When a sole manufacturer controlled the wheelchair- and scooter-lift market, providers had to take what they could get in regard to pricing and quality. But with close to a dozen manufacturers now vying for business, at least one formerly inflexible manufacturer is bending over backward with offers of volume discounts and breaks on shipping, says Matt Welborn, president of Electric 3 Wheelers Inc in Fort Worth, Tex.
“With more competition, we have more opportunities to get our prices lowered,” says Welborn, who sells about 30 lifts a month. “In some cases, the manufacturer orders a price drop. They’ll ask us, ‘Where do we have to be [with regard to price] to get your business?’ In other cases, we have to ask for the better pricing—but they are more inclined now to say yes. Generally, prices are about 25% lower than they were a few years ago.”
The presence of robust competition among lift companies amid a down economy means that many manufacturers are going above and beyond to secure showroom floor space, according to Ken Gould, owner of Gould’s Discount Medical in Louisville, Ky.
“The manufacturers are getting more aggressive,” says Gould, whose company is in the process of putting up a new, larger showroom that will have the capacity for double the number of lifts currently on display. “They are promising sales leads and co-op advertising dollars in exchange for us featuring them in the stores.”
Manufacturer spending on advertising is up, adds Doug Godwin, vice president of operations, Mid State Medical Services Inc, Montgomery, Ala. Consequently, he is getting more inquiries about lifts.
“People see the ads and then call the manufacturers for more information,” he says. “In turn, the manufacturers give them our name as the local representative of the product.”
One provider who has not noticed lift prices declining is Dave Jacob, president and CEO of Certified Medical Systems Inc, Orange Park, Fla.
“Prices are actually up, and that’s because the lifts sold today are larger and heavier-duty than in the past,” Jacob says. “But somehow people seem to manage to find the money to pay for lifts—$1,000, $2,000, even $5,000 or more.”
Jacob notes that Medicare does not reimburse for this product. Regardless, people are willing to fund out-of-pocket because “they value their mobility so highly,” he says.
Innovation Explosion
Perhaps the biggest benefit of intensified manufacturer competition is an explosion of product innovation.
“Innovation has given us more options to offer,” Gould says. “And the more options we can offer, the more choices people have for consumers’ specific needs.”
Competition also has spawned a trend toward standardizing some key components of lifts, thereby enabling dealers to maintain narrower inventories of replacement parts.
Moreover, some lifts are growing lighter, even as they become sturdier and better able to accommodate today’s heavier wheelchairs and scooters.
“We have some lifts that weigh only 95 pounds, compared to the 150 pounds of earlier types with similar features and performance capabilities,” Godwin says.
The lighter weights (coupled with the fact that lifts now are delivered at least 75% factory-assembled) have helped Godwin’s company provide 30-minute lift installations.
“The job used to take 3 or 4 hours,” he says. “We farm out the hitch installation, but we handle the remainder of the installation, and it now requires just one person.”
A Few Downsides
Naturally, strong competition at the manufacturer level is not all good news. In some instances, the rush to bring new products to market can compromise quality.
“Any time you are trying to stay a step ahead of the competition, quality can slip,” Welborn says. “Manufacturers need to spend a little more time making sure the product is fully tested and proven before introducing it.”
Another problem can occur when small vendors, hungry for sales, push for direct-to-consumer transactions via the Internet. That siphons business from dealers like Gould. Worse yet, as Gould sees it, is that Internet distribution sets the stage for consumer dissatisfaction—the repercussion of which is negative word-of-mouth about lifts in general.
“People who buy on the Internet will have to install the lift themselves,” Gould warns. “That’s not as easy as it looks. A successful installation requires the skills of a properly trained and equipped technician.”
Providers also face the issue that increased lift sales oblige them to bolster their service departments.
“No matter how well built lifts are, they need more frequent servicing than most other products we carry,” Welborn says.
However, the drawbacks are minor compared to the gains to be made from lift sales under current conditions, Gould says.
“The more insurance-based your business is, the more susceptible you are to being harmed by declining reimbursement rates,” he explains. “We are trying to play up our cash-only lines. They are a lot easier to deal with, and they help our cash flow. That is why we are making lifts so visible in our stores.”
| Picking Up Sales By Rich Smith Although increased competition has prompted manufacturers to offer better deals on wheelchair and scooter lifts, getting customers to think about a purchase still can pose a challenge. The providers interviewed in the article offered a few tips to help get customers in the door and interested. • Advertise on TV. Lifts lend themselves extremely well to presentation on the small screen. Over-the-air commercial rates are expensive—except late at night when the target audience of seniors will not be watching. However, it is a different story on cable, according to Ken Gould, owner of Gould’s Discount Medical in Louisville, Ky. Cable advertising rates are usually very reasonable, he says, even during the hours when the elderly are most likely to be watching. • Don’t date your coupons. If you try to promote lift sales by offering discount certificates, avoid stating when they expire, recommends Dave Jacob, president and CEO of Certified Medical Systems Inc, Orange Park, Fla. “Seniors tend to make purchase decisions months and months after a coupon’s time is up,” he says. “That’s just the way they are. You discourage sales by imposing a deadline on them.” • Develop relationships with car dealers. Send mailers, make phone calls, or drop by to say hello. Acquaint the car dealership’s staff with your capabilities to meet the needs of their wheelchair- and scooter-using car shoppers, Gould advises. “Let it be known that you are available to consult on customer needs so you can help the car dealer match up the chosen vehicle with the right lift system,” he says. “And you have to keep working at these relationships because the dealers experience a lot of sales staff turnover.” • Brand it. To each lift sold, affix a weatherproof placard or sticker bearing your store’s name, address, and contact information. “People will see the lift in use in a parking lot somewhere and will want to know where they can get one for a family member, friend, or perhaps themselves,” says Doug Godwin, vice president of operations, Mid State Medical Services Inc, Montgomery, Ala. “The sticker on the lift will provide that answer.” • Display a wheelchair or scooter on the lifts set out on your showroom floor. “When you have the lift all by itself, with nothing on it, nine times out of 10 the individual who is there browsing does not understand what they are looking at,” says Matt Welborn, president of Electric 3 Wheelers Inc in Fort Worth, Tex. “But when there is a product on the lift, right away the individual recognizes what the lift is and also what it is supposed to be used for. That promotes interest. Once you have interest, you are on your way to making a sale.” • Offer a package deal. Welborn’s store advertises that buyers of power wheelchairs will also receive a lift for their car or home at a discounted price (but still above cost). Making such an offer increases the value proposition in the mind of the consumer, he says. However, Welborn cautions against the tactic of obtaining a cheap lift and throwing it in for free. “Any lift you can afford to give away is very likely going to be of poor quality that will cause the consumer many problems and lead to much dissatisfaction,” he says. • Partner with a local financing company. When prospective purchasers discover that Medicare will not reimburse lifts, they typically worry about the out-of-pocket price, Godwin says. Being able to refer those crestfallen customers to a bank or lending agency willing to finance the purchase can save the day. |
Rich Smith is a contributing writer for Dealer/Provider.
Resources
