Sales pros…. I want your opinion. email me at tiger@tigerbuford.com
In our beloved orthopedics sector, the sales cycle seems to be getting loooooooonger.
Five key factors contribute to this trend, impacting how companies approach hospital sales strategies.
1/ Influence of Value Analysis Committees: Hospitals have increasingly relied on Value Analysis Committees (VACs) to scrutinize and approve new medical devices. These committees evaluate the cost-effectiveness and clinical benefits of products, adding a significant hurdle to the sales process.
2/ Decreased Access to Surgeons: Traditionally, surgeons were the primary decision-makers for adopting new orthopedic devices. However, direct access to these professionals has diminished, complicating the sales process.
3/ Shift in Surgeon Employment: More surgeons are becoming hospital employees rather than operating independently. This change means decisions about device purchasing are often made at the administrative level, not by the surgeons themselves.
4/ Lengthy Contracting and Negotiations: The process of finalizing contracts and negotiating terms has become more prolonged. Hospitals are taking extra time to ensure that agreements meet their increasing financial and regulatory requirements.
5/ Hospital Pushback on New Products: There is a growing reluctance among hospitals to adopt new products unless they demonstrably reduce labor, simplify procedures, and cut costs. This resistance is due to rising pressure to enhance efficiency and reduce expenses.
These dynamics are reshaping how devices are sold and what products hospitals are willing to consider. For companies in the orthopedic medical devices industry, understanding and adapting to these changes is crucial for success.
What do you think ?
email me at tiger@tigerbuford.com