Doing What Comes Naturally

I have had the pleasure of meeting so many DME/HME providers in my 60 odd year career.  When we speak, I usually ask about the way they approach the market in their hometown. The answers I receive are all basically they same.  They are doing what comes naturally.

There are no secrets to becoming a good marketer! Although you may not think that you are a good marketer, the truth is that you really are good.

All markets must be approached as if they are unique. In a small town or village, the competition usually is not a major department store or supermarket. There, you are an integral part of the community. You belong to the local business club, church and went to the local school. You are doing what comes naturally, speaking, promoting and participating. All of this reflects as your business grows.

As the size of a market expands, the competition becomes more apparent, then one has to approach things differently. Everything you do is to keep you company name recognized. A DME/HME dealer in Maryland sponsored a baseball team and that was good enough to be invited to participate in a major Little League competition upstate N.Y. One entrepreneur belongs to a Rotary Club and his location became the source of tickets to their various fund-raising activities. Another organized a bowling tournament which has been active for almost 20 years.

A dealer in southern Illinois hires a big horse-drawn wagon to carry neighbors “apple knocking” every fall. These trips have sent loads of people picking apples and he said the cost is minimal for his company.  In California, way up in the mountains, that local DME/HME provider gives a “good health” chat on a local radio station and it has been expanded to local TV. 

By doing these things, they each have developed a large following and a nice ROI. All of the efforts I mentioned are providers “doing what comes naturally.” You, too, can do it!

Investing in future technologies: Home Telehealth

There are many opportunities available to a DME/HME provider. Like anything new, these openings must be investigated and must be determined if your company is able to make an investment in a new challenge.

At previous Medtrade Exhibitions there were speakers who explained the importance of Home Telehealth and how it should be marketed. The future for the health care industry may very well be based on how much of an effect Home Telehealth or Remote Home Patient Monitoring can be for DME/HME providers. Today is the time to get on the bandwagon.

Much of your volume emanates by referrals from physicians, nurses, technicians, therapists and home health providers. A solid base of your company has always been patients, senior citizens and family caregivers. Home Telehealth will put your company right is the center for them.

A very brief description is that the patient can sit down at their Home Telehealth station and send their vital signs instantly to their physician and other members of their healthcare team (like the supplier or family caregiver). The patient is able use their BP cuff, spirometer, scale, and blood glucose monitor, oximeter, EKG and other equipment currently available. By themselves or with the aid of family caregivers, they can affix the equipment and in seconds the reports are forwarded STAT and monitored.  Remote Home Patient Monitoring and Telehealth eliminates the need for hand-written and self-documented log books, which are not always maintained the way a physician needs to treat their patient.  The healthcare team can have real-time, on-demand data to notice trends and early warning signs more efficiently than ever before.

 

You should contact some of the Home Telehealth manufacturers to see if your company can become the local distributor. This equipment can be rented or purchased outright. This can be very exciting for you and set your business apart from your competitors.  Referral sources are looking for providers who are ahead of the game and providing the best for their patients.

Medtrade is currently working to develop a special section of the showroom floor for Home Telehealth.

Don’t miss the opportunity that Home Telehealth offers. Don’t put it off for tomorrow, take the first step now and see how you can become the provider of Home Telehealth in your market. If you don’t your competition will!

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!

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.

The Customer: Your Biggest Asset!

The goal of my blogs are directed to help DME/HME dealers build excellent operations. The changing markets, new regulations, frightening decreases in remuneration, are all hanging over every dealer’s head. Success in this hectic market will continue and the key to that is to maintain current customers and at the same time find new ones.

How does a customer view your company? No matter how much great service you may provide, the only instance that will always be remembered is the one where things went awry. No company is perfect! However with correct training and appearance you will always earn an excellent score from your clients.

Foremost, of course, is good customer service. A cheerful greeting on the phone when answered is a must. A friendly hello when anyone enters into your showroom is imperative. I hear jokes about Wal-Mart where every customer is greeted as they enter. Why joke about that? Each of your employees can easily give a friendly “hello” when people enter.

At your staff meetings always remind your employees they are all “goodwill ambassadors” for the company. Spend some time at each meeting to talk about addressing customers and building relations by superb service. You are in the health care business, so a simple “how do you feel today?” usually will suffice. Let your customer realize that you care!

Another key piece to customer service is appearance. Is your showroom brightly lit? Many older clients do not have strong vision so please accommodate them. Are all products on display clearly marked with the price? Don't assume that if someone is unsure of the price they'll ask. They might move on, and you might lose a sale!

I recall sitting in a seminar at Medtrade where the speaker’s opened words were “WHAT IS YOUR BEST ASSET?” Then before anyone could answer, he said “YOUR CUSTOMER!” Never forget that your customer is the one single asset that must be maintained.