In most areas of the country, there is still opportunity for a savvy provider to capture a lucrative niche in compression hosiery products.

Aviable compression stocking business can be developed in many ways. For example, you could rely solely on the nonprescription fashion product. Generally, the measurements to determine the proper fit are simple to do, and marketing can be developed just to grow this business. The next level of product diversity is compression stockings that require a prescription and, in some cases, more detailed measurements.

The most complete business model would include custom-fit products. Not only are these products provided for customers who do not fit into standard, ready-made products, but they also can include zippers (and other modifications) to make the stockings easier to put on.

In most areas, there are few companies providing this level of products and services. HME suppliers offering complete services can be viewed by both patients and referral sources as providing much more than the competition. Offering the most complete level of products does require a bigger investment in time for training, but the benefits can be financially rewarding.

Marketing Matters
Not only can the wide variety of compression stockings be promoted to the public, but a number of referral sources  can be marketed to as well. The level of products carried will determine where and how the products will be promoted.

If the product level is primarily nonprescription stockings, concentrate the majority of marketing on reaching the customer directly. This can include newspaper and TV advertising, direct mail offers, and even statement stuffers. The manufacturers should be able to provide advertising materials as well as some financial support for these efforts.

Notifying referral sources can be of some value, but that should not be a major concentration. The referral sources that are most likely to be interested are OB/GYNs, general practitioners, and internists.  

Companies that provide nonprescription as well as prescription products should still do some consumer marketing; however, a greater concentration should be on marketing to referral sources. In addition to the internal medicine, OB/GYN, and general practitioner offices, an important referral source will be vascular surgeons. They will be especially interested if your company is also able to provide custom-made products. Indeed, vascular surgeons will still be interested even if you don’t offer custom products.

For customers who will be wearing stockings throughout their life, there is a special opportunity for repeat business because compression stockings lose effectiveness after 3 to 6 months. Maintain a database with the dates the products were purchased, so that replacement reminders can be sent out. This mailing also can include an offer for a free wash solution when stockings are reordered, or even a discount on the reorders.

Lymphedema-related Opportunities
HMEs can increase revenue by providing products used for treatment of lymphedema, including pumps, bandages, and compression garments. Compression products include arm sleeves, gloves, and other body garments.

Again, there will be training required for the staff; however, this is not difficult, especially if a company is providing stockings, as much of the training is similar.

Many referral sources for compression stockings also can be referral sources for lymphedema products. In many cities, there are specialists and lymphedema treatment centers.

While Medicare does not cover these products, Medicaid covers compression stockings in some states. HMOs and managed care organizations reimburse for these products in some cases. The majority of this business, however, is cash, check, and credit card. As such, these products can be a great source of revenue and profit with the proper marketing.

Joe Groden is president of JG Consulting, Penfield, NY. He provides consulting services in business management, customer service, product selection, and marketing. He can be reached via e-mail: jgroden@jgconsults.com.