FeBRUaRY 2014

DIGITAL EDITION
FEBRUARY 2014
Retail
Strategies
Special
Report
Key products:
pages 2 4 6
9
Experts sound off:
pages 2 6
Top 2013 newsmakers:
page 7
Role of mobile:
page 8
Retail
SPECIAL REPORT
www.hmenews.com
Here to cheer you on
I
f you’re intimidated by the prospect of launching a retail-driven
HME business, consider the dozens of experts featured in this
special report as your personal mentors.
In the following pages, let these experts guide you on everything
from what to prioritize (your customer’s needs, not necessarily the
money) to what to carry (how many bath chairs are you really going
to sell, asks one expert) to where to get help (your friendly manufacturer, of course).
One of the most intimidating aspects of a retail-driven HME business is competing with big-box retailers like Walmart. A whopping
98% of respondents to a recent HME Newspoll reported that big-box
retailers in their area carry HME (see page 7). What’s more: 71% said
these retailers are increasing the amount of HME they carry.
Have no fear, these experts will tell you. While retailers may have
the upper hand when it comes to showcasing a product (though that’s
a skill that providers are quickly learning to master), providers have
the upper hand when it comes to education. They know their stuff.
Even if you’re a veteran of retail-driven HME business, there’s
something in this special report for you. For example, Justin Racine
wants to know: Have you considered the impact of your online and
mobile presence on your retail strategy (see page 8)?
So read up, then make some moves. We’ll all be here to cheer
you on. hme
Liz Beaulieu is the editor of HME News
Golden Technologies
Sell for needs, not just money
By Jennifer Keirn Contributing Editor
E
ight years ago, Pat O’Brien walked into an HME retail store
with a prescription for a walker for her father.
Although she’s not easily swayed by salespeople, she ended
up walking out with not just the walker, but a cane, bath transfer
bench, grab bars and other safety products.
“I bought them because that person actually helped me,” says
O’Brien, director of marketing for Golden Technologies. “It made
their home safer and my mom got two more months of my father
at home because of the things I bought.”
It’s an illustration of one of the most important tenets of successful
HME retailing, says O’Brien—taking the role of caring educator,
not just salesperson.
“You’re not selling to them to make money,” she says. “You’re
selling them products to help them, to help their loved one. In
turn, you make more money.”
This is just one of the lessons that O’Brien impresses upon dealers in Golden’s extensive retail training programs.
Starting this year, O’Brien is teaching a technique called Golden
Metric Methods, helping providers calculate goals for gross margin,
inventory turn rates, cost per customer walk-in, dollars per square
foot and other metrics. She also provides instruction in the right
sound bites
Don’t neglect referral sources
“I
n retail DME, I think focusing on outside referral sources
is necessary at least a couple of days a week. I use a parttime salesperson who has learned about our products
and how to sell them. Her goal is to be consultative, understand
what the referral sources need and develop relationships with
key people there.
For many of the outside referral sources, our salesperson offers
to bring in lunch or snacks and do an in-service to show some
of the new and innovative products we carry.
For senior living facilities, she will promote an in-service with
advertising methods and how to measure their effectiveness.
“The proper way to welcome someone, the way to build a relationship with that person, to talk about their needs and wants, to
get them the products they need—you can’t be afraid to make those
other suggestions,” she says.
After Golden’s many years of carrying the retail torch, O’Brien
says the message is finally getting through.
“In the last year, with the onset of Round 2, people are finally
getting into the spirit of retailing,” she says. hme
Key retail product
Golden Technologies
Golden Oxford PR710 lift chair
Golden Technologies has released the Oxford PR710,
a stylish and modern “club style” lift chair. Features
include: flat backrest design with luggage accent
stitching; pocketed coil spring seat with 49 pocketed
coil springs; split chaise pad; rolled armrests with
brushed bronze nail heads for a very fashionable
design; three positions; standard as a medium frame
size, accommodating people 5’4” to 5’10”; and available in two colors from the new Palance padded suede
pattern, Silt and Mahogany. This chair is a perfect secondary lift chair for a family room, den or bedroom.
http://www.goldentech.com
flyers and have a raffle for a small item to attract more attendees.
