Medical Sales vs Pharmaceutical Sales: Understanding the Difference

Introduction

Thinking about making a transition into the healthcare sales field?

One of the questions we hear frequently from candidates is, “What is the Difference Between Pharmaceutical and Medical Sales?” Note that there are always exceptions to the below, and the information in this article is certainly not meant to serve as the “end all” in your research. Rather, the goal here is to shed some light on the two types of sales and how they typically differ as you begin looking at new opportunities.

What are Medical Device Sales and Pharmaceutical Sales?

Medical device sales and pharmaceutical sales are two distinct careers in the healthcare industry, each with its own unique set of responsibilities and challenges. Medical device sales involve the promotion and sale of medical devices, equipment, and supplies to healthcare professionals. This can include anything from surgical instruments and diagnostic tools to implantable devices and capital equipment. Medical device sales representatives must possess a strong understanding of the technical aspects of their products and be able to effectively demonstrate their use and benefits to healthcare providers. Additionally, the role of a medical device sales representative is unique in that it requires developing a distinct identity and approach within the sales landscape, showcasing the differences from pharmaceutical sales.

On the other hand, pharmaceutical sales focus on promoting and selling prescription medications to healthcare providers. Pharmaceutical sales reps, often referred to as pharmaceutical sales representatives, work to educate physicians, nurses, and other healthcare professionals about the therapeutic benefits and clinical evidence supporting their medications. This role requires a deep understanding of the pharmaceutical industry, as well as excellent communication and interpersonal skills to effectively convey the value of their products.

Both careers require a strong understanding of the healthcare industry and the ability to build relationships with healthcare professionals. However, the products sold and the sales strategies employed can differ significantly between the two fields.

Industry Overviews

Pharmaceutical Sales

Detailing

Detailing begins by initiating dialogue with a physician – you sell your drug in terms of its efficacy and benefits to the doctor and patient and then close for the business, that is a commitment you write a script for patients, leading to new prescriptions.

Pharmaceutical sales representatives build relationships with doctors to encourage them to prescribe medications.

Market Share Driven # of Scripts

Most companies base their reps goals a % increase in market share or # of scripts written.

Typically Team Selling

Especially with larger pharmaceutical companies, reps are given a territory and have 2 to 5 people per team. Team selling is a crucial component of the pharmaceutical sector, underscoring its importance in driving sales performance. This means that all of the reps may have some crossover and are calling on the same physicians. With this in mind, the bonus or payout is often based on the whole team meeting its goal. This type of sale can be an excellent fit for someone who thrives in a truly team-based environment. A pharmaceutical rep often works closely with their team in these settings, frequently visiting doctor’s offices and waiting rooms to engage with physicians.

Note: Keep in mind that there are always exceptions to the above. For example, many specialty positions allow you to have your own territory in contrast to being on a team. The same applies to smaller pharmaceutical companies seeking to enter the market.

High Base Salary

Most pharmaceutical companies do provide their reps with a higher base salary compared to some medical device companies. This is one of the biggest challenges that representatives face when they decide to transition into a medical sales role. Mentally, it feels strange for anyone to transition into a sales opportunity where the base is likely to be lower. Additionally, pharmaceutical sales careers differ from medical device sales in terms of daily tasks, income potential, and the necessary skill sets for success. Understanding these differences is crucial as the pay scale varies significantly between the two fields, influenced by factors such as company, experience, product type, and performance.

Quarterly Bonuses

Most incentive payouts are every quarter and are often capped.

Types of Products Sold

Medical device sales reps sell a wide range of medical products, including capital equipment, diagnostic tools, and implantable devices. These products are used in various healthcare settings, such as hospitals, clinics, and physicians offices. For instance, a medical device sales rep might sell MRI machines, surgical instruments, or pacemakers. On the other hand, pharmaceutical sales reps focus on selling pharmaceuticals, including both branded and generic drugs, to healthcare providers. These medications are used to treat a range of medical conditions, including chronic diseases, acute illnesses, and mental health disorders. Whether it’s a new antibiotic or a medication for managing diabetes, pharmaceutical sales reps play a crucial role in ensuring that healthcare providers have access to the latest treatments.

Medical Sales

Revenue/unit Driven

Medical sales representatives typically strive to drive unit sales or revenue in their territory.

Closing the Sale

This is probably the most significant difference between pharmaceutical and medical sales. In Medical sales, there is an actual close. In pharmaceutical sales, the representative’s job is to convince doctors to prescribe their product to patients who could benefit from it.

