Sakaduski Marketing Blog

The dental industry has begun reporting back from last week’s Midwinter meeting and it seems that most companies are telling the same story.  “Friday was good; traffic dwindled on Saturday; dead on Sunday; not as good as years past”. This is getting to be old hat. With the cost of conventions rising, pressure to hold prices down increasing, the industry consolidating and the economy slowing, are we headed for the “perfect storm”.  For years we have liked to claim that the dental industry was recession-proof, but that may no longer be true. We are too quick to run off to Hinman, then IDS, then CDA, and so on. The situation does not improve and at the end of the fiscal year you are wondering if there was any return for all of the money spent.

What can you do, you ask?  1) Look at your 2007 plans and to see where your money is going. If your main thrust is to get the message to the end user, think of better ways than conventions to do it. 2) Don’t always depend upon the dealer to get your message out. Consolidation has created a real funnelling effect, and what goes in one end may not come out the other end in a timely fashion. 3) Consider online buying guides as a cost-effective way to get products in front of potential buyers. 4) Lobby your trade association to talk to the associations and get the number of exhibit days reduced. Or better yet, have a “trade only” day when there are no papers, CE courses or social events to distract buyers. 5) Consider skipping a meeting or two. It saves money and probably won’t have any effect on sales. 6) Last, but certainly not least, consider hiring a consultant to help you plan your way through this mess. If you are a small company, you are paying just as much for booth space as a larger company, so you need to make it work. Getting your message out may require a variety of strategies you are not considering now.

These, by no means, are the only answers. But in order to avoid standing around and talking only to other vendors, it may be time for some fresh thinking.

While manufacturers and dealers worked at attracting the slow but steady stream of dentists to their booths at the Chicago Meeting, two websites–one new and one not so new–cranked up their efforts to capitalize on the fact that dental professionals are finally waking up to the Internet.

Dr. Lori Trost, a well-known dentist and former editor of Women Dentist Journal, launched a new website, pinktooth.net, with a press conference and booth at the Chicago meeting.  Designed for all women in the dental industry (not just dentists), the site combines lifestyle material with clinical and industry information.  There were a number of heavy hitters at the press conference and the site already has some big name sponsors.  There was a lot of excitement surrounding this new site, and it may well draw female dentists turned off by the good-old-boy shenanigans at DentalTown.  Its goal of also attracting hygienists, assistants, association professionals, consultants, and other professionals is ambitious, but may be attainable, given the growing number of women in the industry and their need for a community where they can be “among friends.” 

Dentalcompare.com is not new, but recently picked up some key dental industry professionals to add to their very professional staff. Their website model, which has been used successfully in the research and medical fields, provides a way for dentists to obtain detailed product information (allowing for side-by-side comparisons). Companies can list products for free, but must pay to take full advantage of the site.  I like the site because I think it’s the wave of the future. Webinars and online product information will begin to reduce the need for dentists and staff to attend conventions, while providing a way for manufacturers to present their products cost effectively. I also like it because it levels the playing field for the small to mid-size company with a good product. These are two sites to watch.

The dental industry got through another Midwinter meeting. It is always hard to tell how busy the meeting was, but one measure of attendance might be the number of empty seats in the food court at lunchtime.

The floor seemed busy on Friday and Saturday until the weather threatened to trap a lot of people in Chicago. Walking around the floor revealed a few new things.

On the Tecnology side, many of the major players trotted out their cone beam x-rays, and it is hard to believe that dentists now have that many choices when they want to spend $200,000. Just a few years ago a dentist could buy a whole practice for that.

On the Equipment side, the major players launched a number of new products. There were a few new pump/compressor lines, some new cabinets and the usual assortment of new chairs, lights and units in new colors. In amongst all of the usaul suspects was a manufacturer based in China, and distibuted in the US through their California sbsidiary. Not only does this manufacturere sell the usual operatory setup, but they also offer sterilizers, pumps and compressors, handpieces, small equipment and an assortment of merchandise products, all at reasonable prices. Could this be a harbinger of things to come? When smaller manufacturers are struggling to find a niche, or trying to partner with other companies to gain leverage, here comes an off-shore manufacturer with  a more complte line than most of the US companies have today. Granted quality and reliabilty may still be issues, but this is the same kind of jolt that consolidation caused.   A complete value-priced product line sold to dentists who want to invest less in operatory goods, and invest more in technology, may spell doom for some companies already in finacial straits. Being small  no longer equates to being good.

I would supect that we will continue to see an increasing number of products and components from China. This may be good for the end user but not good for a market segment already facing an overcapacity problem.

The dental industry gets ready for the Midwinter meeting in a market atmosphere that is not as clearly defined as in years past. Although merchandise remains steady, traditional equipment seems to be softening as techology strengthens. For the past three years dental practices bought new equipment to take advantage of low interest rates and great leasing deals. The old arguments about increased productivity made sense. Now that waiting rooms are loaded with well-educated, well-heeled baby boomers needing perio, endo and cosmetic work, dentists don’t need to be more productive to attract more business, when they have all the business they can handle. What they do want, however, is to practice safer, better, cleaner, and more efficiently. These are the things that give dentists an advantage with their patients. These “er” words should be built into your products from the beginning. Faster, smaller, safer, etc. should be easily communicated in all of your selling and marketing messages. After all, your product is the one thing that sets you apart from all of your competition. Your sales reps should always be able to close with the line, “Because it’s a better product”. If they can’t say that, it is going to be a long 2007.

There has been enough talk about how unproductive conventions have become. Don’t compound the problem by having a less-than-stellar product on the floor. For the next few years a better product may mean the difference between success or survival. The equipment segment may be in an overcapacity situation. Now is the time to make sure that the  differences between your products and your competition’s are clearly communicated.

