The market for incontinence products is growing, but competition from the big chain stores is too. With annual sales of urinary incontinence products surpassing the billion-dollar mark, HME providers are feeling the competitive pinch of the large retail chains looking for a piece of the action. “You know you can’t compete with the Wal-Marts and big pharmacy chains on price,” says Jack Evans, president of Global Media Marketing, Malibu, Calif. “But you have certain advantages that they can’t touch. Smart HME providers can boost profits if they know how to exploit their unique edge.”

Tanya Randall-Tanner, founder of the online Center for Continence based in Moiese, Mont, agrees with Evans. “There are a number of ways that providers can offset the appeal of low prices offered in the big chain stores,” she advises, “especially when it comes to products involving a personal and often embarrassing medical condition such as adult incontinence.”

The Personal Touch
One clear sales advantage you have over the large chains is the specialized personal attention you can offer. A well-trained staff will go a long way toward building customer loyalty and repeat business. Randall-Tanner emphasizes the sensitive nature of this product category and customer reluctance to even talk about these special needs.

And she should know. Randall-Tanner herself suffered for years from incontinence caused by a childhood bladder operation. Eventually, the condition was corrected by surgery, but her own experience with the problem gives her a unique perspective on the emotional side of the issue. “Although people are a little more relaxed these days,” she says, “stigma is still a problem. People don’t easily walk into an HME store and talk about incontinence. They are more likely to just stuff the products into a bag.” Overcoming this sensitivity is often a key to marketing success. Sometimes just recognizing they are not alone (more than 25 million Americans suffer from incontinence at one time or another) is enough to break the ice.

Randall-Tanner stresses the importance of a product-savvy sales staff. “Make sure your people know the brands and especially the sizing information. Shy customers will feel much more comfortable if the products are treated more like ankle wraps or any common medical accessory. But this must always be balanced by a sincere empathy for the emotional concerns of the customer.”

Crossover Opportunities
Direct contact with the customer presents additional sales advantages as well. “The customer buying incontinence products presents opportunities for you to cross-sell other related products while in your store,” notes Evans.

There are whole lines of products that go hand in hand with incontinence issues. Skin care, cleansers, ointments, and mattress pads, for example. That is why it is important for staffers to engage customers about their health care needs. What is more, customers who purchase incontinence products are often the same people in need of bath safety and mobility products (canes and walkers).

Evans adds a word of caution. Some distributors who specialize in disposable soft goods will urge HME providers not to carry these “small sales” items, suggesting instead they be drop-shipped directly with the provider’s store name on the box. Although you receive a commission from the distributor, Evans warns this is not a good practice for those operating a brick-and-mortar store. “The pitfall is that you lose personal contact with your customer and all the crossover sales opportunities such direct contact provides,” says Evans.

Quality (And Variety) Counts
The economic realities of big chain stores also limit the quality and variety of items they can stock. This presents another significant sales advantage for HME providers. Evans points out that one of the most common showroom mistakes he finds is the lack of product choice. “Without a selection of at least three brands, both inexpensive and high-end choices (disposable and reusables), people will end up going to competitors. So your opportunity for repeat business is lost.” Evans suggests visiting some supermarkets and chain stores to see what brands they carry, then make sure your merchandise is different. “If you can’t beat them on price, you have to beat them with quality, selection, and value,” says Evans.

It may not be as hard as you think. Most distributors have private labels, and you can complement your lines with a full range of related products. The variety of options sets you apart from the chain stores and helps make your store the go-to place for incontinence products.

Moreover, this strategy increases profitability. For example, a typical national brand gives you a 15% to 20% margin, while the margin on private labels is more like 40% to 50%. The quality of private labels is often better, and the customer can not find your products anywhere else, at any price. If you can educate the customer about a quality private-label brand, you can double your margin.

Traditional loyalties to national brands can be overcome by a knowledgeable sales staff and a choice of better options now becoming available. Reusable products, for instance, are gaining in popularity and generally can not be sold in chain stores. Although more expensive on a per-unit basis, their washability makes them cheaper in the long run.

