I have often sent blogs about building cash sales. Today the average DME/HME dealer must make every effort possible to maintain and increase over the counter cash sales. The ability to depend on third-party business is no longer practicable.
I received a phone call from a dealer in Illinois who I met at Medtrade. He told me when he heard Louis Feuer speak about the importance of cash sales, it gave him the impetus to make a dramatic change. He remodeled his showroom, put in more lights, built more shelves and was very proud of what he accomplished. It changed how his company expanded their business and profits!
Now when we speak about cash sales, we must also include one additional step, that of monitoring and controlling cash flow. There has to be a means of tracking every sale. Things are a little different today since most transactions are paid by either a credit card or a personal check. Occasionally the customer may pay with cash.
You have to know how every transaction is completed. Did the salesperson ring up the sale? Did the salesperson provide an invoice to the customer? Both these steps must be consolidated into one.
Even more important is to know which segments create more OTC cash sales. This information will guide you and are the tools necessary to continue to expand. I have been told cash sales often will be considerably larger than those from third parties. This is the goal of every DME/HME dealer, to retain Medicare, while expanding walk-in business.
The dealers who cater to family caregivers develop another market. At the same time they recognize that the bulk of senior citizens have the discretional dollars to purchase comfort items. This brings me back to the days of “show and sell”.
This year at the Medtrade Spring Exhibition (March 10 - March 12, 2014) in Las Vegas, the vendors will offer you many new opportunities. Look at each and think about your market, your customers, their family caregivers and then you can make smart decisions.