A panel of home medical equipment retailers share some of the strategies that have helped their companies successfully build retail sales - and expand from 3rd party insurance business.

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HME RETAILERSHME RETAILERS
SPEAK OUTSPEAK OUT
Medtrade Spring Retail PanelMedtrade Spring Retail Panel
Retail TrackRetail Track

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Panelists & FacilitatorPanelists & Facilitator
 Jim Greatorex, Pres. & CEO, Black BearJim Greatorex, Pres. & CEO, Black Bear
MedicalMedical
 Jeff Kelemen, Pres. & CEO, EverythingJeff Kelemen, Pres. & CEO, Everything
MedicalMedical
 Tom Mullaney, R.Ph., President, MullaneyTom Mullaney, R.Ph., President, Mullaney
Medical, Inc. (Material presented byMedical, Inc. (Material presented by
Colette)Colette)
 Colette Weil, Managing Director, SummitColette Weil, Managing Director, Summit
Marketing (facilitator)Marketing (facilitator)

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Panel Discussion ObjectivesPanel Discussion Objectives
 Learn about different business models andLearn about different business models and
the role retail/cash sales playsthe role retail/cash sales plays
 Learn about the panelistsLearn about the panelists’ varying’ varying
marketing strategies and retail viewsmarketing strategies and retail views
 Discuss future strategy considerationsDiscuss future strategy considerations

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Program OutlineProgram Outline
 About the PanelistAbout the Panelist’s stores & business’s stores & business
modelmodel
 How they built retail/cash sale businessHow they built retail/cash sale business
–
Location & brandingLocation & branding
–
Revenue, product & services mixRevenue, product & services mix
–
Advertising, promotion, sales, internetAdvertising, promotion, sales, internet
–
In-store merchandisingIn-store merchandising
 Q & AQ & A

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Black Bear MedicalBlack Bear Medical
 Large showroomsLarge showrooms
 Personal servicePersonal service
 Two locationsTwo locations
 Satellite locationSatellite location
 ComprehensiveComprehensive
product offeringproduct offering

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Black Bear Medical RetailBlack Bear Medical Retail
ModelModel
 Product Mix: 48% - Complex RehabProduct Mix: 48% - Complex Rehab
23% - Retail 22% Supplies 7%-DME23% - Retail 22% Supplies 7%-DME
 Retail focus since 1994Retail focus since 1994
 Surpasses $1 million in Retail-onlySurpasses $1 million in Retail-only
revenue in 2004revenue in 2004
 Use Rehab and Supply business toUse Rehab and Supply business to
compliment Retailcompliment Retail
 Convenient location in a known but lowerConvenient location in a known but lower
rent locationrent location

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PERSONALIZED SHOWROOMPERSONALIZED SHOWROOM

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Good–Better-Best SelectionGood–Better-Best Selection

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 3 Retail locations: 13 Retail locations: 1
Pharmacy & DME, 2Pharmacy & DME, 2
DME onlyDME only
 Started as retailStarted as retail
pharmacy in 1936,pharmacy in 1936,
added retail DME inadded retail DME in
1989.1989.
 DidnDidn’t hire first’t hire first
outside salespersonoutside salesperson
until 2001until 2001
 42% Cash42% Cash
 21% Medicaid21% Medicaid
 17% Medicaid17% Medicaid
WaiverWaiver
 11% Medicare11% Medicare
 9% Private9% Private
Insurance, WorkersInsurance, Workers
CompComp

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Three Retail LocationsThree Retail Locations
All in Suburbs ofAll in Suburbs of
CincinnatiCincinnati

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Everything MedicalEverything Medical
Las Vegas, NVLas Vegas, NV
 ThatThat’s our service’s our service
mottomotto
 Started as a wholesalerStarted as a wholesaler
of disposables in earlyof disposables in early
8080’s’s
 Launched retail inLaunched retail in ’97’97

Good opportunitiesGood opportunities

We know the productsWe know the products
 Two Locations, centralTwo Locations, central
Las VegasLas Vegas

Primary: 5000 sq. feetPrimary: 5000 sq. feet
retailretail

Second: 2000 sq. feetSecond: 2000 sq. feet
retailretail

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About Las VegasAbout Las Vegas
 Among highestAmong highest
foreclosure levelsforeclosure levels
 Among highestAmong highest
vacancy ratevacancy rate
 High unemploymentHigh unemployment
 Recipe for HMERecipe for HME
Retail?Retail?

