Is the storage room in your clinic full of unsold inventory?
Do you have a cabinet full of knee braces that have been sitting there for quite sometime? Five different sizes, 2 different colors, as well as different fittings (left or right)?
Having to hold inventory can be costly and extremely frustrating for clinic owners - not to mention it takes up valuable space that could be put to better use.
Here's the thing...
In order to sell products to patients, you don't have to hold inventory at all!
That's right. You can use a 'no inventory' model to get patients to purchase therapy products up front with zero cost to you. Since selling products can boost your revenue by an extra 8%, it's definitely worth the effort.
Let's talk about how you can do it.
#1 Sell your knee brace before you order it
Products such as knee braces or ankle braces are quite expensive and they also come in various different sizes, as well as left or right fittings. So you really don't want to tie up your cash in inventory by having to store these items.
Instead, you should order directly from the supplier once the patient agrees to purchase.
The best practice is to have a few products on hand for demonstration purposes so you can show the patient the product. You measure the patient for fitting, then get the patients approval to purchase the product.
They pay for it directly at the time of their physiotherapy, massage or chiropractic treatment. You order it directly from your supplier and the product should be at the clinic before the patient's next appointment.
Now you can profit from selling knee and ankle braces without taking the risk of buying inventory.
#2 Find an honest supplier who can ship with no minimum
If you want to use the 'no inventory' method, you have to find a supplier (like CSC) who has all the brands available and allows you to make orders with no minimum - meaning you can go ahead and order a single item.
This way you never have to hold any inventory and can simply order on demand.
Make sure the supplier you choose is reliable and can deliver your product in a timely manner. The last thing you want is to make the patient wait - you absolutely do not want this to happen.
#3 Include a fitting fee in the price
You're providing the professional expertise to spend time with the patient and ensure that they choose the right item, that the item fits properly, and that they are wearing the item correctly. Therefore, be sure to mark up the price of your item to include a fitting fee.
Explain the inclusions to the patient and they will be more than happy to pay for the additional service. Outline that you will do a pre-fitting service to ensure they get the right item to support faster recovery. And then explain that on their next treatment you will fit the item and show them how to wear it correctly.
When you bundle the fitting fee into the price in this way, it will also pay for the shipping cost of that product, too. This means you don't have to store the inventory and you're laying out zero cost.
#4 Demo the product and it will sell
Though it's not good for your physiotherapy marketing budget to keep a large store of products, it is important to store a small inventory of items so you can give patients live demonstrations.
People like to touch, feel, and get a close look of products before they make a purchase decision, so this way, it will help you sell more items.
#5 Limit inventory to only best sellers
Let's face it, inventory is expensive.
The more inventory you hold, the more susceptible you are to inventory shrinkage. Employee theft, shoplifters, damaged merchandise, and administrative errors all impact the bottom line.
One of the most effective ways to minimize inventory shrinkage is to limit the types and amount of inventory on hand. The only products you should consider having in your inventory are high turnover items that are "one-size-fits-all" such as tens machines, thera-bands, heat packs and foam rollers.
#6 Beware of shipping and return policies
When it comes to the 'no inventory' method, one thing that can pull all your good efforts undone is getting hit up for additional 'hidden' fees you were unaware of.
Always be sure to check the shipping and return policy of your supplier.
Does your supplier offer you a hassle free return policy or do they charge a 20% restocking fee for returned merchandise? Are there additional fees for minimum orders?
Here at CSC we have a no hassles return policy - if you or the patient isn't satisfied with the product, you can return it for a full refund, no questions asked and no extra costs.
Not all services are like this so just be sure to check the policies before you go into any deals with your supplier. The idea here is you want to make money with the 'no inventory' model, not the other way around!
If you want to try our service, get in touch and we'll be more than happy to get you started.
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