Cliff's Notes

The Business of Dentistry

Convention Pre-Orders Get the Best Deals, The Price of Compliance & The Sleeper Companies.

Cliff’s Notes NY 2010 Pre-View

 

….. E-Blast…..

 

Cliff Marsh, Henry Schein ……Cell: 201-321-7494……Fax: 201-262-2210…..E-mail: cliff.marsh@henryschein.com

http://www.cliffsnotesblog.wordpress.com

 

 

“Start Spreading The News, I’m Leaving Today, Going to Make a Brand New Start of it in Old New York”

Frank Sinatra

 

 

Greater New York Dental Meeting 2010 Specials Start Today!! 

Part #1

 

In This Week’s Issue

* Pre-Ordering Gets The Best Deals!

* The Price of Compliance & the Need to Analyze!

* The “Sleeper” Companies, Cliff’s Picks!

 

 

 

New York Convention Deals are Best Pre-Ordered………………………………..

When my clients ask me the best day to attend the NY Show (unless you’re taking a course) I tell them Monday that’s if you are just attending to see the exhibits to see what’s new. But the best deals, starting next week, are before Thanksgiving Week. Let me explain.

 

The 4th quarter for any business has to be the most focused. It is the year end and sales need to be maximized to fund the upcoming new fiscal year. Your business is no different, that’s why you send out insurance letters (use it or lose it). Manufactures are motivated to exceed budgets to capture sales. Unless you are the type that really doesn’t care what materials you use, attending the convention just to get a “better deal” is anything but business productive.

 

Most dentist think that going to the show saves money, well, think about it, it costs $100.00 just to go into the City for the day. Now if you’re looking for equipment and want to kick the tires a few times, great! But if you are looking for deals on consumable products, it may be a cost effective method.

 

For example, if you are thinking about trying a new composite, let’s say something from the VOCO line, you will get a better deal in your office because the Mfg doesn’t want you going to the show to try the Ivoclar line. If you are using a 3M product, the local rep wants it in your office before the show so you don’t consider Dentsply. Above all, use your head when buying!

 

Let’s talk about cash flow and bulk buying. I don’t know any dental office that bulk buys correctly. In fact, in most cases when you think you’re saving money, you may actually be losing. You need to look at your inventory as a profit center. If it sits on the shelf, it is costing you money. Also, most offices think they use more than they really do and end up with too much and now your worrying about expiration dates. If the deal saves 10%  it is worth a 60 day supply. If the deal saves 15% don’t buy more than a 120 day supply. Quantity purchasing for more than 120 days needs to be evaluated very carefully.

 

Now let’s go for the 15% deal. The deal is a 15% discount on the price and a 10+1 from the manufacturer. You may be able to arrange (depending on the item) to buy & receive half the order today and the balance with the free goods during the NY Show. That allows you to spread out the expense, reduce shelf time and increase cash flow. That all leads to increasing “Retained Earnings”. AH…..there’s that phrase again, don’t you just love it? In the real world, a 10+1 deal won’t get much better, but 2 of the deals will get extra considerations.

 

Plan your purchases buy priority and fit them into a budget. Make your bulk purchases according to shelf time. The value of your cash flow should determine if a deal is good. If your financial advisor tells you that your cash flow is worth 8%, then you need to look at merchandise deals that will save you 15%. You are losing about 1% of value for every 30 days a product sits on the shelf. For more discussion on this issue, please feel free to contact me at any time via my cell phone or e-mail.

 

Finally, always buy from an authorized distributor, because, if you buy too much and you are approaching expiration dates, the local rep can help you out. Also, you will know that you are getting OEM product that is fresh and backed by extensive liability insurance.

 

 

The Price of Compliance & the Need to Analyze………………………………

Portions of the following information was provided by Leslie Kwoh, Star-Ledger Staff, in an article published in The Record on Saturday, September 25, 2010.

 

“Small businesses bare most of the burden when it comes to federal regulation, according to a report released in mid September. Firms with fewer than 20 employees paid on an average of $10,585.00 per employee in regulatory fees in 2008.compared with $7,755 for businesses with 500+ workers.”

 

“The report also found that compliance fees weighed most heavily on manufacturers who paid on an averages $14,070.00 per employee because they are hit with more environmental rules than other industry groups.”

 

“Government regulation has become a contentious issue in recent months, with small business advocates contending they further strain companies at a time when sales are already lackluster.”

 

Dental offices are no different. They fall into the small business class. Regulatory compliance is part of your overhead and needs to be organized and controlled. All of the dental offices I work with have issues of non-compliance. HIPA & OSHA are always problems and most don’t understand “Best Practice” policies with regard to waste management. Compliance can be costly, however, if organized correctly it becomes a manageable expense. It will be much more expensive to pay the fines for non-compliance.

                                                                       

A compliance professional and a certified review can also make a big deference in the value of your business and may lead to a reduction or stabilization in insurance rates. For more information or referrals, please contact me at any time at 201-321-7494 or by e-mail.

 

Log onto http://www.healthcomplianceteam.com

 

 

The Sleepers (Part #1)…………………………………………………………

The “Sleeper Company” of the week is Pulpdent Corporation of America (PCA). Pulpdent is one of those small companies has developed some of the best products and markets them at very competitive prices. Their porcelain repair kit is (in my opinion) the best on the market. After years of proven success and compliments from everyone that uses it, I recommend the kit with no hesitation.

 

Pulpdent is a company dedicated to R&D and innovation. Please follow this link with special attention to the “Embrace Restoration and PFM Repair Kit” (Schein Part # 3840489). The kit sells for about $100.00 and can accommodate as many as 6-8 procedures. Please contact me directly with any questions and concerns.

 

http://www.pulpdent.com

 

 

Cliff Marsh

Henry Schein Dental

P.O. Box 663, 45 Rt. 46 East, Suite 605

Pine Brook, NJ 07058

tel. 201-321-7494

fax.201-262-2210

e-mail. cliff.marsh@henryschein.com 

 www.cliffsnotesblog.wordpress.com 

Advertisements

October 17, 2010 - Posted by | Uncategorized

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: