Dental Insider Blog

Observation and Commentary On the Dental Industry

Well That Didn’t Take Long….

Posted by dentalinsider on January 7, 2008

Here we are, a week into 2008 and we are already hearing some interesting chatter in the dental industry. Over the holidays we received a couple of emails regarding Progeny Dental and how they were starting to limit distribution by shutting down some smaller distributors. (Note: we were faxed copies of these termination letters by two dealers, so we know this to be true.) In both cases, these distributors claim that pressure from Sullivan-Schein and Patterson Dental were responsible for them losing the line and not lack of sales as Progeny had suggested. (Note: we discussed the number of units sold with both dealers, and while we agreed to keep them confidential, one of the two actually had respectable numbers.) I called 4 other Progeny dealers across the U.S. last week and asked 1) How many units they sold in 2007?, 2) Had they received notice that their Progeny dealership would be terminated? The responses surprised me….
All 4 dealers had sales much less than one of the terminated dealers, and about equal to the other. All said that they were still a Progeny dealer and that they had not received a termination notice. I have been a fan of Progeny for the last couple of years and have done a couple of posts about them in the past, (previous post, previous post)so this does not make me happy to hear this. More on this story to follow in the near future….

We will consider the next item a rumor for now. Although we have heard this from a couple of reliable sources, nothing has been confirmed at this point. Remember…Rumors are facts that haven’t happened yet!

From what we are hearing, Midmark Dental is looking to acquire Progeny Dental. At first I thought, what would Midmark want with an x-ray line. Then it started to make sense. Midmark would then offer a complete office solution. Chairs, Units, Lights, Cabinetry, Sterilizers, Vacuum, Compressors and X-rays.We’ll have to see how this one plays out.

Stay Tuned!

DI

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9 Responses to “Well That Didn’t Take Long….”

  1. iselldental said

    This is what is currently going on in the industry. There has been a line drawn in the sand and Schein is on one side and Patterson on the other. Each side is trying to gather more and more manufacturers on their side. ie. Patterson+Adec, Patterson+Planmeca, Schein+Danaher. Unfortunately, it sounds as if Progeny has succumbed to the corporate tug-o-war and the smaller dealers, most of which helper Progeny to obtain their current status will just be seen as collateral damage. This corporate tug-o-war that has developed between Schein and Patterson is going to kill this industry.

    JD

  2. Dental Guy said

    All industries have their egos, and the dental industry certainly has its share. However, I guess I am in the minority when I think that these smaller companies are foolish to be sucked into this game.

    Benco and Burkart seem to happily be off the radar of Schein and Patterson, but they are two formidible competitors as well. They both seem to be stepping up their games, but I guess they prefer to do it in a way that doesn’t put them in the cross hairs of Schein and Patterson.

  3. Does Progeny use independent reps or do they have their own sales force? Just wondering how this would effect those folks.

    Nice to see someone has the inside scoop.

  4. Does Progeny use independent reps or do they have their own sales force? Just wondering how this would effect those folks.

    I believe that they use independent sales reps, although I can’t confirm that and their website doesn’t list any reps.

    DI

  5. Dental Guy said

    I forgot to give my two cents about Midmark. They are such a big family owned company! Everytime I am at the Drs. office I get mad when I think about how much Midmark probably gets for all those chairs and examination tables in physicans, dermatologists, and other specialists offices.

    Unfortunately, I have seen one too many Drs the past few years… but 9 times out of 10 they use Midmark. I rather see them scooping up Progeny and going to battle with Danaher!! It’s made me always wonder why a-dec never started an imaging divison.

  6. afriend said

    Yes, independents have built the Progeny sales line

  7. GTPete said

    What’s the big problem with danaher? The world is full of conglomerates like GE?

  8. Dental Guy said

    What’s wrong with Danaher? Depends who you ask. I can’t speak for the consumables/Sybron division, but it seems like everyone on on the equipment platform is always running around like a chicken about to get their head cut off.
    The differences between the leadership of KaVo/Gendex/Dexis versus the people at Sirona and a-dec is like night and day. Maybe I am just a bit biased after attending some of Sirona’s big parties……

  9. dentalpro said

    Didn’t Patterson build Progeny’s sales? After all, they did get all of the business that used to go to Gendex? Maybe this is kinda payback?

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