In an industry that lives (and dies) by government-based and managed care funding, home medical equipment products driven by cash sales often are quietly dismissed. Sometimes this lack of interest is due to a business environment that does not support the product category, but often it's due to a lack of experience and retail marketing expertise.

Scooters, which rapidly are becoming a cash-sale item, offer HME providers a tremendous opportunity, especially when providers focus on marketing, sales training and retail-oriented strategies.

There is a growing excitement in the scooter market, says Cheryl Gwiazda, a senior product manager for Invacare, because a scooter is a cash sale item that meets a consumer need. It also helps build relationships for future sales. “The scooter is a really nice segue into medical products because it looks fun — not medical,” Gwiazda says.

This is particularly true of economy scooters, which are the current sales leaders. “Travel scooters and low-end scooters are driving the overall growth,” notes Jack Sheehan, director of sales and marketing for Bruno Independent Living Aids. “Until recently, most scooters that have been on the market have been used for people with a well-defined disability.”

Sheehan is not alone in his recognition of the increased interest in economy scooters. Matt Evans, who is a retail mobility sales manager for Pride Mobility, attributes the popularity of this category of scooters to price and features. “The market is headed toward the economy line of scooters, and that is why Pride manufactures its economy scooters with luxury features,” he says.

The trend of offering luxury features on economy scooters is making an impact throughout the scooter industry — mostly due to consumer demand and competition among manufacturers. “Units are coming with bells and whistles as standard equipment now,” according to Darrin Horst, president, Lifestyle Mobility Aids. “It's kind of a sales gimmick that gives the illusion that [consumers] are getting more for their money.”

Most experts believe consumers are looking for an affordable scooter that still offers safety, snazzy aesthetics and traditional accessories such as baskets and headlights. “Features and aesthetics are ultimately what will sell a lot of products,” predicts Dave Tasselmyer, sales and marketing manager with Golden Technologies.

And even though scooter manufacturers have begun making “extras” standard features, the greatest challenge for the industry remains becoming successful at retail-oriented sales.

Marketing 101

“Marketing training is a primary emphasis [for us],” Sheehan says. “We understand that this is something providers may not have done before and they may have only 1 percent of their inventory in cash sales.”

Tasselmyer says it is a matter of educating consumers about the products and showing consumers where to locate the products. “Word of mouth does well, but you need that extra traffic into the store to let the consumers know that you carry mobility products,” he says.

Manufacturers recommend television and radio commercials, newspaper advertising, participation in local health fairs, and in-store open house events as effective ways to attract customers. Using an open house to show current scooter owners the new models is one strategy that Mike Wade, national sales manager for Leisure-Lift, has seen work. “Customers can come in with their scooter and have it refurbished at no charge,” Wade says. “Then, they see another product and they have to have it.”

Many manufacturers encourage providers to participate in local health events because these events provide face-to-face contact with potential customers. Sheehan suggests that if providers are selective in choosing the events, they can ensure they are meeting the right clientele, which leads to more potential sales and profits. It also is important to acquire names and addresses of potential clients. “You are looking for two levels of information,” he says. “Did you get leads and did the leads convert?”

Today's consumers are educated, which poses another challenge for HME providers. “Consumers are more knowledgeable than ever before,” says Shirley Beebe, advertising and public relations manager for Amigo Mobility International. Beebe says once a consumer decides to purchase a scooter, he or she wants to find a quality model at a fair price.

Tasselmyer urges providers to increase their knowledge of the many features and benefits of today's scooters. “Whether consumers are shopping for a $20,000 car or a $2,000 scooter, they expect the salesperson to be able to answer their questions,” he says. “If the consumer knows more than the salesperson, [the salesperson is] in trouble.”

A Booming Population

The optimistic outlook for the scooter market is based on the aging of the Baby Boomer population.

“The Baby Boomers are willing to spend their money, and that is what is fueling the boom in the mobility arena,” says Darrin Horst, president of Lifestyle Mobility Aids. “This generation is getting older, their needs are changing and they are realizing that they still want to experience life.”

The value of this generation's spending power cannot be underestimated. The American Association for Retired Persons notes there are 76 million Baby Boomers in the United States today and offers the following statistics in its 1999 executive summary:

• One quarter expect to receive an inheritance that will affect their retirement planning.
• Eight in 10 plan to work at least part-time during their retirement years.
• Only one-third expect to scale back their lifestyle during retirement.
• Seventy-three percent expect to have a hobby or special interest to which they will dedicate a lot of time during retirement.
• Almost seven in 10 say they can rely on self-directed sources of income during retirement.
• Seventy-five percent say their generation is more self-indulgent than their parent's generation.

Who Wants Your Business? They Do!

Scooter manufacturers have upped the ante when it comes to competing for providers' loyalty. Value-added services, once thought to be incentives for consumers, now are being pushed to the forefront of the provider-manufacturer relationship.

Darrin Horst, president of Lifestyle Mobility Aids, says manufacturers realize that customer support, customer service and technical support are essential in this competitive marketplace. “Providers are more willing to buy from the companies that are going to give them that service, even if they are paying a little more for the product,” he says. “They want to know the service is going to be there and the support is going to be there.”

Because marketing and retail programs appear to be in high demand from providers, most manufacturers will provide substantial resources. Advertising programs such as Invacare's Marketing Advantage Program can do more than help providers sell products, according to Cheryl Gwiazda, a senior product manager with the company. “Advertising is very important — not only for us but the industry overall,” she says. “It really builds awareness of the industry for everyone.”

In addition to its marketing assistance programs, Pride Mobility's support programs range from consumer financing to merchandising support. Matt Evans, Pride's retail mobility sales manager, emphasizes that the company knows these products are investments in its customers' success.

Sales training, television commercials and reimbursement for trade show exhibit — all these support mechanisms are essential, says Jack Sheehan, director of sales and marketing for Bruno Independent Living Aids. “Providers need assistance in understanding the concrete things that must be done in order to proceed in the direction of retail sales,” he says. And manufacturers stand ready to produce.

Experts Interviewed: Shirley Beebe, advertising and public relations manager, Amigo Mobility International, Bridgeport, Mich.; Matt Evans, retail mobility sales manager, Pride Mobility Products, Exeter, Pa.; Cheryl Gwiazda, senior product manager, Invacare, Elyria, Ohio; Darrin Horst, president, Lifestyle Mobility Aids, St. Petersburg, Fla.; DuWayne Kramer, president, and Mike Wade, national sales manager, Leisure-Lift, Kansas City, Kan.; Jack Sheehan, director of sales and marketing, Bruno Independent Living Aids, Oconomowoc, Wis.; and Dave Tasselmyer, sales and marketing manager, Golden Technologies, Old Forge, Pa.