Dental Insider Blog

Observation and Commentary On the Dental Industry

End of Week, Month and Half Year Wrap Up

Posted by dentalinsider on June 29, 2007

It’s hard to believe that as of Sunday morning July 1st, half of 2007 is in the books. Where did the time go? If the second half of 2007 is anything like the first, we are in for a wild ride. It appears that another independent dental supply house is in play and we could see a bidding war between HSIC and PDCO for this company, only time will tell.

I received an email from a reader that I found interesting, it came from an East Coast supplier, here is the body of the email.

BECKER PARKIN was sold. We have access to hundreds of products that are not on the attached list. Please send us anything that you were buying
from Becker and we will do our best to source the product for you.

So it leads me to believe that BP was backdooring product to smaller and larger dealers across the U.S. and Canada, a violation of just about every major manufacturers dealer agreement. So how much of BP sales were at wholesale to resellers? Is HSIC going to continue this practice? What are you thoughts?

Joe Sakaduski over at Sakaduski Marketing had an interesting post this week regarding consolidation in the industry. It got me thinking about the future of the industry and where we are going and where we have been. So here is my question for you to ponder over the coming days, and if you desire, post a comment or send us an email.

Where do you see the dental industry in 5-10 years? Will the small independent dental dealer still exist and what will their role be? What will the role of the large (Big 2) dealers be? What will happen on the manufacturing side? More consolidation?

We will be taking a few days off for the 4th of July holiday, sparse posting at best depending on wi-fi service. Have a happy and safe 4th of July holiday!

DI

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14 Responses to “End of Week, Month and Half Year Wrap Up”

  1. kp said

    BP was certainly backdooring product.
    The issue isn’t as much will Schein continue the practice as it is Darby doing it. If the BP customers were just calling in, all of the business went to Darby. So depending how those accounts were set up it could go either way.

    Schein has investors to answer to and bottom line is paramount, so I doubt that practice will continue.

  2. Ledger said

    Who is the East Cast supplier offering to take BP’s place ?

  3. Sarah said

    Darby doesn’t need BP customers help … they already have the reputation of backdooring … no shake up here … the smaller dealers (and some not so small) will sell to anyone with a credit card until they get caught … it’s a mfg nightmare and they place the blame on mfg’s for gray market … right?

  4. Enjoy the holiday, DI & Associate Q!

  5. shhhh said

    Starting now & 5 years the smaller companys will be banning together & joining ADC more & more so they can participate in all the perks Schein & Patterson have. The smaller companys 10 years from now will be bigger companies & Schein will buy them & so on & so on. Its the Circle of Life. With each death there is a new life. Ce La Vie…..

  6. rk said

    -It certainly is the manufacturer’s fault for backdooring and the grey market. If the manufacturers would open up accounts with small to midsize dealers it would eliminate the need to buy products elsewhere. The manufacturers know exactly where their products are going-they’re coming right out of their factories. If the sales reps for the manufacturers would press their companies to open up other dealers the reps would also profit. Also, by joing the ADC group there is no guarantee that the smaller company will have access to all of the lines available-only if the manufacturer permits them to.

  7. If the manufacturers would open up every single dealer in the US what good would that do? Look over at GC’s website and you will a list of over 100 dealers, but yet their products are still sold from Canada and New York as “grey market” products. I get calls every week from these companies trying to sell me the same products I can buy directly from the manufacturer’s and it is very hard to turn them away when they are selling it cheaper than I can buy it. I am in agreement that these dealers that purchase and sell grey market products need to be stopped, but the reality is that it will never stop. The MFG’s are still making their money and that’s the bottom line. I am proud to say that I do not nor will I ever purchase a product from these “grey market” companies.

  8. shhhh said

    Grey market Who really cares. The bottom line for these dentists is price. Believe me I have over a million dollar file & have been doing this for 16 years. They dont care. If the price is good then thats that!!! And maybe smaller companies should get stuff grey market from other countries. Take a stand America!!! Corporate America is pushing small companyies out and its everywhere not just the Dental World. So lets wake up people take a stand & fight for what you want, dont just give up. Believe me these manufacturers are well aware of whats going on in the “grey market” If you really think they are not getting money for that too, well then I guess you still think there are still Weapons of Mass Destruction in Iraq…….

  9. Dental Guy said

    I just saw a press release from Carson Dental. I had never even heard of them before. What’s the buzz on them? Are they similar to Darby and SmartPractice?

    Are they one of the “small fish” on their way to becoming a “big fish”?

  10. woody said

    “And maybe smaller companies should get stuff grey market from other countries.” -Shhhhh

    And then they lose the distribution rights for that manufacturer and where does that leave them? Yes, manufacturers are dictating to the dealers, but you know what? It’s their product!! If they dont want company X distributing and representing their goods, then so be it. Buy from authorized dealers and support the companies that don’t have to illegally obtain and sell product to keep their head above water.

  11. rk said

    That’s right- dentists should just keep pouring money into the Scheins, Bencos, and pattesons of the world and forget the independent dealer trying to make a living. By the way “grey market” products are produced by the same manufacturers that produce “American” products, they just change the packaging. These products are not illegal or obtained illegally. The manufacturers can stop this whenever they want- they obviously don’t want to. I don’t think that Dentsply, 3m, etc are going to manufacture defective products-do you?

  12. Ledger said

    What about a distributor who has a product,bought and paid for from the manufacturer,but is told by that same mfg.who I can and cannot sell that product to ? Once I own it shouldn’t I be allowd to sell it to whoever I want as long as it doesn’t violate any state or federal laws ?

  13. rk said

    Of course you should be able to sell it to whoever you want. What ever happened to free enterprise?

  14. Ledger said

    In the dental business free enterprise is whatever the “big” box suppliers say it is…not what is either lawful or ethical.

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