2. Presentation Overview
• Market Analysis and Potential
• Diversify Selling Medical Solutions into a Patient’s
Continuum of Care
• Display Layout and Creating the Right Product Mix
• 3-Tier Marketing Targeting Referral Sources & Your
Patient Base
• Sales Training, Presentation & Motivation
• Consumer Financing Program Thru CITI Finance
• Retail Competitive Analysis and Market Advantages
3. The Sleep & Wellness
Center Advantage
The Sleep & Wellness Center Retail Program is available
to VGM member home medical equipment companies to
promote the sale of ergonomic products in each category
of our continuum of care patient program.
This comprehensive, tested program is designed to
increase revenues through cash flow alternatives to
assignment by expanding product solutions to patient
referrals and customers.
4. Market Size
• Back pain sufferers spend over $70 billion annually
on support products to relieve pain while they are
sleeping, working, traveling and relaxing at home, for
rehabilitation and exercise.
• Market forces in our industry is expected to fuel
incredible growth over the next 30 years.
• Only Sleep & Wellness shows how to apply certain
ergonomic products to help each patient’s specific
symptoms or illness.
5. Market Forces
• Most of our patients and potential referrals make up the 76
million Baby Boomers and the elderly that comprise more
than half the consumer market.
• They are looking for a source to provide real solutions to
improve their quality of life by minimizing pain and improving
their comfort.
• HME companies can become that source and are looking
for cash flow alternatives to assignment.
• Traditional retail market does not know how to provide
the needed product solutions to meet this
untapped market.
6. Market Facts
• It’s estimated over 100 million Americans are
sleep deprived, over half blame their
innerspring mattress.
• 31% of Americans have difficulty just lying in
bed because of back pain.
• Expert estimate over 80% of Americans will
experience significant back pain at some
point in their lifetime.
7. Market Facts
• 76 million aging U.S. Baby Boomers are more
sedimentary than any previous generation, spending
up to 85% of the day, sitting or laying down
• Major innerspring mattress manufacturers design
their bedding to breakdown within 4 years instead of
10 to 15 years so they can sell more beds. On the
average a consumer will now buy a new bed every 6
years because of the discomfort and pain
they are experiencing.
8. Market
Potential
• One out of 6 consumers could purchase a new
bed in the next 12 months.
• If an HME service a patient base of 5,000
households, approximately 833 patients may be
purchasing a new bed in the next 12 months.
• Assuming an average price of $1500 per bed,
this would generate total sales of $1,249,500.
• If only 1 of 4 patients purchase from the HME
this could generate sales of $312,375.
9. Diversify Selling Medical Solutions
into a Patient’s Continuum of Care
Medical Solutions
• HME Products & Services
Address Immediate
Medical Needs
– Address Immediate
Recovery Needs
– Deal with the Severity of
the Symptoms & Stabilize
the Patient
– Address on-going medical
needs.
Continuum of Care
• Address On-Going
Living Needs
– Aid in Recovery
– Minimize Pain during
24/7 Daily Activities
– Improve the Patient’s
Quality of Life Through
A Healthier Lifestyle
10. Creating the Opportunity
for Add-On Sales and Sequential Selling
To create a patient continuum of care program,
an HME must integrate ergonomic solutions
that will compliment prescribed medical products
to help minimize pain and improve comfort
for a patient during their daily activities while they
are:
– Laying Down or Sleeping
– Sitting
– Traveling
– Working, and
– During Rehabilitation
11. Retail Examples
Medmarco
In the 1990’s, my HME company, Medmarco operated
ten 300 square feet retail displays generating
approximately annual sales of $300,000 per location
Relax the Back (former HME dealer)
The average Relax the Back generates annual retail
sales of $740,000. The Oklahoma franchisee has
been marketing to his old referral sources.
Oklahoma City generates
$2,250,000 in annual sales and Tulsa is generating
$1,700,000.
13. Retail Sales Potential for
Independent HME Companies
• For retail sales, a HME Company needs to
refocus to target market in at least these 4
areas:
– Patient Referral Sources – Address the
referral’s specialty by offering symptom
specific solutions
– Existing Patient Base by Symptom Category
– Medical Professionals – Direct Sales
– Advertising for Retail Consumer Sales
14. Comprehensive Components
of Sleep & Wellness Centers
• Display Layout
• Exclusive Product Mix
• 3-Tier Marketing Plan
– External Marketing
– Internal Marketing
– Retail Marketing
• Finance
– Consumer Financing
– RTO
• Sales Training and
Presentation
• Competitive
Analysis
• Support Staff
15. Display Layouts
• Display Layouts can be customized to fit any
floor space.
