Medical business industry is more profitable than McDonalds! know how Aumet did that?

Comparing the medical industry to other industries, like the restaurant industry in which McDonald’s is a main player for example, and whose exclusive partnership lasts for 15 to 20 years, the average exclusive partnership in the medical industry is about 2 to 3 years, which is 5 times less than the restaurant industry. This minimizes the ROI and decreases the life-time value (LTV) against customer acquisition (CA) in the medical industry.

But the question is, what are the reasons behind very low LTV in the medical industry (suppliers and distributors)?

First is the lack of a verified reference in the medical industry that evaluates and ranks international medical suppliers and distributors; where suppliers would be ranked in terms of product quality, price competition, and delivery date, and distributors in terms of financial capacity, experience in the medical field, along with their ability to increase their sales year after year.

Most of the partnerships end by the first year, as distributors will usually find the partnership to be ineffectual, due to the low quality or non-competitive prices. The result of this is that distributors then have a large amount of products in their inventory that can’t be sold.

However, that’s not the worst point. The distributor would usually put a lot of effort into winning a certain Ministry of health tender, and after a long time, when they win the tender, they may be surprised that the supplier is not able to supply the order on time. As such, the distributor would be forced to pay 10% of the tender’s price as a penalty for the delay.

Moreover, medical suppliers often get manipulated, as their medical distributor may fake their knowledge, experience and network. And even if this fraud does not occur, the distributor might be happy to not tread water, which may lead to many missed opportunities to grow the business.

The worst scenario which represents 60% of contract termination cases is when the distributor gets a significant number of orders, but their weak financial capacity doesn’t allow them to make orders from the supplier, which leads to a loss for all parties.

Second is the lack of transparency between the medical supplier and distributor regarding the business opportunities in the market which is represented in medical tenders. Due to the fact that distributors represent many suppliers at same time, they might miss or be unable to accept some tenders. Other distributors would then find an opportunity to take advantage of this situation through sending the tender that the representative distributors missed to the suppliers directly, in order to create conflict, and afterwards an opportunity to take the position of the representative distributor up themselves.

What’s now disruptive in medical technology is Aumet(www.aumet.me), Silicon Valley based, the first intelligent piece of technology for helping suppliers and distributors to find their right partner. It usually takes a supplier one year to find the right partner, but this can happen within one month through AUMET with 90% less cost and 10 times more LTV. AUMET has built trust by verifying all important information such as product quality, price competition, delivery time, distributor’s experience, financial capacity and sales growth, etc., as well as providing all medical tenders and news for distributors and suppliers through the platform. Indeed, this has is making the medical industry far more profitable than before