In medical device sales, understanding the sales cycle is crucial, as it is significantly longer than in pharmaceutical sales, often lasting from months to several years. Medical device sales focus on the technical aspects of healthcare devices, emphasizing the demonstration of their specifications, benefits, and utility. Identifying key call points, such as decision-makers and influencers within healthcare settings, is crucial for effective sales strategies. Additionally, the role of complex equipment in medical device sales cannot be understated, as these sophisticated tools require specialized knowledge and play a critical role in healthcare settings. Demonstrating the product’s clinical benefits is vital, as it can influence physician education and ultimately drive sales.

Individual Territory

Reps in medical sales typically do not crossover into other reps’ territories. Where there is one territory, there is usually only one rep.

Monthly Commission Payout

Commissions are typically paid out on a monthly basis.

Lower Base, Higher Commission Payout

While your base salary may be lower than in pharmaceutical sales, usually the upside is higher. Pharmaceutical comp plans usually pay quarterly bonuses, while medical sales companies usually pay an uncapped monthly commission.

As you can see from above, there are major differences between these two types of sales. Additionally, the pay range for pharmaceutical and medical device sales representatives can vary significantly, with differences in base salaries, bonuses, and commission structures.

Sales Process and Decision Makers

The sales process for medical device reps typically involves building relationships with healthcare providers, providing technical support, and demonstrating the clinical benefits and technical features of the medical device. This often requires in-depth knowledge of the product and the ability to explain its advantages in a clinical setting. The decision-making process in medical device sales usually involves multiple stakeholders, including physicians, nurses, and hospital administrators, making it essential for the sales force to navigate complex organizational structures.

In contrast, pharmaceutical sales representatives focus on educating healthcare providers about the therapeutic benefits and clinical evidence supporting their medications. The decision-making process in pharmaceutical sales is more straightforward, typically involving physicians and other healthcare professionals who prescribe medications. Pharmaceutical sales representatives must be adept at presenting clinical data and explaining how their products can improve patient outcomes.

Key Differences between Medical & Pharmaceutical Sales Approaches

One of the key differences between medical device sales and pharmaceutical sales is the sales approach. When considering medical device sales vs pharmaceutical sales, it’s important to highlight their distinct roles within the healthcare industry. Medical device sales often involve a more technical and hands-on approach. Medical device sales reps must demonstrate the features and benefits of complex equipment to healthcare professionals, usually requiring in-depth product knowledge and the ability to provide clinical support. This can include live demonstrations, training sessions, and ongoing technical support to ensure that healthcare providers are comfortable and proficient with the medical devices.

In contrast, pharmaceutical sales involve a more educational approach. Pharmaceutical sales reps focus on educating healthcare providers about the therapeutic benefits and clinical evidence supporting their medications. This often involves presenting clinical studies, discussing patient outcomes, and providing product samples to healthcare providers. The goal is to convince healthcare professionals to prescribe their medications to patients who could benefit from them. This requires strong communication skills and the ability to build trust and credibility with healthcare providers.

Sales Models and Cycles

Medical device sales and pharmaceutical sales have distinct sales models and cycles. Medical device sales typically involve a longer and more complex sales cycle, with representatives working closely with healthcare providers to understand their needs and provide customized solutions. This process often involves multiple meetings, product demonstrations, and negotiations, resulting in a more hands-on and consultative approach. Pharmaceutical sales, on the other hand, often involve a shorter sales cycle, with reps focusing on building relationships with prescribers and providing ongoing education and support. The goal is to quickly convince healthcare providers of the therapeutic benefits of their medications, leading to new prescriptions. Understanding these differences in sales models and cycles is crucial for tailoring your approach to each field.

Sales Cycle and Performance Metrics

Another key difference between medical device sales and pharma sales is the sales cycle and performance metrics. Medical device sales often have a longer sales cycle, as reps must build relationships with healthcare professionals and demonstrate the value of their products over time. This can involve multiple meetings, product demonstrations, and negotiations before a sale is closed. Performance metrics for medical device sales often include revenue, gross profit, and units sold, reflecting the financial impact of the sales rep’s efforts.

Pharmaceutical sales, on the other hand, typically have a shorter sales cycle. Pharmaceutical sales reps must convince healthcare providers to prescribe their products to patients, which can happen relatively quickly if the provider is confident of the medication’s benefits. Performance metrics for pharmaceutical sales often include market share and the number of prescriptions written, indicating the rep’s success in gaining access to healthcare providers and influencing their prescribing habits.

