Speaker has no relationship with any suppliers other than being a customer.
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1 How Everyone Wins When Customers Can Buy Equipment From the Private Practice; A Great Way to Improve the Bottom Line! Keith Glasser MSPT, Cert MDT, CEO Optimal Results Physical Therapy Portland, Oregon Speaker has no relationship with any suppliers other than being a customer. 1
2 Context of Presentation Optimal Results Physical Therapy Located in downtown Portland, Oregon Key Philosophical components Collaboration Self Referral Infinity Less is better; the less visits per patient the better Customer/Client/Patient Satisfaction A few statistics on the practice. Customer Satisfaction Average number of visits per customer 2
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6 Payment for Products In Oregon some products are paid for by select insurers. Worker s Compensation Motor Vehicle Accident The vast majority of products are paid for by customers/clients/patients. These individuals are motivated to get better. Usually are more than willing to buy a few inexpensive products. What is the key term for customers to buy products? The Big M 6
7 Interactive Presentation We want to learn from each other COLLABORATION Please comment and ask questions as I go along. Key takeaways are: What products would fit your practice? How much could/would you invest in inventory? Is there adequate storage to stock products? Are there reasons not to rent and sell products? Who knows what the big M is? Who does this relate to? Why Sell Products? Why not? How can we not?! Value added Additional Profit Profit sharing option for PT COMPETITION Amazon, Sporting Good Stores, Target, etc. Are we competitive with other suppliers? Is Inventory necessary? 7
8 Renting Products with the Rent to Own Option Equipment Rental Form What can you rent? What will make it easier for the customer to get better faster while having fun doing it? What products do we rent? Body Blades 2 different models CxT Classic Sport grips UE Ranger Not currently rented at this clinic, but could be a viable option. Game Ready, etc. Another option? Does your practice know of other products that would be beneficial to patients that could work? Optimal Results Equipment Rental Form 8
9 Body Blades Who wants to help out? Why would this be a great product for a number of diagnoses? Optimal Results Body Blade Rentals $20 rental fee Completion of Rental Form Rental Form is attached. Feel free to use or adjust accordingly. Number of Body Blades purchased in the past year: Cases of CxT s Cases of Classics Now that we know how to offer a product for rent, what would we have to invest to bring them into a practice? Each case includes 12 body blades Cost of a case of 12 CxT Cost of a case of 12 Classics Selling Products Does your staff have the ability to offer products of sale? Does your staff believe this would be beneficial for customers to buy products from the practice? Do you want to offer incentives to promote products? Per item Per year Use a % of the profit for a party or year end bonus? Product sales are totaled each month A certain amount per item sold is paid to the PT s. For equipment rentals there is no payment to the PT s. 9
10 Exercise Balls Products We Sell Lumbar Rolls Cervical Rolls Rubber cables for UE Rubber cables for LE Massage and Soft Tissue Products Massage sticks Sprint Stick Power Stick Trigger Wheel Foot Wheel Foam Rollers One model only Peanut massagers Lacrosse Balls 10
11 Foot Products Correct Toes Toe socks Metatarsal Pads Special Category Lems Shoes Potential future products A hiking or running sandal Equipment Sold at Optimal Results Equipment Price ($) Equipment Price ($) Massage Tool Accupoint 15 Theraband 5 Foam Roller 40 Massage Roller 16 Ball Pump 5 Kinesio Tape 12 Body Blade Classic 99 Lacrosse Ball 5 Body Blade CxT 70 Leg Cable 10 Arm Cable 10 Lems Shoes 95 Cold Packs Jump Ropes (All Lengths) 12 Compression Sleeve 60 Shoulder Pulley 10 Correct Toes 65 Massage Tool Powerstick 45 Cervical and Lumbar Rolls 20 Superband 20 Door Band 20 Skillz Ladder 30 Exercise Balls (All sizes) 20 Sport Grip 20 Foot Roller 18 Massage Tool Triggerwheel 20 Ininji Socks 12 Yoga/Pilates Mat 22 11
12 Additional Products Sold Product Price ($) Aloe Vera Capsules Badger Balms 3 14 Cacao Powder Raw 16 Cashews Raw 7 Chaya Tea 8 Chia Seeds 10 Palm Sugar 10 Sun Warrior Protein 2 30 Trail Mix 6 Suppliers It is all about QUALITY relationships. It is all about QUALITY products. It is all about the PT Practice being a QUALITY Provider LIFETIME CUSTOMER MEANS.. When product order is received, all bills will be paid immediately or within 2 weeks. Quick pay and regular orders mean you are a valuable customer. Order by the case or in quantities that make it easy for all involved. 12
