You can make a difference!

I saw a quote from Elbert Hubbard, an American author born in 1859. It is so appropriate today that I felt you also must see it: “The world is moving so fast these days that the man who says it can’t be done is generally interrupted by someone doing it.”

Interesting that in 1859 citizens faced similar difficulties to what we do today. Things happen so quickly that by the time a dealer has adjusted to one, another appears. In the past 62 years many opportunities and difficulties have risen to the surface and I have watched how dealers get things done. The entrepreneurs adjust while the others are thinking, “what should I do.”

Via these blogs I have been showing original marketing ideas that DME/HME dealers have shared with me. One of the reasons I stroll the show room floor at Medtrade is to greet and chat with attendees. What has always fascinated me is how so many have coped with change. I report these in my blogs and will continue to do so. Please feel free to e-mail (shelly.prial@att.net) some of your accomplishments so that other DME/HME dealers will see them. In this fashion you will make a difference.

When I speak to dealers I always ask if they belong to their state and national associations. Invariably the answer is “yes, we do!” Yet it appears far too many DME/HME dealers do not. There are two national associations, AAHomecare and NAIMES, as well as the state DME associations. A dealer may think, “well it’s OK because they work for me whether I belong or not.” I have heard that comment often. It is wrong! You can make a BIG difference when you belong to your state and national associations. Your dollars will make them much more effective and maintain you in business!

When I discuss this with accountants or attorneys, they all agree that membership is a normal cost in operating a business. They indicate very specifically without the support and work these associations do on your behalf, you might find yourself forced to close. Make a difference¡ If you are not currently a member, please become one and then solicit the other providers and dealers you know to get on board. YOU CAN MAKE A DIFFERENCE!

Do you know the ABCs and ROIs of DME/HME?

ROI means Return On Investment. A good ROI is what every principal of a DME/HME company and their accountant seek.

Every service you offer requires an investment. It can be number of dollars or time spent. No matter what how you identify it, there is an investment made. Taking an advertisement, offering to do a seminar, holding an open house, speaking at schools and churches, all of these are time consuming and each has a cost. So be sure what you offer will provide you with an ROI. When done correctly these all will pay-off for you.

My main concern is how you maintain your inventory. A dealer last year at Medtrade told me about a “great deal” (his words) he obtained from one of his vendors. He purchased a six-month supply of their products for an extra discount. He thought he made a lot of dollars. I had to disagree!

More money is made by turnover; the number of times you sell an item and replace it. At a seminar I attended at a previous Medtrade this was explained as follows:

On January 1, you buy an item for $90.00 and sell it for $150.00. The gross profit in that transaction is 40%. If you sell that item and replace it only once a month, the ROI in one year of an investment of $90.00 is $720.00 profit. If you purchase a six month supply of the same item to earn an additional discount then you will run into the problem of storage, where and tear and handling. You have tied up your cash and these precious dollars are not available for anything else.

I believe the term accountant’s use is Activity Based Costing or “ABC”. It has proven to be much less expensive to pay few percent more than to fill your warehouse or storage space. Better profits always will come from “turn-over” and that reflects as a better Return On Investment (ROI).

Please discuss ROI versus turnover with your accountant because a fluid cash flow is the heart of any business. This is particularly true for DME/HME where things can change so rapidly.

To attend a seminar like the one I mentioned above, just visit www.medtrade.com and make the trip to Las Vegas April 9-12!

Looking to the Future

Wouldn’t it be fantastic if we had a magic globe and could look into the future? We, researching in our magic globe will see what problems are facing us, and then perhaps we can plan to prevent them from happening. Even better, we may discover many good things that are awaiting us and plan around these events. But alas, we do not have that ability.

But there are so many new and profitable opportunities that can be found when attending Medtrade Spring. It is April 10-12 at the Sands expo and Convention Center in Las Vegas and that can be your magic globe!

To obtain the maximum benefits you should make very careful plans! A review with your accountant and bookkeeper should show which segments of the business bring the most sales volume. Finding those that bring the highest profits are very important and which segments need to be improved.

Then, when you review who the exhibitors are and where their booths will be, you can plan ahead. One of the HME/DME dealers I know told me that before he leaves for Medtrade, he contacts the vendors and key reps his company works with and makes appointments to meet their sales manages or company principals at the show. Many good deals and promotions are arranged in that fashion! You can do the same! Their representative and his superior really appreciate when that happens and you will receive the dedicated attention you deserve.

As in the past, you must pay careful attention to all the various products in the New Products Pavilion. Be sure to visit the exhibits and see what’s new and what will fit into your operation. Opportunities galore are waiting for you.

There are many major benefits to be gained from attending Medtrade. When you plan how you will approach the vendors on the exhibit floor you reap a great ROI. I will be walking the floor and so please find me and share your experiences with me. See you in Las Vegas!

To register for Medtrade Spring in Las Vegas visit: https://www.xpressreg.net/register/MEDS042/landing.asp?h=