Savings Beyond Price™
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by Strategic Value Analysis® in Healthcare
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That Value Analysis Was Developed Back In the 1940's After World War II as a Way to Find Lower Cost but Higher Quality Alternative products and methods. This was Due to the Lack of Material Resources At The End of The War.
Savings Beyond Price -Weekly eNewsletter - July 22, 2009
Robert T. Yokl
President & Chief Value Strategist
Stop Selling Savings
There is a psychological theory called “loss aversion”, which means that people work harder to AVOID losing money than the do PURSUING the saving of money, which leads me to the point of my article today!
If you are trying to sell someone on the benefits of making a change in their practices in order to save money, first show them the money they are wasting if they don’t make your proposed change. This approach will put into motion the psychological affects of “loss aversion” to get them to start thinking about what they are losing by not making a change.
I have found this premise to work extremely well with physicians who, believe it or not, are averse to waste and inefficiencies in their practices. This is because they like everyone to think they are the best at what they do and don’t want anyone ever to think of them as wasteful.
One of ways I use to show physicians how to stop wasting money is to show them how much their hospital is losing in money on their implant cost which much higher than their peers. Another money waster that I point out is using more contrast media per procedure than is the community standard. With few exceptions, this approach has worked well for me.
The lesson to be learned here is that if you want more yeses to your savings proposals you will need to “stop selling savings” and start persuading your clinicians to “stop wasting money” to move them from “no” to a “yes”” in their buying decisions. It’s just that simple!
Your Partner In Savings Beyond Price™,
Robert T Yokl
Chief Value Strategist
Strategic Value Analysis® In Healthcare
1-800-220-4274
P.S. As a corollary to this article you might also want to click on a SVAH Podcast called “How Much Savings is Enough to Make a Change” to get additional big savings ideas about this same topic.
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