Coming to terms with new equipment purchases

As an equipment supplier, I am frequently faced with the challenge of proving to dentists the benefits of modernizing your surgery and investing in new equipment. How can an investment of say $3-$4,000 per month over five years return you a better quality of life plus real cost and efficiency savings?

I am also the first to admit that we sometimes make dentist's lives more difficult rather than easier - because not only do we sell what the profession needs, but also a myriad of items that the profession may or may not want.

It is this area - the reason why some dentists invest in the modernization of their practice, adopt the use of technology items like CEREC, Lasers etc... while other dentists are opposed or ambivalent - that continually fascinates me.

What is it that drives the discretionary spending of dentists? Why are some dentists reluctant to use modern equipment? And how can we, as suppliers, more appropriately meet the needs of the profession?

In most markets, the demand side of the equation is generally easiest to understand and, production and stock issues aside, straightforward enough for the suppliers. But the dental market has a heavy supply side emphasis - where there are many more gadgets, devices and aids available than what the buyers have funds for.

Thus complications arise - for suppliers in terms of which products to market and how best to market them, and for dentists in coping with the sheer volume of choice and conflicting sales pitches.

The focus of this article then is not on what influences a dentists to choose between supplier A and supplier B, but on what drives a dentist to make a new equipment purchase at all. What are the factors that set the wheels in motion for purchase of new equipment or for modernization of the surgery?

By no means exclusive, this list offers some of the main motivations in favour of a major purchasing decision:

• Reward - perhaps a new, high-end treatment centre to see out your career;
• Clinical - a new technology or technological advance that so captures your attention it demands purchase;
• Ergonomic - anything from a microscope, to an auto-tracking dentist element on a treatment centre, to lighter/sleeker instruments;
• Status - we all know that a 3-series BMW gets you where you need to go, but it still isn't a 5 or a 7;
• Patient benefit - you have fantastic patients who deserve low-dose, digital x-ray and a stylish, calming surgery environment;
• Ego - when you discover that the class clown who bumbled through Uni has a flash, new surgery, and there's no way you'll settle for less;
• Economic - when you understand that the numbers stack up. Adding an intra-oral camera to the treatment centre, adopting the CEREC method, doing your own OPG's are all cash flow positive. They make you money, pure and simple; or
• Need - when you simply can't stand another day of looking at that cruddy upholstery or mopping up another puddle of water.

All solid enough reasons I'd say - I've certainly experienced them all; I see them repeated over and over, and I understand dentists purchasing equipment for these reasons.

So what are the reasons against? Why are there so many dental practices where new equipment purchases are kept to the barest minimum? Why are there practices where there is 100% commitment to an ethos, a common staff approach, uniforms, peripheral benefits to patients etc... all the touchy-feely stuff... yet there are rooms full of ancient, basic or in some cases substandard, equipment?

There are several possible reasons of course, but one underlying factor - the dentist does not perceive any value from making a new equipment purchase.

For some dentists, value equates to price. Fair enough. But value runs much deeper than this. I worked for many years in the Radiology industry where there is acceptance by customers that yearly service maintenance will, depending on the equipment, cost anywhere between 5% and 8% of the capital cost of the equipment, per annum.

Try selling that one to the dental market where the expectation is that the more expensive the equipment, the less (in real dollar terms, not percentage) the dentist should pay for service and parts.

For many of you, it isn't the cost of service that grates, but the fact that a service problem exists at all! So why spend money on some new-fangled equipment that will probably break down anyway? Some of you may not believe this, but I have never come across any manufacturer or supplier who doesn't feel hurt when any customer is inconvenienced and who doesn't strive to improve both the product and their service response. So what actually is a reasonable expectation?

My current vehicle is the popular Toyota Camry which required a computer replacement prior to 10,000 kms. Before that, my new Commodore underwent two recalls within six months. Disappointing and inconvenient? You bet. Enough to stop me from buying another car in the future? Of course not. I'd rather a 100% trouble free run, but on balance they're both well-performing and comfortable, and both experiences fit within my expectation of acceptable performance and estimation of fair value.

How many of you are still operating on the equivalent of a Datsun 180B with only one good headlight, believing that this is the most economical way to practise? I contend that this is false economy, and that you and your patients will benefit by opening up to modern equipment.

Perhaps some dentists lack confidence to make business decisions? I've seen dentists confirm all of the clinical reasons to support an OPG purchase; agree that the lease cost is $1,300 per month; agree that on conservative estimates for 5 years based on their own patient throughput, the return is $2,000 per month (forever, not just for 5 years), and then... instead of asking for urgent delivery or how to spend the $700 monthly profit, shake at the knees, decline and say... "sixty-five thousand dollars really is a lot of money...".

Closely related is the fear factor. Where dentists refuse to even look at and judge something like CEREC or a laser purely out of fear of liking it. The irony here is that this mirrors many of your patients - those who know they should visit the dentist but don't because they fear being told something or sold something that is ultimately for their benefit. In both cases, out of sight/out of mind becomes the easiest option, however illogical it may seem. And while we all joke about it, suppliers and dentists alike, many dentists fear prioritizing an equipment investment over a new car for the spouse or a family holiday.

So where am I headed with all of this? Certainly there is no intent on my part to attribute any wrong to dentists who don't purchase new equipment. The obligation lies fairly and squarely with manufacturers to provide equipment that is relevant, helpful, easy to use, reliable and fairly priced... ie, it must offer value.

And the obligation lies fairly and squarely with suppliers to adequately train sales staff to ensure that products are correctly represented, so that performance matches expectation. Salespeople must strive to improve their product knowledge and develop their professional skills to earn the respect of dentists. Over time, this will ensure that the relationship moves from one of buyer/seller to one of practitioner/advisor. Consequently, the advantages to the dentist of investing in new equipment or a new surgery will be more effectively communicated and more easily understood.

In this month's edition of Australian Dental Practice, Halas Dental and Medifit announce the biggest single promotion ever offered to the Australian dental market. Whilst it is difficult to draw one's attention away from the first prize, if this promotion achieves anything at all it is hoped that dentists take stock of their equipment situation and ask some questions of themselves.

How can I benefit from modernizing my surgery or from investing in new technology? Sure, I know I can continue on for years doing exactly what I'm doing now, but is there a better way of practising? Will the efficiencies gained from a new generation treatment centre or moving to digital x-ray make me feel better about going to work in the morning? Will it improve my dentistry? Make me more money? Help me attract a new associate or a hygienist? Improve staff morale? Gain me new patients? Or maybe help me earn more from seeing fewer patients?

It is my contention that investing in new equipment and improving one's working environment results in unambiguously positive outcomes for the dentist. I know it's a cliché but if only I'd received a dollar for every time a dentist has told me "I should have done this years ago...".

Over the course of this promotion one lucky dentist is going to benefit - not only in terms of $120,000 worth of new equipment and fit-out - but in also enjoying the tangible value that this investment provides.

I encourage you all to consider how such a prize could benefit your practice, and to put pen to paper and tell us all about it.

Geoff Parkes is National Equipment Sales Manager for Halas Dental Ltd.