differ from department to department. “So again, leveraging your manufacturer rep is huge for that if we’re talking from a distribution rep’s shoes.”
Keep your head up
There are plenty of dog days with equipment sales. It’s good to remember to keep your head up, Allan said. “There is always a customer out there looking to utilize what you have in your product bucket. It may take some time to find those customers, but once they trust you and start coming back to you, that’s when it really starts getting fun. Developing that trust and seeing that they want to rely on you and you can develop the relationship over your career is, I think, the most fun part about this job. I love that aspect of it.”
Avoid email jail
Be careful with long-winded emails, Barefoot said. Ask simple questions like:
- “Do you have any interest in this?”
- “What do you think?”
- “What’s your feedback?”
“I tell my team this all the time, the guys in the territory here or nationally, to not get stuck in email jail, and keep your messages short, sweet, and personal,” Barefoot said. “Write it yourself. I get there’s AI, but just take the time and write it. They’re going to know if it’s you or not.”
Of course, not every single person is going to get back to you. Business managers and clinical managers at physician offices and specialty offices are getting emails all day long. Supply chain leaders are getting emails all day from vendors. It helps when you can have a good phone conversation and that person knows you face to face, “so get out and meet them,” Barefoot said.