This month’s headlines

‘No’ as a step toward ‘Yes'. Sales coach Gerry Layo will show your reps how to handle objections – and lots of other things – at IMDA’s exclusive “Smart Selling” seminars in January.

Quality is Job 1 at AES. Excellence in sales and services helps Anesthesia Equipment Supply maintain a strong customer base in the Pacific Northwest.

Product innovation propels continued growth. Performance Medical – one of IMDA’s newest members – relies on product innovation to beat the giants.

Top 15 small workplaces named. If a moving company in Somerville, Mass., can retain employees long-term and give them training during the winter months on the right way to handle customers’ furniture, how to work in teams and how to deal with complaints on the job, then there’s a good chance pretty much any IMDA member can build a team of loyal, productive employees too.

 

'Smart Selling' Seminars 'No' as a step toward 'Yes'

Have you or your reps heard any of these before?

• “Your price is too high.”

• “I'm happy with my current supplier.”

• “I've had a bad experience with your company in the past.”

• “I'm too busy to change suppliers.”

• “Sorry, I’ve got a GPO contract, and your products aren’t on it.”

Objections are part of selling. IMDA members know that, unfortunately, some reps treat them as “end of story.” Others, however, consider objections to be a step toward “yes.” Those would be the smart sellers.

Acclaimed sales speaker and coach Gerry Layo can help you cultivate “smart sellers” among your sales force. In conjunction with IMDA, Layo (who was the keynote speaker at the Annual Conference in Coeur d’Alene last June) will present two “Smart Selling” seminars exclusively for salespeople with IMDA-member companies. The first will be held Jan. 17-18 in Atlanta; the second will be on Jan. 21 in Scottsdale, Ariz.

Members who heard Layo at the Annual Conference considered him to be dead-on with what he had to say about sales.

Some comments:

• “Gerry Layo will be a tough act to follow!”

• “Gerry Layo provided a very focused presentation directed at this group. Very helpful take-home information to help both our sales organization as well as operations.”

• “Gerry was fantastic, especially since on the ride up here, we listened to Stephen Covey’s ‘7 Habits,’ and there was a high degree of correlation and reinforcement.”

These intimate seminars will focus on challenges that IMDA reps encounter every day in the field, including prospecting, pre-call preparation, goal-setting, strategic attitude and the Holy Grail of the sale – the close. All geared toward the medical specialty rep.

“Sales training is one of those things that everybody needs,” says IMDA President Shawn Walker of Bay State Anesthesia. Although owners of small companies are full of good intentions, they often eliminate sales training when time and money are tight. “[W]hat we fail to do is to invest in our salespeople by providing basic sales training,” she says. As a result, sales reps fail to perform up to expectations, and they feel stagnant – a key reason why many leave their jobs. What’s more, small companies are sometimes reluctant to send their reps off to expensive off-site training without knowing how relevant the training will be to their businesses. That won’t be the case with Layo, says Walker. “They know what they’re buying into,” she says.

For more information on IMDA’s “Smart Selling” seminars, call headquarters at 866-IMDA-YES (866-463-2937).

Objections? Bring ’em on.

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Mario Sorci, president of Anesthesia Equipment Supply, and his wife, Karen, bought AES in 1974, four years before IMDA was founded.  He participated in the association as it was getting started, but never joined…until now.

Sorci received his bachelor’s of science degree from Cal Poly Pomona and left California for the Pacific Northwest in 1972. He had experience in research chemistry and medical sales before buying AES. He and Karen operated the company out of their house until they built the facility in Black Diamond – about 30 miles from Downtown Seattle – in 1979.

AES’s focus has always been on anesthesia equipment. The company was a distributor for Draeger anesthesia products for 30 years. That relationship ended last year. Now AES represents Spacelabs Blease Sirius anesthesia systems. In addition to Spacelabs, the company provides authorized service on Draeger and Ohmeda anesthesia machines and other anesthesia-related products.

With six field reps and five inside salespeople, AES covers Washington, Oregon, California, Montana, Idaho, Nevada, Arizona and Alaska. The geography is large, but given AES’s longevity in the market and its focus on anesthesia and the OR, the company’s reps have a good handle on what’s going on in their territories pretty much all the time. “Our customers turn this equipment over every 12 to 14 years, so we have plenty of time to figure out everybody’s buying cycle,” says Sorci.

The repair business strengthens AES’s ties to its customers, he says. The company offers a range of service agreements as well as onsite consulting services regarding new and remodeled anesthesia machines. AES’s staff of six service specialists “cover anything we’ve sold,” says Sorci.

Borrowing a slogan from Ford Motor Company, Sorci says that “Quality is Job 1.” That’s true for service as well as sales. “[Service is] a constant education program,” he says. “If you’re going to be selling anesthesia machines, you have to have a good service department.” And even though many hospitals are concerned about price more than quality, AES continues to stress quality – and it insists that its manufacturer partners do the same.

Recently, AES became a master distributor for a Chinese-made laryngeal mask. Though the company has most of the country covered, it is always looking for other options.

