Explaining Laboratory Sales: Part I

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

There are 2 basic types of sales that occur in all areas of medical revenue, which includes clinical diagnostics sales, pharma sales, medical sales, imaging sales, DNA products sales, cellular/molecular products sales, pharmaceutical equipment sales, surgical supplies revenue, hospital equipment sales, lab sales, or biotechnology sales.  Today’s video will explain Capital Sales, 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 big 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 pharma field usually mean things like software (hospital information systems, pharma 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 precious reason to switch from what they were doing/using.  Clinical equipment means tangible products…everything from thermometers to imaging equipment, clinical laboratory equipment, or beds, even.