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Joe Hage
🔥 Find me at MedicalDevicesGroup.net 🔥
August 2013
Start up and smaller sized Med Device companies, how are/did you identifying international distributors?
< 1 min reading time

As originally asked by Aditya Kotta.

What was your experience with identifying international distributors? In your opinion, what are makers for quality and success? I am in the process of identifying and evaluating potential distributors and welcome any advice regarding the process. Thanks!


Federico Telmo
MBA | Marketing & Sales | Biotech Industry | Entrepreneurship
Hi Aditya, if you are interested in entering the Latin American market we are a consulting company focused on helping vendors enter or improve their performance in this region.

We offer provide our customers with in depth knowledge of the market and a wide network of top distributors.

If you are interested in our services or have any questions, please contact me directly or contact us through our website www.micalay.com.

Tomasz Praglowski
Sales Representative Poland , Czech and Slovak Republic at Beaver Visitec International
There is a company in Poland called Virja sp.o.o. they are focus on medical devices.
The CEO has very good pharma background. www.virja.pl .best regards Tomasz

Michelle Bonn
President, Guideline Medical
For companies located in the USA, I encourage you to investigate the US department of commerce (www.export.gov).

This program is trustworthy, cost effective and well structured to assist USA companies looking for strategic partners (agents, distributors, customers) in foreign countries.

They offer a program called the “Gold Key Matching Service”. A valuable service includes arranging match making sessions with vetted, foreign companies.
[http://export.gov/salesandmarketing/eg_main_018205.asp|leo://plh/http%3A*3*3export%2Egov*3salesandmarketing*3eg_main_018205%2Easp/Tb0O?_t=tracking_disc]

SONIA ZHAO
General Manager at Medical Workshop Co.,Ltd.
The quick way would be finding a third information company to provide the potential distributor list for you in the certain market according to your product’s characteristics. Medical workshop Co.,Ltd. is the one which can provide Chinese market information to make international manufacturer having right choices.

Omar Awad
MD&CEO at DUPHARM
Hi Aditya
I am running business in 3 countries in Middle-east, I would like to know more about the products if it fits our portfolio and we can go for further discussion if the product has potential, my email omardupharm@hotmail.com Thanks.

Catherine L.
MRI Optimize Consultants, LLC
Additionally, my friend Dr. Darrell Demello has Market Access India ([http://www.marketaccessindia.net|leo://plh/http%3A*3*3www%2Emarketaccessindia%2Enet/dCzm?_t=tracking_disc]) for those who want to expand products to that country as well. He successfully took angioplasty to India, along with other medical products, pharma and devices.

John Douglas
“If the bee disappeared off the face of our Earth, man would only have four years left to live” Albert Einstein.
In Australia & NZ you could use a company like ours to assist. www.bermaci.com

Raakesh Verma
Salta Group of Companies
Dear Aditya,
on the right track.
we have one medical device, launched for the first time.
we wish to join hands with u professionally for mutual benefits.
looking forward
my id is- topsealsaltabiotech@gmail.com & salbineu@yahoo.com
or u may call me – 09772332777.
V.Rakesh
CEO

Syed Sarhan
Sales&Strategy at Bolten Beads
@Tilman Pott: True knowledge come from great experience thanks for sharing you thoughts..

Eric T. Fox
Helping the healthcare industry protect the environment while reducing the cost to dispose of bio-hazardous waste
It depends on the time I have to dedicate to this task, the talent/experience on my team, the urgency involved and the potential for growth in international markets. Finding an agent/consultant with a successful track record in qualifying international distributors can save a lot of time. If you go that route, you may want to include an incentive so that the agent/consultant owns his recommendations on potential distributors and helps foster successful long term relationships. But the common mistake is to underestimate the resources and expertise required to establish international distribution. No matter how good they are, the products won’t sell themselves.

Cheryl Pedigo
Women’s Health Specialist
Several of my fellow colleagues and I source our sales reps and distributors directly through MedCepts, a network of independent reps and distributors. We have found multiple resources to assist us in this process. No matter what specialty niche we seek, we seem to find GREAT results.

Robert Trinka, MBA
Senior Management: Sales | Marketing | Business Development
Hi Aditya, I added many foreign distributors for our small company over the past few years. First, I listed the distributors for A) competitors and B) companies that sell similar med device customers. I contacted the ones that seem like our product could be a fit for them. @Tillman, I look for a website, but it’s not a ‘show stopper’. Some of my best distributors don’t have a website. As mentioned, it is required to evaluate the other products that they sell. I believe that fewer products, in your area of medical devices, is important.

