Cash-based bath products business can help consumers and make up margin.
by Greg Thompson

Whether it's baby boomers or the parents of baby boomers, more
people than ever need the extra security offered by bath safety
products. The demographics are no myth, and competing well requires
a savvy approach.

Providers know by now that most homeowners want to avoid
institutional-looking products in favor of attractive designs, but
when does style overshadow functionality? It's a fine line, and
Brad Crozier, senior product/brand manager, Moen Home Care,
believes usefulness should never be sacrificed on the altar of
design.

"People are looking to coordinate or match the rest of their
bathroom decor," says Crozier. "Particularly with baby boomers,
they have nice bathrooms and put a lot of money into them. They
want to add products that complete the look. You'll see designer
grab bars and bath safety furniture that looks a bit more stylish,
but style is just a part of it. You want to add features and design
elements that add real functionality."

Moen hopes to back this up with a February 2011 North American
launch of three grab bars that feature integrated accessories. "One
grab bar has a toilet paper holder, another has a towel bar, and
another has an integrated shelf," says Crozier. "We introduced
these at Medtrade Fall 2010, and they will be back at Medtrade
Spring 2011."

Ladimer Kowalchuk, president of Safety Bath Hydrotherapy
Systems, says the market used to be strictly driven by need, but
awareness has sparked many younger people to plan for the future.
"We have seen a trend in the last couple of years in the walk-in
bathtub industry where the buyer is younger," says Kowalchuk. "The
younger buyer purchases the walk-in bathtub with an eye toward
future needs. This buyer wants to use the bathtub as a personal hot
tub and enjoy the benefits of massage therapy. They don't want to
wait for a catastrophe before buying."

For Kowalchuk, the trickiest aspect of the market is design.
Walk-in tubs are one of the newest segments, and many different
models are attempting to walk the line on functionality, safety and
style.

Advises Kowalchuk, "Three questions you need to ask before you
purchase a walk-in bathtub are: 1) How high is the step into the
tub? A lot of tubs have a 6- to 7-inch high step; 2) Does the tub
have an external safety drain? Gasket failures can occur and a tub
that doesn't have an external drain can cause major damage; and 3)
Does the bathtub have an in-swing or an out-swing door? An in-swing
door can be a major safety issue if a person needs help getting out
of the tub and is slumped against the door."

Slow Start, Strong Finish

Staying away from federal reimbursement programs has tremendous
appeal, but cash sales can suffer in the throes of a soft economy.
Daniel Matschina, president and CEO of Bridge Medical,
characterizes 2010 sales as "fair to good" and a "tale of two
extremes."

Even items generally perceived as necessary to prevent injury
can go unpurchased in tough times. "Our product is cash-and-carry
for the most part, and is prone to the same issues as other
consumer products during recessions and job loss — which is
essentially belt-tightening and need-only type purchases," says
Matschina. "Unfortunately, even bath safety — lifesaving
products — sometimes go by the wayside when times are
tight."

As a result, the beginning of 2010 proved to be a "bit slower"
than expected, mostly due to consumer confidence and economic
pressures from foreclosures, unemployment and consumer uncertainty,
reports Matschina. However, he says, the bath sector has seen a
turnaround that for his company, began in the fall. "The fourth
quarter of 2010 turned out to be the strongest quarter in Bridge
Medical's history, and we are not looking back."

Kowalchuk agrees that reduced traffic early in the year was
affected by the housing slowdown. "Many elderly people are
reluctant to spend money on renovating a home that has been
drastically reduced in resale value," he explains. "I think 2011
will be a better year because I believe we are just around the
corner from an economic recovery."

Competitive Boost?

As the competitive bidding juggernaut continues in the first
nine cities and Round 2 warms up, the undeniable focus on
non-Medicare business gives new urgency to the bath safety market.
Many providers are old hands at wringing opportunity from
adversity, and the next few years will again put those talents to
the test.

