AME: The 23% Supply Savings Wake Up Call

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[00:00:59] Alan Mead is a dentist with too much time on his hands and too much recording equipment in his basement. Armed with an obsession to bring entertaining and informative content to the dental world in a way that's never been done before, I give you the Alan Mead Experience.

[00:01:18] Well, hello and welcome to another episode of the Alan Mead Experience. I'm your host, Dr. Alan Mead. I'm a dentist, podcaster, and someone trying to be frugal. How about that? That's real. I got it. This episode is really interesting to me. It covers a lot of things. It covers how dental supply companies treat dentists.

[00:01:47] It covers my inability to try new things, even though I can talk about them pretty well. It covers a lot of things. It covers a lot of ground. But bottom line, I just have some interesting stuff to talk about. And honestly, we're going to talk about one of my sponsors, actually, Net32. And we're not really talking about them as far as trying to blow them up as much as I... No, I'll get into it. I'll get into it.

[00:02:14] Let's just start with the fact that many offices like mine, I'm guessing many offices like mine, the dentist has been... Has offloaded a lot of the duties of running the office in some way or another. And one of the duties, of course, is making sure that there is nothing worse than starting an endo and realizing that the one file that you need, we don't have.

[00:02:41] Or you've got the patient all isolated and you're ready to place a core. And they say, we don't have any more of this. And so like, there's kind of nothing worse. Dentists are a little famous for... We're pretty good at... We're pretty good at, you know, improvising and coming up with a solution. But the reality is, it's like, there's really nothing worse than not having what you need. And so there is always...

[00:03:06] In my office, I've had the same person doing supplies, ordering supplies forever. And she does a great job with it. She keeps on top of it. It's very rare that we're out of something. And typically if it is, it's because she is no longer chair side in the same way that she was back when she first got this gig. So the problem comes down to communicating when we're out of stuff. Long story short, it doesn't happen very often.

[00:03:30] But one of the things that's happened is I started using one of the bigger supply houses. I'm not going to drop names because I don't want to... Frankly, I don't need the hassle. But I've been using one of the bigger supply houses. It's not Shine and it's not Patterson. I'll say that. We've been using for a long time. And we don't have someone who drops in, you know, every couple weeks per se.

[00:03:58] We do actually have a Shine person that drops in, but they also know that they don't get access to me. So the reality is that that part's gone nowhere. I used to have... When I first bought my practice, I had a guy that came in. He would drop in every week or so. And of course he'd show me, you know, they'd leave samples of new things and take orders of what people needed. But it's funny. He was coming to this office before I bought the office. So he just kept coming.

[00:04:26] In my dad's office, there was always a guy. And so there was the sales guy. And so many... I actually have heard many people talk about on podcasts how that's just another member of your team. And the problem is, though, is it's not really that they're a member of your team. They want you to order a bunch of stuff because they make money off you when you buy stuff. And I'm not angry that they're there. I'm not...

[00:04:50] But the reality is, much like a travel agent, for me, maybe not for a lot of people. My sister has a travel agent, uses her travel agent, loves her travel agent. I would never think to use a travel agent. I would... Like, if I got to go somewhere, I'm going to find that plane ticket online and I'm going to buy it myself. Maybe I'm not delegating enough.

[00:05:14] But the reality is, I feel like the travel agent is a layer that's going to add cost. Because they're going to take their bite out of it as well. Maybe I'm crazy about the travel agent because the travel agent can find better travel deals. I don't know. Who knows? But the reality is, I feel like when you add another layer to that transaction, I don't see any way that that doesn't make the transaction cost more. And in dentistry, I'm convinced that that is the case. But what's funny is that...

[00:05:44] Okay, so either you've got someone who comes into the office regularly to get your orders, or you've got someone who you call on the phone. That's what we've been doing for 100 years. Like, they would call each other place orders, blah, blah, blah. And the line was... And the line has always been, for every freaking sale, you're getting the best price. You're getting the best price. And they may well be giving us the best price that they can give, but they're not giving the best price in the world because they don't know. They don't know.

