Luck or Pluck?

American writer Ralph Waldo Emerson once wrote, “Shallow men believe in luck. Strong men believe in cause and effect.” The home medical equipment industry contains some of both types of businesspeople. There are those who complain about “bad luck,” and if it were not for bad luck they would have no luck at all. Then there are those HME dealers — “the entrepreneurs” — who never speak about luck at all. Instead, they talk about the tangible activities they participate in to build their businesses.

I would like to pass along some of those business-building activities.

Staff: The entrepreneurs have staff members who contribute directly to the success of their companies. They hold regularly scheduled staff meetings where staff members feel comfortable sharing ideas that they believe will help make for better profits or larger sales.

Display: Several smart dealers have followed the example of the mass marketers by creating large displays — placed in a prominent spot — for over-the-counter items. The dealers frequently change the displays to showcase new products. Their customers look for these new items — and the number of impulse sales generated by these promotions has created a great return on investment.

Greetings: The entrepreneurs always greet their customers. They make sure to have employees working the showroom floor who will use the five magic words: “May I help you, please?”

Successful HME dealers know it is imperative to acknowledge every customer who enters the showroom. This act is so simple; yet, when I visit dealers, I continue to see customers wandering aimlessly about and then walking out — without making a purchase.

Mail: Dealers who send out a monthly newsletter that includes one or two specials report great results. Their monthly newsletters are usually filled with helpful hints, maybe a bit of humor, and other useful information. The newsletters are “branded” with the companies’ names, and are mailed or e-mailed to their customers.

Those dealers who distribute newsletters say the number of “thank you” comments the newsletters generate make them invaluable. Even better, these dealers usually notice an increase in sales for the specials promoted in the newsletters.

Thank you: Some entrepreneurs send a brief thank-you card to customers for every sale other than those for routine OTC items. This card should be handwritten and personalized so that it is unique to each customer. DME dealers who engage in this practice say it leads to loyalty and referrals.

Here are some other hints from the entrepreneurs:

When you help someone out, you will profit. There is no better advertisement than a satisfied customer.

Listen. If you listen carefully, your customers will tell you exactly what they want and need. Then you will make the sale.

Believe in your company and in yourself. No one knows your needs, your skills and your goals better than you do.

Always be positive and enthusiastic.

Work with “zest.”

If you still believe that “luck” will keep your business growing and strong, then you’ll have to make your own. As President James Garfield said, “A pound of pluck is worth a ton of luck.”

Sheldon “Shelly” Prial is a partner with HPS Healthcare Management. In 1987, he founded the Homecare Providers Co-op, now part of The VGM Group. He can be reached via e-mail at [email protected] or via phone at 888/367-7208.