It’s not too late (at least as I write this) to get the hottest ticket in town:  The Oral Health America Gala, this Thursday night in Chicago.  This is where the elite meet, greet, and eat in royal style each year at the Chicago Midwinter Meeting.  To join us, call Joe Donohue at 312-836-9900 to snap up a ticket for the opportunity to have fun, network, and bid on some great items at the legendary Gala auction.  It all goes to a great cause.

The dental industry has reinvented itself a few times when it comes to selling product to a dentist. We are faced with another convention next week, and unless you really like to go to Chicago in February, then you are hoping your trip pays off with a fistfull of orders. Many customers may want to take a sneak peek at what they will be seeing on the show floor. They may want to compare product features, pricing, colors, etc. and in a way, justify their purchase decisions. Increasing numbers are turning to online buying guides to get that information. These guides are an excellent mechanism for getting your product story told. If you believe that your product stacks up well against the competition, then this might be a good way to show it. Many of these guides have a link back to your website or customer service department to get an order placed.

In an industry that is sometimes slow to change, these guides offer a high tech, relatively inexpensive way to reach a large number of potential buyers.

A major dental publication is featuring an article about Wall Street’s view of the dental industry. The survey that was completed seems to be good news for everybody. The driving factor is patient throughput in the office and many dentists are projecting solid numbers in 2007. The report also indicates that monies spent on new operatory equipment will be shifted, to some extent, into the technology sector. Dentists will be looking harder at digital x-ray and electric handpieces to name a few  items.

When looking at a marketing mix, targeting the dentist becomes vitally important. Your message can be diluted through various levels of distribution. You should get to the point where the denttal team knows enough to ask for your product or service  by name. This is where an up-to-date, interactive website is critical. By sure the dental office can find the product they are looking for, can download the right information and can order the product whether it is through a dealer or direct.

Dentists have given every indication that they will be buying in 2007, and patients will need the goods and services the dental office can provide. Don’t be left out of these transactions, by not having the visibility your company needs.

With the dental industry going through continual changes, companies without a good plan search for a ‘magic bullet” when things begin to go haywire. They often look for one thing that will solve most, if not all, of their ills. Whether it is a new product, a new executive or a new concept, they hope to immediately right all wrongs. There was not one change that may have caused problems, but rather a series of changes. So why should there be a “magic bullet”? Adapting to changes and the problems and opportunities that result require an orchestrated series of events that will insure success. In addition to leadership, you need a well-thought out business plan with some built-in flexibility, a well-trained sales focrce, an unwavering committment to quality and a strong sense of integrity in all your business dealings.

Don’t take a chance on a one-fix theory, but rather keep yourself well prepared to handle any threat that comes your way.

In the dental industry, every manufacturer of equipment or large technology products knows how expensive conventions have become. it is still the best place, however, to show your wares to prospective buyers. After you have committed to all that expense and enticed doctors and their dealer reps to come by your booth, one critical mistake to avoid is the “20-footer”. As customers stroll by , everything in your booth looks great from the aisle. But as they get closer, they realize that what looks good from 20 feet away does not look the same from 20 inches away. Cabinets are nicked, paint is bubbled, upholstery is bunched or the unit head is drooping. Images from cameras or sensors are not quite as crisp. When customers are spending this kind of money, and they have made the effort to come by to see the product first hand, they expect to see the same product that is going to show up in their office. There is too much competition to let customers walk away because the product is not quite right. Somebody at the factory should be looking at everything that goes to a show. If you are shipping product from show to show, then you cannot expect the folks at the drayage companies to be the gentlest creatures on earth, so expect damage at the next show. Fit and finish should be the number one goal on everyone’s mind.
Before a buyer gets into the nitty gritty about performance and comfort, he or she will be first moved by how good the product looks on the floor, since it will look that good in their office. Again, what looks good from 20 feet away should look just as good from 20 inches.

Customers are getting even more skeptical of advertising (only 13% of consumers say they buy products because of their ads).  As a result, product sampling may become the new advertising.

There is a trend toward what has been dubbed “tryvertising”:  ways of promoting the trial of a product, whether that be a 30-second sample of a song on iTunes or a Nike van that is currently touring the UK/Ireland, France, Italy, and Spain, stocking 1,000 pairs of shoes.  It’s a free trial with no strings attached.  The vans pop up in places where people actually run, from athletic events to well-known running spots.  Online retailers using “My Virtual Model,” a device that allows shoppers to “try on” clothes before purchase found consumers bought more and returned less. 

Product samples are popping up in hotels, airports, offices, even cruise ships.  Real world product placements work particularly well in environments of “voluntarily captive audiences” like waiting areas, lobbies, and work areas.  According to Brand Connections, a company that offers product sampling programs, “Give your target audience your product sample when they are most likely to try it, and associate unforgettable memories with the experience.”  Den-tek followed this advice when it sampled its floss product on bags of theater popcorn.

How could tryvertising be used in the professional dental market?  Well, already many companies offer free samples at dental conventions.  If you go through dealers, you may know that you can also have dealers pack samples of your products in their shipping cartons.  Think about other ways clinicians could try your products.  Are you able to offer a “try before your buy” or money-back guarantee on a piece of equipment?  This could well remove any hesitancy in a potential buyer and give you an advantage over the competition.  Does your product fit with another company’s products?  Consumer product companies have used this tactic (ever get a sample box of detergent with a new washing machine?).  How about product samples for new dentists or dental students? 

Look for opportunities to place your products where potential customers will have a chance to try them and like them.  The more barriers to purchase you can remove, the greater your success will be.  Getting your product into the dental operatory and giving the dental team experience with it is a great start.