[00:06:14] They do not know. And so... But it was always the line that even my... The person who does ordering in my office, well, we're getting the best price. They get... We get a percentage off of this. You know, she shows me the catalog. We get a percentage off of this. It sounded great. Here's the thing. You don't know what any best price is unless you do the work of comparison shopping. Like, you have to look on other websites. You have to look at... And I...

[00:06:45] She's not going to do that. I mean, I could ask her to do that, and she probably would. Or I could do that. But that's... It is a bit of a waste of time. On some level, there is... You know, there's a cost for the time that goes into that. Now, the other thing is, is that when the person... Because my person who does the ordering has a relationship with the person on the other line, that makes it weirdly complicated, right? Because you kind of... After a while, you feel obliged to order from this person because this is your friend.

[00:07:14] This is the person that calls you and you're talking and they know about your family and they... You know about their family and they're friendly. And they build this relationship. And I know for a fact that they do this on purpose. There's nothing wrong with that. But the reality is, is like... I do think that... I hate to say it, but dental supplies and the stuff that we need to do dentistry in our office, that is a commodity on some level.

[00:07:39] In other words, if I'm buying the same product from different houses, you know, different supply place, it is a commodity. You're not getting a different version of it from one house to the other. It's just... You're just not. In the United States, you're definitely not. People talk about, oh, there's gray market. That's fine. But as long as you're dealing with a place that doesn't have gray market items, you're getting the same thing. So if there are different prices on it, why is that? Well, maybe it's handling, maybe it's shipping, maybe... Who knows?

[00:08:09] But what if there was a place that would look at all the... That would compare lots of supply places for you and then show you the different price options from different places and let you pick them? Well, of course, that's what net 32 is. Net32 is essentially, you can order the same item from multiple different places there.

[00:08:33] They essentially allow you to organize your order and you get the best price from whatever or the best shipping or whatever. They kind of arrange it in a different way. They show you the best price. They'll show you, for instance, oh, this one's going to take longer handling, something like that. Or their shipping's really fast or whatever. They give you all this information. Super transparent. And what you don't get from having a guy at a supply place is you don't know if it's the best price.

[00:09:03] You have no idea. There's no comparison going on. You're getting their best price, allegedly. And, you know, you're paying for whatever shipping they're paying for. They're... You are just... You have a relationship, but on some level, you're kind of defending this relationship a bit. It's such a weird... It's such a weird thing. I don't quite understand how we ended up... We did this because it wasn't... It wasn't easily done. Even when I graduated from dental school, I think the websites were not good.

[00:09:32] If they even existed at all, they were not good. And it was traditional for an office to have a person who dropped in on them from whatever supply place they're ordered from. But in the same way that, you know, you used to go to Target and pick up what you needed and that's what you needed, you've got Amazon now. And you've got... And frankly, you've also got... Depending on what you're ordering, you might have some supply places that are very specific. Like, would you order a saxophone from Amazon?

[00:09:59] Well, actually, interestingly, Amazon does sell some brands of saxophones. Who knew? But there's maybe a music place that has lots of different saxophones you can try from. I say this because I'm actually looking for potentially a saxophone. And it is funny because there are lots of places you can look for them. Maybe you want to talk to someone who... Talk to a human being that you trust their opinion on, but maybe you just want to order something. It's wild out there. It's absolutely wild out there.

[00:10:27] So I had talked to my front desk person about, well, you know, there's a website. I order... I will order some stuff from them. I mostly was letting her do all the ordering still. And frankly, we'd not gotten away from using the supply house that we normally use. Even though, you know, I literally have talked with the people at Net32. I know kind of how things work and how they really are serious about pricing.

