Explaining Pharmaceutical Sales: Part I

I receive several calls weekly from people asking about the difference between revenue opportunities in the medical sales field, and which personalities might fit best.  So, to address those questions, here is the first part of a 3-part series explaining different types of medical revenue. 

There are 2 basic types of sales that occur in all areas of medical revenue, which includes clinical diagnostics sales, pharmaceutical revenue, pharma revenue, imaging revenue, DNA products sales, cellular/molecular products sales, pharmaceutical equipment sales, surgical supplies sales, hospital equipment sales, clinical laboratory sales, or biotechnology revenue.  Today’s movie will explain Capital Revenue, as opposed to Consumable Sales. 

My favorite way to explain this is to talk about the difference between buying a car (capital sales) vs. shampoo (non-capital, or consumable sales).  Buying a car requires research, consultation with your spouse, test-driving, maybe a loan, and a major outlay of cash.  It takes a while. 

A consumable sale is the shampoo.  Much easier decision, because the consequences are less.  Not as much commitment, (partly because there’s a lot less cash required), and it’s easy to change vendors.  So, the relationship isn’t as solid. 

Capital sales in the medical field usually mean things like software (hospital information systems, clinical info system, workflow software, billing or recruiting software) or equipment.  These affect many departments… there’s lots of outlay, many decision makers, and it typically has to be budgeted.  The customer needs a really good reason to switch from what they were doing/using.  Medical equipment means tangible products…everything from thermometers to imaging equipment, clinical laboratory equipment, or beds, even.

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