As ongoing focus is placed on accessibility products in the retail marketplace, HME providers continue to branch out through growth in cash markets, with several providers finding golden opportunities in the commercial marketplace.
Commercial accessibility is a valid, growing market. When considering new involvement, DME providers should take specific care to the fit of this market into their existing business plan, as well as the fit of this market in their current business structure. To be successful in this market, HME providers need to focus on the answers to these three major questions:
- Does this product fit within my business plan?
- Does this market fit in my area of expertise?
- Am I willing to commit the time and resources to be an expert in this particular marketplace?
It is not necessary to answer a resounding “yes” to each of these questions—however, an HME provider must at least answer all three questions to determine their desired level of involvement in this market.
It is critical that a provider either responds positively to the first question or is prepared for a change in the current business plan. With the changing market, many HME providers are redeveloping plans and redefining themselves to keep their organizations operational. If a change in business plan must be made, there has to be a solid commitment to doing everything possible to become a true expert in this field.
The commercial accessibility market requires knowledge and expertise in code compliance at the national, state and municipal levels. Understanding these codes and how to successfully comply with them is crucial for success. Collaborating with a manufacturer or another partner that has existing expertise can help expedite this process. Failure to develop the required expertise can result in an unsuccessful venture, becoming unnecessarily costly to the provider instead of bringing in additional revenue.
A provider’s answer to the second question, of whether this market fits into an area of their expertise, is extremely important. And it is easily answered by taking a survey of existing fields of expertise. Success in commercial ramping and accessibility often is proven by previous success in residential ramping and accessibility.
The residential market is a stepping stone of preparation and potential toward the commercial marketplace. However, not every residential ramp company is an ideal fit for the commercial market. Much more detail is involved on the commercial side, and the residential side may prove itself to be a beneficial training ground for the commercial. Without current success in some form of accessibility, entering the commercial market can be a dangerous endeavor.
Finally, a provider answering the question of commitment to resources for becoming an expert will help define their level of involvement in the market. There are varying levels of involvement, but each one must be entered with understanding of the limitations of market entry.
The first level of entry is purely a supplier of product—this is the level where partnerships are developed with manufacturers of compliant products, and with qualified installers for the implementation of the products. This allows HME providers to profit from the sale of the accessibility ramp or equipment, and requires the least amount of expertise, although some proficiency is still required because involvement in this market carries a certain level of responsibility and liability.
The second level of entry involves providing the accessibility ramp or equipment itself, as well as providing the services to install the product. This involves more control in the process and more opportunity for profit, but definitely requires a higher level of expertise. Partnerships with key manufacturers of accessibility products such are still an asset for a successful plan.
The third level of entry is becoming the accessibility consultant expert and providing the customer with a complete solution. From inception of each project, this involves initial customer consultation, full evaluation of customer needs, working with manufacturers to provide product, working to meet permit requirements, and complete installation of the final solution. Commitment to this involves the highest level of expertise and typically requires having a staff member that has become an expert in the codes and requirements for the marketplace.
Involvement with other organizations can provide assistance in a variety of areas. The ICC (International Code Council) can provide help with meeting code requirements. Municipal building inspectors can provide the specific compliance codes that need to be met. And product manufacturers can provide working solutions to present the customer that are also code compliant.
It is imperative that an HME provider venturing into ramp accessibility have a complete understanding of the local requirements, as well as permitting requirements. Many building inspectors require drawings of the products that are being installed, and some may require engineered stamped drawings. This is often made easier by using a fully engineered product that is produced to comply with codes.
Another aspect of commercial ramping that a provider might consider is the short term need in the market place. This can be resolved by rental programs which are often a lead for future sales and revenue. This option requires product investment and the purchase of inventory to instate the rental program. Rental programs also require adequate storage space to maintain product inventory and deploy the rental stock—a necessity for the program’s success.
Overall, the commercial and residential ramping and accessibility markets are promising for the right HME provider. However, great care must be taken to develop a program with a conscientious approach.
A successful provider will take the necessary time to research and understand the market, partner with knowledgeable manufacturers or contractors, and be willing to provide thorough commitment to their efforts.
With the right approach, success and profit are achievable. But the hesitant provider must remember that this involvement in this market can come at a great cost when ventures are not handled thoroughly and completely.
