FeBRUaRY 2014
Transcription
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 www.hmenews.com 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 www.hmenews.com 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 www.hmenews.com 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. FOR 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: hmenews.com/app learn more at: http://www.HMENEWS.com/APP FEBRUARY 2014 7 Retail SPECIAL REPORT www.hmenews.com 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 jracine@geriatricmedical.com or 781-305-3144. Retail SPECIAL REPORT www.hmenews.com 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 #1 TOPICAL PAIN RELIEVER NOW AVAILABLE TO DME Biofreeze® Sales Starter Kit - $89.95 Includes free brochures, product samples, a window cling 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) TO sEE IF yOu quALIFy TO RETAIL ThE NATIONAL BRAND ThAT gENERATEs sTRONg INCREMENTAL PROFIT. Biofreeze is a registered trademark of The Hygenic Corporation. Unauthorized use is strictly prohibited. ©2014 The Hygenic Corporation. All Rights Reserved. P06221 Rev 0 learn more at: http://www.BIOFREEZE.com