Introduce add-on sales to your retail program to boost your bottom line
by Jo-Ann Tilghman

While it is true that traditional brick-and-mortar retail everywhere is in flux, this is particularly true for HME/DME outlets. The HME business model is shifting from a government-push model, driven by prescriptions and what the government allows, to a consumer-pull model (what the customer wants). Previously, a health care professional prescribed HME products under Medicare/Medicaid or insurance company guidelines and the HME provider was paid by Medicare/Medicaid or insurance companies. Much of the HME business has been about what the government or the insurance companies would allow the consumer to purchase. However, the nonprescription products that HME retailers are currently adding to inventory are more consumer driven. The customer’s needs are pulling the product from the retailer. That means the HME retailer has to sell to the consumer’s interest, rather than simply provide what regulations will allow. It is important to remember that with nonprescription products customers want to have choices. You need to be able to show them everything you have available to help make their lives, or the lives of those they care for, easier. In a retail setup, the first point to address is whether or not your HME selling floor is consumer friendly. Do your offerings disappear into a wall of white? Does your floor layout help your staff sell? Is your selling floor laid out by function, with shower benches, back scrubbers and toilet items in the bathroom area and useful kitchen items in a kitchen area? Are footwear, compression hosiery and foot boots in the same area as dressing accessories? If you have a row of walkers or wheelchairs, is at least one of them fully accessorized to showcase available options? Do you have seating available at the check-out area to accommodate your customer? If yes, is that seating easily accessible for an older customer? Always remember that your customers have other options. If you do not take care of them, they can visit a competitor. Furthermore, they can go online, search for what they need and have complete the entire purchase process in minutes—often with free shipping included. On the other hand, they may not be ordering the correct item, fit or appropriate options. Your competitive advantage lies in knowledge and service. HME/DME customers do not come into your store to browse. They come in with a problem, they need a solution and they want choices. In the past, being the problem solver was enough. Now, you and your staff need to be more. Due in large part to competitive bidding, you and your staff also need to also become sales people. The question then becomes, does your staff know how to sell? Consider teaching your staff the following tips that explore the art of selling.

Merchandising shelvesMake smart use of shelving by grouping similar items together in an orderly, easily reachable way.
  • Greet the customer—If you find yourself otherwise engaged as a new customer enters the store, acknowledge the new arrival as soon as possible. Do not pretend that you did not see the customer come in, or give the impression that he or she might be interrupting something else (office work, inventory, etc.). When customers come through your door, drop anything else you may be doing, and let them know how important they are—it only takes a moment. After all, without them you have no business!
  • Determine wants and needs—Why is this person in your store today? What is he or she looking for? Is this a purchase for themselves or a family member? Does the customer have a doctor’s prescription or is this a discretionary purchase? Ask open-ended quesitons to find out what your customers need. A conversation that begins with, “Can I help you?” generally gets a, “No, I’m just looking” response. While a “What can I show you today?” or “How can I help you?” query will likely get a more engaged response.
  • Explain features and benefits—Your salespeople should be well acquainted with your inventory. They need to know and be able to explain why one wheelchair may be more satisfactory than another. They need to be able to demonstrate how one walker folds more easily to pack in the car than another, or why a particular flexible eating tool may work better than another. By talking to customers and finding out what their issues are, you can help solve their problems. If your store doesn’t carry something a customer wants, your salespeople should know how to find it. We live in a world of instant gratification and having to wait two weeks for a pair of compression hose is unreasonable. If you do not have it, and are not willing to get it, then someone else will and you have just lost a customer—not just for today, but for the future. Your customer will return to the Internet or to the HME provider that was able to help.
  • Close the sale with add-ons—In many cases, the customers are unaware of the additional accessories that are available to them. This is the job of your sales staff. If a customer is purchasing compression hosiery, suggest more than one pair. With a walker purchase, perhaps accessories such as a cup holder or bag are in order. If a customer is purchasing a shower seat, why not suggest a grab bar to go along with it? For a wheelchair purchase, show the customer your selection of cushions and explain why one may be better than another.

If your customer is not interested in any add-ons, be sure to get a phone number and call in a week or two to see how he or she is managing with the purchase from your store. After some time with the product, a customer may then see how your add-on suggestion might be beneficial to them, thus initiating a return visit. The importance of add-on sales to the customer is to allow for individuality and personality to show through. For many, the selection of a purple aluminum cane can give the new cane user a sense of control about an item that they would prefer not to need. Compression hose in bright colors and patterns allows a personality to shine through. Add-ons allow your customer the opportunity to express themselves though their new accessories while also maintaining dignity. It should come as no surprise that, often, your customers wish they didn’t need to visit your store, but ensuring the most positive experience possible will reap rewards for you and your customer. In order to survive, the small, independent HME facility must be innovative and offer their customers products and a level of customer service and caring that is no longer common in many outlets. You know that the customer is there and that the market is rapidly growing. By having product selection and knowledge while providing exemplary service, you will generate a strong, loyal following and your business will grow.

This article is the first of a two-part series on HME merchandising solutions.