– Create a retail showroom within a HME showroom
from 400 square feet to 1000 square feet.
– To creating freestanding locations from 2000 square
feet to 5000 square feet – HME/Sleep & Wellness
Center 2nd
Generation Superstore.
16. Display Layouts
Beaumont 20x20 Floor plan
Advantage Deluxe
Pro
Health
Core
Rhapsody
Waiting
Area Natural
Essence
GS 700
Solution
17. Points for Branding Your Showroom
Within seconds of entering your showroom,
the look of your showroom will help a customer decide
if they want to do business.
• Use warm inviting colors to create your retail experience
– Make the showroom feel like home – allows the customer visualize
using the product at home
• In retail the entry area is the transition zone, if you don’t have a
greeter then use product videos to introduce your store
• Combine displays with elevated product displays and eye catching
window displays
• Use branded POP posters, easy to read hang/price tags and
customized brochures that address symptoms & solutions.
18. Creating a Product Mix
• Core Products are determined by your patients’ needs and
demographics to create your brand identity, offering unique and
exclusive solutions separates you from the competition.
• Add-On Products work in conjunction with the recommended
core products for better relief and support.
• Marketing Support Products are products with national
name recognition - decreases the desire to shop around because
“while we offer unique solutions we also have this too”.
• Lost Leaders are seasonal or special price reduced products
to get customers in the door creating the opportunity for an up-sale
to a core product that would be a better solution.
19. Exclusive Product Mix
• The product mix can be customized to
best meet the needs of HME’s patient
referral base and size of the showroom.
• A number of the products are exclusive.
• The ergonomic product mix is designed to
offer choices for sleep, sitting, travel,
relaxation, for rehabilitation and exercise.
20. Product Mix
• Sleep Systems, mattress toppers and pillows
– Martenique 2nd
generation visco elastic
bedding and toppers
– Gellogic visco/gel bedding and toppers
– National Brands – Tempur-pedic, Comfortaire,
Restonic, King Koil and Natura
• Ergonomic supports, wedges and seating
• “0” gravity and massage chairs
• Therapy and rehabilitation products
21. 3-Tier Marketing Program
• External marketing provides referral sources with
symptom specific marketing materials to direct patients to
the HME.
• Internal marketing focuses on existing HME patient
bases to educate patients on how specific product will help
their symptoms and pricing comparisons.
• Retail marketing uses TV, newspaper, radio, and
Internet to make the general public aware of the viable
alternatives offered over traditional retailers.
Think out of the box through alternative marketing
channels, public service, events, trade and
home shows.
22. Sleep & Wellness Center
Marketing and Advertising Program
Creates the power to customize your ad campaign through a
easy 3 step process in which the components of our
advertising program are easy to execute and focused on your
target markets.
1. We work with you to develop and implement a customized
advertising strategy
2. Select the right ad components to target your specialized
market segments
3. Scheduling ad implementation for each market segment
23. External Marketing
Referral Sources
Doctors’ Clinic Educates the Patient
on Products That
Will Improve Their
Quality of Life
Directs the Patient to
the HME’s Sleep &
Wellness Center
Instead of a Retailer
Wall Brochures, Table Tents,
Publications, Internet and
Patient Questionnaires
24. Internal Marketing
HME Patient Bases
Targets Existing
HME Patient Base
Educating Existing Patients
and Referrals Based on the
Products that will Aid in the
Recovery Process, and Provide
Lasting Symptom Relief
Direct Mail, Billing Inserts,
Pre-approach Signage,
Videos, Questionnaires,
Handouts, Brochures and
Internet
Designed to Direct the Patients
to the HME by Helping to
Identify Individual Needs to
Their Solutions and Create
Urgency to Make a Decision
25. Marketing Must Target Symptoms
to Identify the Right Solutions
to Create Sequential Sales
For example if a Patient is recovering from back surgery or has limited mobility,
we would market a lift chair but if we expand into the patient’s needs to
enable them to perform daily activities, we could also recommend:
1) An attachable bed rail to help with turning during the night.
