Dentaltown October 2014 - (Page 18)
professional courtesy
column
The Amazon Question
There have been many discount dental suppliers in the past, but what if your discount
dental supplier was Amaz on.com? A recent Dentaltown.com poll revealed that 8 4 percent of
dentists surveyed would be willing to buy their dental products from Amaz on. More specifically, 38 percent would be motivated by cost savings of 2 5 percent or more, 4 1 percent would
change for a cost savings of 10 percent or more, and 5 percent would buy dental supplies from
Amaz on if the cost was the same. E ven accounting for any margin of error, I think it's safe to
say that a majority of dentists are prepared to buy their dental supplies from Amaz on. I have
used Amaz on Prime for number of years and there are thousands of everyday items that can
be delivered in a matter of two days or less with free shipping.
The Amaz on question has become a very hot topic in dentistry. Why hasn't something
like this already happened? In many ways the answer to that question boils down to who is
willing to go first. In my view, the only way that Amaz on becomes a successful, full-fledged
dental distributor is if they carry all the major brands. Once one or two large brands make the
transition, many others will soon follow.
How could this happen if nobody is willing to take the first step? One possible scenario
will be a small dental supply company entering the Amaz on marketplace to extend the reach
of their sales channel. E ssentially this would give a small discount dealer an instant national
reach. If successful, then a large manufacturer may be more willing to go directly to Amaz on.
If enough dental products moved over to Amaz on with what could be a 15 -2 0 percent
savings over current pricing, the impact on distributors would be seismic. However, the
well-positioned dental distributors offer many other services to their customers, including
large equipment that would not easily be obtained through Amaz on, equipment service, office
design, transition assistance and practice management software.
This quote from chairman and CE O of Henry Schein, Stanley B ergman, on the 19 9 0 demise
of dental distributor Healthco puts things in perspective relative to the value of dealer services:
T he collapse had nothing to do w ith Meyer Cyk er or his family. T hey sold to a private equity
firm, w hich [ amassed] a lot of debt, w ho thought they could cut costs. But the dental business is
unique; it' s high gross profit, but it also involves a lot of services. T he private equity firm thought
they could drop the cost, but they didn' t k now the services that w ere involved.1
Dentists could see a change in how they pay for these services if they are no longer purchasing supplies from one of the current dental distributors. The dental distributors could
certainly respond with a pricing model that would neutraliz e the advantage of Amaz on. It is
difficult to predict what will happen next.
This topic generates many questions for discussion online: If a major manufacturer makes
the move to Amaz on, will they be viewed as a hero to dentists? How soon do you think this will
happen? What are your thoughts on this topic? Please check out this article online to share your
comments. I'm on email at tom@ dentaltown.com or twitter @ ddsTom. ■
1. w w w .firstimpressionsmag.com/ dental-distribution-hall-of-fame-meyer-cyk er.html
Do you buy on Amazon.com? Discuss on Dentaltown.com/magazine.aspx.
by Thomas Giacobbi, DDS, FAGD, Editorial Director, Dentaltown Magazine
18
OCTOBER 2014 » dentaltown.com
http://www.Amazon.com
http://www.Dentaltown.com
http://www.twitter.com/ddstom
http://www.firstimpressionsmag.com/dental-distribution-hall-of-fame-meyer-cyker.html
http://www.Amazon.com
http://www.Dentaltown.com/magazine.aspx
http://www.dentaltown.com
Table of Contents for the Digital Edition of Dentaltown October 2014
Dentaltown.com Highlights
Howard Speaks: Debt and Cash Flow
Professional Courtesy: The Amazon Question
Continuing Education Update
According to the AAP, Periodontal Disease is Associated with Heart Disease
Teach Me Ideal Dentistry for Veneers
Appointment Flow
HIPPA, HITECH, ePHI: OMG, What a PIA
Second Opinion: The $63,750 Obamacare Incentive — Is it Worth It?
Doctor’s Biggest Financial Mistakes
CAD/CAM Dentistry: Exploring the Possibilities
Productive CAD/CAM Dentistry
Product Profile: Bluephase Style LED
Product Profile: Enamelon Preventive Treatment Gel
Product Profile: G-ænial Bond
New Products
Composite Materials for Optimal Restorative Results
A Step-by-Step Guide to Developing, Promoting and Staging a Successful Community Event
Better, Faster, More Effi cient Dentistry
Industry Leaders on Industry-leading Handpiece Manufacturers
You Should Know: PACE Marcom
Poll
Ad Index
You Should Know: Triology
Digital Marketing by the Numbers
Perio Reports
How to Perform a Painless Perio Probing
Step 5: Refl ect on the Program
Dentally Incorrect
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