It’s important to understand that we dentists generally do not purchase dental materials from Amazon, and the price of materials shown on Amazon vs what we get from distributors is pretty different. Yes few of us buy from dentalkart and pinkblue but majority of sales are local distributor driven.
There are 2 reasons for it chiefly. One, a lot of small clinics (60-75 percent of all clinics) do not show a lot of income in their bank statements, and hence purchase through local dealers to pay them in cash. Most dealers can’t buy in cash from bigger distributors so the sales will ultimately reflect but this causes a lot of price cuts in products. Two, A lot of dentists stock up in expos for the year where everything is purchased in cash. And prevest is targeting the economy segment where majority of these trades happen. The point I am making is, big sales can only happen if big local dealers push their products and there should be a number of company salespeople visiting dentists asking them to write the company products. Prevest has a very small sales team doing door to door visits.
Dentists are not incentivised to use any company products (which is a GREAT thing) because there are no prescriptions and no direct sales to patients. They use the ones they like and can afford depending on price points they charge from patients. Hence it’s difficult to get people to change the products they are used to.
Lastly, the companies Prevest mentioned in their DRHP are not their direct competitors. Most of them, except 3M, do not sell resins and sealers etc that are the bigger market of Prevest. Their competition would be pidilite which has entered the same market with a collaboration, has aggressive sales and marketing teams and has kept same stockists and dealers that are with the multi nationals.
A clue as to how the company is targeting increasing local sales can come from the number of salespeople on their roll call. I do not know how to look that up or find their info but that number should be increasing.
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