3 senior3 senior
communitiescommunities

VisitorsVisitors

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Our Business ModelOur Business Model
 75% Retail75% Retail
 25% 325% 3rdrd
PartyParty

90% Medicaid90% Medicaid
 Centrally LocatedCentrally Located

Location 1Location 1
• Across from theAcross from the
county hospitalcounty hospital

Location 2Location 2
• 1 mile from 31 mile from 3
hospitalshospitals
 Service: we willService: we will
find exactly whatfind exactly what
you need – you willyou need – you will
love us, you will telllove us, you will tell
your friends (causeyour friends (cause
we know you willwe know you will
be a customer forbe a customer for
life)life)

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Selection, Selection, SelectionSelection, Selection, Selection
Good – Better - BestGood – Better - Best
 Commitment to inventory !!Commitment to inventory !!
 Train employees on differingTrain employees on differing
products and value for price –products and value for price –
explain the why.explain the why.
 Merchandise like a groceryMerchandise like a grocery
store or pharmacy – bigstore or pharmacy – big
movers with better margins atmovers with better margins at
eye level – economy lines ateye level – economy lines at
top or bottom of section.top or bottom of section.
 Utilize companies with selfUtilize companies with self
service packaging but alwaysservice packaging but always
back up with serviceback up with service

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Sales & Top CategoriesSales & Top Categories
 Over $4 1/2 millionOver $4 1/2 million
and growingand growing
 Top areasTop areas

DisposablesDisposables

Compression hosieryCompression hosiery

OrthoticsOrthotics

Lift Chairs & ScootersLift Chairs & Scooters

Basic DME &Basic DME &
AccessoriesAccessories

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Jim GreatorexJim Greatorex
Black BearBlack Bear
Advertising/PromotionsAdvertising/Promotions

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MerchandisingMerchandising
 Put your best lookingPut your best looking
high volume cashhigh volume cash
items in front of storeitems in front of store
 Put bigger ticket itemsPut bigger ticket items
andand “scary“ products“scary“ products
in a remote part ofin a remote part of
showroomshowroom
 Hire CSRHire CSR’s with big’s with big
box store experiencebox store experience

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Jeff KelemenJeff Kelemen
Everything MedicalEverything Medical
Advertising/PromotionsAdvertising/Promotions

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AdvertisingAdvertising
 Yellow Pages primaryYellow Pages primary
sourcesource
 2 million people in one2 million people in one
phone bookphone book
 Still the reference toolStill the reference tool
herehere
 Print in the beginningPrint in the beginning
 Now specialty print magsNow specialty print mags
& online& online
 TV advertising using CoTV advertising using Co
OpOp

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TV Advertising to WomenTV Advertising to Women

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TV Advertising to MenTV Advertising to Men

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Results of High Touch, HighResults of High Touch, High
Care, High ServiceCare, High Service
 Average 150 walk in customers/dayAverage 150 walk in customers/day
 Cash customers return but small returnsCash customers return but small returns
(<3% due to service)(<3% due to service)
 Why? We personally help them withWhy? We personally help them with
exactly what they need with trainedexactly what they need with trained
personnelpersonnel

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WhatWhat’s Next?’s Next?
 Yellowpages.comYellowpages.com
 Digital and social media presenceDigital and social media presence
 Community Service days get free publicityCommunity Service days get free publicity
 Work with high active doctors/prescribersWork with high active doctors/prescribers
 Specialty & Niche MarketsSpecialty & Niche Markets

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Tom Mullaney, R.Ph.Tom Mullaney, R.Ph.
Mullaney MedicalMullaney Medical
Advertising/PromotionsAdvertising/Promotions

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We print these on smallWe print these on small
pads (Rx size) andpads (Rx size) and
pass out to referralpass out to referral
sources.sources.
Chain pharmacies areChain pharmacies are
one of our best sourcesone of our best sources
of walk in business.of walk in business.

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We split advertisingWe split advertising
cost with 2 othercost with 2 other
Rx/DME stores thatRx/DME stores that
dondon’t compete’t compete
geographically withgeographically with
us for retailus for retail
business.business.
We each spend 1/3We each spend 1/3
of what we wereof what we were
spending!spending!

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Tracking Advertising ResponseTracking Advertising Response
 Use a unique phone # on your ads to trackUse a unique phone # on your ads to track
how many phone calls they generate.how many phone calls they generate.
 Have a different # for Yellow Pages, TV, Web,Have a different # for Yellow Pages, TV, Web,
etc.etc.
 Have your CSRHave your CSR’s ask walk in customers how’s ask walk in customers how
they heard about you & track them just likethey heard about you & track them just like
you do referral sources.you do referral sources.
 You need to know what works so you knowYou need to know what works so you know
where to spend your $$.where to spend your $$.

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TelevisionTelevision
 Network & CableNetwork & Cable
 Who is your audience?Who is your audience?

Medicare/Medicaid Patients or Cash Patients?Medicare/Medicaid Patients or Cash Patients?
 Use Spots from your Manufacturers andUse Spots from your Manufacturers and
just add your Name & Phone #just add your Name & Phone #
 Use Co-Op DollarsUse Co-Op Dollars
 Set up a year long schedule, you canSet up a year long schedule, you can
cancel anytime.cancel anytime.

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TV CommercialTV Commercial

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In StoreIn Store
 Think like a retailerThink like a retailer

Impulse salesImpulse sales

Add on salesAdd on sales

Up-Sell: Good, Better, Best.Up-Sell: Good, Better, Best.

Set up your show room to do thisSet up your show room to do this

Seasonal Products ( SAD Lights,Seasonal Products ( SAD Lights,
Holiday Gifts)Holiday Gifts)

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Questions andQuestions and
AnswersAnswers
Thank you everyone!Thank you everyone!