During the VGM Heartland Conference last June, my company completed a product overview and training session for HME dealers who were interested in learning more about and offering our bath accessibility product line. At the conclusion of the session, we took the opportunity to conduct a brief survey of participants regarding their thoughts and viewpoints on not only our product line, but also on their big picture thoughts, perspective and questions related to the broad topic of HME dealers providing installed home modification and accessibility services. The survey and discussion that ensued yielded interesting feedback. For those HME dealers not currently providing installed services, a common theme emerged regarding how to get started without overreaching or losing focus on other core competencies of the business. For companies that currently provide home modification services, there was a surprising lack of awareness of the opportunity and benefits of selling and providing services to various commercial housing segments.
Easing into AIP Home Modifications
While many dealers have now included an increased offering of off-the-shelf retail products in response to the changing landscape of HME, a growing percentage are also beginning to provide installed services for home accessibility to cater to the desire of many seniors and baby boomers to age-in-place.
The demand for such installed services will continue to increase dramatically in the coming years, coinciding with the fast-aging population of the U.S. Participants in our training session showed a strong interest in providing installed services to their clients, but expressed concern about knowing where and how to start. Feedback also showed concern about personnel needs related to providing services and the skill level needed in order to enter this skilled market.
The range of installed services to be offered can be daunting, with the skill necessary to complete the work ranging widely as well. Installed services run the gamut from simple to complex, with projects covering every room in a home, and areas inside and outside.
Interior projects include changing out door knobs for handles, adding grab bars or handrails throughout the home, widening doorways or other projects to make bathing easier—whether that involves completing a tub-to-shower conversion or adding a walk-in tub. Exterior projects include adding a permanent ramp, easy-open garage doors and lifts or motion sensor lighting for increased safety and clear accessibility.
The good news is that it is possible to take small and deliberate steps to provide installed product solutions. It is not necessary to offer a full suite of installed services when you first start. Focus on the easy-to-install products first, and then graduate to more complex products as you're ready. This approach gives a company time to ramp up personnel slowly, allowing for a partnership with a service fulfillment partner or utilization of part-time labor, without feeling the need to add considerable overhead of extra employees, equipment or supplies.
For most professionals interested in providing home modification solutions, the most significant challenge and marketing expenditure is 1. the cost of customer acquisition and 2. identifying what services are needed. However, HME providers have the benefit of engaging in a high number of first-hand conversations with potential customers regarding their home and durable medical equipment needs.
These discussions routinely uncover the need for home modifications while indirectly building a level of trust and establishing credibility with potential customers. For instance, if a customer is shopping for a wheelchair or walker, they likely have a need for a ramp or lift to more easily access their home. Similarly, if an individual is purchasing a bath seat, he or she might also be interested in having grab bars installed or in a tub retrofit. Training personnel and customer service staff to proactively look for opportunities to inquire and suggest product and installed service options is a simple, yet important strategy for identifying installed service customers.
Our experience with bath accessibility products has shown that displays of installed products are effective sales tools that allow customers and caregivers to experience the products, ask questions and gain familiarity and comfort with various installed service solutions.
Because floor space in a retail location is always a premium, a good alternative is placing signage promoting installed services strategically by retail product offerings. For instance, placing signage promoting installed services for bath accessibility near the bath seats or grab bars is a simple, space-saving and inexpensive method to promote the service.
Focus on the Commercial Sector
During our recent product training session, we also asked the participants who currently perform accessibility remodeling work what percentage completed work on behalf of the commercial housing sector compared to completing work for private residential homes.
To our surprise, just a few of the attendees indicated that they performed work on commercial facilities, with the majority of attendees focusing exclusively on residential installation work. For context and the purposes of the discussion, we loosely defined "commercial" as anything other than owner-occupied residential homes. Commercial includes senior housing (independent, assisted living or nursing care), as well as senior apartments and multifamily units, including public and rural housing designated for seniors or disabled individuals.
A lack of focus on commercial housing was surprising given the incredible existing and future demand for installed services for these types of dwellings. The market is significant and will only grow larger over time due to demographic trends in the U.S.
According to the National Investment Center for Senior Housing & Care, the senior housing property market includes approximately 22,000 facilities comprising almost 2.9 million units. In addition, according to the Center on Budget and Policy Priorities, elderly or disabled adults occupy nearly 50 percent of the nation's 1.12 million public housing units.
There are a wide range of installed services appropriate for this sector, ranging from simple to more complex. It is important to recognize that many of these buildings were constructed prior to the implementation of universal design principles that are often incorporated into today's newer construction. Likewise, due to high occupancy rates and the growing demand for additional senior housing, many traditional apartments are being converted and retrofitted to accommodate the needs of seniors and disabled residents.
Unlike marketing and business development initiatives geared toward the residential market that typically result in a one-time installation, commercial facilities offer the opportunity to complete work for multiple units, whether it is for a few or many units at a time. Many senior housing facilities range from 25 to 150 units per building.
There is also the added benefit of possibly securing work at the same facility at a later date or on a recurring basis, as well as additional work at other local affiliated facilities operated by the same management company or with common ownership.
By the conclusion of the training session and individual discussions we had with participants, great dialogue was exchanged regarding methodology for beginning a successful home modification business and strategies for maximizing the opportunities with both residential and commercial housing sectors. Given the interest in providing installed home modification services and the growing demand for such services as the U.S. population continues to trend towards older demographics, these are clearly topics that will continue to receive attention and represent a significant opportunity for HME dealers.