2) Mattress topper to provide better spinal support.
3) Back and leg wedges to create a “0” gravity position to reduce pain.
4) An alternative sleep system with adjustable frame to minimize pain and
promote better sleep.
5) A Perfect Chair that reduces stress on the spine or support cushions that will
help maintain proper posture in any chair or while traveling.
6) Therapy Products to aid in recovery.
26. Another example would be to insure better compliance for new
CPAP users
1) An ergonomic pillow properly fitted will help insure
proper support of the cervical curve helping to insure the
airway is open and minimize interference with the CPAP
mask.
2) The counter pressure from most inner spring mattresses
cause a sleeper to toss and turn 100 to 200 times a night. A
mattress topper or one of your new sleep systems reduces
movement to 17 to 25 times a night minimizing the chance
of becoming tangled with the air hose and in frustration
pulling the CPAP mask off.
Marketing Must Target Symptoms
to Identify the Right Solutions
to Create Add-On Sales
27. Retail Marketing
Creating Public Awareness
• Designed to compliment through newspaper, radio
and TV ads as an add-on to your medical marketing
channels.
• Add links to your Internet Sites and run your ads on
your site.
• Designed to make the general public in the HME’s
market area aware of the viable alternatives offered
over traditional retailers.
• Press releases to get your message out.
28. Retail Marketing
Thinking Outside the Box
Creating More Sequential Sales
• Sports Teams
– Ice It to promote products for sports injuries.
– Team Sponsorships to sell ergonomic products.
• Home Shows
– Every sale at a home show will generate a residual sale in your
showroom.
• Speak at CEU Seminars & Health Fairs
• Make Your Referral Sources Believers
• Sponsor Patients in Need Through Civic Organizations
• Press Releases and Holiday News Stories
30. Market Potential
• In 2008, the furniture and bedding industry sold $12.3 billion online, representing 9% retailing
sub-sectors in the U.S. market.
• Despite the impact of the housing crisis and weakening U.S. economy, these numbers
increased to approximately 11% in 2009 and are forecasted to more than double to
$26.7 billion by 2012, the firm estimates.
31. Sleep & Wellness Center
Websites
Sleep & Wellness Centers.info
Designed to market to VGM member to develop Sleep
& Wellness Center Dealers
Sleep & Wellness Centers.org
Information, Retail and Wholesale Sales site designed
to be a marketing and sales tool for S&W Dealers
32. Finance
• Sleep & Wellness Centers offers an exclusive
fast response finance program through CITI for
clientele purchases including term and same as
cash consumer loans.
• In addition, through our RTO program, we offer a
hybrid lease/purchase supplemental program
that approves 9 out of 10 applications regardless
of credit history.
33. National Home Furnishings Association
• Sleep & Wellness Center Dealers automatically become a
NHFA member and have access to its programs and
services including:
– Special Discount Rates Thru CITI Retail Services
– Alternative Finance Program for Credit Challenged
– Truck Signage, Special Fleet Pricing, Discounts for
Federal Express, Shipping and Office Depot, Product
Catalog
– Retail Training Programs, Retail Sign Solutions, Direct
Marketing Solutions, Promotional Product Services
– Business Financial Services
34. CITI Retail
Services
No Dealer Recourse
No Set-Up Charge
Easy Application
Fast Response
Offers two ways to process a credit
application – online or through
CITI’s desktop credit card machine.
Financing Program Examples for S&W
Same as Cash ED Discount
03 Month SAC 0.00%
06 Month SAC 1.20%
12 Month SAC 3.90%
Interest Free Equal Pay ED Discount
24 Month IFEP 9.60%
36 Month IFEP 12.25%
35. Alternative Finance Program
Help Credit Challenged Customers
Lease/Purchase Alternative Finance Program
4-Sales Finance provides members with a hybrid
lease/option for credit challenged customers that are
declined by the store’s primary credit source. Customers
can qualify for the program if they have been employed for
the last 6 months and have a gross monthly income of at
least $1000.
6% DISCOUNT FOR SLEEP & WELLNESS DEALERS
36. Sales Training and Presentation
• Staff is trained to present sleep systems and other
products from a medical prospective instead of high
pressure retail presentation.
• Training enables staff to describe the benefits and
differences in the products.
