In the fast-paced and competitive world of medtech, manufacturer and distributor partnerships play a crucial role in the success of global sales. However, more than 60% of these partnerships fail, resulting in significant losses for both parties involved. To avoid becoming part of this alarming statistic, it is essential for medtech manufacturers to have a well-defined partner selection process. We explore a common pitfall of choosing the wrong partner and provide guidance on how to avoid this costly mistake.
The Challenge: Ensuring Alignment with Distributors’ Expertise and Focus
One of the most common pitfalls in partner selection is engaging with distributors who do not align with your target market and call points. Many manufacturers make the mistake of assuming that any distributor in the medtech industry can effectively promote their products. However, this assumption can lead to significant loss of revenue, lost time, and lost ground to competitors.
Avoid distributors who are not actively engaged in your end users/buyers on a day-to-day basis. For instance, if your product is used in the catheter lab, it is crucial to ensure that your chosen distributor has a strong presence and experience in that specific area. Similarly, if your product is sold to occupational health and safety departments, verify that the distributor has established connections and expertise in that field.
How to Avoid Selecting the Wrong Partner
Conduct thorough due diligence: Before entering a partnership, perform a comprehensive background check on potential distributors. Verify their claims about coverage, call points, and reputation. Reach out to their existing clients and ask for references. This diligent approach will help you separate genuine distributors from those who overstate their capabilities.
Define your requirements clearly: Clearly articulate your expectations and requirements from a distributor. Outline the specific call points, market segments, and geographic regions that are critical to your business. This will help you identify distributors who align with your needs and filter out those who are not the right fit.
Explore multiple options: Avoid rushing into a relationship with the first distributor who shows interest. Take the time to explore multiple options and assess their strengths and weaknesses. Utilize platforms like opportunity posts to gain exposure to several potential partners. Cast a wide net and carefully evaluate each candidate to find the best fit for your company.
Partner Selection is a Critical Decision for Medtech Manufacturers
The consequences of choosing the wrong distributor can be severe. By avoiding distributors who are not actively engaged in your call point, verifying their claims, and thoroughly evaluating multiple options, you can mitigate the risk of a failed partnership.
Spending time and effort creating a well-executed partner selection process is the foundation for successful collaborations in the medtech industry. By utilizing resources like myCaribou shortlists and employing a thorough evaluation process, you can increase your chances of finding the right distributor, minimizing the risks associated with a mismatched partnership.
Invest in the partner selection process today to secure long-term success and stay ahead of the competition in the dynamic medtech landscape.
Watch the full webinar here: How to Avoid the Management Pitfalls of Medtech Partnerships to Accelerate Success