If you’re like most people, you don’t have contract sales at the forefront of your mind day in and day out. Well, at Animal Health Innovations, we’re not like most people. We live, breathe, and thrive on being a leader in the contract sales industry. While others dream of vacations on the beach, we’re dreaming of new ways to promote novel veterinary devices, therapies, and pharmaceuticals. Not only are we passionate about the products we represent, but we thrive on providing veterinary practices the technology they need to thrive professionally and financially.
We also know not everybody is as well-versed in the contract sales model as we are. This is why we thought it was time to bring our expertise in this industry to light with an article highlighting what we wish everyone knew about contract sales.
Why Do Companies Choose a Contract Sales Model?
Contract sales or third-party sales is a proven sales model that has been a preferred method for drug manufacturers, property investors, software companies, and education-related products for decades. Why do these industries rely on outside companies to sell their products? Because it works.
Some of the biggest retail platforms like Amazon and Walmart Marketplace use a third-party sales model. Of course, theirs is a techy-take on the idea.
How Does a Contract Sales Model Work?
A contract sales model is as simple as allowing a professional company to take ownership of selling your product or services. This is in lieu of using your own sales team. The contractor uses their existing skills and contacts to introduce your product to market. In return, they receive a commission for the sales they make.
What Are the Benefits of Contract Sales?
Alt: Contract salesman making a deal with two businesspeople
While it’s easy to see that third-party contractors can sell products, you may still be wondering why they’re a better option than building a sales team. The answer is simple.
- Offers a low-risk model for selling to new markets or testing the reception of a new product. You don’t have to commit to salaries, benefits, or office space. And you only pay for sales that are made.
- Allows your company to focus on innovation, invention, and creation rather than handling the chaos of sales.
- Creates a quick route to introducing a product to market. There’s no need to start from scratch on building contacts or learning the ins and outs of the industry. Your contractor has done it for you already.
- Provides customers with a convenient way to learn about the benefits of a product with a sales representative that has the time to answer their questions and provide impeccable service.
- Presents your product alongside complementary products.
Often Clients Do Not Even Realize They’re Working with a Third-Party
We are sure you know that medical sales reps often make visits to veterinary clinics. But, did you know that most of those salespeople likely work for a third-party company? This is because most contract salespeople treat the products they represent as their own.
Common Myths Related to Contract Sales Dispelled
Why don’t more people know about contract sales? Contract sales are often overshadowed by other sales structures that are often seen as more conventional. However, we’ve also realized that some people have misconceptions regarding the effectiveness and overall nature of third-party contract sales. Here are the most common of these myths as well as why they’re simply misconceptions:
Myth 1: Your product will not get the best representation.
Contract sales teams are motivated to sell as well as motivated to establish long-term relationships. Therefore, it’s in their best interest to represent your product with utmost esteem.
Additionally, most contract sales companies only take on products they feel confident about selling. At AHI, for example, we take pride in representing the most innovative veterinary devices on the market. And we believe if a product doesn’t get our hearts racing, it won’t fit our portfolio.
Myth 2: Your products will have to compete with others your contractor represents
It’s true many veterinary sales companies do offer competing and comparable products, however, we do not. We prefer to offer devices that do not compete with one another. This allows us to focus all of our energy into a product we truly believe is the best on the market.
Myth 3: An in-house sales team is a better investment
Building a sales department is a major financial and temporal investment. Not only do you have to pour resources into finding candidates, but you may wind up losing sales members. When you use a contract sales team, you have a set contract of time and your financial risk is minimal.
Myth 4: Contract sales teams are expensive
While contract sales companies do earn commission on sales, this model can hardly be described as “expensive.” In fact, most people think of their sales contract team as a “you pay for what you get” approach. And the results are a win-win.
Myth 5: It doesn’t matter which contract sales company you hire. They’re all the same.
You want the best representation for your product and company. Therefore, you always want to vet your contract sales team carefully. Through the vetting process, you will find a wide array of pricing structures, backgrounds, and approaches.
When selecting a contract sales company:
Choose a contract sale company that has a similar philosophy to your own.
Always select someone who is familiar with your industry and has an excellent reputation.
Discuss price beforehand and don’t hesitate to ask questions. Transparency should never be an issue.
Is Contract Sales Right for Your Products?
Contract sales is responsible for putting millions of products into the hands that need them. If you’ve been wondering if contract sales is the right option for your veterinary devices, pharmaceuticals, or therapies, contact us today. We’re always happy to answer any questions you may have.