Ann: LBT Appointed Distributor for Australia and New Zealand, page-8

I agree with the strategy. It is a highly technical product requiring a lot of pre-sales skills. Those skills are inevitably with LBT, anyway.

Yes, this will add to cost base, but I have seen many companies go to a direct sell model after failing on the lower upfront cost of a distributor model. The problem is unless you can get a contract forcing minimum sales, the distributor has a risk free option of just adding the product to their suite. They rarely throw a lot of resources at it and then you have lost 12-24 months of sales opportunity before you take the contract off them.

A distributor model may work well for tongue depressors but not an APAS machine.