Supplements – Control Your Inventory!!

Selling supplements in your practice can make you quite a bit of money. However, mismanaging that inventory can cost you a lot of money. 

Recently, I worked for a physician whereby we renovated their entire business flow. What happens when a patient walks in the door until when that patient is rescheduled for follow-up. As I was going through their records, I came across a room inventoried with shelves of supplements. I didn't even know they sold supplements. They weren't displayed anywhere. There was nothing indicating this on their website. But, here in this room were literally shelves of product. And you know what? They were all expired.

The picture represents 1/3 of the products we threw out in the garbage from this practice. It’s a shame that money was lost.

If you choose to sell supplements, do not allow the vendor, or sales representative, to drive your business. They are primarily concerned about selling their products and increasing that amount on a monthly basis. You have to have a firm strategy in place for your practice.

Here are four principles in selling supplements:

1. Your inventory should apply to 80% of your patient base.

You want to inventory items are applicable to your base. Keep it simple. Avoid the lure of having the latest and greatest realizing it takes time for not only you and your staff to move new products, but for patients to change their buying habits. 

2. Your inventory should turn every 30 days.

Meaning, what you buy from vendors should sell within 30 days of you receiving it.  Over 15 years ago, the automotive industry taught us in their ISO-9000 standards that inventory management is a must and supply must meet not exceed the demand for bottom-line profits. Learn from this industry. If you have product on the shelf for more than 30 days, send it back and replace it with the stuff that moves! 

3. Utilize 3rd party venues for the other 20% of patients.

If you think you need to inventory everything under the sun, you are stuck in the 90's. There is no reason you need to put up cash resources for products that only are purchased by a fraction of your patient base. You're wasting cash resources. Instead, look into 3rdparty vendors that warehouse these products and can sell directly to your patients. You may not make as much profit, but you can make something and still maintain your primary focus of helping patients and keeping your bottom-line protected. 

4. Market your products.

You’ll never sell something if folks don’t know you offer it. You need to feature these products in your clinic, online and on social media. There should be notices sent out to patients on new products, educational material in your clinic, and testimonies from your patients on your website. Reach out to your vendor and ask them for help marketing their products. They have resources for you to accomplish this goal.

The supplement environment is constantly changing with new products and wares available to you. Don't be a sucker and buy every shiny new product that comes to your office. Be focused, have a strategy and stick to it! If you do not, make sure you have enough boxes to throw out your expired products.