"With declining reimbursement creating profit pressures,
providers will need to look for new and creative ways to grow their
top and bottom lines," says Cali Thomson, associate business
manager, hygiene, Invacare Corp. "Bath safety provides a perfect
way to capture additional sales through their existing client
base."

Adds Matschina, "Competitive bidding is forcing many dealers to
reevaluate their business from strictly Medicare and reimbursement
to a more retail, cash-based business where they can make up
margin, control their destiny, sell products, serve consumers and
provide an instant profit-generation model.

"Further," he continues, "many are seeing that they need to
enact more traditional retail merchandising models, which is all
about the 'basket' of purchases. If you're selling a power chair,
you should also be recommending other products that can help
consumers lead more independent and safe lives while at home and on
the road. If they are having trouble with mobility, they are most
certainly in need of products that can make their lives safer in
the bathroom."

Knowing the right questions will help, but only if you can get
people into your store. Why should customers seek out home care
providers when Walmart is already in the bath safety business?
Fortunately, selection and expertise are still valued by
customers.

HME consultant Jack Evans has seen it work for providers
throughout the country. Family caregivers who walk into a Walmart
or Costco, for example, will likely see one only brand of bath
chair and bench, not knowing if it is worth buying. Meanwhile, no
one in the store can answer questions.

On the other hand, customers who visit a home care shop will see
these items displayed on the showroom floor. "The salesperson
explains the difference between a bench without a back, a chair
with a back, metal legs with 1-inch increments and blow-molded
plastic with unlimited height increments," says Evans, president of
Global Media Marketing. "Knowledgeable salespeople help consumers
select the one that's best for their loved one or themselves. That
is why people are willing to pay 30 to 50 percent more in a DME
than at a mass merchandiser — because of the service and
because of the product selection."

For independent shops looking to break into the bath safety
market, Evans recommends a thorough examination of the local
competition, including the chains and mass merchandisers. "Make
sure you do not carry the same brands so you do not have to compete
on price," he says. "As long as mass merchandisers don't carry the
same brand, then the independent is usually offering better quality
— what we call medical grade/hospital grade. That is also why
we are able to charge more."

Another substantial differentiator is presentation, with most of
the big-box stores simply choosing to leave products in the box and
on the shelf. "Display all the products and properly group them
together," says Evans. "In bath safety, the average sale is about
$160 because we're usually selling three products together. It's
the chair, the hand-held shower and one grab bar. Or it could be
the tub rail and a chair and hand-held.

"If products are simply on the shelf, similar to the mass
merchandisers, you are only going to sell the one that the person
comes in for," adds Evans. "If you have the products displayed on
the floor, you have a boutique business, and you're educating
consumers and showing how to meet their needs. It's a big
difference."

Builders Catching On

It was a "strong" 2010 for Moen, a performance that Crozier
attributes to an "aging-in-place" mindset that home care providers
have held for a long time. Builders know the term well, and it's
all part of a desire for older people to stay in their homes longer
and avoid costlier assisted living and nursing home
arrangements.

Physical and occupational therapists are familiar with aging in
place, and a related concept called universal design, or UD, is
also gaining traction in the home care world. As a Maryland-based
independent living strategist, Louis Tenenbaum, CAPS, CAASH, works
with developers and builders to spread these ideas.

Tenenbaum points out that UD is often used incorrectly as a
synonym for barrier-free, accessible or ADA design, but he
maintains that UD is a larger concept that often leads to surprise
benefits. "The most common example is the curb cut," says
Tenenbaum, author of Aging in Place 2.0: Rethinking Solutions
to the Home Care Challenge
, published by the MetLife Mature
Marketing Institute. "Designed for wheelchair users, it also works
equally well for strollers, roller skates and suitcases." Yet
another analogy is closed captioning. Originally intended for the
hard of hearing, captioning benefits people in crowded bars, gyms
or any noisy area.

For Tenenbaum, the benefits of bath safety engineering have many
of the same crossover benefits. "A newer definition of UD is 'the
process of embedding choice for all people into the things we
design,'" he says. "This refers to the interface providing
opportunity rather than limitation. For example, a homeowner can
walk or roll into an open shower. A curbed shower does not offer
this rolling entry choice."

