Blue-chip Recruiting Reps

Edition: January 2008 - Vol 16 Number 01
Article#: 2844
Author: Laura Thill

After a longtime career in sales with a number of manufacturers, including Smith Kline, Mallinckrodt, Johnson & Johnson and Becton Dickinson, Michael Simpson knows what it means to be a sales rep. So, when he helped seize an opportunity to purchase Kern Surgical Supply (Bakersfield, Calif.) two years ago, he had a solid idea of the type of sales force he wanted to build. “We want our customers to say, ‘we’re interested in working with a Kern distributor rep,’” he says. That meant he would have to invest heavily in the sales team by providing the best training possible. And he did. “We can never invest in our sales team enough,” he says. “If we have to train them for 12 weeks, then that’s what we should do.”

Training days

Indeed, Simpson’s biggest challenge in the last couple of years has been finding the right salespeople to represent his company, whose size bridges the gap between smaller independent medical distributors and the large nationals. “We have a bigger inventory than [many] small distributors,” he says. And, foremost, he values his good relationships with his customers. His $25-plus million distributorship, which services large physician practices and surgery centers throughout the state of California, hires sales reps in groups of five to eight people and trains them as a team for eight weeks. (The company has a total of 18 field reps.) “We can’t just hire people and tell them to go for it,” he says.

“Over the past 12 months, we have reworked how we structure our sales staff,” he continues. “We have invested in a new software system, which is compatible with a tablet PC, to make it easier for our reps to show customers our [complete] inventory. Now the doctors can see it all [on the computer screen],” he says. Gone are the days that distributor reps show up at the doctor’s office with a few products in their bags, he says. “Today, reps must come in and help [physicians] manage their inventory, or introduce them to a new product. The industry is much more service-oriented. That’s what distinguishes winners.”

After all, Simpson continues, “the salespeople are the ones who see our customers each day, not me. We have to train them well and provide them with the right tools.” While he refrains from hiring sales reps away from other distributors, Simpson does look for a specific set of criteria in his new reps. “We look for people with college degrees, minimal sales experience and [substantial] computer knowledge,” he says. “We bring these people together to build one sales team at a time.” This approach permits Kern sales reps to partner together and solve problems when various issues arise, says Simpson. “Team building leads to successful sales reps,” he says.

A member of the team

Working with physician customers has changed over the last decade, he continues. “Ten or 15 years ago, customers cared more about the cost of products. Today, pricing has hit an equilibrium point, and doctors are looking for much more [in the way of] service.

“U.S. physicians can get quite a lot of high-tech, high-quality equipment at a competitive price,” adds Simpson. “Today, distributor reps must be much more concerned with providing good service. They almost have to become a member of the medical team they are working with.”

Although Simpson wishes he had identified and implemented his sales strategy earlier, he recognizes that his efforts have set Kern Surgical on the right track. “Two years ago, we had six salespeople,” he says. “Today, we have 18.” In fact, the company has grown from 25 employees to 65. And, while Simpson looks forward to continued growth, he has no immediate plans to take on new markets or expand his business nationally.

“The state of California accounts for about 13 percent of the national healthcare market,” he says. “If Kern Surgical can be number one or two out here, that would be very good. I’d like to [concentrate] on the western states for now.” Indeed, statistics show that over 50 percent of healthcare sales are regional, notes Simpson.

Warehouse efficiency

Getting a distributorship on the right track is one thing. Keeping it there is another. One of the best ways to accomplish this is through a well-designed, efficient warehouse, Simpson says. “We hired a consultant who designed a smaller warehouse for greater efficiency,” he says. “We have specific loading areas, and the areas closest to the trucks house our products that are highest in demand. Our [computer] system tracks product demand, enabling us to move our products around as needed.” Greater efficiency has enabled Simpson to limit his staff. Kern has also benefited from its ABCO membership.

In addition to a well-planned warehouse, Simpson has found it useful to invest in top-notch carriers. “Don’t rely on common carriers, that might leave frozen vaccines or expensive products on the customers’ doorstep if they’re not in,” he advises. He also believes in the importance of investing in information technology, because a quality computer system “makes it easier for reps to input accurate orders and know exactly what products are available.”

But, above all, one distributor should never steal another distributor’s reps, he states. “We hire and train our reps for the long run, but we do not hire them away from others.” And, that strategy appears to work quite well for Simpson.