Make Your Cash Register Sing

I was chatting with a neighbor at the supermarket this morning. He pointed to the checkout stations and said, “Listen to the music”. The lines were long and the ringing up of the sales really played a beautiful melody. I recognized the tune, I am an old retailer.

One of the driving forces when I prepare these blogs is to help our readers build more cash sales. Yes, make your cash registers sing.

How? When you shop or visit any of the major marketers there are signs identifying every area. First-aid, incontinence, diabetics, wheel chairs, scooters and as many titles as products they offer. These departmentalizing signs do not have to be very large. I visited a local Walgreen Pharmacy and found every section clearly identified. You can do the same!

I was in a rather interesting location in Rochester, NY. This dealer went one step further. Every section had a sign mounted. However, he also developed two “rooms” displayed along one wall: a bathroom and a bedroom. These were brightly lit and every item on display had an attached price tag. He made the rooms look so realistic because he framed in each what appeared to be window with a view.

After preparing these displays he went a few steps further. He changed the items displayed on a rotating basis. Then, he arranged to have a sales person from one of the manufacturers whose items were featured every Saturday from 9:00 AM until noon.  Their job was to demonstrate, answer questions and provide literature. The entrepreneur was very pleased when he saw how many new sales were made.

To promote these demos, every Thursday an announcement was sent to the local radio stations and newspapers. He proudly posted this announcement in his showroom window.

You can develop similar music in your showroom by promoting these programs. At Medtrade you can discover a myriad of items suitable for this type of promotion. Become the bandleader and make music and new profits.

Attention, HME/DME Providers

This year the Medtrade Exhibition will be more important than ever. Our industry is under a great deal of pressure. Yet despite this, a great many providers and dealers are doing very well. That is because they work in tandem with their vendors to develop new cash sales. There is nothing more satisfactory than ringing up a sale in your cash register, just a normal business transaction.

In yesterday’s blog I asked the vendors, manufacturers and exhibitors to spend more time at Medtrade offering OTC cash sales for the attendees. I recommended they bring new products and work together with you to build sales. You have to be there not to miss these golden opportunities.

It is a two way street! Providers and dealers each face the same problems and when working hand-in-hand, the results are fantastic!

To get the most from Medtrade, bring your key personnel. I spoke to a friend in Missouri who told me last year he brought two employees with him. When they returned each started several new programs they saw at the show. He said they were successful and so was he! This year he will attend with three sales people.

Split up your team up at Medtrade. Attend as many seminars as possible. Have all share with the rest of the team what they learned. Seek new products and ask for help with marketing. Arrange with the vendors to do a “dog & pony” show with your company. Ask them to make joint calls with your salespeople.

I am very fortunate that many of our readers feel free to contact me (WAT # 877-553-5127 and e-mail <shelly.prial@att.net). I will always respond!

As I said to the vendors yesterday; “when this happens everyone wins, you do, the manufacturer does and so do your customers.”

Seeking New Opportunities in New Markets

In order to keep pace with a rapidly changing market, DME/HME dealers and providers must always seek new opportunities. Reimbursements from Medicare or Medicaid, as well as contracts with HMOs, are all paid at a very low level. They should never be considered as a primary source of income. Keep what you have! But always look around for more profitable advantages.

In my discussions with many dealers I discovered one source you all have. It is your employees! They each have ideas, some may be off the wall and so many others have proven to be superb.

The idea to offer a “free wash and check your wheelchair” day come from a salesperson working for a dealer in upstate New York. I have written about this often and every time another dealer does it, I invariably receive a message telling me about their success.

The Americans with Disability Act is another tool to build new sales. Your outside salesmen should talk about this at every account. Call your Senator or Representative’s office in D.C, and ask the HLA (health legislative assistant) to please obtain a copy for you. Armed with that your company’s service will be truly appreciated (and earn a great big bunch of new sales).

One of the major benefits of Medtrade is the ability to walk the showroom and see how many new products and new sales ideas that will be a benefit to your bottom line. They are there waiting at the exhibition for you! I have always recommended that if at all possible to bring one or two of your salespeople. The cost of this will have a big ROI. I have been told this so many times! When your employees return home from Medtrade they are busting at the seams to bring these ideas to fruition. Let them do it!

Your task, as the both the entrepreneur and owner, is to polish and allow all the employees to be comfortable and share with you all they have learned, and when that happens, new ideas and new markets will be opened.

