Explaining Clinical laboratory Sales: Part I

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

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

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, laboratory info system, workflow software, billing or recruiting software) or equipment.  Those affect many departments… there’s lots of outlay, many decision makers, and it typically has to be budgeted.  The customer needs a really valuable reason to switch from what they were doing/using.  Pharmaceutical equipment means tangible products…anything from thermometers to imaging equipment, laboratory equipment, or beds, even.