Identify products that can be made available to your patient base
Reading Time - 4 min
Why you should spend 4 minutes reading this:
Premium products can increase your bottom line by 5-15%
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Businesses that take up physical space have as one of their basic goals, to maximize the long-term revenue generated from the customers that walk-through their facilities, with the constraint, that the revenue generated is less than the cost to provide that good or service.
Your practice/clinic takes up physical space.
Outside of your current products, what can you offer your patients that:
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They want
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You can provide
In order to understand what your customers want you will need to understand two things:
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What products are other practices/clinics offering patients that you have not considered?: Easy Win
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What other "health-related" products are your customers looking for?: Hard Win
Services vs. Products:
Typically, care providers offer a service. As reimbursement rates on services continue to decrease, products could provide an opportunity to increase your bottom line. Products are also typically non-operational and easy to re-produce which could give you a situation where you gain a lot from a little effort (high impact/ low lift)
Many practices/clinics do not regularly offer products.
You may be in the position where you do not need to offer products today. If so, that is great!
As a reminder though:
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In the long-run you, will experience compression from reimbursement decreases and cost increases. There may come a day when you’ll need to do this and you may miss the opportunity to control your options.
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If your patients want a product, not offering it to them could compromise their ideal care. Also if your patient really wants it, then someone else will benefit from the sale.
Dermatologists make a significant portion of their income from products. There is no reason why that can’t apply to you.
Once you develop a list of potential products, you will then have to rank them via the impact/lift matrix.
With your ranked list, it's time to start testing.
Effectively communicating value to customers is the challenge most businesses face. In the end, it’s all “sales” and you’re either being sold to or selling.
The benefit here is we have countless industries that have perfected the sales process.
If you're looking to increase your revenue via products let us know below.
High-level actions you can take based on this article:
1. Understand what premium products are already being offered by similar groups
2. Discover what new premium products can be offered by your group
3. Develop operational teams to roll out premium products
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Articles if:
I am a physician in a practice or clinic
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