She passes out 10% discount cards and has even arranged an
excursion to the store with the activities director.”
—Mike Kuller, RPh, author of “The Next Step – Retail Home Medical Equipment.”
Make smart product choices
“Many get into big items like scooters and lift chairs, but
what sells over and over are disposables like wound care and
incontinence. If you are in a town of 100,000, how many bath
chairs are you really going to sell?”
—Cliff Woolard, president of Home Med-Equip Co.
C onti nu e d o n page 6
2
FEBRUARY 2014
learn more at: http://www.GOLDENTECH.com
Retail
SPECIAL REPORT
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PRIDE MOBILITY
Embrace inventory best practice
By Jennifer Keirn Contributing Editor
S
ometimes it’s the simplest things that can contribute to
an HME provider’s retail success.
Case in point: Position your lift chairs near an electrical
outlet, advises Pride Mobility’s Andrew Pyrih,
so that consumers can actually try the product.
“If they can’t take a test ride, then they’re not
going to buy,” says Pyrih, Pride’s senior vice
president of domestic sales. “Customers want to
see, sit, touch, feel. One lift chair and a bunch
of swatches isn’t going to work.”
The providers whom Pyrih observes to be
most successful in retail sales are the ones who A. PYRIH
embrace best practices in product inventory
and display samples on the showroom floor. He acknowledges
that can be a tough proposition for large items like Pride’s lift
chairs and scooters.
“If you have limited space, look at displaying ‘good, better,
best,’” he advises. “If you have all high-end or all low-end, then
you’ll be missing a segment of the market.”
Marketing and advertising effectively is another major challenge for providers entering retail.
Pride provides such marketing support as window clings,
floor posters, mobiles and customizable ads. A kiosk of fabric
choices lets consumers try cleaning it right there in the store.
Pyrih also recommends using coupons with codes to track
what’s driving traffic, and offering classes or events at senior
living centers and community groups.
Getting the word out doesn’t require a huge advertising budget.
“One provider ran an ad twice a week between Thanksgiving
and Christmas and his sales went up 400% in that product
category,” Pyrih says.
In many ways, Round 2 has been a kick in the pants for providers on the fence about going retail.
“They are becoming more cash savvy,” says Pyrih. “They’re
looking at things like well-merchandised showrooms, professional and well-trained staff, investing in inventory and putting
together enhanced budgets for marketing and advertising.”hme
Key retail product
Pride Mobility Products
Serta Perfect Lift Chair
The Serta Perfect Lift Chair, available in Pride
Mobility’s two most popular configurations, has
unique features that provide the ultimate in lift
chair comfort, including premium Cool Action Gel
Memory Foam for cooling comfort and support; a
premium DACRON Top Layer; Pirelli Webbing for
personalized comfort; individually wrapped coil
springs; and a No-Sag Spring Base.
http://www.pridemobility.com
PERFORMANCE HEALTH
Use ‘secret sauce’: clinical retailing
By Jennifer Keirn Contributing Editor
T
he cold therapy pain relief product Biofreeze has been around
25 years, successfully sold through such markets as chiropractors and physical therapy clinics.
From those years of experience, Performance Health—the company behind Biofreeze—says they’ve discovered a “secret sauce” to
achieving retail success that HME providers can learn from.
“You have to drive sales clinically,” says Paul Timko, director of
marketing. “When you have science behind it and you have confidence in what you are selling, then you’re not just pushing a product.”
It’s a model Timko calls “clinical retailing,” and it’s an approach
that HME providers can apply when selling pain relief products and
many other product categories.
These may be small-ticket items — Performance Health’s top
seller is a 4 ounce gel tube for $15.49—but Timko believes such
offerings have the potential to add up to profitability and are an
opportunity to upsell.
