Over the past several years, the mantra of “cash sales!” has been heard with increasing frequency. No matter how much an HME provider has relied on reimbursement in the past, that provider can certainly improve his bottom line by offering “cash and carry” items. One of the more popular cash and carry items offered by HME providers is compression therapy—gradient compression hosiery and legwear.
Although anyone can enjoy the benefits of “great feeling legs” while wearing compression hosiery, the most frequent wearers tend to be age 50 or older. As Baby Boomers age, they may be candidates for the treatment of chronic conditions, everything from venous insufficiency to maintaining their healed venous leg ulcers. These repeat customers can become an important revenue stream for your HME. Unfortunately several misconceptions about this product category may prevent some HME providers from adding compression therapy to their product offering.
Hard to fit—Compression therapy garments come in two varieties: custom-made (made-to-measure) and ready-to-wear. Over the years, it is the ready-to-wear compression products that have come to dominate the market and these products are relatively easy to measure. In most cases, a simple measurement of the circumference of the ankle and calf are sufficient to determine the correct size. That is all that’s required to place the consumer in a knee-high sock, the most frequently requested style of compression legwear.
Expensive—Compression garments are medical devices, manufactured to precise specifications and subjected to thorough testing and evaluation. With proper care and maintenance, high quality compression garments should deliver the prescribed compression levels for many months. When one considers the cost of a compression garment in relation to the several months of service it provides, the cost is really quite reasonable. Most manufacturers now offer a “value” brand in addition to their premium offering which can be used in those instances where price drives the selection.
Aesthetics—There is still the perception that compression hosiery is thick, hot and not especially attractive. “Firehose” is a word sometimes used to describe it. But in reality, over the past 15 to 20 years, manufacturers of gradient compression garments have made significant progress in the development of these garments. Today these compression garments are virtually indistinguishable from “fashion” legwear. And many of these products are manufactured to be much easier to put on which helps contribute to wearability and patient compliance.
There’s more good news for the HME provider interested in expanding into gradient compression. Some of the compression therapy manufacturers employ highly trained sales personnel to help market their products. You can expect to receive support in these areas:
Retail showroom—You can’t sell what you don’t have and you can’t sell what you can’t find. A well-stocked, brightly lit showroom with product attractively displayed encourages sales. Planograms of best-selling products—arranged for easy selection—help consumers find the product they need. Some companies also offer merchandising solutions—handsome displays that can be used to showcase their products. Posters and signage as well as product displayed on acrylic leg forms all contribute to a “retail” environment.
Dedicated and well-trained staff—Compression therapy manufacturers can train HME personnel so that staff members are confident in their knowledge and can help customers select appropriate products for their condition.
A database of customers—A simple card file captures and organizes records of consumers, date of purchase, choice of legwear, even information about the recommending physician. This powerful tool allows an HME provider to send personalized invitations to health fairs and promotional events. It’s also useful to remind consumers when it is time to replace their gradient compression garment. The database may even be used to market to physicians in the immediate area.
Advertising—Gradient compression can benefit many people. One problem is lack of awareness. People who suffer from chronic venous insufficiency or other venous disorders are often unaware that there is a solution to their problem. Advertising can help build awareness and tell consumers where they can find quality compression garments.
In an industry facing continued cuts in reimbursement and overburdened with document requirements, some of the more successful HME providers are shifting their business to cash sales. Once known as “reimbursement specialists,” these entrepreneurs are embracing products that can impact their bottom line with repeat, cash purchases.
One HME provider recently commented that compression therapy has become the most profitable department in his store. He simply generated referrals, built his base and provided good customer service. You, too, will want to explore this important product category to see how it can impact your store’s bottom line.
