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Philosophy


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Philosophy Your Horizons

by Timothy J. Maggs, DC

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 today’s 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 today’s 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 today’s public, we must expand our horizons.

As I’ve said to DCs so often in my seminars, don’t be the obstacle between your patients and the products they need. I frequently hear, “I don’t want to be a salesperson.” Well, whether you like it or not, you’re in the business of selling health. And under the umbrella of health are many products that complement the services you are providing. If you’re 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 30–120 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 you’ve ever referred out for a lumbo-sacral support or some specific nutritional supplement, you’re 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 DC’s 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 DC’s office much more than products bought at the local drug store. It’s 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. You’ll 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.


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