If UD applies to all abilities, then it also has relevance for
all ages. With this in mind, the marketing folks at giant Moen hope
to expand the sector for providers with new promotional photography
emphasizing enhanced safety for young children. "I have a
2-year-old son and 4-year-old son, and they get out of the bathtub
everyday, and you see them stepping on the side of the tub and
slipping a little bit," says Crozier. "They use a hand grip on the
side, and tread strips on the tub floor to help them with balance.
These products can be used throughout a person's life."

Aging-in-Place Checklist

Listed by the National Association of Home Builders,
typical aging-in-place upgrades for the bathroom
include:

  • Wall support and provision for adjustable and/or varied height
    counters and removable base cabinets
  • Contrasting color edge border at countertops
  • At least one wheelchair-maneuverable bath on main level with
    60-inch turning radius or acceptable T-turn space and 36-inch by
    36-inch, or 30-inch by 48-inch clear space
  • Bracing in walls around tub, shower, shower seat and toilet for
    installation of grab bars to support 250 to 300 pounds
  • If a stand-up shower is used in main bath, it should be
    curb-less and a minimum of 36 inches wide
  • Bathtub should be lower for easier access
  • Seat in the shower
  • Adjustable/handheld showerheads with 6-foot hose
  • Tub/shower controls offset from center
  • Shower stall with built-in antibacterial protection
  • Light in shower stall
  • Toilet 2½ inches higher than standard toilet (17 to 19 inches)
    or height-adjustable
  • Design of the toilet paper holder allows rolls to be changed
    with one hand
  • Wall-hung sink with knee space and panel to protect user from
    pipes
  • Slip-resistant flooring in bathroom and shower

Experts Interviewed

  • Brad Crozier, senior product/brand manager,
    Moen Home Care, North Olmstead, Ohio
  • Jack Evans, president and CEO, Global Media
    Marketing, Malibu, Calif.
  • Ladimer Kowalchuk, president, Safety Bath
    Hydrotherapy Systems, Ituna, Saskatchewan, Canada
  • Daniel Matschina, president and CEO, Bridge
    Medical, St. Paul, Minn.
  • Louis Tenenbaum, CAPS, CAASH, Aging in Place
    Ideas, www.louistenenbaum.com
  • Cali Thomson, associate business manager,
    hygiene, Invacare Corp., Elyria, Ohio

Q&A with Jack Evans: What about Bathroom Display?

HomeCare: Where should providers situate the bathroom
display?

Evans: Display the model bathroom somewhere in
the front half of the showroom. Customers will see the product in
context, so it does not look like medical equipment. It's going to
be nicely designed furniture, and it's going to be appealing,
because people don't want products like the chrome adjustable legs
anymore. They want products that look normal, that they're not
embarrassed to have in their bathroom.

HomeCare: How can expansion into bath safety affect the
provider's bottom line?

Evans: When you look at most HME retailers,
bath safety is one of their highest-volume categories. It's not
their profit center, but they sell a heck of a lot of products, and
the funny thing is, it's not really the big ticket items they are
selling. They are selling the disposable items, which we really
call personal care.

They are selling bed pans and male-female urinals, because these
are disposable products. You might think those are the cheap
products that are not important, but those are really what bring
people in all the time — and then they're also buying the
more expensive bath safety items once they are in the store.

HomeCare: Is there anything providers should avoid when
setting up a display?

Evans: Avoid, generic, old-school boxes. You
want retail packaging that has nice four-color design so consumers
can see immediately what is inside the box.

HomeCare: What can you say to HME providers who are
concerned about competing with big-box stores?

Evans: When people want to expand into retail,
they think they can't compete in bath safety because there is a
chain drug across the street, or a Walmart or another mass
merchandiser. They can compete if they carry a different product
line. Carry both a basic and an upgrade, because the mass
merchandisers are not going to have those upgraded lines. That's
the biggest issue. You must have options, and the chains and mass
market don't provide product options. It's a boutique business
model.