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!

Planning & Implementing

Robert Burns is often quoted as saying: “the best laid plans of mice and men may often go astray.” He is correct!

Over the years many DME/HME dealers have shared with me their thoughts; what they are planning to do to build more sales and increase their profits. I have heard so many excellent ideas.

But there is a difference between planning and implementing and so I want to stir things up a bit. Implementing is to continue the planning. Take your excellent ideas and turn them into reality.

Appoint the members of your staff who are responsible to explain the program you planned. Be sure to give a copy of the plan to each of them. Then appoint specific functions to every employee and have them coalesce. In that way they will meld into a team. Monitor and work closely with your employees.

If any of your preferred vendors products are featured, do not hesitate to ask them for support. You will be surprised with what they can do to enhance your program, which will help implement it.

Planning is only the first step. Implementing is the next step to harvest the crop. It requires a great team effort to reach your goal. Every member of your staff from the voice on the telephone to the drivers of the delivery vehicles has to contribute to your “plan.”

Alexander Dumas said “Nothing succeeds like success” and I want to add that happens only when you implement your plans!

Feel free to call me on my WAT – 1-877-553-5127 or send me an e-mail. I will be delighted to help you with any thoughts you may have. If you are attending Medtrade Spring, please stop me and let us speak.

Are you really listening?

Sometimes we are so busy we often forget to listen. When I recently visited a DME/HME dealer, I was watching their salesperson showing a senior citizen and her husband how to correctly use the new wheel chair ordered by her physician.

He did an excellent job demonstrating all the features of the chair, but … and here is the problem he missed. He didn’t listen to the question that concerned the husband. He was asked about how HE, an 80+ old senior, would fold the chair?

The young man lifted the seat and the chair closed into itself. What he should have done is allow the customer do it by himself. Although somewhat frail he was capable. Other questions were asked, how to travel carrying her pocketbook, how to use the chair when shopping, and how to put it in the trunk of their vehicle.

Think about what your customer wants. When they come to you to make a purchase they are looking for explanations and demonstrations. They seek a comfort level. When they leave and have made the purchase, they are now ready to maximize the benefits. However, when they are not fully satisfied they usually will say “thank you” but they want to speak to their children. You may have lost that sale!

All I can say is please listen very carefully to what your customer asks and pay attention to their comments. Be very sure you address and answer any questions and resolve any doubts they may have.

At Medtrade in Las Vegas, try to arrange with your vendors to have sales training sessions for your staff. These invariably are “win-win”.

Visit http://www.medtrade.com for more information on the upcoming conference this April 2012!

How are you using E-mail Marketing?

E-mail, is it a blessing or not? Can a DME/HME dealer use e-mail effectively? This past weekend this topic was a discussion I had with a few cronies (peers). It appears that most senior citizens enjoy reading their e-mails and at the same time abhor the great number they receive. This morning when I opened my computer I found 87 new messages. I deleted all but a dozen, which I read carefully. There was much important information that arrived. Dave Parks sends his HomeCare Newsletter, which is filled with current events. Important? Yes! Then I opened the hmeNewswire, which Liz Beaulieu edits, and this is another good source of news. Since we are about a month away from Medtrade Spring, it is also important to study Medtrade Monday as we all prepare for tomorrow. All that is what a DME/HME provider normally does. How do your senior citizens look at their e-mails? With enthusiasm! They, too, wipe out the obvious commercials in which they have no interest. However, this still leaves a good number for them to review. I was with three other gentlemen my age and two of them both told me the same thing. They look forward to the weekly newsletter their pharmacy sends. There was always a good health idea and occasionally a sale on an ADL item. I have spoken with a number of dealers at the Medtrade meetings. They do the same and tell me sending a Weekly Newsletter, via email, does two things for them. It maintains the loyalty of the customer and increases sales when they offer a single item at a special price. All of the necessary material to successfully send an e-mail weekly newsletter is in your computer. If you have the address of the family caregiver, please include them. The answer to my opening comment is that e-mail can be a valuable tool for a DME/HME provider. If you're looking for an inexpensive way to market to your customers using e-mail, check out Constant Contact at www.constantcontact.com.

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=

Medtrade Spring Excitement!

I got very excited this morning. I made my reservation for a hotel room in Las Vegas. Thelma and I will be able to attend the Spring Medtrade Exhibition in Las Vegas (April 11 and 12) and we look forward to a few fantastic days.