“Most of the DMEs are at that breaking point where they’re working at razor-thin margins,” says Timko. “If you can add a few steady
brands with nice margins, you can get to profitability.”
An ample supply of product samples is how Performance Health
helps retailers drive sales.
4
FEBRUARY 2014
After purchasing a retail starter kit of products that become an
instant point-of-purchase display, providers get 100 free samples
each month to give away at the register, at community events or
during home deliveries.
“Give out multiple samples to customers so they can share them
with people they know,” advises Timko. “Everyone has pain. Use
every patient, every consumer as a marketing vehicle.”
Timko also suggests aligning complementary products that make
upselling easy, such creating a “foot pain relief kit” that ties a pain
relief product to diabetic socks.
“Put your shopping hat on,” he says. “Think about what your
best experiences have been buying a product and be creative.” hme
Key retail product
Performance Health
Biofreeze
This clinically recommenced topical analgesic
is now available for you to retail. The Biofreeze
Sales Starter Kit ($89.95) includes free brochures,
product samples and a pre-built countertop
display filled with product. We guarantee your
success or we’ll refund you for any unsold
product. Call 800-BIOFREEZE (246-3733) today
to see if you qualify to retail the national brand
that generates strong incremental profit.
http://www.biofreeze.com
Jazzy Sport 2
. Non-coded to increase
®
Perfect Lift
Chair
. Serta’s Cool Action
TM
.
.
retail sales
Style and performance
of a Jazzy
Gel Memory Foam
Right balance of
comfort and support
Olympian AutoLift
. Aesthetically pleasing
. Available in: 260 lbs.
weight capacity and
440 lbs. weight
capacity
Milford
Person Lift
. Secure and stress-free
.
way to transfer into a
vehicle
Can also be used
inthehome,office,
traveling and
more
Call your Pride® Account Executive today.
(US) 800-800-8586 . (Canada) 888-570-1113
Visit us on the web: pridemobility.com
learn more at: http://www.pridemobility.com
Retail
SPECIAL REPORT
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BioMedical Life Systems
Beat the big box with education
By Jennifer Keirn Contributing Editor
I
f there’s anything Americans know how to do, it’s shop.
Ours is a consumer-driven society, and customers walk
through your doors with high expectations of a retail
experience.
“What the big-box stores have in their arsenal is that they
know how to showcase a product,” says Mariah Griffith,
vice president of sales and marketing for BioMedical Life
Systems, manufacturer of the Rebound TENS device.
“Where the DMEs have the upper hand is that they know
how to educate.”
Griffith believes manufacturers like BioMedical have a
responsibility to help HME providers bridge that gap, putting their clinical knowledge to use in creating an appealing
retail environment.
“We can help them make sure the product is attractive,
that it works well and it is set up for retail sale,” she says.
“Most of the time, manufacturers are not packaging things
for a retail location.”
The Rebound device—which earned FDA approval last
year to be sold without a prescription—is one example of a
product that’s helping HME providers cash in on a burgeoning
OTC pain management market.
Driving that market, in part, is the public’s
growing reluctance to use narcotics, as well
as government restrictions to stem the tide
of a prescription drug abuse epidemic.
“Pain management is a bigger market than
diabetes and CPAP and mobility combined,”
Griffith says. “If someone’s coming in for a
wheelchair or a walker, they probably also
M. GRIFFITH
have pain.”
That’s why Griffith helps providers create
appealing retail displays, position their pain management
section properly, and labels the Rebound with QR codes to
allow customers to pull up a tutorial on the spot.
Above all, she says, what today’s consumers are looking
for are choices.
