Issue link: https://read.dmtmag.com/i/40005
20 Smart Talk SERVICE DEPARTMENTS Avoid billing black hole BY DICK FULLER Q. Why is "average repair invoice" so important? A. This number will be one of your first indications that you may not be billing for all of your labor. This happens often, espe- cially with wheelchairs. Techs, by and large, are a conscientious bunch, and if they see some minor adjustments that need to be done (wheel locks, footrest height) they will most likely go ahead and take care of it and oh yeah, let's replace that missing cap on the fork while we're at it. While the primary job is routinely billed, it's the lit- tle things that often don't get noted by the tech, with this work being swallowed up in a black hole, never to be billed. This isn't to suggest that the tech is entirely at WWW.HMENEWS.COM / SEPTEMBER 2011 / HME NEWS fault. Other factors: (1) "That's the way we've always done it"; and (2), not enough time for the tech to compose several paragraphs of tech-lingo. The result, especially with complex rehab, is that we often dumb-down the work that was actually done and reduce the explanation of what we did to something like "replace parts as listed, one hour." Money left on the table. So, how much should the average repair invoice be? You probably won't like this, but it depends. First, you need to know your cost of doing business (CODB) per hour for the repair shop, with all costs loaded, including allocations of other staff provid- ing repair support and overhead. And, you need to know the proportion of labor vs. parts for a typical repair. Armed with that, now we can determine what average repair invoice needs to be and set break-even levels for labor billings. Plus, problem areas will stand out, and the newly- acquired data enables us to set meaningful benchmarks accurately. HME Dick Fuller is the owner of Richard Fuller Consulting. Reach him at fuller@rfullerconsulting.com or 636-451-6220. CUSTOMER RETENTION Give your customers a reason to stay BY JENNIFER SOWARDS Q. How do I improve communication with past customers? A. Especially with today's challenging econ- omy, retaining your customer base is cru- cial to your company's success. Cultivating your existing clients is much less expensive than the costs associated with generating new business. Staying in constant contact with your clients will ensure you have accurate patient records, guaranteeing your customer's needs are met or exceeded and therefore increasing client loyalty. Make certain to have multiple methods to reach your clients such as requesting an alternate phone number or email address. If a phone number or mailing address does happen to be out of date, try contacting the physician to update this information. Sophisticated database technology by specialized companies has made possible improved customer retention through mar- keting programs and software. Establishing a detailed client list will allow these com- panies to organize customer information according to their individual healthcare needs. Furthermore, with effective implemen- tation of your customer database, you can re-establish contact with past customers and work toward increasing patient longev- ity with your company, promoting repeat sales and encouraging customer referrals. To do this successfully, your marketing efforts should be designed with the cus- tomer in mind. Your customers should eas- ily recognize the value of being a part of your campaign with special offers, coupons and/or newsletters. A few other strategies: Membership cards, thank you statements, satisfaction surveys, and enhanced after- sales customer support. Communication with past clients is vital to ensure a lifelong customer. This will pro- vide a steady base of business in which you can continue to grow and you will see a difference in your profit margins. Effective marketing is based on building trust and developing relationships. If you don't provide your customers with continued reasons to stay, your competitors will give them reasons to leave. HME Jennifer Sowards is COO of HME Providers, Inc. Reach her at jsowards@hmecorporate.com or 321-267-7576 ext. 222. MEDTRADE BOOTH 453