The American-made FootMate System was initially positioned as a quasi-medical device specifically positioned for diabetics. We initially exhibited at Metrade, as the American Diabetes Association and the American Diabetic Health Educators trade shows. We became discouraged when interest at these shows was poor.
At the Medtrade Spring 2012 show, DME providers told us we had to have a Medicare-reimbursable product. We submitted paperwork to CMS to obtain a HCPCS code. After passing two rounds of scrutiny, we were not awarded a HCPCS code, which turned out to be a blessing in disguise.
During this process, the Affordable Care Act (ACA) passed and the pendulum shifted. At Medtrade 2012, DME providers now had to have cash products because reimbursement for DMEs was getting slashed. In addition, as part of the ACA medical devices were assessed a 2.3 percent excise tax. If the FootMate System were awarded a HCPCS code, then it would have been classified as a medical device, and Gordon Brush would have been subject to the 2.3 percent excise tax. This tax would have significantly impacted the profitability of the product.
The poor results from trade show and website sales made us reconsider our marketing strategy. Since the health-specific product strategy was not working, we were compelled to reposition the strategy. The new strategic direction for the FootMate System was that of a personal-care product. We were able to receive the prestigious endorsement from the American College of Foot & Ankle Orthopedics & Medicine, a specialty organization that is part of the American Podiatric Medical Association.
Our new strategic direction and marketing tactics made us stand out in the marketplace to the point where we started to receive many inquiries to distribute the product line and requests from magazines and bloggers to write product reviews on the FootMate System.
It is important for women to have beautiful feet, especially during sandal season. One of our distributors, Joyus.com, made a video on how the FootMate System can be used to have and maintain beautiful feet during spring and summer when open-toe shoes are more commonly worn by women. People.com similarly picked up this theme in their Style Watch section. The FootMate System was also featured on Fox Network’s syndicated TV show, The REAL. During the demonstration, Jeannie Mai said, "The FootMate System is arousing."
In addition to focusing in on the beauty segment, we have also used cause marketing to stand out. Our cause is to promote American-made products and the organizations that promote American manufacturing companies. Gordon Brush Mfg. Co., Inc. has been an ardent supporter of keeping manufacturing in the United States. In spite of constant political, environmental, regulatory and predatory pricing competition, the company has been steadfast in maintaining its manufacturing operations in America. Our story, "Proud to Be an American Manufacturer," has been published by different sources, including CNN iReport and HispanicBusiness.com.
As a result of this strategic shift and the tactics employed, sales boomed. The new strategy converted the FootMate System from a niche product, and opened up new markets for the sale of the product. This strategy has been very successful, and the FootMate System is now sold through many different distribution channels.
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