Wants versus Needs

It is Thanksgiving morning 2009 and I could not sleep too well thinking of some meetings I have had recently. I should be more concerned with the fact that I finally get to enjoy some good turkey, bean casserole and cranberry sauce........not to mention extra sleep. But this has really been weighing on my mind.

I may have stated this in a previous posting, but based on more recent interaction with healthcare department managers, I feel it needs more explaining.

Within the world of retail there is a real fine line when it comes to what a business wants as opposed to what it really needs to operate in, and most importantly, be profitable in. There are some that feel they need huge expanse and open floor plans to "be safe" for both employee and customer. They want to be sure there is enough room to maneuver a small pickup truck through their aisles and behind the counters. Simple ADA compliances won't do, it must have large distances between the service counter and the candy rack.

People laugh at times when I tell them that one of the best examples of a successful  "non-traditional" retail stores is actually a restaurant chain. Cracker Barrel has an average per square foot sales figure of $401.00 in just the retail portion of their stores. Have you seen this space? Yes it is a bit cramped, but it is a fun and appealing place to shop after a stack of hot cakes. This space adds an average of $220,000 to the stores annual sales, and at a very high margin.

What we need to do with the hospital retail spaces is to constantly challenge the wants and needs of the floor space to make sure it is productive. I have seen some of the initial plans for retail in a hospital resemble something that a main street retailer would choke on with concern as to how they will ever be able to get the needed return on investment (ROI) for. The potential for sales per square foot cannot be outpaced by the actual cost it takes to build it and operate the space. If you stretch the space out and end up having to fill the expanse with "junk" that does not sell well and does not have a strong margin potential, you have chased a want and not met a need. Likewise, if your staff now have a very large space they have to traverse to accomplish repetitive tasks, it has become a cost vacuum that was designed without real need or efficiencies considered.

There are simple ways that we can allow for future expanse and shifting of a space with simple design and engineering values. Build our counters on wheels / casters. nothing is "nailed down" or permanent. It is all designed as components and not fixed units. This allows us to meet the current need, with the ability of re-tooling on the fly for future need.

It takes a creative and mission driven approach to really scrutinize these issues to ensure that we are not sucked into the typical mode of thinking. There is a need for greater fiscal responsibility in the times we are in and for the future as a whole.

That said I need to ask myself a difficult question..........is there any rule against pumpkin pie for breakfast? Be Thankful and have a great day!