Whats hot and happening in the aids to daily living (ADL) product market? For most general HME providers, ADLs play either a small role in the merchandise mix or no role at all. But providers who serve the market best are doing it with finesse, making a profit and having fun along the way. Building the business as a nicheand creating a positive buying experience for the patientare two keys to success. When it comes to sales volume, ADL products are a minor part of our overall revenue, says Bob Jackman, president of Yes I Can, Cathedral City, Calif. However, the ADL niche is a major part of who we are as a business.
Jackman, a general HME provider, founded the business 13 years ago with his wife, a disabled person and savvy businesswoman. He credits his partner with the business mission to empower the disabled to be more independent. Whats more, Jackman says it is his wife who had the vision for Yes I Cans success in the ADL market. Simply put, she saw the need for an upbeat, inviting store that appealed to customers and engaged them in the product experience.
ADL products range from small kitchen items like easy-to-use wine openers for arthritis patients, to magnification equipment for the blind, to shower/tub chairs for the elderly and disabled. Providers who plan to succeed in the niche might consider taking a page out of Yes I Cans business plan.
At Yes I Can, customers arrive at an interactive showroom that is all about experiencing the products in their natural setting. The Yes I Can Store is designed like a home with a living room, dining room, kitchen, and bathroom. The products are displayed in their appropriate settings. The atmosphere is light, colorful, and fun. The goal is to give customers a hands-on experience, says Jackman. They try out the products and choose those that best improve their quality of life.
Diversify Your Line
Yes I Can and other successful ADL providers know it takes more than store ambiance to stay competitive. One provider told us the best advice she had to offer was to diversify, diversify, diversify. In short, the more you have to offer, the better.
Many of the items sold at Yes I Can retail for under $25. Even so, if you are just starting out, it is wise to carry a broad product spectrum including vital medical items like electric leg bag emptiers. Patients with spinal cord injuries, for example, rely on these life-saving devices. Essentially, an electric leg bag emptier allows the patient to dispose of dangerous urine by pressing a button or using their mouth to activate the product. Sophisticated products like these are liberating tools for the disabled because they provide freedom and mobility. Going to school or work, or visiting a friend, is no longer a traumatic event.
At the same time, simple household itemslike the folding fork that clips over a patients handare ideal for stroke victims, MS patients, the elderly, and the arthritic. In fact, for those who lack dexterity, there are a host of inventive ADL products that make daily living a whole lot easier and productive
and a whole lot less stressful. Phone holders featuring a plastic loop velcroed onto the back of the handle are another big seller. Then there are countless products for the vision-impaired. These range from large button telephones to sophisticated magnification systems.
Jackman cautions providers about putting all their eggs in one basket. For us, ADL products are just one niche, he says. The traditional retail equation of sales per square foot does not warrant our ADL merchandise alone. Indeed, it is important to view the category as a niche. As a general DME provider, Jackman carries a wide range of medical equipment as well.
Build Alliances, Generate Referrals
Your merchandise mix is only one part of the equation for success. The best providers in the ADL niche have earned credibility with customers and referral sources. They know how to leverage that credibility to generate ongoing referrals.
Jackman notes that his best referrals come from building alliances with reputable organizations. Yes I Can is active in the community, interacting with arthritis groups, stroke centers, and The Braille Institute. We are generally involved on a regular basis with groups like these, says Jackman. Often, we are invited to present helpful information along with product offerings to the patients. For Jackman, networking with nonprofits is an invaluable source of referral business.
Interestingly, there is one group providers should not count on for referrals: physicians. Physicians know little about ADLs, and perhaps that is because so many ADL products are nonmedical. Doctors are pretty ignorant when it comes to ADL products, says Jackman. On the other hand, occupational therapists are absolute champions for this niche.
The way Jackman sees it, the ADL category would be totally dead if it were not for occupational therapists. Perhaps these professionals see the value of ADLs because they are the ones who have an ongoing, working relationship with patients. No doubt, it is both exciting and rewarding to witness a patient gaining newfound independenceand confidencethrough both medical and nonmedical products that improve daily living. As providers in the ADL market, therapists are some of the primary people you will need to impress.
Quality is a key issue, too. Successful providers see the big picture and aim for long-term relationships with clients. That may mean selling the highest quality shower chairand knowing it will last 10 years. But your customer will appreciate the product longevity and turn to you for additional solutions. The long-term relationship is more valuable than the short-term sale.
Is the Baby Boom Market Exaggerated?
Manufacturers and providers alike agree that the ADL niche is a growing market. As Baby Boomers continue to live longer, the demand for smart, new ADL products will increase. Approx-imately half of the 78 million boomers will turn 50 or older by the end of this year. In addition, for a greater population of elderly people, many will develop diseases that come with aging such as Parkinsons and arthritis, or undergo hip and knee operations.
Moreover, Baby Boomers are hardly shy about demanding solutions. Recent statistics show that boomers spend some $2 trillion annually on consumer goods and services. What is more, they want immediate gratification. Baby Boomers are accustomed to saying, I want this or I need that, says Jackman. Indeed, this core group are some of the most sophisticated consumers this country has ever experienced.
The rise in obesity is another factor driving the demand for ADL products. Bariatric patients, who are often confined to wheelchairs, can benefit from a wide array of ADLs. For example, long-handled reachers and long-handled shoehorns are two of Yes I Cans biggest sellers.
Manufacturing Moxy
Smart providers know that success depends on staying on top of the trends. ADL inventorsseveral of whom are disabled themselvesare very inventive. So the products that you sell today may be obsolete in 5 or 10 years. Indeed, in the ADL category, necessity is the mother of invention. So attend trade shows and seminars. Make sure you stay ahead of the curve. The originality of this market is one of the most exciting and promising aspects of the business.
One of the most satisfying aspects of the business is the fact that ADL providers help restore dignity, hope, and independence for the disabled and elderly. Very often, business can be stressful and even a bit heartbreaking for DME providers. But the ADL niche is all about the opposite. In fact, Jackmans Yes I Can store is nothing short of cheerful. We believe in making the shopping experience fun and uplifting, says Jackman. The atmosphere and positive attitude get people in the door and the products sell themselves.
So if you are looking to add a happy, helpful niche to your business, consider the ADL market. Just remember, whether you are selling special kitchen utensils or more sophisticated equipment, serve it up with cheer. Everyday functional products can be fun to sell and profitable for your business.
Marianne Matthews is a contributing writer for Dealer/Provider.