I believe that I have attended every Medtrade Exhibition since its inception and yet the excitement of seeing all my friends, meeting new ones, attending seminars and visiting exhibitors still turns me on. Nothing can match this!

This year, more than ever before, our industry is under attack. DME/HME dealers and providers are an easy target for politicians. We have to learn how better to work together, share expenses and deliver our message.

Because of chicanery on the part of a few dishonest individuals and companies, padding of bills for Medicare and Medicaid, and politicians are using it as fodder. They say when elected they will be able to redo the programs. But they never do, they only talk! Just say how. 

Our task is to make sure the general public, our customers, clientele, family caregivers and friends to join forces and deliver the message that DME/HME dealers are not culprits. The reimbursements they receive for supplies and equipment never covers all that is provided, including service. This service which is provided pro bono is the one thing that must be told! Making the trip to Las Vegas is the best opportunity to protect your company!

Attending gets me very excited, especially when the dealers and vendors I meet at Medtrade share with me their ideas. The future of our industry, in particular this year since Congress will probably be changed in November. It is so imperative to get involved.

At Medtrade you will obtain all the tools you will need to speak with both customers and politicians. The state associations will be there, the national associations will be there, vendors and manufacturers will be there and so must you!

The speakers will all be primed to see that when you return home you will be ready to get your employees, customers, family caregivers, friends and associates ready to do battle Get excited and register to attend (April 11-12).

For more information on Medtrade Spring conference and exhibition visit the website here:

http://www.medtrade.com/medtrade-spring/

And don't forget to "Like" the Medtrade Facebook page:

http://www.facebook.com/medtrade

Is There No End?

It seems that everyday in the newspapers we find reports of more and more fraud and abuse in the health care system. Yet since I know many dealers and providers, and communicate with their state and national associations, I will make the following statement: “Fraud and abuse does NOT come from providers, but from outside sources who take advantage of an antiquated system designed for reimbursement.”

The system is at fault, not the dealers or providers. According to an article this week (Associated Press) in 2011 the Feds found $4.1 BILLION dollars in health care fraud. That sounds like a great deal of money, but the next paragraph said that they estimated anywhere from 60 to 90 billion dollars a year was being siphoned out of the system.

The average DME/HME dealers are the hardest working proprietors who operate their companies honestly. They are not the culprits. They give away more service and care Pro Bono than any other industry. So what can be done to stop this thievery?

The first thing that has to be accomplished is that every dealer or provider has to earn a license. We have made great progress in that direction and now must go one step further. Accreditation is a fantastic step forward and those dealers who meet and maintain these standards are to be recognized.

It appears that fraud and abuse has become such a major “industry” with developing networks that operate for a few years, milk many dollars, and when uncovered they disappear. Many new “Jack, the Crook” operations are popping up. Why not? When Jack the Crook is discovered selling narcotics he goes to jail, but when he is caught stealing from Medicare, he closes his business and re-opens the next day with a different name. That being the case, the first step has to be earning a license to provide health care supplies, one which can be revoked or suspended.

Is there no end to fraud and abuse? We have to be diligent. We have to work with our state DME associations and support the national associations. At Medtrade this Spring, in Las Vegas, you can speak to all of them and sign on to fight for survival and keep out all the “Jack the Crook” operations.

A 10-year old's take on the solution to Competitive Bidding

I receive a great number of messages daily (thank you) and I look forward to reading most of them. The most important are the e-mails sent by the administrators of the state DME associations. I recognize the hard work they perform and the great amount of information they provide to their members.

I want to share an e-mail that Mike Hamilton, Executive Director of ADMEA, sent to his members today. Mike and I have been friends for many years and I know he will not object to my sending this to you. Just look at the idea from a 10 year old young lady.

I am forwarding it exactly as it was sent:

“Like many in the HME industry, Peter Falkson, CEO and co-founder of National Sleep Therapy was concerned and frustrated about the competitive bidding program. He wanted to take action and find a way to reach out to the public about a flawed program that they have no idea is coming. Little did he know that the answer would come from his 10-year-old daughter.

"I was talking to my wife about competitive bidding" said Falkson, "telling her how it was so poorly aligned. My daughter was in the room listening and she said, 'Dad, this is easy. You just need to do what we did in my class. Tell the world your story and if it is a good story, they will cause the change.'"