“Just because insurance covers something doesn’t necessarily
mean they want the base model,” she says. “You have to have
‘good, better, best’ so they have a choice.” hme
Key retail product
BioMedical Life Systems
You have more than
then
155 Million
Opportunities to cash in
on the growing market for Pain Management Solutions
Rebound Health TENS
BioMedical Life Systems, Inc. has launched the Rebound
Health TENS device for sale without a prescription. This
affordably priced TENS is ideal for patients who do not
have insurance or do not qualify for a TENS with their
existing coverage. Now your store can order the product
in an attractive retail point-of-purchase (POP) display to
help with product sell-through rates. The display comes
fully assembled in a master shipper and includes six
Rebound Health TENS Device Kits and 18 Refill Kits.
http://www.reboundpainrelief.com
Nearly 50% of all Americans suffer
from some form of Chronic Pain*
and are looking for safe, effective
solutions YOU can provide.
SOUND BITES
C onti nu ed F R O M page 2
Spread the word
*April 2012 Gallup poll, Chronic Pain Rates
Rebound® Health TENS Device was
approved by the FDA for over-thecounter sale and offers pain relief
in as little as 15 minutes for aches,
arthritis, back pain, muscle pain, etc.
Boost your OTC Cash Sales with
an effective, PAIN FREE addition to
your Merchandising Mix.
Call 1.800.726.8367, or scan
this QR code for more information.
Makers of leading Pain Relief Devices
for Medical Professionals – for over 30 years.
www.bmls.com
www.reboundpainrelief.com
learn more at: http://www.BMLS.com
6
FEBRUARY 2014
“Advertising can be as simple as an email blast to existing customers.
Advertising can also consist of many different mediums, including print,
TV, billboard, Web, direct mail, bag stuffers and so on. Often people
think TV commercials are costly, but many markets have inexpensive
cable and local news stations that allow you to run TV advertising.”
—Andrew Pyrih, senior vice president, domestic sales, Pride Mobility Products.
Bling the ride
Home Care Medical launched a campaign called “Bling Your Ride” to
promote retail accessory products like bags, cane holders, cup holders,
and seat and back covers as stylish options for walkers and rollators.
“They can design their walkers or rollators the way they want. These
items are practical yet edgy and fashionable.” hme
—Heather Lotz-Klug, manager of retail sales, Home Care Medical
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Retail
SPECIAL REPORT
Retail redux
What were the top newsmakers in 2013?
Editor’s note: As part of this special report, we tabulated the most read retail-related stories in 2013.
Vendors look to retail to open access to CPAP
A second manufacturer has entered the retail market for sleep
therapy devices, banking on the idea that patients will buy what
they want instead of settling for what an insurer will give them.
“Everything is driven by payers and, as a result, access for
patients isn’t that good,” said Steve Moore, senior vice president
of sales and marketing for Human Design Medical, maker of the
Z1 CPAP device. “What we wanted to do is make a device that
people like and want to use and, in doing so, open access for it.”
Human Design Capital launched the Z1 late last year, joining Somnetics and its Transcend in the retail market for sleep
therapy devices.
Providers vs. retailers: A game of pricing, service
It’s time for HME providers to adapt to the reality of big-box
stores as competitors, according to a recent HME Newspoll.
A whopping 98% of respondents to the poll said the mass
market retailers in their areas carry HME. What’s more: 71% of
respondents said retailers are increasing the amount of HME
they carry.
One thing respondents said they aren’t doing in response to
competition from retailers: “You’re silly if you think you can
compete on price,” said Cliff Woolard, president of Home MedEquip Co. in Concord, Calif.
Manufacturers ‘buy-in’ to retail
More than 20 manufacturers submitted products for the inaugural Innovative HME Retail Product Awards at Medtrade, a
sign that providers aren’t the only ones who see promise in
retail, organizers say.
“We’re seeing a lot of buy-in from providers, but also from
manufacturers,” said Rob Baumhover, director of retail programs
for The VGM Group and lead architect of the show’s Retail Design
Center. “There’s been more activity. Providers are looking for
new products to help them be prosperous and profitable, and
manufacturers are doing their due diligence by asking, ‘What
kind of products can we come up with to help them?’”