[00:10:55] It's not all about pricing for them because they want to have selection and quality and they want to have back... You know, they want to have good service. They want to make sure that, you know, things are shipped quickly and effectively and all that stuff. But the reality is they realize that they can compete on price in a way that some of the other houses really can't. If you're already buying dental supplies at retail, you're doing it wrong. Crazy Dental already has practically unbeatable prices on everything your practice runs on. But I want to make sure you use my code, VeryShip. Why? Two very good reasons.

[00:11:22] First, entering promo code VeryShip at crazydentalprices.com knocks out shipping fees entirely. Second, pure self-interest here. Every time you punch in that code, Crazy Dental cuts me a check. You get top-tier dental supplies delivered for free and you directly support the Very Dental Podcast Network without paying a dime extra to do it. Go to crazydentalprices.com, load your cart, and remember code VeryShip at checkout. And that's a...

[00:11:46] So what I did was I took the list, which always every office has the list of the stuff that, okay, we need to order this in the next little while. It isn't... You hope that it's not we need to order this for tomorrow because you're going to be paying out the notice to get it there in time or you're going to have to beg or talk to someone specific, whatever. So you try and have... You try and keep a rolling amount of this is what we need. We're going to need it in the next little while.

[00:12:10] So I took that list and I just did comparison shopping against the last time we bought it from our supply place versus... I actually just used Net32. Net32. And I... So some of the stuff that we were ordering was house brand stuff from like... Oh, you know, tray covers and disposable stuff, just house brand stuff. And so I didn't have the same exact house brand at Net32, but I got a comparable thing.

[00:12:38] Or I got the exact same thing. In some cases, you know, we're like we're ordering... I can't remember all the stuff that we're ordering. Different... I don't know. A lot of it's disposables. A lot of it was... But even we needed Zerk mirror heads. We needed stuff like this. So I did a comparison shopping thing. I didn't put really a bunch of effort into it. The effort was to make sure that we're looking at the same product. We're not looking at, you know, this one's a 50 count and this one's a 20 count. I made sure that they were all uniform.

[00:13:05] I spent probably 15 minutes building this order from the order that we needed. And then I... This is the part that's crazy. And this is the part that tells me, okay, mead. But sometimes you need to not be so resistant to try and change some things because this is crazy. I compared with zero effort on my end what I was paying, what I had paid the last time we bought this stuff versus what I would pay if I ordered it for net 32. And it was a 23% decrease.

[00:13:35] I was paying 23% less with no effort on my part. No effort whatsoever. I literally just put it into the search box and chose it, okay? That's crazy. That's crazy. When I'm being told by the supply house that I'm getting their best price and their best price is 23% more than me putting no effort into finding the exact same product on net 32, that's crazy. And that's what happened to me.

[00:14:02] And I'm not proud that it took me this long to figure that out, but it did. And I knew that I was going to do it. But part of it was like, I don't really want to have the talk with my person doing orders because it seems like I'm giving them a hard time about this. But 23% is 23%. And even she's like, that's wild. That's just crazy. Now, here's the thing that I think probably she wants to do or would want to do. It's like, well, yeah, but maybe he can beat that price.

[00:14:32] Maybe he can beat that price. And I'm like, yeah, maybe he can. But here's the thing. If we're putting in the effort to go look in comparison shop, why are we then saying, okay, beat this price? I want his best price to be his best price. And when he's saying it's his best price, I'm assuming that if we come back with a comparison thing and he then drops from his best price, that means he's lying to us, okay? I can't deal with that. I can't deal with that. I don't want to play these games.

[00:15:01] So I have to tell you that I'm not going to try and get my supply guy from the old place to beat these prices or meet these prices or whatever because I put no effort into getting these prices. All I had to do is click to put it in the cart and I bought it. And I did. I bought it. The only thing that will be interesting to see now is if it takes a lot longer for the stuff to get there. I kind of doubt it.