AES also owns G.Dundas Inc., a specialty manufacture of anesthesia parts and accessories.

Welcome Mario Sorci to IMDA by calling him at (800) 426-5007 or e-mailing him at Mario@aesol.com. AES’s website is www.aesol.com.

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Performance Medical is a David in a land of Goliaths. Based in St. Paul, Minn., IMDA’s new member is surrounded by big customers, such as Allina Health System and Fairview Health Services; big competitors, such as Owens & Minor and Cardinal Health; and big GPOs, such as Premier and Novation. How does Performance Medical compete? By staying very, very focused.

“As long as we remain product-driven, we’ll be OK,” says founder and President Patrick Borer. “As long as innovation is there, driven by research dollars and the desire to provide better healthcare, ideas will percolate.” And Performance Medical will be on hand to carry those ideas to customers.

With a bachelor’s degree in biology and a master’s in business administration, Borer spent 15 years with Bird & Cronin, the Eagan, Minn.-based orthopedic softgoods manufacturer. In 1994, he founded Performance Medical, a specialty distributor with a heavy focus on surgical instruments, including instruments for orthopedic procedures. In 2002, Borer acquired Master Medical, a distributor of women’s-health products. (Master Medical is operated as a division of Performance Medical.)

He attended the 2007 IMDA Annual Conference in Coeur d’Alene, Idaho, and arrived at several reasons why Performance Medical should join the association:

• Networking. “Small businesses often work in a ‘vacuum’ and need interaction/input from their business colleagues.”

• Proactive membership. “Organizations that think and prepare for the future are important to keep business owners prepared for what lies ahead.”

• Educational opportunities. “Exposure to informative programs, which make our business better or our products better.”

• Legal advice. “Healthcare and our businesses have many legal needs.”

• Purchasing power. “A strong organization can provide gains individual businesses cannot achieve.” • Manufacturer introductions. “Vital connections to manufacturers with new, innovative products.”

• Access to resources. “Referrals to marketing, advertising and technology sources are important in building businesses.”

Welcome Pat Borer to IMDA by calling him at (800) 798-1631 or e-mailing him at pjborer@msn.com.

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If a moving company in Somerville, Mass., can retain employees long-term and give them training during the winter months on the right way to handle customers’ furniture, how to work in teams and how to deal with complaints on the job, then there’s a good chance pretty much any IMDA member can build a team of loyal, productive employees too…even if you’re not a big, publicly traded company.

The Wall Street Journal recently published its list of 15 Top Small Workplaces, and IMDA members might be heartened to learn that some of them are just as small or smaller than they are. The secret to success for small firms seems to revolve around an open management style, an emphasis on teamwork, respect for people’s personal lives, and fun.

Here is a list of this year’s Top 15 Small Workplaces. Any of them sound like yours?

Alaska Wildland Adventures, Girdwood, Alaska.

• Business: Alaska tour operator.

• Employees: 11 year-round, 76 seasonal.

• 2006 Revenue: $4.2 million.

• Highlights: Emphasis on teamwork. (In 2005, when the company needed to install plumbing at a company-owned lodge, many employees helped dig the trenches.) Employees are briefed annually on the company’s financial results. Employees get 15 paid vacation days, 12 holidays and “sprinkle days,” when only a few employees need to come to work.

Barclay Water Management, Watertown, Mass.

• Business: Manufactures water-treatment chemicals.

• Employees: 89

• 2006 Revenue: $13.4 million

• Highlights: Employees own 100 percent of the company; they buy their shares directly. (About 80 percent of employees own shares.) Annual meeting, during which employee shareholders ask questions and vote on pressing issues.

Corporate Ink Public Relations, Newton, Mass.

• Business: Public relations.

• Employees: 12.

• 2006 Revenue: $1.5 million.

• Highlights: Everyone – not just seasoned PR executives – devises strategy and calls the shots. Employees buying a home within 20 miles of office can get loans of as much as $10,000 at 2 percent interest, to help make the down payment (which is forgiven are five more years of employment).

Cowden Associates, Pittsburgh, Pa.

• Business: Actuarial and human-resources consulting.

• Employees: 27.

• 2006 Revenue: $4.3 million.

• Highlights: Failure is expected, not punished. (The Annual Kraut Award “honors” the employee who did the most boneheaded thing over the course of the year.)

Exatech, Gainesville, Fla.

• Business: Manufactures orthopedic devices.

• Employees: 261.

• 2006 Revenue: $102 million.

• Highlights: Emphasis on self-improvement. Exactech University offers a series of 20 free short courses taught by employees on such topics as customer service, listening skills and project management.

FRCH Design Worldwide, Cincinnati, Ohio.

• Business: Architectural and interior design.

• Employees: 285.

• 2006 Revenue: $29 million.

• Highlight: The company hosts “town meetings” every four to six weeks, where leaders explain current projects, share financial results and encourage input. Each September, employees complete an anonymous opinion survey.

Gentle Giant Moving, Somerville, Mass.