A judging panel of retail experts, including Baumhover, selected
five winners: Royal EZ (a device that allows caregivers to push
a user up to a table with little effort); iWalk2.0 (a hands-free
crutch); EVE (a heating pad that helps relieve menstrual cramps);
Next Generation Socks (indoor footwear that’s anti-microbial
and skid resistant) and Wellness Brief and Underwear (adult
diapers inspired by NASA technology).
how successful those operations are, respondents were split,
with 57% saying retail is living up to their expectations and
43% saying it’s not.
Some respondents said retailing products from a storefront
provides a new revenue stream, helping providers and their
customers navigate a post-competitive bidding market.
WeB-based retail store is ‘new opportunity’
There are a lot of reasons people want inexpensive HME, says
Joel Marx. The biggest: A lot of times, insurance won’t foot the
bill, said Marx, owner of Medical Service Company, which has
15 locations in Ohio, West Virginia, New York and Pennsylvania.
“Either the item is not eligible for insurance coverage or people
have such a high deductible, they end up paying, anyway,” he
said. “They need a cost-effective way to purchase those items.”
To serve those customers, Marx in August launched a new
company, Mycarehomemedical.com, a retail HME website helmed
by Chris Loeser. Products on the site range from bath safety and
mobility products to accessories like hospital bed sheets and
commode liners. hme
Now get your news
anytime, anywhere.
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FREE
Download the new
HME News App.
Available at the
App Store.
Respondents split on success of retail stores
Is retail the solution for HME providers feeling the squeeze from
reduced Medicare reimbursement? It depends who you ask.
The vast majority (86%) of the 77 respondents to a recent
HME NewsPoll say they have retail locations. But when asked
Download the HME News app now at:
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learn more at: http://www.HMENEWS.com/APP
FEBRUARY 2014
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Retail
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Don’t leave mobile out of
your online retail strategy
By justin racine
O
nline, cash, retail, e-commerce, Amazon, mobile. These
are all buzzwords that HME providers are familiar with,
but how exactly can they integrate them into their businesses to not only add revenue streams, but also complementary
services and programs? Well here’s how.
Let’s break down these opportunities into
two key areas: online and mobile. Strategies for
both online and mobile should be integrated
together so that there is no corrosion of the
branded message. Below I have listed how
both of these venues can be used in a variety
of business models that are applicable to the
JUSTIN RACINE
HME industry.
Traditional storefront
with informational website
This is any business with a physical location that has an informational website that cannot take orders. Here’s how these providers
can use online and mobile to drive more store and web traffic,
which in turn will lead to increased sales.
Online:
• Local first—Register your business with Google Local, a
program that displays businesses locally for their services.
• Content—Make sure your website content is proofed and
complete for each specific section.
• Ease of use—Make your website easy to navigate and explore.
• Accessible—Make store hours accessible and easy to find
on the site.
Mobile:
• Mobile unique ads—Mobile-specific advertising methods
through various display and local cost per click campaigns.
• Mobile site transition—Mobile-capable website that switches
the user interface and screen size to fit tablets/smart phones.
• Conversational search terms—Users are now talking to
search engines instead of typing. Work this type of strategy
into your site or mobile app’s content.
• Locality of services—Whether a patient is being discharged
from a hospital or is sitting at home looking for a specific product or service, make sure that you are showing up in your local
market for what they are searching for. Example: “Where can
I purchase a bath bench for my mother near Boston?” Using
local marketing and advertising tools through search networks
will allow you to be visible for this service and product.
Traditional storefront
with e-commerce capabilities
These are businesses that are servicing their customers out of a
physical location but also have the capabilities to sell products
through an e-commerce website solution.
Online:
8
FEBRUARY 2014
• Continuity—Ensure that pricing in your store matches pricing
online. You can even offer special discounts for folks to order online
or order in your store. Options such as in-store pickup for a special
lower price is a great way to get a customer into your location and
work the up-, cross- and related-product sells.
• Simplicity—The store is simple and easy to navigate and, most
importantly, extremely streamlined when it comes to finding a
product, adding it to the cart and checking out.
• Integrate—Promote your in-store services via your e-commerce
website and vice versa.
