Examining Full Service in the Dental Lab Industry
Much examination has taken place over the last several years about new trends within the US dental lab industry, and with each passing decade, new advances come forth that contribute to the evolution of our industry or at the very least, change the way we do business.
In many cases, each new product is met with skepticism, then cautious optimism then increasing acceptance and finally wide scale usage, just in time for the next big thing. This progression can be most recently seen with the introduction of empress and all ceramic restorations. Realistically, in the age of increasing insurance costs and lawsuits, who can truly blame clinicians for being a little wary of jumping in before the latest and greatest, is proven.
But, I digress. The point being, that with every new change comes concern over where that change will ultimately take the industry. Technology has been one of these areas responsible for cold sweats and hand wringing. A decade ago, endorsing CAD-CAM technology in the lab was equivalent of selling out technical staff. Fast forward ten years later, and realistically speaking, if your lab isn’t involved in Cad-Cam at this point, they’re behind the times in product selection.
Of course with each passing decade comes a new debate, and in 2008 the debate is over outsourcing of work. Like previous years’ and previous new changes in the industry, there are plenty of folks lined up on each side ready to express their opinion, and do their best to put forth their best argument and even try and scare the consumer in one direction or another.
Irregardless of your take on the subject, to fully understand why this trend has developed over the last several years, we need to have a grasp on the economics; patient needs and market demands; and what it means to be full service.
So what does “full service” mean in its truest sense? Full service is in the eye of the customer and directed by the market, not typically by the shop keeper. We’ve seen this same game play out year after year in every industry. Let’s draw an analogy to fully examine this point before coming full circle on how this plays out in the lab industry.
Think back to the grocery store industry circa 1970. Walk into your local A&P or Bells market. What you’d find is your basic offerings in a 30,000 – 50,000 sq/ft store. Grocery items, deli, meat, vegetables and frozen and refrigerated foods – what you needed but not a lot of frills right? Now let’s look at grocery stores in 2008 – 110,000 sq/ft with gourmet offerings, bank branches, pharmacy, flowers, seafood, restaurants – even child care while you shop! For those of you with grown children tell me you wouldn’t have loved that sometimes!
Why this explosion in services? Three simple factors – convenience, selection, service. First, why make several stops when you can make one and get everything done? Second, consumers demand an array of product choices in a range of prices. And lastly, retailers want to offer the most to their customers in the battle to “one-up” the competition and do it better than anyone else.
A smart, proactive lab will operate no differently; it is after all a business venture. Our customers? Doctors – who will drive the industry. And why shouldn’t they tell us what they want? They are, after all, the ones responsible for creating a restorative budget and providing service and quality to their patient.
The lesson – convenience matched with a diverse, quality product line capped off with superior service makes for a winning combination. Rigidity and fear of change rarely championed any causes.
Let’s jump back to our supermarket analogy for a moment. How did small operators in the drug store industry, for example, react when supermarkets diversified and began including pharmaceutical departments? They diversified and improved services to give their customers more bang-for-the-buck. Those who didn’t or wouldn’t, found themselves quickly out of touch with the times and quickly forgotten.
This is not to say that what we once had was not good enough. After all, many of us, myself included, think back sometimes with affection, of less elaborate retail experiences and there do certainly continue to be some operators that have been very successful keeping great service and making selective improvements but remaining virtually unchanged from year to year – Dash’s Markets and Tile Pharmacy are just a couple.
However, as a business, it is also wise to understand that there are significant reasons why names like Woolworth, AM&A’s, Bells Markets, Vix Drugs, and Child World are no longer staples of our regional malls and plazas and why groups like Target, Walgreens and Wegman’s continue to do well.
Much has been and will continue to be debated, over the latest and greatest changes in the lab industry and others. Some new ideas will prove themselves and gain acceptance, others will fizzle and be forgotten in time, what’s important is recognizing change, and providing the consumer an opportunity for responsible assessment to determine what products and services will pave the way to our industry’s future – now that’s full service.
Article by: Mark W. Hager - Operations Manager, Evolution Dental with input by Andrew Jakson - Owner, Evolution - Copyright 2008