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By now most of us realize the dental laboratory industry has dramatically changed and will never return to what it was five -to-six-years ago. In addition to technology and our stubborn economy, we are faced with two other important factors that are changing the face of our industry. First, the amount of laboratory work that’s being outsourced has increased at a higher rate than many industry leaders first predicted. This has obviously reduced a considerable amount of market share available to U.S. laboratories.
By now most of us realize the dental laboratory industry has dramatically changed and will never return to what it was five -to-six-years ago. In addition to technology and our stubborn economy, we are faced with two other important factors that are changing the face of our industry.
First, the amount of laboratory work that’s being outsourced has increased at a higher rate than many industry leaders first predicted. This has obviously reduced a considerable amount of market share available to U.S. laboratories.
The second factor is the type of competition many laboratories have to face in their day-to-day operations. More and more laboratories are joining forces with larger organizations or getting involved with groups that can provide the types of services and products that are being offered by larger corporate-type laboratories and the off-shore organizations.
While this is a natural result of our world economy and the advances in technology, it creates a different challenge for many dental laboratories. For some, it could mean their customer base is shrinking, and many have lost considerable volume to operations outside of their market.
In addition to having to increase marketing efforts, many laboratories are now looking to replace lost sales volume by expanding outside of their traditional regional markets by going national.
What’s involved?
For many owners and managers, this can be a daunting task, especially if they don’t have experience with out-of-state or national marketplaces. Doing business outside of your traditional or regional marketplace requires some serious thought, strategic planning and a budget to enable marketing of your services and products.
In addition, many states now-or will soon-have registration requirements to do business in their state as a commercial dental laboratory, so it is wise to check with each state where you plan to do business. You will need to review your internal processes and capabilities, if you have not had much experience in dealing with dentists out-of-state, to make sure you have all of your T’s crossed and I’s dotted before you start.
Checklist
You will want to address the following areas in your plan when going national.
Internal Considerations
Staffing
Shipping method
How to get started
CAD/CAM capabilities
Website
External Considerations
Existing market presence out-of-state
Communication methods
Referral system
Competition
Marketing Considerations
Marketing budget
Getting the word out
When you’re ready
These are just a few considerations that you will want to think about prior to venturing into the national market; others will be your capabilities to compete against those who have invested in the new technologies, allowing them to promote a wide variety of products and systems.
We all know a national market exists-just take a look at the number of laboratories who attend national trade shows and advertise in national journals. You have to ask yourself: Are we ready now and can we support the additional business?
Marketing your business nationally, out-of-state or even regionally can be fun and very rewarding, but it is a process-not an event. It will take time and it will cost money. In the end, if done right, it can offer you and your business an opportunity to reach and gain additional market share to help offset your changing and possibly diminishing existing market.
Bill Neal, CDT, is President of AMG Creative Inc. a marketing communications company in Fort Collins, Colo. He can be reached by calling 800-264-7448.