Making the Most of Scooter Sales

The scooter market is one of the most multi-dimensional segments of the home medical equipment industry. The variety of models and the way scooters are purchased continue to offer a plethora of choices for both consumers and HME providers. Consumers are savvy in terms of product research and knowledge, driving providers to offer a broad selection and superior customer service.

"More often than not, people who want to purchase a scooter know what they want before they walk into the door," says Cy Corgan, national sales director of retail mobility, Pride Mobility Products. "The baby boomer generation is one of the fastest-growing online populations, doing more research than ever before. End users or their caregivers go online, find the best-selling brands and have the information handy when they go to purchase a scooter."

The good news is that growth in scooter sales should continue to hold steady, or even rise, as the baby boomers age and the elderly population increases. That said, the current state of the HME industry does have an impact — and changing market conditions bring with them both challenge and opportunity for scooter providers.

"There are certainly challenges in the marketplace. For the provider, there is competitive bidding, purchase option elimination and the financial implications such as cuts in the other product categories. Competitive bidding impacts cash flow and the way they do their business," says Corgan. "However, the marketplace for scooters is very positive, and we are seeing some very good things happening."

Invacare offers a similar scenario.

"Over one-third of all scooter sales are still reimbursed rather than retail, so the 9.5 percent cut [effective in 2009] has been significant. The downturn in the economy has hurt the sales of large scooters, while sales of microportable scooters remain strong. This is because large scooters are more expensive to begin with, and, because of their size, are very rarely reimbursed due to the Medicare in-home rule," according to the company.

Despite Medicare's payment changes, "the scooter and power chair demand remains unchanged," says Jeffrey Davis, national sales manager for FreeRider Healthcare, "and, as the baby boomers' needs increase, we find the demand growing." However, he continues, "One thing is certain: Everyone has changed their direction and is moving to more cash sales."

Davis stresses that the businesses whose models change with the industry will survive — but those that continue to depend on their old ways will feel the financial crunch.