New Assortment of Scooters Propels Cash Sales

The savage reimbursement cuts from competitive bidding have made the reimbursable scooter market much less attractive. But when one window closes, another one opens. Instead of fighting to get a minimal reimbursement, many HME/DME providers are putting their emphasis on retail, cash-sale opportunities in the scooter sector. Providers are shifting their focus, strategy and business plan to serve a group of empowered consumers with money to spend. Consumers, including the elderly, are seeking to live more active lives. They 
recognize the value of purchasing a scooter, whether it’s a travel scooter or a high-performance outdoor model. Savvy consumers know what they want and appreciate being in control of the purchase. “Retail sales are growing,” says Cy Corgan, director of strategic accounts, Pride Mobility Products. “Scooters are no longer only a prescribed item but have also become a quality-of-life self-purchase that’s helping to fuel HME retail sales.” The aging population is showing itself to be very independent in its mobility choices and purchases, says Corgan. Instead of being driven to a basic model because of low reimbursement, people are now looking for more upscale products, with extra features and benefits. Higher-priced products translate to better margins for the dealer. The consumer’s choice of scooters has also never been bigger—ranging from the basic to the luxurious, from foldable travel scooters to colorful models with plenty of flare. A vibrant, growing retail market is right there waiting for astute providers to get moving.

From Functionality to Profitability

In 2013, 56 percent of all medical sales were cash retail sales, totaling nearly $24 billion, says Jason Davis, vice president of sales, Golden Technologies. The opportunity to thrive in retail cash sales is there, and providers should work with their manufacturing partners to develop a retail sales program in their stores. The scooter market is one place to start. Golden’s Flagship Dealer Showroom Program teaches providers how to properly display mobility products in a retail environment, and how to use proven retail techniques to sell them profitably for cash. Golden offers free webinars on retailing, merchandising, advertising, sales training and product training. The company also has free marketing literature that is geared to the consumer, depicting vibrant lifestyle images of people enjoying the products and getting the most out of life using them. Golden sees an increase in retail sales, and also an emphasis on retail pricing of the product rather than the acquisition cost. “They are looking for ways to increase their overall ticket,” says Davis. Providers should rely on their manufacturing partners to teach them how to advertise and promote the product, display the product, upsell and accessorize the product, and close the sale. They should choose a vendor prepared to teach them the science behind the sale, says Davis. “Success in cash sales is all about having the right product mix on your showroom floor,” says Davis. “Have a product selection that will appeal to everyone. We recommend the good, better, best theory, which gives consumers a selection of features and price-points.” Golden Technologies promotes its scooter line as ranging from “functionality to profitability.” Providers can either sell customers a compact, functional scooter with few bells and whistles, or they can sell a more luxurious model with all the extras and providing a higher level of profitability. One unique product is the Golden LiteRider, a full-sized, portable scooter with a footprint similar to many full-sized scooters, but also able to be disassembled quickly and easily like a 
compact scooter. The heaviest piece is comparable to the heaviest piece of a compact scooter. Its tubular frame design looks different from any other scooter on the market. The LiteRider offers consumers a full-size scooter weight capacity of 300 pounds.

Foldable and Easy to Transport

Focusing on portable, lightweight and space-saving mobility scooters, Solax Mobility offers the Mobie scooter, which weighs only 54 pounds (including battery), supports up to 300 pounds and is priced under $2,000. The stable and easy-to-transport scooter requires no assembly and be easily transported in a vehicle—it can be folded and unfolded in less than a minute. “We are taking the foldable scooter category in a new direction,” says Manny Huguez, Solax Mobility’s vice president of sales. “It’s always great to hear how the Mobie is changing the way people travel and get around. One common story we hear is how people ride the Mobie directly up to the airport boarding terminal, fold it, and then watch the flight attendant roll it away like luggage.” Since receiving FDA approval to sell the Mobie in the United States in March 2013, Solax Mobility has been the exclusive U.S.-based 
supplier of the foldable mobility scooter, which is manufactured in China. (The scooter was sold worldwide even before it was approved in the U.S.) A compartment in the floorboard enables storage of an additional lithium battery, in effect doubling the scooter’s range. The scooter can travel 8 to 13.5 miles per charge (depending on the weight of the user and the terrain); with the extra battery, it can travel twice as far. Most folding scooters have three wheels, but the four-wheel Mobie provides extra stability. The scooter comes ready-to-use right out of the box, and the optional arm rests can be installed in about two minutes. DME/HME providers are well positioned to compete with pure-play online retailers, bringing a higher level of industry experience, product knowledge and localized support and inventory, says James Liu, Solax Mobility’s vice president of operations. “Most inquires we get for the Mobie are people who have already researched the product and want to know where is the nearest HME/DME that has a Mobie in their showroom,” Liu adds. Creative financing options can help boost sales to offset the changes in government reimbursement. Providers should strive for a more retail, interactive environment designed to enhance the sales experience and create a deeper sense of HME/DME provider brand loyalty, Huguez says. Solax Mobility provides sales training and marketing materials and passes along sales leads that the manufacturer receives for each HME/DME territory. There are also market development funds (MDF) to help pay for advertising.

Consumers Looking for Value

FreeRider USA offers the Luggie, a one-piece battery-operated travel scooter, available in Standard, Deluxe and Elite models. The Luggie Elite, introduced last November, features a higher, 320-pound, weight capacity and extra features such as an arm rest, retractable handle bars for easy maneuverability and an auto-
retractable back bumper. It has solid aluminum framing to hold the extra weight.

