DME Providers Need Pain Relief, Too! Top Way to Be More Profitable

It's 2010 and the world is out to get you. At least that is the way it seems. With a sluggish economy, health care reform, competitive bidding and the looming threat of alien invasion, you may just be at your wit's end.

Ok, maybe the alien invasion part isn't a real threat, but you get my point. It is tougher than ever these days to survive as a credible durable medical equipment (DME) provider. So what's a DME professional to do? Take two aspirin and burry your head in the sand?

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As with all challenges and crossroads in life, there is an opportunity to focus either on the bad or the good. Is the cup half empty or half full? Do you see only the dirt on the ground or do you gaze upon the stars in the sky?

I'll spare you the cheesy, motivational discourse here. Suffice it to say the future is in your hands. It is up to you whether to let the current challenges ruin you or make you stronger.

One of the best things you can do is broaden your business paradigm. What new paths can you take to become more profitable? What other products can you add to your repertoire? How can you do what you are already doing more efficiently?

For example, if your DME sales model is centered on supplying and servicing oxygen, perhaps it is time to diversify. Spend some time searching for other durable medical equipment you can sell. Maybe it is wheel chairs, maybe bracing, maybe beds, commodes or electrical therapy units.  Only you will know what product or service is right for you. But keep in mind that while some products seem to be the target of Medicare cutbacks, others are seemingly under the radar. Such is the case with qualifying back braces.

The answer to survival may not be just in adding more products. Take a look at your company's practices. Look for ways to save on expenses. Bringing your cost of sales down is equal to making more money on each product: You get to keep more of what you make!

For example, you may be able to cut some of your travel expenses by requiring your salesmen to make better use of the phone. And when on the road maybe they don't have to stay in the Hilton. Perhaps the Hampton will do just fine.

Also take this opportunity to shop your wholesale suppliers for a better price. In a tough economy you are likely to find product similar to what you already carry but at a lower price. Don't be too hasty in switching suppliers though. Do your homework to make sure they are credible and won't leave you hanging without product when you need it most.

Lastly, go through your profit and loss statements. Look at each expenditure and identify ones that can be cut by 5 percent or more. Small cuts can add up to big savings and a healthier bottom line.

DME Providers Need Pain Relief, Too! Top Way to Be More Profitable

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