[00:15:24] In a world where we're complaining about how DSOs can undercut a regular office on price and on supply, you know, they get a much better deal on supplies and blah, blah, blah. And they may well. I'm sure that they do get it from these places. But I'm going to tell you what, a 23% savings with zero effort on my part, that's a pretty good deal. That's like, that adds up. That adds up. In fact, just to give you an idea, literally, I put the list of the things I was buying.

[00:15:53] And from the house that we've been using, the supply place that we've been using, my order added up to $499.59. When I put the exact same stuff into net 32, like I said, zero effort on my part. I got $382.19. So that's a difference of $117 on that order out of 500. Like, that's crazy.

[00:16:22] That's just absolutely nuts that with no effort I was getting that much less. So, you know, I guess what I'm saying is, at least for me, maybe you're already using a service or using someone who really does the comparison shopping. We clearly hadn't been. We were taking people at their word that we're getting their best price. And maybe it is their best price. But the reality is, who cares what their best price is? Maybe their best price sucks. Clearly, that's what the case was here, apparently. I don't know.

[00:16:49] When you're looking at the same thing in, you know, all wrap protective barriers. There's a Kerr all wrap protective. $46.79 from the supply place that we were using. And the net 32 supply, $28.72. That's a huge difference. That's ridiculous. Not all of it is that dramatic. Some of it's quite a bit closer. But like, okay, so we're getting lidocaine. Lidocaine, a package of lidocaine. One was $67.25.

[00:17:20] Net 32, $54.53. Exact same thing. I use sit-nest plain for blocks. I like to give it. Or if any time I'm doing the upper anterior because it seems to burn a little bit less without the epinephrine in it. I mean, it's more pH balanced, allegedly. That's what I've heard. I've been using it since I got out of dental school. So it's a tradition.

[00:17:45] $85.70 from the old supply place and $78.75. I'm just saying that, like, with no effort whatsoever, I save that much money. I'm like, man. So what's worse about this is when I think about how much I've been spending that I didn't have to spend. So here's the thing. If you're already doing a great job with supplies, you're already using a place that does this kind of comparison stuff, great. If you're not, you need to take a little peek at Net 32.

[00:18:13] I think the thing that I like about Net 32 is that it uses a bunch of different supply places. For sure, it is not their point to pit them against each other. That's not what they're doing. What they're doing is they're showing best prices and best shipping and best options from each house. And then you get to pick where it comes from. It is interesting how many different places are offering something similar.

[00:18:42] And also what's very interesting is when you're using house brand stuff for a lot of – we use house brand stuff for a lot of disposables. I think it's a smart move. It's sort of a generic version. It's crazy how many different house brands there are. And they actually are quite competitive on price. Some of the things – I would say too as an owner of a small practice like mine, and maybe you have a gigantic practice and you're like, I don't do this stuff. It's worth taking a look at – I didn't really know what I was paying for supplies.

[00:19:10] I didn't – any given item, I didn't know what I was paying for. I generally don't. But it is interesting to see it in comparison with other places. I just think it's actually kind of a – to me, it seems like sort of a smart move to be on top of it. But also there is no reason that I cannot teach my – the same person who's doing my ordering to use Net32. In fact, I mean obviously that's what I'm going to do.

[00:19:34] I think it's a little sad because I know that – okay, so if she starts using Net32 for all this stuff, the relationship she has with the guy that we worked with at the old place is going to be – she used to talk with them on the phone and they would – it was a nice thing. But their best price wasn't good enough. I'm sorry. That's what this comes down to. I mean it's fine that they have a nice relationship and they get to chat on the phone, but I'm paying 23% more because of that. That's not – that doesn't work for me. I can't do that anymore.

[00:20:04] I just feel like I have never felt like so – how do I say this? Things are getting tight at my office. Like everything is more expensive. Lab fees are up. Taking care of my building is more expensive. Taking care – taxes are up. Everything's up. And what I know is not up is my reimbursements for the insurances that I work with, my reimbursements are not up.

