Less Pain, More Gain

No more than 20 percent of Maine-based Black Bear Medical's revenue is derived from Medicare, and founder Jim Greatorex would not have it any other way. The transition away from the giant federal payer is part of a long-term strategy to boost retail sales and grow cash business.

With competitive bidding now a reality in nine MSAs across the country, retail continues to be a hot topic as evidenced by intense interest during November's Medtrade. Greatorex spoke at the Atlanta trade show, where he spread his belief that Medicare must be 20 percent or less of the payer mix for home medical equipment companies to be successful.

Founded in 1988, today about a fourth of Black Bear's income comes from retail-only sales, and the intent is to get that number even higher. With that in mind, Greatorex added an additional 2,200 square feet to his Portland store, bringing the total to more than 11,000. The Portland location is part of a trifecta of establishments that also includes stores in Bangor (7,000 square feet) and Greenland, N.H. (1,800 square feet).

Having adequate space is great, but selection is the key, according to Greatorex. His company sells a range of retail products from lift chairs to bath safety. In addition to familiar items that address incontinence, urological and ostomy needs, 5 percent of revenues come from sales and installation of accessibility products such as modular ramps and even ceiling lifts for private residences and hospitals.

All of it has helped retail sales, but good thinking requires a willingness to try new things. In that spirit, Greatorex recently invested in two new retail lines: Z-Coil shoes and a Sleep & Wellness Center mattress line. Whether you call it a pain management department or a wellness division, the premise is based on people's consistent willingness to pay for products that ease pain, Greatorex says.

Going for Growth

At $200 to $300 a pair, the Z-Coil footwear represents a niche business that requires focused marketing. The manufacturer touts a 40 to 55 percent joint impact reduction, and Greatorex has heard several anecdotes that back up those claims.

"The shoes are helpful for people who experience foot, ankle, knee or hip pain," says Greatorex, a past president of the New England Medical Equipment Dealers Association (NEMED). "We are looking to market them in businesses where employees are on their feet all day — places such as local hospitals, post offices and manufacturing plants. It is a funky product line because the shoes are unique looking.