The Solax Mobie’s patented design enables easy folding and unfolding in less than a minute.

In mid-August, FreeRider USA will introduce two new scooters to its line—
a mid-size model that will hold up to 350 pounds and a heavy-duty traditional scooter with 400-pound capacity. Stella Delgadillo, marketing manager, FreeRider USA, says the shift in focus to retail is driving a wider range of available colors and more opportunities to personalize scooters. Consumers are looking for value for their cash, and scooters that are adaptable to their own needs. Although some consumers who have bought scooters have received partial reimbursement from private insurance, the scooter is predominantly a cash sale. Delgadillo says the Luggie is designed for portable use, is compact, foldable and fits into any vehicle. Using the scooter requires fewer adjustments to the car or home than other scooters. Its transporting wheels make it easy to push up a ramp. Providers can boost their scooter business by making each transaction more personal by adding accessories and 
emphasizing service, says Delgadillo. Word of mouth is very powerful, she says. Some FreeRider dealers offer a free trial to allow a customer to investigate how the scooter works with their lifestyle. (Keep a credit card on file in case of damages.) There are also monthly dealer promotions, whether discounts for certain models or free arms rests. Located in Southern California, 
FreeRider can sometimes schedule personalized training, either locally or as an extension of their participation in conventions throughout the country. The company also offers videos, flyers, brochures, manuals and Skype training. FreeRider looks to work hand-in-hand with dealers related to marketing, trade shows, senior expos, disability events, etc. Any sales leads generated by their activities or by consumer inquiries are forward to dealers.

Uniqueness Sells

EV Rider has been in the electric mobility scooters business since 1996, now offering a line of powerful mobility scooters for kids, elderly, seniors and disabled customers for every budget. The company provides standard scooter products to those just beginning to need mobility; a portable/transportable line, including the TranSport, MiniRider and RiderXpress; as well as “community mobilizers,” which can be ridden on the street in residential areas up to 25 mph. EV Rider’s Royale and SportRider scooters have big batteries and longer range, and 400 to 500-pound weight capacity. Products are manufactured in Taiwan. “A lot of dealers are tired of carrying the same commodity products,” says Juan Rivera, president of EV Rider. “They want to offer more variety and should consider scooters that are more expensive and high-end. Supplying more expensive scooters sets us apart from other manufacturers.” He compares EV Rider scooters to the “Mercedes of the industry”—comparing to the other “Kias.” “Uniqueness of the product sells the product, and we are known for offering outstanding customer service,” says Rivera. Reflecting the demand, EV Rider recently sold 750 TranSport units on QVC during four eight-minute airings. Rivera foresees the emergence of scooter franchises to promote various brands, with multiple dealers joining forces to serve specific areas, participate in advertising, etc. “Selling the brand differentiates dealers from others who do not sell that brand,” he says. Rivera says the retail sales of scooter are more likely to be seasonal. For example, most sales happen in the spring or summer, when people are looking to be more mobile. There is a decline from October to February, when more people are focused on buying gifts rather than something for themselves. Rivera says dealers should plan ahead to take more advantage of the peak period. “Dealers need to have a reality check,” says Rivera. “See what else is out there, what’s different from the competitor down the street. They can’t be selling the same product to the same customer. Something different gives them the edge.”

Jellybeans and Boutique

EWheels has around 15 different models of mobility scooters for the retail market, including a stand-and-ride scooter with a low price point and a double mobility scooter. In response to providers who asked for a quality scooter that had something different (and better profit margins), EWheels has complemented its existing line with a new Boutique line (EW-80) and the Jellybean Collection (EW-85). The Boutique line has three custom scooters, including the Pretty in Pink model that’s painted a brilliant pink and has a pink-and-white custom-upholstered reclining seat; the rear-view mirrors and back 
bumper are adorned with thousands of Swarovski Crystals. The Happy Day model is painted bright lemon-yellow with hand-painted white daisies. The Dude scooter is iridescent black, hand-painted with orange, red and yellow flames, and has a solar-powered wireless sound system. The Jellybean Collection (E-85) features six bright, hand-painted colors—lemon zest, seafoam, grape, bubble gum, island blue and sour apple. All EW-80 and E-85 scooters come standard with a scooter cover, carpet floor mat and basket mat. “So many people say ‘we’re fine the way we are,’” says Andi Barness, director of marketing, EWheels. “But when you’re doing retail and cash sales, you have to have something special. Dealers should be creative with their displays. Put things out on the sidewalk. People driving by may not need it now, but they may need it later and will remember. It’s not about people looking at a catalog. You won’t make money by sitting and waiting. There has to be a reason for someone to come and visit your store.” She says all dealers should purchase a display model. “I ride my pink scooter all over town,” says Barness. “I could sell a scooter every single time I ride it.” Visual marketing and word-of-mouth are key, says Barness. “It’s hard for dealers who have been in the business for a while to look outside the box. We aren’t old school. That’s the most frustrating part—
people are set in their ways and can’t figure out why they’re barely making it. If you’re known as the low-cost mobility company, you will constantly get people coming in and wanting a deal.” EWheels has created videos that can be customized with a provider’s name, graphics and contact information. The company is also working on a poster for the colorful Jellybean collection.