[00:20:34] They've never been up. They're never going to go up. So the story is like the only – somehow or another in the world, dentists are the ones who are supposed to take the haircut. Well, this is something that I can change that I've just been stupid about up to this point. And I can actually save a little money here. Is saving a huge amount on supplies a big deal? Well, maybe not in the grand scheme of things, but boy, oh, boy. You know, there's no – if you can get the same thing for 23% less, why wouldn't you? That's what I'm putting out there.

[00:21:03] Again, I'm a fallible owner. I'm not a great business person. It's taken me a long time. Even though I've been working with companies that do this stuff for a long time, I've never really pushed to do that. I'm doing it now. And if that means that I'm going to be doing more ordering, I guess I don't care because it's really easy. I mean, I also do my own books and I do my own payroll and stuff like that. So I still am – I'm an old-timer. I do a lot of that. So I guess that doesn't really bother me. For the first little while, I'm going to do the ordering just to see how it works out, see how it feels.

[00:21:34] But it's just kind of great to know that the transparency you can get from Net32 is kind of spectacular. You know what's going on. There may be some things that their price isn't going to be any better than the other place. I guess that's fine too. Just interesting. Just interesting. For all the talk that I've had, I hadn't really done the direct comparison and the direct ordering to see the difference. And again, maybe I'll find out that the shipping is slow or something like that. I will keep you posted on that. But it was interesting.

[00:22:03] It was interesting to find this out about my ordering. So if you're interested in saving some money, I think it's worth looking. Net32 is who I'm using. There are obviously places out there that do it. I don't think anyone probably does it any better than Net32. And they are a sponsor of the Very Dental Podcast. So if you want to support me, go take a look. Trust me. You'll be glad you did. And man, take control of that stuff if you can.

[00:22:32] That's, I mean, whatever percent you can get down, it makes sense to me. So that's all I've got for this week, really. I'm glad that we are loaded for bear this. We've got a bunch of great episodes coming out. We've got Kevin and Zach and I are talking. We've been doing this whole series on getting ahead of it. And that's basically getting ahead of complaints, concerns from patients, getting ahead of it.

[00:22:55] And having those guys talk about this, basically several, three grizzled dentists who kind of heard everything. It's been really fun. Next one, tomorrow will be on extractions and grafting. And then I have an episode coming up about interproximal reduction and some new tools to make IPR for your aligner cases a lot easier. It's cool. The podcast is doing well. I wish you'd tell a friend about it. I wish you'd tell someone about it. It's one of those things where we do fine. We do fine.

[00:23:24] But I would love to grow the audience because I think we're doing some real life stuff here. I hesitate to say that podcasting is probably better social media than other social media for the fact that you have to opt in to listen to it. And if you continue to listen to it, I've always tried to be as real life as possible. I don't pretend to be anything that I'm not. And I think that it shows in the podcast. It shows in my guests. It shows in our conversations. It shows in the storytelling, all that stuff.

[00:23:54] And so again, coming clean with you. I'm trying something new that I don't normally like to try anything new. I talk about new stuff. I generally am the last guy to try it. Well, I'm trying it and I'm blown away just by my first try using Net32 over my old supply place. And wow, it's impressive. I'll keep you posted. If something horrible happens where the shipping takes seven years or something like that, I'll tell you, I don't think that's going to be the case. Obviously, I've used them quite a bit.

[00:24:22] I just haven't used them for my bulk regular old ordering until now. And now it's a thing. So go check them out at Net32.com. I've got episodes we've recorded with some of the people from Net32. It's pretty cool. But I'm real happy that I did this. And it makes me doubly happy that I've been working with and a sponsor for as long as I have. So tell a friend about the podcast. Go leave us a review. If you're not part of the Facebook group, go join the Facebook group. I have a million. You have to give me a password. And just give me Timmerman. The password is Timmerman.

[00:24:51] There's like eight passwords I give out all the time, but just to get tired of trying to remember all of them. So Timmerman, and you can get in. We'll have conversations. Thank you a ton for listening to the podcast. And we'll catch you next week.