Introducing Stu Brandon: a pioneering figure in the medical device industry and a transformative leader at ASCdx. In this insightful interview, Stu shares his inspiring journey from being a sales representative for big orthopedic companies to founding his own distribution company. He sheds light on the challenges he faced during this transition and how he overcame them, as well as his approach to selecting the right products and brands to distribute. Additionally, Stu delves into his success stories and memorable experiences, showcasing the boundless possibilities within the orthopedic industry. He concludes by sharing his vision for the future of orthopedic sales and distribution, emphasizing the importance of flexibility, innovation, and strong customer relationships. Join us as we delve into Stu Brandon's remarkable story and gain valuable insights into the evolving landscape of medical device sales and distribution.
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What inspired you to transition from a sales rep for big orthopedic companies to founding your own distribution company?Â
For me, it was a familiar tale shared by most of the sales representatives from major orthopedic companies. Over the years, our selling prices had been steadily declining, and in order to maintain profits for shareholders, the company had started reducing commission rates. Consequently, we experienced a period where average selling prices dropped due to contracting, while commission rates were slashed for consecutive years. As a result, our commissions decreased by forty percent over a couple of years. This is a common situation faced by everyone in our industry.
Even small companies are not immune to the decline in average selling prices. However, they may be more willing to pay higher rates since they are not market leaders. In my specific situation, I also faced the challenge of operating within a limited geographical area. Therefore, I recognized that in order to adapt and stay competitive, I needed to explore opportunities beyond the large orthopedic company I was employed by.
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Can you tell us about some of the challenges you faced in making this transition, and how you overcame them?Â
The initial challenge I faced was navigating the restrictions of my previous employment agreement, particularly regarding non-compete clauses. While the enforceability of such clauses varies across different states, it is common for companies to include non-solicitation agreements to limit soliciting business from existing customers after leaving. Overcoming these contractual limitations became a top priority and posed a significant challenge.
Prior to that, I had to meticulously develop a plan for transitioning from my previous role to pursue my own business venture. This required thorough planning and strategic considerations in order to build a solid customer base. It's important to note that even if I had a successful track record as a representative, it did not guarantee immediate customer support for my personal endeavor. However, I recognized the potential for finding new clients who were open to exploring alternative options. Engaging in thoughtful discussions about the future and how my services could benefit them became crucial as I approached potential customers. Establishing these connections and expanding my customer base was a challenging aspect of achieving the freedom to operate and devising a successful business strategy.
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How do you determine which products and brands to distribute through your companies, and what criteria do you use in making these decisions?Â
This has become one of my favorite aspects of my work. Ironically, I have undergone personal changes along the way. To provide some context, when I left the big orthopedic company, I initially believed that I needed to find a total joint company to replace what I had, along with potentially adding a trauma or sports medicine company depending on my sales focus. However, my experience has taught me that there are numerous exceptional products and small companies to collaborate with. Now, it has become much easier for me to determine which companies I want to partner with. If there is a product that one of my customers desires, I have the flexibility to pick up that product line. Additionally, when I come across unique technologies or new developments, I engage in conversations with my customers before reaching out to the company. This helps me gauge their interest and determine if it aligns with their needs. If there is no demand for a particular product in my area, I may choose not to pursue it, even if it is an excellent product. My philosophy is rooted in being strategic about the products I choose to represent.
Early on, when I had the freedom to choose any product at the American Academy of Orthopedic Surgeons conference in 2019, I experienced what I now refer to as "shiny object syndrome." I found myself wandering through the exhibit hall, thinking, "That's cool! I'm sure I could sell that to someone!" However, upon reflection, I realized that many of those opportunities would have been distractions, potentially taking me outside my usual business scope. It would have been purely driven by the possibility of making a sale, rather than considering the long-term implications.
Currently, I have potential customers with whom I am not yet doing business. I engage with them in discussions about various offerings to assess if there is a suitable fit for their needs. The most enjoyable aspect for me is the freedom to approach someone I don't currently work with, and it is perfectly acceptable for them to decline if it doesn't align with their interests. That's perfectly fine; it just means it's not the right fit for them. The relationships I have developed with many of these individuals involve a desire for me to continue bringing them new opportunities. Instead of being solely associated with one company, repeatedly pushing the same product, I understand the value of providing them with diverse options. I also acknowledge that there may be companies that do not wish for me to represent their products, and I respect that. However, this does not limit me, as there is no shortage of excellent products available for me to consider.
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Can you share any success stories or particularly memorable experiences from your time working as a sales rep or running your own distribution companies?Â
The more I distance myself from the big companies, the more enthusiastic I become about the possibilities within our industry. Let me share an example: during one transition, I encountered a situation involving a small company and a surgeon who was leaving his group to relocate from northern Illinois to Tennessee. I approached the company and suggested, "I believe this surgeon who is moving to Tennessee could be an excellent fit for your company." To my surprise, the regional manager responded, "Stu, I would love for you to introduce us to him. If he wants to pursue our products, we want YOU to take care of him." This completely blew my mind. How could I manage business both in northern Illinois and Tennessee? However, as I discovered, surgeons are embracing a different mindset as our market evolves. In orthopedics, anything is possible.
As a result, I now find myself traveling to Tennessee multiple times a month to collaborate with my friend who relocated from northern Illinois. This is something I never imagined was feasible. Consequently, my company has expanded its operations to include Illinois, Minnesota, Wisconsin, South Carolina, Alabama, and Tennessee. This experience has opened up a whole new perspective for me. I have transitioned from thinking narrowly about the confined boundaries of doing medical device sales within a small, predetermined region. I have realized that if there are individuals who wish to do business with you, there are ways to facilitate those connections within our industry. However, it requires a different mindset from both the representative/distributor side and the surgeon side. Many people within our industry anticipate forthcoming changes, and it is advantageous to proactively embrace those changes rather than waiting for them to be imposed upon us.
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What do you see as the future of orthopedic sales and distribution, and how do you plan to stay ahead of the curve?
The key to staying ahead of the curve is maintaining flexibility. One significant advantage my company possesses is the absence of non-compete agreements with the companies we represent. While we work with numerous companies that we appreciate, this flexibility enables us to adapt to the changing and evolving market, as well as the shifting wants and needs of surgeons.
For instance, as more surgical cases transition from hospitals to ambulatory surgery centers (ASCs), surgeons' preferences and requirements can differ from what they were a year ago, and they will likely differ even more in the next five years. By having the freedom to act as consultants to physicians, we can provide unparalleled support to our group. If a surgery center approaches us and expresses their struggles with finding quality products that do not compromise reimbursement for specific cases, we are liberated to explore various options on their behalf. We can thoroughly investigate what's available in the market and present them with a range of alternatives in every product category they currently utilize. This approach empowers them to avoid being solely dependent on one vendor and maintain autonomy in their decision-making process.