With the formidable force of National Competitive Bidding now sweeping the nation, DME providers have been forced to drastically cut their costs in order to keep their businesses afloat. While some dealers fear being forced to close their doors, HME Providers' members are anxiously awaiting the opportunity to bid! How is this possible? Through the combined volume of sales between members, HME Providers is able to offer direct from the factory pricing available through an OEM manufacturer, Value Providers, Inc..
When we first began offering the HME services more than 15 years ago, most of our dealers were not interested with doing business in a way that differed from what they were used to. As a result, most of them did not take advantage of our ability to provide direct from the factory pricing. We can save our dealers 30% to 50% on their bulk order of products, but without just in time delivery, they were not interested in taking advantage of the program. Today, the effects of Competitive Bidding have caused the mindset of savvy dealers in the industry to change. Price is becoming the most important piece of a successful business rather the last concern as it historically has been.
Richard Austin, the COO of HME Providers, coined the phrase "You make your money when you buy not when you sell," and this is the creed HME Providers now lives by.
Private Labeling: Make Your Mark on the Industry
If you are taking advantage of our VPI Purchasing Program, it is entirely within your reach as an HME member to private line your product line, and help separate your company from others. Not only is this option available, but it's affordable. Put your company's name and contact information right on the equipment you sell every day!
Historically, rather than focusing on selling product value, dealers instead promoted the quality of their services. Invacare, Drive, Sunrise and other manufactures cannot afford to market to the medical decision makers and you as a dealer never had a reason to. But now, as an HME Provider network dealer, you can promote a product line with your name on it along with the unique products and services you can offer to the industry.