Coach Barrow

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Parables of recession

Chris | June 20, 2008
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Parables of recession, originally uploaded by coachbarrow999.

I listened intently to a radio programme a few days ago, which described the
after effects of the Burmese typhoon and the plight of the delta people.

The vital three weeks in which the Government resisted global aid were
regarded as a tragedy by the horrified world – and yet when the aid workers
arrived, the death and disease rate was far lower then expected.

Why?

Because the people of the Irrawaddy Delta have co-existed with nature and
without subsidy for generations – and so they knew how to adapt and survive
to a sudden change in environment.

When visiting the leprosy community of Bukumbi in North West Tanzania
earlier this year, I was moved by the work that Bridge2Aid have done here in
bringing basic supplies to a previously abandoned community.

We watched as food was distributed to the residents, a bowl of dried fish,
some vegetables, butter and rice.

Each of the community then carefully separated and collated their food -– the
lady in the photograph is carefully removing fins and tails from each little
fish in her bowl.

Supplies are scarce and care is essential.

I suppose I’’m contrasting both of these with our “want it now” abundance
community – and counting my blessings as I always do when I think of Africa.

My thoughts have been stimulated by the “panic buying” we have seen in
recent weeks as the recession begins to take hold.

The media are doing a predictable job of prophesying doom by Christmas –- and
yet at the same time attempting to quell short-term panic. I’’m not quite
sure how that works.

Utility bills are going to rise by 40% - but don’’t panic at the pumps?

As far as dentistry is concerned (doesn’’t that sound shallow considering the
above?) –- as far as dentistry is concerned, we have to prepare for a period
of downturn in sales to those demographics who are vulnerable.

The cosmetic dentists treating the over 50’’s and the orthodontists are
telling me that the queues are as long as ever.

The 25-35 and family practices are talking to me about gappy books, delayed
treatment and increased FTA rates for hygiene and higher value treatment.

Whichever demographic you serve, I’’d like to remind you of the Old Testament
parable of Joseph and his advice to store grain when it was in abundance.

I suspect that a dental “”7 years of famine”” is on the way – for those who
haven’’t adapted to 21st century market conditions.

The way to encourage new patient flow –- and to ensure the continuing support
of your existing clients –is to decide which end of the retail high street
you want to occupy.

It’’s a street that has two different types of store at opposite ends.

There’’s the discount end –- where every store is trying to beat down it’s
neighbour by reducing the price of a commodity.

And there’’s the added-value end – where the stores are attempting to win
customer loyalty by improving the value of the offer they make.

As a sage once said ““there is always going to someone who will make and sell
a crown cheaper then you can”” –- and that’s currently being proved before our
eyes, with the arrival of clinically excellent work from overseas.

So reducing prices is never going to be anything other than a short-term
solution – the players in the discount market are usually competing until
the last one is standing.

But adding value can cement your existing relationships and attract the new.

In dentistry you can add value by offering free new patient consultations.
I’’d rather a client did it for free (positive) than discounted 50% (negative
and perceived as desperation).

In dentistry you can add value by offering free home whitening if the
patient joins your membership scheme (and stays).

In dentistry you can offer points and prizes.

If Waterstones can offer me 3 for 2 on book purchases (and triple points for
a few weeks only) – I don’’t think they are going bust, I just think they are
trying harder for my business.

Same goes for DFS, who want to sell me half a sofa and then give the other
half free?

Or the mobile phone company who want to give me £100 for my old handset –
and iphone who want to give me a second generation unit so long as my
monthly tariff is high enough.

Innovative, loyalty-based marketing – is where it’s at now.

I’’m still waiting for the first practice to introduce a valuable loyalty
card –- points, after all, make prizes.

So my message is for you to revisit your current marketing strategy –- and
ask yourself how you can introduce bold and exciting new added value offers
that will attract me to your door.

And at the same time, spare a thought for those who have to exist on so much
less.

I believe we will have to learn much from them.

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