Standing Tall Amidst Giants

As entrepreneurs start out, they dream of their business “taking hold” in the market. They dream of achieving financial stability. At some point, they start thinking of growth. Perhaps it’s bringing on another person or two, relocating to a larger facility, or maybe even opening up a second location … then a third.

At any given point in time, some companies are far along that growth continuum and others are just starting out. And it’s seldom easy for the newcomers. Sometimes it seems they simply can’t compete with the big guys. But innovative products and services always find a place in our economy.

This month, we look at this issue as it affects our corner of the world. We’re all aware of the growth of so-called “corporate medicine,” that is, the large clinic and hospital chains, such as VCA and Banfield. Why have they become such powerhouses? Some of the reasons are economic, such as the ability to extend management expertise and financial controls across a wide number of facilities. Some are more social, e.g., the desire on the part of some veterinarians to get out of the entrepreneurial part of their profession and focus on the clinical side, or the desire to work more regular hours, giving them predictable time at home with family and friends.

These large, national companies present challenges to many of your customers, most of whom operate a single facility. How can the veterinarians at the local animal hospital compete with the Banfield location at the local PetSmart? Yes, they have longstanding relationships in the community. They’re trusted, and they provide excellent care for their patients. But once the national company’s clinics take hold in the area, their people, too, will establish good relationships and good track records with their clients. So the relationship advantage will only take your smaller customers so far. It’s at that point where innovation, efficiency and determination must take over. Veterinary Advantage readers can help these smaller customers survive and thrive through education, promotions, or simply sharing the wisdom and learning you’ve picked up from other accounts.

Just as your customers must compete with national chains, so too must you, particularly if you work for a smaller distributor. Opportunities exist to service national clinics, even if your company lacks a corporate-to-corporate national agreement with them. A short story from the human illustrates the point. (See inside this issue.) Kaiser Permanente, whose operating revenues are about $40 billion, does indeed have contracts with national distributors to supply its 30-plus medical centers and 420 medical offices. But one small distributor – Hospital Associates – didn’t let that deter it.

True, Hospital Associates isn’t going to get the lion’s share of Kaiser Permanente’s business. Still, the little company found a niche. When Kaiser Permanente ran out of warehouse space to stage small equipment for its new construction and remodeling/upgrade projects, it turned to Hospital Associates for help. The small distributor developed a turnkey service for Kaiser Permanente and is now offering it to other large medical care providers in California.

“If [a small distributor] can show [large providers] you can save them money or time that the big guys can’t, you’ll get the business,” says Hospital Associates President Cindy Juhas. “And I’m flexible enough that I changed my focus on a dime. Now we’re really good at what we do.”

Big companies bring efficiency, high-quality services (whether it be patient care or distribution services), jobs and overall excellence to the table. Even so, small companies can do the same. They can stand tall among the giants. And you, as sales reps, can help them do so.