Wal-Mart or Neiman Marcus— By Rick Kushner, DDS

Over the years, dental practice management “experts” have tried to convince other dentists that they need to “find a niche,” that they need to decide whether they want to be Wal-Mart (presumably cheap, low-class dentistry) or Neiman Marcus (presumably high-cost dentistry for those few that can afford expensive procedures). The implication is always the same: why choose to be Wal-Mart when you can just as easily choose to be Neiman Marcus? Well, I choose to model my group practices after Wal-Mart (but I’ll still shop at Neiman Marcus).

Why would I choose to emulate Wal-Mart rather than Neiman Marcus? It becomes clear when you take a closer look at each company. Wal-Mart is the world’s largest retailer and they reported $191 billion in sales for 2001. They own over 3,000 retail locations in the United States alone and they serve over 100 million customers weekly in all 50 states and several other countries. They employ over 1.2 million people worldwide and contribute over $190 million each year to charitable causes and non-profit organizations. Despite the slowing economy, Wal-Mart’s stock is currently performing better than the average retailer and they are planning an aggressive expansion for 2002.

In comparison, Neiman Marcus reported $3 billion in sales in 2001. They operate 37 retail shops and 11 clearance centers in the United States. Neiman Marcus reported losses in its third and fourth quarters of fiscal year 2001, and the outlook for fiscal 2002 is not optimistic.

Although Neiman Marcus’ high markups allow it to perform reasonably well in the retail market, they certainly lack the size, sales volume and stability of a company like Wal-Mart. Don’t get me wrong—I like Neiman Marcus and sometimes I shop there. But guess where I shop much more frequently? Yes, you guessed it, Wal-Mart. Typical consumers visit Wal-Mart much more frequently than Neiman Marcus because Wal-Mart offers those inexpensive necessities like shampoo and dog food that we can’t live without. A trip to Neiman Marcus is a special occasion for the average citizen—a rare shopping excursion for purchasing pretty and desirable luxury items that have nothing to do with the basic necessities of life.

When practice management “gurus” suggest modeling a practice after Neiman Marcus, I assume that what they really mean is that dentists should target the wealthy and ignore the middle and lower classes. This echoes what I’ve said for years...it seems that 90% of all dentists chase after 10% of all patients. So my advice is: don’t target Neiman Marcus shoppers because there aren’t very many of them. Comfort Dental has grown quickly and successfully over the years because we cater to the 90% of patients that other dentists avoid...you know, the Wal-Mart shoppers. This is why our practices are busy, our revenues are increasing, and our patients receive quality care that they otherwise could not afford.

If you embrace Neiman Marcus-style dentistry, I encourage you to take a closer look at Wal-Mart. Wal-Mart efficiently sells affordable bread-and-butter staple goods to millions of customers each week. This is the store Americans go to most often to buy the things that they need at an affordable price. While the stores may not be fancy, they sell quality products and are clean, friendly, and accessible to all socioeconomic classes. Their style suits Comfort Dental (and our hundreds of thousands of patients) just fine.

Contact: Aaron Ferstman of GD&A Public Relations for Dr. Kushner and Comfort Dental Inc., 303-623-2529, aaron@gda-pr.com