Provide supportive products that will allow all patients to reach their
maximum biomechanical and nutritive levels of improvement
The contemporary chiropractic practice is quite different than the
practice of 20 years ago. Back then, many chiropractors were comfortable providing
treatment and billing insurance companies. Many of us did very well. In todays
climate, however, we need to have leaner budgets, provide better education to our
communities, and document everything we do. Certainly, this is not a time for the weak of
heart to practice.
Secondary Profit Centers
In todays practice, we need to educate our patients better and provide the
services and products they need. This is uncomfortable for some chiropractors, but to
answer the needs of todays public, we must expand our horizons.
As Ive said to DCs so often in my seminars, dont be the obstacle between
your patients and the products they need. I frequently hear, I dont want to be
a salesperson. Well, whether you like it or not, youre in the business of
selling health. And under the umbrella of health are many products that complement the
services you are providing. If youre going to assume the role as their health care
provider, you need to get over any issues you may have with regard to selling products,
and step up as a responsible provider whose primary concern is the welfare of each and
every patient.
Before setting up any product display, think in terms of what products will best
complement your philosophies of health. For example, in my practice, we use many
nutritional products, custom-made orthotics, shoes and sandals with orthotics in them,
pillows, exercise equipment, lotions and sprays for muscle relaxation, and displays that
present them most effectively.
The products must be displayed prominently and attractively, and must be neatly
arranged in an organized, uncluttered manner so the patient can hold the products in his
or her hands, read the packaging or labels, and examine them closely without feeling
rushed. The days of the doctor providing health to a patient, especially if he
or she has a great insurance policy, are long gone. The doctor must truly work, educate,
and motivate daily, and then provide the necessary products to allow an individual to
improve. This store must be part of your office, preferably in your waiting
room.
Marketing Opportunity
How many stores would cherish the opportunity to have 30120 people per day
come through their doors by appointment? Not only that, but these appointments are for
people who have specific health needs and the desire to get better. As the old slogan
goes, Find a need and fill it. If youve ever referred out for a
lumbo-sacral support or some specific nutritional supplement, youre missing the boat
on total patient care and net profit. We need to provide all of the supportive products
that will allow all patients to reach their maximum biomechanical and nutritive levels of
improvement.
Business Darwinism
Business Darwinism dictates survival of the fittest. During
challenging economic times, the fittest businesses are often those who can diversify the
fastest. For example, traditional product companies can generate additional revenue by
expanding to offer customers services that they had previously been forced to shop for on
the outside. Similarly, service-oriented businesses, such as chiropractic practices, must
diversify to offer for sale products that are related to their services.
Technically, this is known as scrambled merchandising, a concept that modern
chiropractic should embrace as a key to growth during a time when many competitors are
simply struggling to survive.
Four Elements to Scrambled Merchandising
Four elements should be considered for a successful scrambled merchandising
program in a chiropractic practice:
Consumer needs. The products offered must be consistent with the needs
or desires of the patients. In other words, they must be products the patient wants.
Ideally, the products would be available in many alternative retail locations; however,
purchasing them directly from the chiropractor offers convenience and a higher level of
trust in the product.
Figure 1. Displays such as this one for orthotics should be
neatly arranged and uncluttered.
Displays. The products must be displayed prominently and attractively,
according to accepted rules of retail merchandising. All products should be neatly
arranged in an organized and uncluttered manner. Many companies provide displays to
accompany their products. We have the orthotic display (Figure 1) in our waiting room as
well as in our report-of-findings room. When possible, supporting full-color posters and
advertising slicks should be incorporated into the display area.
Personal recommendations. The products must be backed by a personal
recommendation from the trusted DC. Often overlooked as a marketing strategy, the personal
recommendation is arguably the most powerful sales tool a product has. Consistent with
this, of course, is the quality of the product. The chiropractor must make every effort to
offer the finest-quality product available anywhere to the patient. Additionally, when
possible, a full array of written supporting information should be made available to the
individual patient. Written supporting material reinforces the personal recommendation and
simplifies the question-and-answer phases of the sale.
Pricing. The pricing of the product must be competitive,
straightforward, and easy to understand. All products should possess price tags or marked
prices clearly visible on their packaging. While discounts on individual products are not
necessary, ideally, the patient should be given some measure of control over the pricing.
For example, an item that retails for $9.95 might be made available for $9.95 each or
three for $24.95. Patients who have at least partial control over pricing are far more
likely to buy than patients who are forced to accept a single price.
Building a Store
To make this retail outlet as successful as possible, DCs should consider several
aspects in preparation:
Compatibility. All products should be compatible with the philosophy
of the doctor and the office. Categories such as sports medicine, geriatrics, industrial
medicine, and pediatrics will dictate the products sold. For example, in a pediatric
office, backpacks, nutritional products, pediatric orthotics, and simple postural exercise
products would be the best to sell. In a geriatric office, supports for the neck and low
back, nutritional products for arthritic conditions, therapeutic seat cushions, analgesic
rubs, and custom-made orthotics would be good products to sell. Whatever the DC wants to
sell, many products will support the message and provide needy patients with the tools to
get better.
Presentation. When the specific products are determined, displays need
to be purchased to help sell the products. They should be displayed in a well-lit area,
and they should be set up in a way that is very appealing to the eye.
Professional advice. Provide staff training so that everyone in the
office is familiar with the products that are being sold. With prices visible, the patient
simply wants to know some of the specifics about the product. Confidence goes way up with
products that are offered in the DCs office, but supportive literature will allow
patients to make a buying decision with less interaction with the DCs or their staff.
Successful planning. Inventory should be plentiful to start the store.
More visible inventory usually encourages buying. A DC should begin this profit center
with a business plan and an outlay of capital to build it correctly. Product, supportive
literature, displays, and proper lighting will dramatically help in sales.
Inventory control. Management of inventory becomes a new position with
this secondary profit center. There are many systems, but a once-per-week check by a staff
member will keep all products fully stored for display. Keep overflow and new inventory in
a back room. Never let the visible inventory go below a certain level, as this shows
weakness to patients.
Separation of practice and profit center. Statistics on sales should
be kept on this separate profit center. This department should be marketed and handled
independently from the other services that are provided in the office. This will allow
more specific modifications to both marketing and support needed for these products.
Review. Periodic reviews should be made to determine if every product
is selling at a successful level. If a product is not selling, try to determine specific
reasons. Is the accompanying informational material confusing? Are the products being
displayed in an area of the office that is difficult for patients to see or access? Are
displays being kept fully stocked?
Certainly, over time, we will all become better retailers when we offer these products
in our office. However, the other upside is increased income with increased service to our
patients. Patients will always respect products bought at their DCs office much more
than products bought at the local drug store. Its our responsibility to make sure
these products are the best, and recommended appropriately to each patient. DCs who
undertake this approach will quickly learn the many benefits that accompany a greater
responsibility, such as selling products to patients.
Expand your horizons and help your patients and your practice. Youll be thrilled
you did. CP
Timothy J. Maggs, DC, specializes in sports and industrial injury management and is
a graduate of the National College of Chiropractic. He writes and speaks at numerous
engagements. He can be reached via email: runningdr@aol.com,
or via his Web site, www.drtimmaggs.com.