When the 30% direct/dealer overlap is removed, however, direct sales actually contribute to 72% of the revenue while dealer sales contribute only 28%. In some instances the direct sales representatives are working with dealers in order to reduce the hassle of transporting equipment. Dealers are then able to book the sale, reducing Ohmeda's revenue from an average of 6% below list price to 21% below...
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Dealers are then able to book the sale, reducing Ohmeda's revenue from an average of 6% below list price to 21% below. This overlap also reduces the efficiency of sales and proves that there is an over supply of generalists. In order for Ohmeda to grow at a rate of 11% annually, Ohmeda will need to prevent the dealer/ direct sales representative overlap to maximize profit...
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