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U.S. sales distribution

  To develop your own Proprietary Sales System will require a great deal of research and experience. We propose instead that you negotiate an arrangement with a leading Manufacturer in the U.S. that has an established distribution network but lacks a new product. Either way, to initialize your U.S. sales and assist you in marketing your device. Your program requires both: Selling (which is both solicitation and support), and Distributing. Both functions are separate in the U.S. medical device health care industry. The newly appointed director of the U.S. FDA stated about a year ago, as part of her confirmation hearings before the senate, that the development and marketing of devices were so different from drugs that they essentially should be treated as unrelated industries and unrelated skills. The best method to build a U.S. based, low-risk sales and distribution network in the shortest time is to identify a U.S. "partner" who has an existing manufacturer's sales distribution network. This network can originate from either a manufacturer who develops the product or a sales distribution network that sells many different products to an assortment of buyers.

You should work with a large assortment of potential partners. You should create a negotiation strategy that places you into a preferential position and not a restrictive position. Your choices will be limited and your product will not receive a lucrative treatment unless you have a large assortment of U.S. based manufacturers to work with. Your product is strong enough to get their attention.
You should identify companies and initiate conversations. It is based on incontrovertible evidence that the process that we are offering will work. Although marketing is NOT an exact science, a great deal of research, experimentation and testing is required to create a viable marketing program. All enlightened estimates calculate an amount far greater than your expenses to date on the product R & D.
Sales Structures For marketing in the U.S. you have several choices. You can create your own Proprietary Sales Network in the U.S. or you can "partner" with an organization. There are two types of these organizations: the Manufacturer's Distribution System and the Sales Distribution Network.

Inserting your product into a Sales Distribution Network will be easier. The most preferable network is a Manufacturer's Distribution System which will be more rigorous and difficult to initiate but the rewards will be larger and more certain.

We suggest that once you explore all the facts, your only real alternative is to partner with a leader in the market with a Manufacturer's Distribution System.

The companies that succeed are those who are able to sell products the day the approval is issued. Those that do not succeed are those who once receiving an FDA approval are caught by surprise and waste valuable time organizing a marketing strategy.

copyright by Compliance Consultants, Stamford, CT USA, September 2001