Going Rep-Less: Royal Oak Medical Devices Reinvents Commercial Model

U.S. medical device company Royal Oak Medical Devices has been toying with its so-called rep-less sales model in certain regions of the country. Now it’s announced that its the model, which combines the absence of sales reps with other cost-saving elements, is to be rolled nationally.

Background

Royal Oak manufactures and distributes what it describes as “high quality, US-made orthopedic spinal implants and instruments” and claims to be able to sell them at prices 40% – 70% less than what have previously been considered the “lowest” nationally contracted price points.

How can it do this? Well, the new Royal Oak model is reliant on vertical integration with its parent manufacturing company, Royal Oak Industries, which makes the instrumentation at its Michigan facilities. The upshot, which is all the customer is really bothered about, is that the resulting operation claims to be perfectly designed to specifically address the evolving cost-, quality-, and accessibility-related needs of hospitals and clinical surgery centers.

Now the interesting but,, where the sales man is seemingly replaced by a new form of “genuine partnership” with every hospital and surgical center, resulting in the best possible patient care at greatly reduced costs.

Of course, by heavily publicizing its new business model this gives Royal Oak the opportunity to remind us about the provenance of its products, all of which are manufactured on site in the United States, FDA 510(k) cleared, controlled under an ISO 13485 Quality Management System, and 2D etched for traceability and inventory management.

Company comments

The company press release states that “By blending Royal Oak Industries’ precision machining, R&D capabilities and experience with ROMD’s team of medical device professionals, a streamlined business model has emerged to help eliminate legacy R&D costs along with multiple layers of sales and marketing infrastructure – enabling significant cost savings without compromising quality. Royal Oak works directly with its customers, cutting out the need for sales reps and associated fees.”

Source: Royal Oak Medical Devices, Inc., Business Wire

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