I send letters and emails to assess interest. We exhibit at Medica and US medical device meetings that distributors from other countries attend. We find prospective distributors at these meetings. I discuss with them about their company, number of sales people, etc. I do travel to countries to interview the distributors, go to their office, etc (not to all of the distributors that I have hired, but to most in Europe, the Americas, some in Asia-Pacific). It is difficult to judge their ability from email alone. In many countries, especially outside of Europe, there are many levels of distributors. One distributor will import a product, then have ‘sub distributors’ in other cities/parts of the country. The result is that there are several ‘hands’ and mark-ups on your product.

Product registration in most countries is required. US manufactured products require FDA, CE Marking is helpful, requried for sales in the EU and other countries. Medical Devices usually must be registered in order to sell in a country. Distributors know the requirements.

It’s a very imperfect process. If a distributor doesn’t ‘take hold’ within 6 months and make good progress in selling my products, I look for another. I expect progress, timelines, objectives attained, etc.

Good luck.

Todd Staples, MBA
Account Representative, GYN at Medtronic
I like to look at hiring distributors as if I am hiring an employee. I NEVER go to the interview round with only one candidate, and I never have informal just chit chat interviews to assess their quality, sales people are too good at telling you what you want to hear when the actual quality of what they represent is much different.

Remember, if you approach distributors with the attitude that you are desperately seeking someone to carry your product, the response will be caution from a distributor most of the time. The biggest red flag for me is the “no risk” distributors that want exclusive everything, but don’t want to extend any risk whatsoever. If a partner sees real opportunity, and they are confident in their own team and have good pricing, they should be willing to take on some risk. When I hire a distributor I am taking on risk, so it should be shared on both sides.

Lastly, never forget that negotiating a contract is an art. Like a good legal drama on TV where lawyers argue points in a courtroom, you have to make your case to justify your terms, and allow for the other party to make points of their own and negotiate certain points. Sitting across from a potential partner who just complains about proposed terms or has a tantrum over one particular point on the contract will probably not be so great at conflict resolution when dealing with their own customers.

Tilman Pott
International Sales Manager at Buffalo Filter LLC
Someone who is showing up at your booth asking for pricing right away should be considered iffy. Dont answer him but ask back how he would position your product in his market and then listen carefully to what he is saying and even more careful to what he is NOT saying. If a distributor signed a contract with you and no sales are coming in, the distributor either lost focus, lost the only rep who knew the market, contracted.your.products for bragging rights or he just shelved your product away to block his own competitors. If you suspect any of this to be the case, do not hesitate to set an ultimatum to your idle business partner and see if he is coming up with ideas or with excuses.
If you don’t want to depend on internet search solely, buy medical device company directories like many hospital purchasing manager do and cross check identified distributors by contacting other manufacturers.

Alan Wang
G.M at Heartcare
Hi, Kotta, I also met the same cases. some distributers just asked for the prices then disappeared. too many websites, but it seems difficult to find the distribution websites as you want .

Aditya Kotta
Business Development Manager at Novotech
@Tilman Pott Thanks, I agree about doing online research, however the main obstacle I encounter when evaluating distributors is determining their level of experience. Usually I check to see if they have products in the same field as ours, but really what I want to know is how many sales they generate and how deep their network runs.

@Doug Day Having contacts and a legitimate looking website is great, but I think with ease the internet provides these days, it is very simple for smaller distributors to look more advanced than they actually are.

@ Kenneth Bassestt Good Questions. I try to give them the opportunity first to see how they can make our device fit their plan and approach. If they aren’t asking me the right questions, they strike as the type who are just looking to add to their arsenal of devices instead of looking to promote and push.

Thus far, I have been relying on the internet to search for companies, do any of you have suggestions for networks to use, something like an Angie’s List for distributors?

Kenneth Bassett
2019 Goal – Certified Quality Manager ASQ
How do the distributors assess you, I wonder? If they are looking at your production how do they rate it, quality systems already in place, ISO? What systems should be in place in a Med Device company?

Tilman Pott
International Sales Manager at Buffalo Filter LLC
Hi Doug, absolutely! Depending on the mentality you are dealing with in a specific country, the potential dealer might promise you the moon just to get a contract. If he is really connected, those physicians will speak favourable of their distributor and all you have to do is read between the lines.

Doug Day
Liposuction Product Specialist
I look for people who already have contacts within the countries where I want to expand. I then check their websites and I like to speak with at least a few of the physicians with which they work. I agree with Tilman on visiting them at trade shows; you can learn more watching them interact with their customers than you can imagine.

Tilman Pott
International Sales Manager at Buffalo Filter LLC
Hi Aditya, I always to my research online to find distributors and I dont care for guys without a website, they are either old school or bad in communicating. Find someone equal in size and check out their product portfolio. If you can see how your products might be a good fit to their range, then meet them at MEDICA or ArabHealth and visit them in their country afterwards. If do you like their attitude and you have the feeling that you get along with them, even when things go wrong sometimes, then sign them after you have talked to other people that know your new potential dealers.
Its pretty simple and no rocket science!

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Posted by Joe Hage
Asked on August 25, 2013 1:12 am
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