After an unseasonably cold winter and fall throughout much of the country, a bit of solar salvation may finally be on the horizon. Call it the market driver of epic proportions, but scooter providers and manufacturers across the board agree that more sun equals a better bottom line.
Those who want to up their home run totals must commit to the category, says Corgan, who serves as national sales director, retail mobility, for Pride Mobility Products. Commitment involves offering a wide selection, engaging in intelligent cross-selling and buying more advertising.
"Sometimes providers get focused on the referral source portion of their business," says Corgan. "They have to remember the demographic. That baby boom demographic is out there, and they have changed the course of history with tremendous spending power. Providers must reach out and educate boomers that these products are available for them to stay mobile."
Market, Market, Market
As HME companies begin to stock their floors and take advantage of spring promotions, more foot traffic is coming, and with it comes the time to strike. "People are coming in looking for product," says Corgan. "So again, this is the time of year when they need to advertise through consumer awareness, consumer education — and educating referral sources that they have the selection when an individual needs a scooter."
Corgan points out that print media such as newspapers or bill stuffers work well, but he emphasizes that a company's existing customer base should never be neglected. Using many avenues at once can drive awareness and cover all the bases, but ultimately the size of the community often dictates the most effective outreach, he says.
Golden Technologies' Patricia O'Brien, director of marketing, agrees that the weather plays an undeniable role in scooter sales, but she hopes to help providers get the ball rolling with top-notch consumer education. In the normal course of business, marketing efforts are primarily geared toward helping home care providers get customers in the door. From there, consumers get the appropriate education about specific products with literature and other marketing materials.
"The fall and winter is not prime season," O'Brien says of scooters, "but we did well in large part due to the materials that supported our dealers." She believes that having the right marketing tools in the showroom at all times is one thing that can help HME businesses maintain their numbers.
Industry consultant Colette Weil points to Golden's willingness to reach outside the HME "comfort zone" of marketing and retailing. "The competitive demands providers face require creative nimbleness and innovative programs," says Weil, managing director of Summit Marketing, adding that the manufacturer is coupling merchandising and retailing expertise along with advertising discipline to help providers build "consumer marketing savvy."
"They have trial programs developed with providers and consumers that put solid programs in the provider's range of tools — things such as videos, testimonials, floor planograms, Web plug-ins and [search engine marketing] advice," says Weil. And to attract baby boomers or other retail customers, she believes, providers are going to need the help.
About the scooters themselves, O'Brien says providers and consumers alike are hungry for new designs. In response, Golden relaunched its Companion Scooter series last fall.
"We had the Companion scooter line for many years, and we spent a lot of time redesigning the entire line," says O'Brien. "We made it more aesthetically pleasing, more comfortable to ride for long periods and more ergonomically designed. We changed the whole design under the hood, so basically there is one wire to disconnect for each battery. Other than that it is a wireless disassembly, and it has proven to be a successful product for us in the three models that we offer."
Golden will begin shipping its new LiteRider scooter this month. Introduced at Medtrade Spring, the scooter has a new tubular design, a stadium-style seat and two standard storage baskets. The company has also improved its compact Buzzaround Lite, replacing the standard seat with a more comfortable, larger seat and more comfortable armrests for longer rides.
Bidding Affects Buying
Don Hwang, regional sales manager for C.T.M. Homecare Product, notes that the medical referral side of the scooter market — just like all the other product categories in Round 1 — is under threat from competitive bidding. In tandem, he laments, "the power mobility market is also saturated with poor-quality suppliers that are low-balling the industry standard."
O'Brien also believes competitive bidding has fostered tentativeness among many providers who are waiting to see what will happen instead of stocking their showrooms and storage areas. "They're ordering scooters on an as-needed basis when the consumer comes in and wants to buy something," she says. "That is having an impact on how DME businesses are operating."
But past the benefits of volume pricing and freight breaks that come with buying more units in one order, consumers want the products they select to be in stock, O'Brien notes. When customers try scooters on the show floor, they may love one and be ready to pay. If it's not there and must be ordered, impatient consumers may go elsewhere to a shop where the product is available for them to take on the spot.
"A lot of the time when people are going in for scooters, it is because they really need a scooter, and they need it now," explains O'Brien. "If [an HME company] orders 50 scooters in one month versus 50 scooters over the course of a year, they are still ordering 50 scooters. We feel it is better for them to have scooters in stock if they can."
While funding challenges, continuing power mobility documentation problems and competitive bidding create headaches in the marketplace, scooters provide advantages that some other products can't.
"Scooters are predominately a cash market, and again, that whole demographic that we are targeting has a lot of cash to spend," says Corgan. "They want to spend that cash on scooters and travel, so this category helps diversify some of the risk that a provider is looking at come 2011 and beyond. It helps offset some of the potential lost revenue under competitive bidding scenarios — and the [difficulty] of the elimination of the first-month purchase option for power wheelchairs. This is a retail category and will help bring in additional revenues now and into the future."
To capitalize on demand, a wide selection of scooters and prices is crucial, Corgan says, from lower-priced models to the high end. That range of choices on the showroom floor ensures potential purchasers can find something that will suit their needs and their pocketbook.
Corgan reports that Pride is actively responding to demand resurgence for mid- to larger-size scooters, and says that larger outdoor-type scooters such as the company's new Pursuit are getting a good reception.
"It has 13-inch wheels on it, so you can tell it is really not designed for indoor use unless you have a pretty large home," says Corgan. "There is a portion of the population that is looking for that more robust and/or rugged scooter with larger tires and full suspension."
For providers looking for ways to get beyond scooters that are designed solely for the coding marketplace, other manufacturers are seeking to expand opportunities with bigger models.
Invacare's John Koster, product manager for consumer power and scooters, agrees that larger scooters are once again gaining ground. "The mid-size and heavy-duty segments seem to be growing the fastest," says Koster. "Consumers are willing to pay cash to upgrade to larger, more comfortable scooters with more battery range and features."
Despite the uncertainties of competitive bidding, Koster characterizes the overall market as "pretty steady" due to product demand, which shows no signs of letting up. Although "reimbursement cuts continue to hurt the Medicare segment of the market," he says, "the retail segment of the market is growing due to an aging population with more disposable income and the increased need for heavy-duty scooters."
Last fall, Invacare introduced its Leo scooter, which Koster calls a successful addition to the mid-size market. With a 350-lb. weight capacity, the Leo boasts European styling at an affordable price, he says, with a three-wheel model on the way for later this year.
"The market will continue to transition to even more of a retail market," says Koster. "The outlook for the market is bright, though. Scooters are economical products that consumers need and are willing to pay for."
Experts Interviewed
- Cy Corgan, national sales director, retail mobility, Pride Mobility Products Corp., Exeter, Pa.
- Don Hwang, regional account manager, C.T.M. Homecare Product, Chino, Calif.
- John Koster, product manager, consumer power and scooters, Invacare Corp., Elyria, Ohio
- Patricia O'Brien, director of marketing, Golden Technologies, Old Forge, Pa.
- Colette Weil, managing director, Summit Marketing Group, Mill Valley, Calif.
