How to find a suitable medical device distributor?

Editor of this website :Hangzhou Xinhao Medical Technology Co., Ltd
Release date :2017-05-19 17:41
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At present, there are 180000 medical device distributors in China. It is difficult to find excellent distributors among the 180000 distributors. Why is it so difficult to find excellent distributors? What kind of distributor is an excellent distributor? Why do distributors always seem to be at odds with companies?

Why are dealers always becoming increasingly difficult to manage? Why is it that companies are increasing their investment in distributors in the market, but their sales cannot achieve growth? Why do my dealers invest their main resources and energy in other manufacturers or even competitors, but we have no choice? To solve the above problems, let’s clarify two concepts:

Concept 1: Distributors are legal entities that stand outside the enterprise and are an important part of the business chain. They are at the forefront of the channel, responsible for the transmission of product flow, capital flow, and information flow between the enterprise and the hospital. They are a link that maintains the relationship between the production enterprise and the hospital.

Concept 2: Declaration customers refer to customers who only serve specific hospitals. Because each hospital has several core suppliers, hospitals usually seek out these suppliers to purchase equipment. Reporting customers can compensate for the lack of network and relationships among distributors. However, manufacturers generally do not directly deal with reporting customers, and only do business with distributors.

The general principle of cooperation between manufacturers and distributors is to establish a mutually beneficial and win-win cooperative relationship. The process for manufacturers to establish channels is as follows: laying the foundation - collecting customer information - screening (evaluation) - negotiating (signing) - market control - managing distributors - establishing strategic alliances

Building a foundation

In the early stage of market development, in order to successfully find excellent distributors, it is necessary to develop several hospitals. Only in this way can distributors be interested. More importantly, once they find a hospital that is interested in purchasing equipment, the hospital usually proposes to visit the observation hospital, which is a local authoritative hospital and a tertiary hospital. So in the early stage of market development, many companies adopt the method of advertising, first allowing the equipment to enter influential tertiary hospitals in the local area to be used, and then convincing other interested hospitals to generate interest in purchasing through observation, and having department directors report.

Customer information collection

Most companies collect dealer information through exhibitions, academic events, referrals from hospital personnel and friends, and online bidding announcements.

At present, 70% of distributors come from exhibitions, which have a good investment effect. Secondly, by searching online for bidding notices, recruitment information, etc., and through the introduction of hospital personnel and academic activities, the core supplier of this hospital, namely the reporting customer, can be found.

Customer screening (evaluation)

During the process of searching for distributors, the sales manager of a company found it difficult to reach consensus among distributors of well-known brands. However, distributors with only 1-3 salespersons are more likely to reach consensus, while distributors with only 1-2 manufacturers are more likely to reach consensus. Distributors participating in industry exhibitions, distributors of undergraduate products, and distributors of medical equipment who have transitioned from pharmaceuticals are more likely to reach consensus, Dealers of other products are more likely to reach a consensus.

The principle of "four in one" is for manufacturers to screen distributors: distributors should have time, a sales network, a sales team, and money to operate your brand. The core factor is the personality charm of the manufacturer’s sales manager. Only when the distributor recognizes you will they distribute your products.

When looking for a distributor, it is important to find a suitable one, rather than one that is relatively large and powerful in the local area. Local distributors that are relatively large and powerful are not partners of small and medium-sized enterprises. The reason for this is that strong distributors are busy and do not have time to create a new brand. Secondly, strong distributors represent well-known first tier brands, making it easier and profitable. Thirdly, representing small and medium-sized brands may have negative effects on the reputation, status, and influence of strong distributors, who are unwilling to take risks.

Negotiation (Signing)

The negotiation of cooperation between the manufacturer’s sales manager and the distributor is divided into three stages.

Advanced stage: Generate interest in dealers and make them accept you. Discuss company planning, vision, scale, product selling points, market capacity, core competitiveness, market status, and market operation plans.

Phase 2: Through regional exhibitions, observation, and academic activities, dealers are encouraged to invest time, energy, and money in their work. This stage requires the manufacturer’s sales manager and dealers to visit the market together and explore intention letters. Only with intention letters can there be a possibility of cooperation. The current dealers are all; If you don’t see a rabbit, don’t scatter an eagle; This kind of.

The third stage: discussing agency conditions, cooperation capital (intention letter), benefits, risks, support (training, academic activities), after-sales service, etc. These contents are all reflected in the contract. After both parties reach a consensus, the contract can be signed.

Market control

The control of the manufacturer’s sales manager over the market is reflected in four aspects: control of the model hospital, control of the price system, control of the shipping flow, and monitoring of the tracking process.

The purpose of the manufacturer’s sales manager’s market control is to standardize market operations, provide reasonable profit margins for customers at all levels, prevent the occurrence of collusion, and assist and supervise dealers to complete orders. Eliminate unqualified or non compliant dealers without affecting the healthy development of the market.

Manage dealers

Before we learn how to manage distributors well, let’s answer a few questions. What benefits and profits do distributors hope to obtain from distributing our products? Can we meet them? What measures do we have to ensure the interests of distributors, are they effective? Under what circumstances would we harm the interests of distributors?

The core interest of a distributor is profit. If you cannot make money from distributing your products, the distributor will immediately stop cooperating with you. Other benefits for distributors include: management improvement, business planning, and personnel skill enhancement. At present, many sales managers treat distributors as payment tools and are unwilling to help them fulfill orders down-to-earth. The result of doing so is that distributors suffer a lot, face numerous conflicts, and eventually go their separate ways after comparison.

And excellent sales managers will achieve the goals of the enterprise by meeting the reasonable needs of distributors. By combining benefits, emotions, and value-added, we work together with distributors to expand and strengthen the market.

Establishing strategic alliances

How can manufacturers establish a solid, close, and win-win cooperation with excellent distributors? What is the role of involving dealers in enterprise management? The role of dealers in enterprise management is:

Firstly, dealers provide authentic and effective resources and information;

The second is to stimulate the enthusiasm, confidence, and loyalty of dealers to a greater extent;

Thirdly, dealers dare to speak the truth in front of senior management;

Fourthly, increase the supervisory role of distributors in enterprise management;

The fifth is to enhance the accuracy and effectiveness of decision-making by leveraging the advisory and advisory roles of distributors;

Enable dealers to increase their understanding of the enterprise and have a clearer understanding of the company’s planning and thinking, thereby maintaining consistency with the company’s thinking and actions.