"My daugther was one of fourteen fourth-graders who got together to take on Universal Pictures to change a movie trailer. After collecting 57,000 signatures, the studio made the change. They used a website called Change.org to create an on-line petition that ended up going viral. Falkson said, "It worked for her class so I took her advice!"

"This is such a great idea," said Karyn Estrella, NEMED executive director. "We have heard from Congress year after year that they don't hear enough about competitive bidding from their constituents but it's been difficult to get them involved. If we can get enough organizations to support this effort, we have a good chance of raising awareness that this program needs to be fixed. 20 NEMED members will be traveling to D.C. next week to ask Congress to add the Market Pricing Plan (MPP) to the doc fix bill. If we can get enough signatures on this petition, it could strengthen our position. NEMED will be sharing the link with AAHomecare, state associations and other organizations with a request that they share the petition in email, on Facebook, Twitter, LinkedIn, etc. This petition needs to go viral." Added Falkson, "If every HME company got half of their patient base to sign this petition, we would have a chance. We need the grassroots voters to have a united voice to actually make a change."

I am sure that you will enjoy these comments as I did. I will share with our readers all the good ideas I receive!

If you agree, please sign the online petition here:
http://www.change.org/petitions/stop-competitive-bidding

Health Insurance

After listening the past few weeks to the politicians seeking the Presidential nomination, and then reading what the columnists in magazines and newspapers comment, I am flabbergasted! I do not quite comprehend what they each stand for or what they will do. They scream about the cost of health care, but not about the threats that our country faces in this hectic world.

My main concern is if any changes in legislation will affect DME/HME dealers and providers. As an industry our first concern has always been for our customers, patients and their family caregivers.

Americans purchase life insurance, home insurance, automobile insurance, and many other types of policies to protect themselves, their homes, possessions and livelihood. These are not all obligatory, but one’s choice. Ownership of these gives one a feeling of security. There are occasions when in order to get a loan the lender will demand a policy but it is still an individual’s option.

There are countries that provide every citizen with a form of health insurance. That, too, is laudable. Many employers provide some type of health insurance as part of their salary packages. Many of the poor and indigent in the U.S. are covered by their state's Medicaid programs. And, for a huge number of the population there is Medicare.

Should the percentage of Americans who do not have health insurance be obliged to purchase it? I believe that if it is forced on us the cost of insurance will rise. I also believe that if a person does not wish to buy any form of health insurance that is their decision! Should one be penalized if they do not have insurance?

I know that in one way or another, the source of medical supplies will always be DME/HME dealers. I am very comfortable with my feeling that DME/HME will always be ready and willing to serve their community.

So to all politicians, whether on the left or the right, please address the threats that face the United States of America; inflation, Iran, oil, recession, budget, education and work to correct the rapidly rising cost of health care in our country caused by fraud and abuse. Once this is corrected there will be sufficient funds to cover all citizens.

Health Care Reform

On the OPINION page in the Wall Street Journal (issue date 02/06/12) I saw an answer to the Medicare competitive bid program.

Normally a competitive bid is awarded to the lowest bidder. Other than that, why go through the motions? The Medicare competitive bid program “winners” (more than one) will receive the median price offered, rather than the lowest quote received. Does that make sense?

Chaos is created as follows: Dealer known only as “Jack the Crook Home Health Care,” does the following (is his company part of a chain?): He submits his bids so low that if he was awarded the bid he would go bankrupt. But that doesn’t happen!

“Jack the Crook” knows that median price is awarded to the lowest bidders (his company fits that slot) and he is in. This is dishonest, unfair to the legitimate dealers who to submit prices based on their cost and services, and more often than not, are in the top percentage of bids submitted. Now, they find themselves out of the loop.

As an industry we must attack this faulty legislation and show just how stupid it is. As a DME/HME dealer you must alert all your customers, family caregivers, and others to this rather poor bid and explain the consequences. When we all work as a team, we can accomplish that!

Find a copy of this WSJ Opinion and read it, share it, and then get on the bandwagon and get this yoke off everyone's back, particularly those of your clientele.

At Medtrade this spring in Las Vegas (4/10-12) a great deal of time will be devoted to this subject. Be sure you attend, there is far too much at stake for you not to be there. Seminars, workshops, and many experts all bringing with them the tools you require to maintain your company. You have to protect what you have, no one else can do that for you.