The Sweet RING! of Retail

How does your HME business compare to the industry norm when it comes to retail? To find out, check the following results of HomeCare's exclusive Retail Survey to determine the industry's retailing benchmarks. An accompanying analysis by HME retail expert Jack Evans of Global Media Marketing looks at progress the industry has made in retail since HomeCare last conducted this survey in 2001 (not much, Evans says) and the opportunities that exist (a lot of them, he points out) in what could be (if you approach it correctly) a very lucrative area.

A successful and profitable retail showroom for home medical equipment providers is not something that magically appears out of thin air. Rather, it is the result of careful store layout, a thorough understanding of customers' wants and needs, and aggressive salesmanship.

From the results of HomeCare's Retail Survey, it's clear that providers have a long way to go to optimize retail sales. But it's also clear that, with a little effort, providers can easily increase their cash business.

The Retail Showroom Profile

Seventy (70) percent of the providers responding to the survey have a retail showroom. Of these, one third are between 2,000 and 4,000 square feet, and another third are over 5,000 sq. ft. According to all HME providers surveyed, their square footage was utilized primarily for on-site storage (29 percent), offices (28 percent) and a retail showroom (27 percent). Six (6) percent have a pharmacy, and 4 percent of the footage is used for fitting rooms.

Is there any major difference between HME retail showrooms and retail stores in other industries? Yes — unfortunately! And the difference begins at the front entrance.

A total of 55 percent of respondents have a front window display (74 percent of those with retail showrooms). Now comes the golden question: How often do they change these window displays?

I have often compared the retailing savvy of home health care pharmacies to HMEs, noting that many of the latter still have the dust-covered artificial tree and wheelchair in their front window that they stuck there when they opened 20 years ago. According to respondents, 7 percent never change their showroom displays, 11 percent change yearly, 18 percent change every six months and 24 percent change quarterly. Only 19 percent change their displays monthly, and only 4 percent twice a month.