Mobility products are an important category for most HME companies, but a good percentage of that business is third party dependent. However, there is cash business to be had in this category as well. Whether a company has a showroom or depends primarily on delivery, marketing can be accomplished to increase both insurance-related and customer-pays business. Although referral sources are critical for mobility business, it is important to market to both referral sources and consumers.
Providing in-services on a regular basis is a cost-effective way to keep your company in touch with referral sources. Demonstrating new products, reviewing options, and even providing insurance updates are all reasons for setting appointments.
Another way to be sure that referral sources remember your company is by sponsoring a half- or full-day educational program. For mobility products, the best presentation topic is probably seating and positioning. There is some work involved in developing a program; however, the event can be organized with minimum cost by using a manufacturer to cosponsor or even to provide the speaker. This type of program will be looked upon as a service to referral sources and will enhance the image of your company.
Create a Newsletter
A quarterly newsletter to referral sources is an effective way to remind them of your existence and the services that you provide. Newsletters should be an information source, not an advertisement. However, new services you provide, new staff additions, and event announcements are appropriate. Traditionally, these have been mailed and can be done in-house without major cost. Creating an e-mail database can also enable you to provide the newsletter and save both mailing and printing costs.
Increasing Cash Sales
Although companies with a showroom have more opportunity to obtain cash sales, there are tactics that can be used even for companies without a showroom. For all companies, it is important to remember to create an atmosphere that fosters opportunities for customers to pay cash. This could be because there is no insurance, the item is not covered by insurance, or even that the customer wants a productperhaps a more expensive onethat has additional desirable features. Unfortunately, many employees automatically assume that insurance is the driving force of the sale and this mind-set can only be changed by continually creating a cash-is-king atmosphere.
Creating this atmosphere starts with suggested selling. Many mobility products have related products that can enhance a customers life such as:
walker bags, pouches, and trays
cane clips, hangers, ice safety attachments, cushioned grips
wheelchair bags, pouches, cup holders, rain capes
automobile lifts for wheelchairs and scooters
Additional related products to increase cash sales include:
reachers
transfer discs
bathroom safety products
seat lift chairs
Suggested selling is something that can be taught. Employees should understand that the goal is not to push unneeded products on customers, but to educate them about products that will improve their lives. This concept does take some reinforced training to become normal but can be accomplished. In fact, those companies without a showroom can have a chart with these suggested items provided for order-intake, billing, and delivery employees to take advantage of these opportunities. For example, when I ran my own independent HME company, I paid a commission for suggested sales. And although not all employees were comfortable with the concept, many did and it led to satisfied customers, increased income for those employees, and increased sales for the company.
Advertising
There has definitely been an increase in the number of companies using radio, television, or newspaper advertising. This is true of companies with or without a showroom. Manufacturers have programs to help fund advertising and a year-round planned advertising program targeted to cash-sale products can be successful. Referral sources, physicians, and therapists all watch television, and even the visibility of your name reminds them that you are around. All the strategies for marketing to referral sources (in-services, sponsoring events, exhibiting at health fairs, and other appropriate events) will also have the potential to increase cash sales.
Develop a Catalog
One strategy that can be effective for both marketing to referral sources as well as increasing noninsurance sales is to develop a mini-catalog for the products that are not insurance reimbursed. Some of these products may be covered by insurance for some customers, but many will not qualify and will pay for the product if they really want or need the product. Examples include scooters, seat lift chairs, power wheelchairs, specific four-wheel walkers, and fancier canes. Noncovered products also should be included in the mini-catalog (traveler wheelchairs, aid to daily living products, auto lifts, and many more).
Even sources that already provide referrals to you may not be aware of these products, and a catalog will provide this information. These catalogs can be distributed to support groups, physicians offices, nursing homes, and assisted living centers.
This catalog can be produced relatively inexpensively, does not have to be in color, and pictures are available from manufacturers in electronic format. Providing a catalog like this will separate you from your competitors.
Remember Existing Customers
Customers you have already serviced trust and know you and are an important source of additional income. Newsletters, direct mail, statement or delivery stuffersor in-house open housesare strategies to keep in touch. Not only can customers be a source for additional sales as their needs change, but if they are satisfied with your services, they will become another referral source for yourecommending you to relatives and friends, and even promoting you to physicians or therapists.
Plan Your Strategies
When reading articles or attending conferences, you will find ideas that can work for your company. Many times, while taking care of everyday business and putting out the fires that invariably occur, these ideas disappear before you can use them. If there are ideas in this article that make sense for your company, set aside time to discuss them and set a strategy and timetable to put them into effect. If you have a written plan including actual deadlines it is much more likely that they will come about.
As an overall strategy in todays business climate, you should be thinking about expanding sales that do not depend on insurance. Particularly if they add sales to your business with relatively little added expense or payroll, these sales will increase your profit and, in fact, will strengthen your relationships with referral sources.
Joe Groden is president of JG Consulting, Penfield, NY. He can be reached via e-mail: jgroden@jgconsults.com.