It can be hard to predict changes that will significantly affect an industry, such as changes that might devastate an important category of products or change the mix of products our customers buy. The hedge against these potential threats is education, and a business culture that stresses the power of learning. If there is a commitment to learning the things that are important to your customers, and helping them successfully implement changes that improve their businesses, your ability to be successful will be sustained regardless of changes in the market.
This was brought to light in a recent conversation I had with John Sasen, a good friend from the human medical side of the business who is the CMO of PSS, a successful physician office distributor that grew from a single branch to a publically traded national company with over $2 billion in sales. John came to PSS 20 years ago as they were moving from a regional to national presence, and his area of expertise was the physician office lab (POL). PSS recognized the importance of the POL to a successful practice, and understood that the lab could deliver better patient care, convenience, as well as healthy cash flow to a physician’s practice. It also provided PSS with above-average profits on a steady stream of lab related products. (note: I believe there is still huge upside in the vet office lab today).
PSS was the first large distributor to focus on the POL and quickly became a leader in the space. While education played a role in the process, it became more important when the government changed the rules with a new set of regulations governing the POL. Most distributors abandoned the POL and many physicians considered doing the same. Recognizing the hit they would take to their business if their accounts shut down their POLs, PSS launched a major educational initiative to train their sales reps on how these changes would affect their customers and what their customers needed to do to stay compliant. While it was a challenge, the hard work paid off and fueled PSS’ growth. They remain a leader in the POL today.
Animal health distributors who embrace that same culture of learning will be well positioned to benefit over the long term. While it is impossible to predict the future, it is possible to adopt habits that will prepare you to win. The industry is changing at a rapid pace. New entities that are challenging the status quo continue to arise. You will always win if you understand your customers, their needs and the products you sell.
The good news is we appear to be an industry very engaged in the educational process. I’m encouraged by the very strong initial response we received to Sound Bytes, our new educational tool which we believe can help you have more meaningful sales conversations with your customers. And I’ve also attended sales meetings, like the recent one Midwest held for their inside salespeople in Chicago in early November. The content being presented by the manufacturers was right on the mark, and the Midwest reps were actively engaged in the learning process – all healthy activities that predict a bright and growing future.