In addition, today’s Baby Boomers, who are often buying these products for their parents, are more concerned with quality and effectiveness than price. Thus, they are more easily sold on quality and can be “educated” away from more familiar name brands. In fact, as Evans points out, Boomers are more likely to buy the most expensive brands in the store. Of course, some Boomers may soon be customers themselves. As always, if you can capture their loyalty, you will generate repeat business down the line.

Randall-Tanner emphasizes the importance of featuring a wider selection of styles and sizes, especially “extra large”—a size not typically available on supermarket shelves. “People are looking for products that will accommodate active lifestyles, too,” says Randall-Turner. “The market is moving past simple and unappealing adult-size diapers and expanding into more stylish and innovative options for both men and women.” The fact that there is a wide range of absorbency requirements speaks to the need for a full range of products.

HME providers, who need not order in massive quantities, can respond more quickly to these more recent trends. For example, pelvic muscle exercisers, refastenable underwear, and male pouch pads are products that reflect a new dynamic toward innovation. The bottom line is to be noticeably different from your big boy competitors, especially with high-end and recently introduced products they can not offer.

Although the bulk of incontinence product buyers are still females in the 55 to 60 age bracket, male-related products are gaining an ever-increasing market share. With the greater incidence of prostate surgery, postprostate products have become brisk sellers. These include pouch pads and more stylish boxer shorts convincingly designed to hide their function. You can carry the innovations that chain stores can’t, like a reusable external catheter. Randall-Tanner predicts the demand for male-oriented products will continue to grow, but the need to show appropriate empathy in marketing to male buyers is no less important than it is with women.

Tricks of the Trade
Retail merchandising techniques are powerful sales builders, and incontinence products are not immune to their positive effects. Although some providers may concentrate on Medicare- and Medicaid-approved products, most incontinence products are cash items, subject to impulse buying and proven retail strategies. Hence, a well-managed, well-thought-out retail approach will work for HME providers as well.

For instance, it is a good idea to offer free samples and/or sale prices to encourage people to try new products, especially when you want them to switch to unfamiliar brands. A clean fitting room is always a plus for raising the comfort level of nervous shoppers.

Tasteful signage and informative flyers are effective ways to get your distinctive message across and position yourself as an expert in the field. Product placement in your store is key as well. Randall-Tanner suggests locating incontinence products halfway down an aisle where customers can view them with some degree of privacy. Avoid locating products in hidden corners where they will be missed altogether, but avoid highly visible areas like endcaps and/or at the cash register counter where the customer is forced to ask for the product. If possible, position related crossover products nearby. When you have established which items are the fastest “movers,” Evans points out that placing those items at eye level is a proven retail sales booster.

Free home delivery with discreet packaging is highly recommended, if not essential. Although you obviously want customers in the store, the stigma of purchasing incontinence products remains an issue, so some customers will strongly prefer the service. It is also quite likely that customers with mobility problems will have little choice. And finally, providing the convenience and anonymity of home service—particularly with monthly or regularly scheduled deliveries—is the most logical and effective way for walk-in stores to compete with online providers.

Don’t be concerned that home delivery means you will lose direct contact with the customer. The experts agree that customers with incontinence will appreciate your discretion and service. In the end, they are apt to be quite loyal and visit your store for other items.

Somebody once said it pays to advertise, and that is still good advice. In general, your positioning strategy is to distinguish yourself from the big chains. That means highlighting your higher quality, wider selection, and special expertise—all of which are unavailable in the big stores.

Evans advises HME providers to seek out marketing support from manufacturers. They usually produce consumer brochures on incontinence that can be distributed in many ways, including store flyers and direct mail insertions. The material can also be customized to match your product lines and appeal to the special needs of your customers. Word of mouth is almost always the best way to generate referrals, but distributing literature to urologists, interns, hospitals, and other medical facilities can generate additional referrals.

For the near term, the market for incontinence products looks bright—and the well-prepared HME provider can still stand tall playing with the big boys. DP

Marianne Matthews is a contributing writer for Dealer/Provider.