• The sales presentations, while short, demonstrate
empathy as it explores patient’s needs, identifies
solutions and creates a sense of urgency to act without
the use of high pressure sales tactics.
37. Motivate Your Staff
Create Opportunity Not More Work
• Sales success should be tied to compensation and
recognition.
– Establish clear goals and guidelines for determining their base salary
level as well as raises.
– Create incentives to promote retail sales through commissions or
spiffs. That way there is no up-front risk for taking on the added work
and responsibility
• Never stop training your staff. An educated sales staff
promotes confidence to make the kind of sales presentation
that creates trust with the patient.
– A potential customer decides in the first minute if they are interested
in buying.
38. Sales Tips by the Numbers
If you ask 48 people to buy something – 1 will!
• People are looking for solutions to minimize pain and
feel better. Ask questions, understand their problem and
help them identify their needs, then recommend the
products and explain the benefits. Give them choices,
they are there to buy.
• At check out, Customer Service or sales staff should ask
at least two questions to determine interest in add on
products and future needs.
• Knowing the patient’s symptoms, at checkout, the patient
should be given information brochures on
beneficial products and future specials.
39. Competitive Analysis Support
• Our program offers HME companies the
competitive analysis support needed to
compete against third party retailers.
• Our educational and presentation pieces
are designed to show the deceptive
product shortcomings, pricing and return
polices of retail competition to minimize the
chance of a patient purchasing elsewhere.
40. On-going Support
Our support staff is available every step of the way
to help:
• set-up the display;
• set the product mix;
• set-up and execute the marketing plan;
• train staff and provide on-site sales support;
• provide marketing, sales and competitive
analysis materials;
• as well as on-going marketing materials,
internet and sales assistance.
41. Sleep & Wellness Centers
can help your HME
company:
• Create a continuum of care for the HME’s
patients
• Create a competitive advantage
• Increase market penetration
• Increase patient satisfaction
• Diversify the HME’s income
• Retain patient base
42. Create a Continuum of Care
for Patients
• To enhance their recovery, patients need to
make changes in their lifestyle to help support
the injured area, maintain good posture and
minimize pain in their daily activities.
• Coordinates a wide range of products with their
recovery creating a continuum of care to help
them live more comfortable and productive lives.
• Fosters greater patient reliance and dependence
on the HME products and services by enhancing
the patients recovery and satisfaction.
43. Create a
Competitive Advantage
• Identify core abilities and products that will create
sustainable advantages to avoid pure price
competition.
• Positive differentiation adds more value to patient
referrals increasing market appeal and retention.
• Retailers and other HMEs can not compete because
of limited knowledge of benefits and products to
meet patient needs as well as competing on product
pricing and value packaging.
44. Increase Market Penetration
• Maintain and increase patient base by adding value
through products and services diversification to
increase patients’ reliance while avoiding price
competition.
• Create greater referral and patient reliance on
products that enhance their quality of life.
• Increases patients’ satisfaction with their recovery
and generates greater patient loyalty with the
provider.
• Greater loyalty and satisfaction increase the
likelihood of patient recommendations and referrals
in the future by providing fair priced but
hard-to-find products.
45. Increase Patient Satisfaction
• Primary contributor to patient satisfaction is the
patient’s perception of the range of services,
products, and information offered.
• The function of this range is the availability of the
services, products and information that will fulfill
the patient’s needs and enhance their life and
their awareness that it is available only through a
specific HME’s Sleep & Wellness Center
location.
46. Diversify Income
• To remain financially viable and survive in
today’s economic times, providers must include
programs that are not only beneficial to their
patients but also can generate additional
income for the provider.
• Sleep & Wellness will enhance patient care and
potentially increase annual cash sales:
– $150,000 to $400,000 in existing locations dedicating
300 to 400 square feet
– To annualized cash sales of $800,000 to $1,500,000
in free standing locations of 1500 to 2000+ square
feet.
47. Retain Patient Base
• Retention of a HME’s patient base is critical for
survival.
• Findings from a study by University of California
at Berkeley on health plans and services found:
– Patients who are offered and/or utilize wellness
promotion programs were more likely to be satisfied
with their care;
– Would recommend the programs to others;
– And less likely to switch to another provider or
alternative treatment source to make their purchases.
48. Food for Thought
If you are not selling the
products your patients and
customers need….
Then someone else will.