Sales Force Sizing in Healthcare: Why Outdated Methods Are Costing You Time and Profit
Still Widely Used in Pharma, Biotech, and Generics: Why Outdated Sales Force Sizing Methods Are Holding You Back
In healthcare sales, having the right-sized team is the difference between profits and wasting resources. Yet, many companies cling to outdated methods that drain time, money, and opportunities. Let’s break down the classic apporaches—and why they’re holding you back.
1. “Same as Last Year”
Last year, you had 75 reps. This year? You guess: 75. Easy, right? But what if your market grew by 20%? Or a competitor just launched a new brand? This method ignores change, leaving you under-resourced or overspending.
2. “Same as the Competition”
Your rival has 250 reps, so you aim for 250 too. Sounds logical, but here’s the problem: their strategy might not fit your business. What if their product is more profitable? Or their market share is double yours? Blindly matching their size could mean overinvesting in low-return areas or underinvesting in high-potential ones. In the race for sales force effectiveness, this is a losing strategy.
3. “Percentage of Sales”
You allocate 20% of $50 million in revenue to your sales force. Simple, but flawed. Sales force investment should drive revenue, not follow it. If your market grows, this method leaves you short-handed. If sales dip, you might cut too deep. It also neglects the lifecycle phase of your brands. In a pharmaceutical landscape shifting toward generics and value-based care, this reactive approach won’t cut it.
4. “Workload Build-Up”
You calculate that 60 reps can cover 50% of your 20000 customers monthly. It’s data-driven and practical for planning. But here’s the catch: it doesn’t separate profitable customers from dead weight. If 30% of your customers bring in only 10% of revenue, you’re wasting time and money.
The Big Problem
These methods ignore a harsh truth: 20-30% of sales efforts target unprofitable or low-value customers. That’s wasted budget and missed growth. By 2026, companies that fail to optimize their sales force will be left behind.
The Fix
Ditch the old playbook. Modern sales force sizing should:
- Focus on high-value customers.
- Use ROI-driven models.
- Leverage advanced analytics.
- Adapt to market changes.
Bottom Line
It’s time to get strategic, data-driven, and consistent.
Still using yesterday’s tactics? Let’s talk about how to future-proof your sales force.
