Do It Now! Part One

When we returned from our vacation we found two weeks mail and two weeks newspapers all waiting to be reviewed. For a very pleasant change, rather than the usual “gloom an doom” reports, the mail we received was actually all upbeat. It appears that the recession is starting to melt away. Many new jobs were found, stock values rose and there was a small increase in jobs. Despite the cost of gasoline rising, people have started to shop and go out for dinner and entertainment.

I read through all the financial articles and I have three words to say; “Do It Now.” While the economy is beginning its rebirth, so must you.

Many DME/HME principals have spoken with me about hiring another outside person. Yes, do it now. Stop by your local college and request them to send you a few students to interview. You are offering an entrance level job where they will be learning a new industry and building a career. This is a job with a bright future. As your new employee absorbs knowledge your sales will grow and so will their salary.

I have been preaching this hiring and training program and invariably it been one of the most successful accomplishments of many entrepreneurs.

Since Medtrade is very close get that new hire on board ASAP.  A big part of their education is to make them even more successful. You will assign the seminars they should attend and they will accompany you as you negotiate programs with the exhibitors. This is a fantastic opportunity for your new salesperson.

Now, before costs start rising again, you will be able to increase your business dramatically. As others are waiting for the economy to become “better”, you will actually be making giant steps forward. There will be expanding volume and profit for your company. DO IT NOW! 

Get Connected and Unite the Industry:

Register for Medtrade 2012:  www.medtrade.com

Follow Medtrade on Twitter: www.twitter.com/medtradeconnect

"Like" Medtrade on Facebook:  www.facebook.com/medtrade

Connect with us on LinkedIn by joining the HME Network Group: http://www.linkedin.com/groups/HME-Industry-Network-1225227/about

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.

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!

Cash Sales Promotion and Focus!

Medtrade October 15-18

The market is dramatically changing; DME/HME providers and dealers are seeking OTC cash sale opportunities. They can no longer depend on CMS, Medicare or Medicaid. So, the folks at Medtrade are guiding the exhibitors to make cash sale programs an important part of their displays.

This need for cash sales is so important that Medtrade is setting aside 4,500 square feet of the exhibition floor as a HOME & RETAIL DESIGN CENTER. Do you realize how big this space is? You can definitely expect to see many new ideas and products!  You can also read more here: Click Here

You must keep all your Medicare and Medicaid customers. Experience has taught us they all have family caregivers who are looking for comfort items to allow them to maintain their own domicile. We are very aware that most Medicare clients have disposable dollars in their pockets and are looking for the same products. I know this is true because at more than 85 years old, I attend many meetings and speak to all my cronies. Finding comfort items is always a topic.

A couple of weeks ago I received a call from a dealer in Ohio. I was told his company sponsored a discussion on “Caring for the Elderly, Mom and Pop.”  He invited two local physicians to speak. They each delivered a brief message. The rest of the allotted time was spent answering questions from the audience. I was told that the response to this was fantastic. He felt that scheduling it from 9:00 AM until noon was sufficient.  He plans to do it again. He also invited many of his vendors to set up small displays with samples and hand-outs. Did this pay off? Yes!

Let this be your guide to many new sales and additional profits. At Medtrade you can arrange with the manufacturers for their aid in doing a promotion along these lines. Plan to visit the Home and Retail Design center and be sure that many of your staff as possible will view the same. 

I recommend that you make the investment necessary to bring staff members to Medtrade. Experience has shown us that there is a very large ROI (return on investment) when you bring them with you. 

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!

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!

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.