Decision Makers and Call Points

In medical device sales, decision-makers can vary depending on the product being sold, but often include clinical champions, administrators, and Value Analysis Committees. These stakeholders play a significant role in the purchasing decisions, requiring medical device sales reps to navigate complex organizational structures and build relationships with multiple influencers. Pharmaceutical sales, on the other hand, typically involve a more focused approach on building relationships with healthcare providers, including physicians and pharmacists. The primary goal is to educate these providers about the clinical benefits of their medications and influence their prescribing habits. Understanding the decision-makers and call points in each field is crucial for success in medical sales, as it helps reps tailor their strategies to reach and persuade the right individuals effectively.

Job Location and Territory Size

Medical device sales reps often work in a variety of locations, including hospitals, physicians offices, and laboratories. They may have larger territories that require more travel, as they need to visit different healthcare facilities to demonstrate their products and provide support. This can mean spending a lot of time on the road and necessitating flexibility in terms of location and schedule. Additionally, medical device sales representatives face distinct challenges related to the supply chain, such as logistics and backorders, which can impact their ability to effectively meet customer needs.

Pharmaceutical sales reps, on the other hand, often work primarily in physician offices and clinics unless they are in a specialty role. Their territories are typically smaller, requiring less travel compared to medical device sales reps. This can make the job more predictable in terms of daily routine and travel requirements. However, the territory size can vary widely depending on the company, product, and performance, with some pharmaceutical sales reps covering larger areas if they are responsible for specialty medications or have a high-performing territory.

By understanding these key differences, you can better determine which career path aligns with your skills, interests, and lifestyle preferences. Whether you are drawn to the technical and hands-on nature of medical device sales or the educational and relationship-building aspects of pharmaceutical sales, both fields offer rewarding opportunities in the healthcare industry.

Sales Force and Territory Management

Medical device sales representatives often work in a single territory with a more extensive geography, requiring them to travel extensively to visit various healthcare facilities. This can mean spending a lot of time on the road and necessitating flexibility in terms of location and schedule. Pharmaceutical sales reps typically work in a team-based approach, with 2-5 reps sharing a territory. This collaborative environment enables shared responsibilities and collective goal-setting. The territory size can vary significantly depending on the company, the number of representatives, and the product. Effective territory management is crucial for success in medical sales, as representatives must balance servicing existing customers with prospecting new business. This involves strategic planning, time management, and the ability to prioritize tasks to maximize sales opportunities.

Career Growth and Advancement Opportunities

Both medical device sales reps and pharmaceutical sales reps have ample opportunities for career growth and advancement in various sales jobs. Medical device sales representatives can transition into leadership roles, such as sales managers or directors, or move into other areas of the healthcare industry, including marketing or product development. This allows for a diverse career path within the medical device sector.

Pharmaceutical sales reps also have the potential to advance into leadership roles or transition into other areas of the pharmaceutical industry, such as clinical research or regulatory affairs. Additionally, both medical device sales reps and pharmaceutical sales reps can pursue advanced degrees or certifications to enhance their skills and knowledge, further broadening their career prospects in sales jobs. Pharma companies emphasize the importance of compliance and teamwork between Sales Representatives and Medical Science Liaisons, leveraging digital tools and innovative strategies in their operations.

Skill Set Development

To be successful, both medical device sales reps and pharmaceutical sales reps need to develop a range of skills, including communication, interpersonal, and technical skills. Medical device sales representatives need to understand the technical features, product benefits, and clinical advantages of their products, as well as the needs and preferences of their customers. This requires a deep understanding of the medical devices they are selling and the ability to convey this information effectively. They also employ various strategies during negotiations, such as service agreements, discounts, payment terms, and bundling, to improve deal outcomes.

Pharmaceutical sales reps need to understand the therapeutic benefits and clinical evidence of their medications, as well as the importance of customer interactions in both pharmaceutical and medical device sales. Both roles require building relationships, communicating effectively, and navigating complex sales processes. Continuous learning and professional development are essential for staying current in these rapidly evolving fields.

When interviewing for medical and/or pharmaceutical sales positions you must document your sales numbers through a sales brag book.

Choosing a Career Path

Choosing a career path in medical sales can be daunting, with various options available, including medical device sales and pharmaceutical sales. Both fields offer lucrative career opportunities, but require different skill sets and approaches. Medical device sales representatives must possess strong technical knowledge and sales skills, as they frequently work with complex equipment and are required to provide detailed demonstrations and support. Pharmaceutical representatives must possess excellent communication and interpersonal skills, as their role involves educating healthcare providers and fostering long-term relationships. Understanding the differences between the two fields is crucial for making an informed decision about a future career. Whether you are drawn to the technical and hands-on nature of medical device sales or the educational and relationship-building aspects of pharmaceutical sales, both fields offer rewarding opportunities in the healthcare industry.