• Business: Moving and storage.

• Employees: 246 year-round, 100 seasonal.

• 2006 Revenue: $24.6 million.

• Highlights: Instead of hiring loads of summer help, the company employs 60 percent of its staff year-round. Winter months are used to conduct employee training and leadership-development classes. About 25 of the company’s 75 current office and management employees started on the trucks.

Guerra Deberry Coody, San Antonio, Texas.

• Business: Advertising and public relations.

• Employees: 61.

• 2006 Revenue: $51.4 million.

• Highlights: Subsidized, onsite child care. Employees facing a financial crisis are eligible for interest-free loans. Telecommuting and flexible work schedules are allowed.

Healthwise, Boise, Idaho.

• Business: Creates consumer health information.

• Employees: 215.

• 2006 Revenue: $22.5 million.

• Highlights: Offers aerobics classes, yoga and weight-loss programs. Employees get up to $200 a year extra for partaking in healthy activities, such as walking to work and getting physicals. In addition, dogs are welcome in the office.

NRG Systems, Hinesburg, Vt.

• Business: Maker of wind-measuring equipment.

• Employees: 81.

• 2006 Revenue: $29.4 million.

• Highlights: Paid six-week sabbaticals for longtime employees. Free, chef-prepared lunches four days a week. Cash bonus for employees who make their homes more energy-efficient or buy a Toyota Prius. Cafeteria-style health plan in which employees receive $800 a month, which can be spent on insurance or pocketed.

Phelps County Bank, Rolla, Mo.

• Business: Community bank.

• Employees: 85.

• 2006 Revenue: $3.2 million.

• Highlights: One of a few U.S. banks that are 100 percent owned by employees using an employee stock ownership plan. Phelps contributes stock equal to 15 percent of employees' salaries into their ESOP accounts each year. Employees are fully vested after seven years and can diversify their stock holdings starting at age 45, by either rolling a portion of the money into individual retirement accounts or their 401(k)s, or cashing out.

Point B Solutions Group, Seattle, Wash.

• Business: Project-management consulting.

• Employees: 340.

• 2006 Revenue: $60 million.

• Highlights: The firm has consultants in seven cities, but won’t take clients outside those cities, so employees don’t have to travel. No brick-and-mortar offices, so all consultants work at home when not with clients. Flat organization chart; 90 percent of employees hold the title “senior associate.”

Reflexite, Avon, Conn.

• Business: Manufactures optical components and films.

• Employees: 492.

• 2006 Revenue: $85 million.

• Highlights: Employees own 45 percent of company through ESOP. Town meetings held in which employees debate timely workplace problems, such as high health costs.

Restek Corp., Bellefonte, Pa.

• Business: Chromatography.

• Employees: 270.

• 2006 Revenue: $41 million.

• Highlights: Onsite fitness facility, massage therapy, personal trainers who can be hired for $4 an hour. Employees receive stock through ESOP and a dollar-for-dollar match to the company’s 401(k) plan for as much as 8 percent of pay. Emphasis on development of employees, even if employee’s plans involve leaving Restek.

Summit Aviation, Middletown, Del.

• Business: Aircraft maintenance and avionics.

• Employees: 95.

• 2006 Revenue: $12.2 million.

• Highlights: Many employees set their own work schedules. On-the-job training and tuition reimbursement, and a focus on grooming leaders inside the company. Ninety-seven percent of Summit’s leadership roles have been filled from within.

Source: The Wall Street Journal, Oct. 1, 2007

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IMDA Update Published by IMDA 5204 Fairmount Ave., Downers Grove, IL 60515 Phone:  (630) 655-9280 (866) IMDA-YES (866-463-2937) Fax: (630) 493-0798 Website:  www.imda.org E-mail:  imda@imda.org   Staff Katie Swartz: Executive Director Judy Keel: Executive Vice President Patti Perillo:  Database & Finance Admin. Mary Moran:  Chief Financial Officer Mark Thill, Editor (847) 255-0716 Laura Thill, Associate Editor (847) 255-4854 Mitchell Kramer, Legal Counsel (800) 451-7466   2007-2008 Directors President Shawn Walker, Bay State Anesthesia (978) 682-6321 President-Elect Kevin Trout, Grandview Medical Resources (412) 914-0950 Secretary/Treasurer Leo Mindick, Med-Tech Consultant Partners, LLC (516) 708-1111 Chairman of the Board Dave Campbell, Vital/Med Systems (303) 660-0888 Directors-at-Large Hal Freehling, O.E. Meyer (419) 609-1633 Tom Birmingham, Bay State Anesthesia (978) 682-6321 Tony Marmo, Martab Medical (201) 512-1100 Past-President Ed Boracchia, Boracchia + Associates (707) 765-3100 Manufacturer Representative to Board Rick Pfahl, Bovie Aaron Medical (727) 384-2323 The ideas presented in this newsletter may or may not be applicable to your particular situation.  Always consult your tax advisor, attorney or CPA before putting them into effect.