Article Title: How much does it cost for the pharmaceutical companies to bring the donuts?
Author Byline: The Medical Sales Recruiter
Author Website: www.PHCConsulting.com
How much does it cost for a pharmaceutical sales rep to call on a physician’s office? I found this question posted on LinkedIn, and the answer is….it depends. Pharma Marketing Blog contends that with all the pharma layoffs, the cost is going up. Theo M., Director for Business Development at MSA.com, cites figures ranging from $150 to $300, and offers these links, which cite anywhere from $142 to way over $600:
# http://www.forums.pharma-mkting.com/showthread.php?t=59
# http://www.calpirg.org/uploads/Le/LW/LeLWJ1Gv4Nwd9MVJapxdkQ/TistheSeasonFor…
# http://www.rxpromoroi.org/rapp/media/rapp_execsum.pdf
Meanwhile, Xavier T, CEO of Strategic Consulting, Mexico, says that an “average” cost would be between $200-$400, but notes that specialized calls could go as high as $600. He does a good job of detailing all the expenses that can be included in a sales force budget:
– Salaries and benefits
– Incentives (although some incentives come from actual sales so they don’t affect the bottom line…)
– Travel expenses
– Gas, parking
– Cell phone and computing expenses (because the physical Laptop or cell phone are considered assets).
– Promotional materials
– Samples
– “Educational” and “Professional Relations” meetings (an important part of the budget some years ago…).
I think when I was a rep at Bio Rad Laboratories in 1993, the cost of a single call (clinical diagnostics, not pharma) was $330. Given that everything is more expensive now, I believe the # must be closer to $500 or $600 per call. So it makes sense that you want the very best candidates to choose from when hiring someone to represent you in such expensive calls – use a recruiter who can help you increase the talent on your team.
And did I mention that your time as a manager is worth ~$100 per hour? Don’t spend it weeding through a stack of resumes….call someone who can deliver choices to you!
Then you can focus on making the big deals happen.
Article courtesy of the Recruiting Blogswap, a content exchange service sponsored by CollegeRecruiter.com, a leading site for college students looking for internships and recent graduates searching for entry level jobs and other career opportunities.