Tired of sending vehicle modification referrals out the door? You can expand your business and do the modification yourself, or create strategic partnerships with established modifiers.

If you own an HME retail store, you are undoubtedly searching for ways to generate more profits. A typical goal is to find a product line that does not require insurance reimbursement and fits nicely with your existing client base. One of the natural product lines are those that help your clients access automobiles with their personal/power mobility devices (PMDs) such as wheelchairs and scooters. Vehicle modification seems like a no-brainer, especially when you help clients lift new power wheelchairs into their cars just so they can leave and spend another $2,000 or more with a competitor down the road.

Maybe you are currently doing vehicle modifications successfully, although there are not many who can do so. Perhaps you tried it and stopped, but now think you know where you went wrong and are scheming to get back into it as soon as you get a good technician. Maybe you are one of these DMEs that did it for a while, got your butt kicked, and vowed never to do it again!

Although the vehicle modification business looks something like the DME business, there are many more differences than similarities. If you are going to install products into automobiles, the first question you have to ask is who will do the installation? If you ask your wheelchair technicians if they know how to work on cars, and they say, “I can do anything,” turn around and go back to your office. It has been my experience that anybody who tells you that they are good at everything is good at nothing.

I would let most good automobile technicians work on wheelchairs or scooters, but would not allow most wheelchair technicians to work on automobiles. The ramifications of screwing up an automobile are much greater than the ramifications of screwing up the electronics of a wheelchair or scooter. First of all, you have the cost of repair, and second, with today’s complex cars having multiple body computers that control everything from braking to advanced safety systems, a technician had better make sure he knows what he is doing before he starts probing a wire bundle.

The days of every function having its own hot feed and ground feed are long over as many of today’s cars have what is called multiplexed electronics. That means one wire may control multiple functions on the automobile—depending on the amount of voltage sent down the wire to trigger the particular function. If your wheelchair technicians can talk intelligently about multiplexing, I would investigate the possibilities of doing automotive equipment installations.

The next step is talking to your salespeople about adding another product line to the already infinite product variations they are currently required to know. It has been my experience that getting salespeople to add additional products is like trying to teach my cat tricks. As long as I am standing there encouraging it with a piece of smoked trout, it will act interested. However, the minute I turn around to continue whatever I was doing, it gives me the paw and forgets everything.

Which Cars? Which PMDs?
Not only must you learn which products work best with PMDs, but you also must know which automobiles work best with those products. Some manufacturers are better than others at helping you with the proper applications of products. However, no manufacturers are going to bail you out if your salesperson sells a customer the wrong product.

One of the recurring themes in the selling of wheelchair and scooter lifting devices is that salespeople don’t always take the time to explain the challenges in using this type of equipment. On every brochure for these products, there is a picture of a happy, smiling elderly person using the lift device. However, the customer should first know all the strength requirements of each product. Over the years, my inventory has at times become a graveyard for custom products that did not work out.

What About Liability?
From an owner’s perspective, you must protect the business from liability. For example, if you are seriously thinking about installing adaptive equipment for automobiles, contact your insurance agent to discuss coverage for that side of the business, more specifically the general liability policy. Few insurance carriers are interested in providing liability insurance for people who modify vehicles for customers with disabilities.

In this day and age, you must be honest with the people who protect your business, as opposed to simply operating and hoping you will be covered for any oversight. When you are talking about the possibility of a loss dealing with a motor vehicle, you can imagine how quickly a million dollars could be eaten up. Additionally, the National Highway Traffic Safety Administration (NHTSA) has required that anybody who modifies motor vehicles must register as a modifier with them to avoid penalties and fines.

By registering as a modifier, you are also agreeing to adhere to all Federal Motor Vehicle Safety Standards, and in certain instances where the installation of specific equipment would cause a vehicle that was originally compliant to become noncompliant, you could avail yourself of the “Make Inoperative” provision (a specific set of guidelines developed by NHTSA and designed to govern vehicle modifications).

Whether as a DME you decide only to cherry-pick certain products to install or jump into the industry full force as a vehicle modifier, it is important that you learn about the laws that govern this industry. One way to get a primer on those laws would be to join the National Mobility Equipment Dealers Association (NMEDA). It provides members with much of the information required to operate legally in the business. Additionally, if your hope is to serve clients who are getting their modifications paid for by third parties such as Vocational Rehabilitation or the Veterans Administration, NMEDA has a Quality Assurance Program (QAP). Being a member of the QAP is required in some states and appears to be a future preference of the VA.

The QAP entails classifying your vehicle modification operation in one of three categories, depending on the level of installations that you plan to provide. Being a member of NMEDA gives you access to installation guidelines that are required of anybody that is serious about doing a good job installing this equipment.

If one of the reasons you are getting into this business is to help make your technicians more profitable, don’t hold your breath. No manufacturer pays anything close to a livable wage when it comes to warranty work. And of course, there is no markup on parts, thereby creating a net loss situation whenever there is a parts failure in the warranty period.

Like many other manufacturers in our industry, these manufacturers also tend to boast about a 1-year warranty to the customers, but what that really means is that they will replace a part if it is defective (misused or not installed properly is not covered) and you eat the labor costs.

If it is your intention to get into the business in a manner larger than just these products, your challenges of personnel, application, training, and knowledge are exponentially increased through the complexity of the business environment. And don’t forget the necessity of acquiring an inventory to show your clients actual products or to provide timely service.

Maybe you want to get into the business because you see it as a way to increase your profits and cash flow. Perhaps you are tired of sending clients down the road to a vehicle modifier who does not take care of their customers. You may have found out that the vehicle modifier started selling wheelchairs and scooters and they are cherry-picking the customers that go through their shop. One thing I can say is that just like getting into the adaptive vehicle mobility business partway is challenging and difficult, the DME business is also challenging and difficult.

I speak with many vehicle modifiers, all who have decided to stock and sell a selection of scooters and wheelchairs in the last few years, and I have yet to find one of them claiming success with this part of their business.

Ultimately, you are much better off as a great DME business if you have a good relationship with a high-quality vehicle modifier. For example, often clients may come to you to get a new wheelchair, and without knowing it, the wheelchair you sold to them may not fit into their vehicle. By working with a qualified vehicle modifier before a wheelchair is ordered, you can often avoid problems.

If the person is not driving from his wheelchair, he may still have issues with getting his PMD in and out of a vehicle. Working with a qualified modifier will show consumers you are interested in getting them the proper equipment, and can mitigate expense with respect to modifying the current vehicle. Of course, working with a vehicle modifier that competes with you is probably not an option.

Go to the best vehicle modifiers in your area and talk about sharing referrals and knowledge. If this is not possible, expand the geography of your search because people will travel a little further for a better vehicle modification expert. Offer to give them referrals and work out a deal whereby a “finder’s fee” is included on both sides.

Creating a strategic partnership with a vehicle modifier enhances the perceived value of your services. Vehicle modifiers that care about their customers will benefit just as much when it works the other way.

Mark Lore is president and CEO of Ride-Away Handicap Equipment Corp, a vehicle modifier headquartered in Londonderry, NH. Ride-Away has 11 locations on the East Coast. Lore can be reached via e-mail: mlore@ride-away.com