Wrapping up 2007

Edition: December 2007 - Vol 0 Number 12
Article#: 2823
Author: Repertoire

Trends aren’t made in a day. With the close of 2007, it’s beneficial to look back at what made news in the industry in order to anticipate what’s ahead. Please take a look at the Year-in-Review story on page 36. In my mind, the big stories of 2007 are well chronicled in the article, and perhaps a full review of the story is warranted prior to the start of next year. If you don’t keep your past issues, all of the stories can be accessed at www.repertoiremag.com.

We’ve hit on a number of topics, but here are a few that I believe will make more noise in 2008: Retail Clinics; Competitive Bidding; EMR; Growth of Ambulatory Surgery Center Market; Flu Vaccine; Private Label; and Healthcare Reform. We believe it’s our job to continue to provide guidance and coverage on these issues, as well as others which affect the healthcare distribution business and manufacturer-distributor relationships.

In addition to the stories you’ve seen in Repertoire, I believe there are some continuing trends that may have a significant impact on our business during the coming year.



Technology — technology is changing the face of many different businesses, ours included. It’s interesting that many distributor sales reps are using technology to tighten their relationships with their customers, shattering the myth that it pushes them further from the customer. With the help of technology, many of the time-consuming, non-value added activities can be easily handled, leaving the rep with more time to ask questions, solve problems and sell!



The Internet — distribution companies sell mostly the same products which have been acquired at basically the same price. While pricing to the customer has always been an issue because it exposes the differences between how much a product is marked up, the Internet has made pricing even more transparent. Sales reps that are well equipped to explain the value they bring and defend it, as well as do it on a consistent basis, will be the ones who survive and thrive.



The Economy — we have enjoyed a healthy and robust economy with stable interest rates, low inflation and a shrinking federal deficit, but the outlook going forward looks more challenging. The markets have been volatile, and it looks like that may continue, spurred on by the sub-prime lending mess, a weakening dollar, as well as a possible reemergence of inflation.



Politics — healthcare reform looks to be a lead issue in the elections. Democrats believe in a government solution, although they are afraid of saying single payer at this point, and Republicans for the most part would like to enact market based reforms. It will be a fight with far-reaching implications.



All in all, 2008 is shaping up be an interesting and challenging year. Enjoy your holidays!