• Tell us where you are—If you have more than one physical
location, list a store locator so that users can see which location
is closest. Additionally, if you have specific locations that offer
unique services, list those, as well.
• Push and pull—Use the website to promote products only at
in-store locations through social media. You can use a “bring in
this Facebook post” to receive $5 off on a specific product.
Mobile:
• GPS notifications—Offer push-notification discounts in your
location through your e-commerce website. For example, if
someone is walking in your incontinence section, you can
send them a promotional discount on briefs.
• Mobile-only promotions—Send them mobile coupons to
their phone that they must redeem at the storefront.
• Be where your customer is/will be in the future—Create
a mobile app/mobile storefront that is easily accessible and
offers the latest services and products that you offer.
• Simple is sexy—Make sure that your mobile e-commerce
storefront is user friendly and simple to navigate. Finding a
product, adding it to the cart, and checking out should be
streamlined and FAST.
Whether you are operating just a physical location or you
are just an e-commerce storefront, there are some key points
that I want to leave you with that will help make 2014 successful. First, content is king. Original content may take months
to pay off, but start now as you will benefit from its results
down the road. Secondly, mobile is here to stay, so you better be ready to play. Make sure you can integrate mobile into
every aspect of your business that makes sense, not only for
you, but also for the needs of your customers. Make mobile
clean, fast and functional. Lastly, the most important piece of
advice I can give is that there is no difference between your
brick brand and your online brand. They are the same and
should be portrayed the same to the customer. Brand continuity through online, mobile, social and traditional means
will lead to more referrals, increased customer lifecycles and
larger sales in 2014. hme
Justin Racine is the marketing & e-commerce manager at Geriatric Medical in
Woburn, Mass. You can reach him at [email protected] or 781-305-3144.
Retail
SPECIAL REPORT
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FreeRider USA
Rely on manufacturer branding support
But Carson believes there are lessons that HME providers
can learn from big-box stores like Walmart.
“When I walk into Walmart, I’m greeted right away,” he
hen FreeRider USA exhibits its Luggie Scooters at
consumer shows like Abilities Expo, it’s not just says. “If I walk into the electronics section, I’m asked what
I’m looking for, I’m shown the differences between products,
to raise awareness of their brand and boost sales.
I’m offered warranties and accessories. The retail environment
It’s also a way that the manufacturer supports its dealers,
for this industry needs to get back to that.”
generating leads that can help them build their retail
An advantage that
businesses.
p ro v i d e r s d o h a v e i s a
“We’re doing the branding
“Whether you’re selling consumer electronics, food or
better ability to educate
and marketing to the
t h e c o n s u m e r, C a r s o n
consumer and passing those
scooters, you have to know the product inside and out.
says, and the support of
leads on to the dealer,”
That support and product knowledge comes from us.”
manufacturers is critical to
says Clinton Carson, sales
—Clinton Carson, sales manager, FreeRider USA
that ability. manager.
“Whether you’re selling
Carson sees the potential
consumer electronics, food or scooters, you have to know
for cash inflow extending beyond just the point of initial
the product inside and out,” he says. “That support and
sale. He emphasizes the opportunity for on-site repairs as
product knowledge comes from us.”
a cash-generating opportunity and a marketing advantage
Carson encourages all providers to be ready and able to
over big-box stores.
provide full sales-cycle support starting from the moment
“Having a service arm allows them to make money on the
customers walk in the door.
back end and keep the consumer happy,” Carson says. “If
“In the past, it’s not been necessary for them to develop sales
it’s not under
warranty,
it’s
an
opportunity
to
make
money
HME_7x456_Jan2014.pdf 1 12/13/2013 10:47:11 AM
skills, but now they’re going to have to do that,” he says. hme
on parts and labor, and for them to return for other needs.”
By Jennifer Keirn Contributing Editor
W
C
M
Y
CM
MY
CY
CMY
K
learn more at: http://www.freeriderusa.com
FEBRUARY 2014
9
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