13 Customer Responsibility (The PT Practice is the Customer) Relevant background of my life before becoming a Physical Therapist Business experience in: Manufacturing Manufacturer s Representative Unique relationships What s In It For Me (WIIFM) You always need to know this. Challenges There are always some. Relationships are important Suppliers need to know you. Visit at shows. Discuss ideas. Ask them how you can be important to them. Sales People If they are good, they can be a huge asset for this part of the practice. Relevant Stories Textile Business Bakery Business Wisconsin Cable Supplier The mind set of all suppliers Work with ethical and easy customers The PT practice is the customer. Payment for Goods When product order is received, all bills will be paid immediately or within 2 weeks. Or pay by credit card when you order Quick pay and regular orders mean you are a valuable customer. Spend time discussing options with the suppliers. Let them know that you value and appreciate them. Discuss the best way to order for the best price. Let the supplier know you want to make it easy for them. Remember to be consistent by placing orders by the case whenever possible. Develop an efficient inventory system. The attached inventory list allows for an inventory to be completed in 30 minutes or less. 13
14 Example of Optimal Results Inventory List Types of Suppliers Manufacturers and Importers Wholesalers Wholesalers Direct Sales People Wholesalers Representatives Why could this be relevant? How could this be relevant? How can you determine what type of supplier they are? Could they be a combination? 14
15 How to Buy At the Best Price All UE and LE rubber cables come in multiples of 20 cables per case Sale price is $10 per cable Patients are able to exchange cables for higher or lower resistance levels Exercise balls in cases of 10 per size Sale price is $20 for each size Sizes: 45 cm 55 cm 65 cm 75 cm Body Blades are in cases of a dozen Rental is $20 CXT is $70 for purchase Classic is $99 for purchase Massage Sticks Story about low quality vs. high quality Massage sticks from our supplier are a customizable set of 12 sticks Prices range from $20 to $45 Branded sticks are also available Through this supplier, buying in bulk saves the clinic another 25%. Massage sticks can be ordered in 2 lengths Trigger wheels Foot wheels Lumbar Rolls 50 rolls per case: Lead time 4 6 weeks Sales price $20 Custom Products Cervical Rolls 50 rolls per case: Lead time 4 6 weeks Sales price $20 15
16 Return on Investment Determine what ROI is desired Determine the initial investment per line of product See Optimal Investment on following page Determine what products customers would purchase Determine the skill set of the Staff Determine what training would be required My experience is to review with each staff member how they could offer the products for each type of patient; which type of exercises the products would optimize efficacy. OPTIMIZE EFFICACY OPITMIZE EFFICACY OPTIMIZE EFFICACY Belief in Products Values and Benefits They Give to the Customer If you expect customers to buy something from you. The PT needs to believe in the value unequivocally! The customer needs to know how to use the products and understand the value Education and collaboration between Clinic, PT and Customer. Learn how to offer WITHOUT ANY PRESSURE 16
17 How to Present Other Products to Customers Rubber Cables Leg Cables Exercise Balls Customers love buying balls from us Massage sticks Questions or Concerns? 17
18 Take the next 7 minutes to come up with a supply plan. Choose 3 products Cost per SKU Sales price per SKU Determine if Rental or Sales Plan to train to staff Then we are going to choose 2 3 practices to present their plan in a 3 minute presentation. Discussion Does this plan fit your practice? Can you offer products that customers will purchase? What if you lose $1,000? What is the cost of the optimal inventory at any given time? Would such an investment be worth it? 18
19 The Future of PHYSICAL THERAPY PRIVATE PRACTICES WILL WE GROW AS A GROUP? WILL WE HAVE THE PROPER LEADERSHIP? WILL OUR PT SCHOOLS TEACH OR EXPOSE NEW GRADS TO THE OPPORTUNITIES FOR PRIVATE PRACTICE? WILL WE ALLOW MEDICAL PRACTICES TO BE CORPORATE CONTROLLED? WILL WE PROMOTE COMPETITION? THE BIG KAHUNA : SELF REFERRAL SELF REFERRAL SELF REFERRAL Thank You! Keith Glasser MSPT, Cert MDT, CEO Optimal Results Physical Therapy 511 SW 10 th Ave, Suite 101 Portland, Oregon Keith@optimalresultspt.com 19
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