Page 29 - HME Business, March 2017

RETAIL SOLUTIONS
Retail’s
Proven
Winners
Must-have categories and products that help ensure cash sales success.
By Joseph Duffy
Outlining a solid retail sale strategy can pose a tricky challenge. If anything, tapping into top-performing retail categories could be the
Providers know that retail sales are essential in helping diver- sify revenues in the face of reimbursement cuts, but deter- mining which categories are right for a providers’ business, and how to sell those products isn’t exactly easy.
In aggregate, the percentage of HME provider revenue that comes from cash sales is difficult to measure, but Maria Markusen, director of develop- ment for VGM Retail, says that the number of VGM members contacting the organization to discuss how to implement retail has at least tripled since the beginning of this year.
Markusen notes that generally, those HME providers who have imple- mented cash sale strategies have seen some measure of success but many providers have not had enough time to move beyond the ramp up to obtain results.
“Those folks who are successful also implemented an inventory and product management plan and a focused marketing plan to propel them into success,” she explains.
According to Kamal Haddad, founder and CEO of HME e-commerce company Health Mobius LLC, many HME providers should be generating more than 30 percent of their revenue from retail cash sales.
“If they are not,” he says, “they should be asking, ‘Why am I not?’ and ‘How can I?’ Just about every funded item has an alternative premium upgrade choice. They also have a number of accessories or complemen- tary items that are used in combination. It’s easy to display the accessories in-store even when the inventory is not onsite by placing the order on your company e-commerce website and having it drop shipped direct to the patient.”
Management Solutions | Technology | Products
smartest approach for providers. If they pursue known top sellers, they should be able to get closer to the the 30 percent that Haddad highlights. To dig deeper, HME Business magazine asked a panel of retail experts to discuss must-have retail categories and products and ways they can help you grow your bottom line.
Rob Baumhover, director of VGM Retail
Category: Sleep
Products: Sheets, mattress protector, pillows, back wedge, eye mask, aromatherapy, sleep machines
Category: Bath safety
Products: Bath seats, transfer bench, grab bars, tub bar, non-slip mat and
treads, shower head, bath aids, toilet seat riser and safety frame
What makes these items a necessity is the fact that every customer shop- ping for an item within these two categories needs at least one of the addi-
tional items listed as well. It’s what we call Incremental sales or add-ons (see “How Incremental Sales Can Help Your Business”). If you sell the customer a bed, why would you leave them to go elsewhere to get the accessories when they need the items now and you have access to them?
Selling strategies: Make sure everyone is trained on the features and benefits of all the products. Group the products together so it makes it easier for the customers to see everything they would need, and for the convenience of your sales associate when showing them everything. Also, be in stock – it’s much easier to sell an item if you have it there for the customer to touch and feel. Lastly, have the products signed and priced.
hme-business.com | March 2017 | HMEBusiness 27