Learn from four successful home medical equipment retailers how they built their retail business and the strategies that keep customers coming in their doors.

1. 1
Opportunities & Pitfalls
of Retail/Cash Sales
Medtrade Retail Panel Nov 2010

2. 2
Program Objectives & Rules
of the Road
 Share the good, bad & ugly of retail/cash
sales
 Learn about different business models and
role retail/cash sales plays
 Learn about varying strategies in location,
merchandising, online sales, referral sales &
promotion/advertising

3. 3
Panelists & Facilitator
 B.J. Bowser, Consultant with Lieber
Consulting & Associates
 Tom Mullaney, R.Ph., President, Mullaney
Medical, Inc.
 Tammy Zelenko, Pres. & CEO, AdvaCare
Home Services
 Jim Greatorex, Pres. & CEO, Black Bear
Medical
 ColetteWeil, Managing Director, Summit
Marketing (facilitator)

4. 4
Program Outline
 About the Panelist’s stores & business model
 How they built retail/cash sale business
– Branding
– Product & services mix
– Advertising/ Promotion/Sales/Internet
– In-store
 Q & A

5. 5
Sunshine Pharmacy Medical
About
Group of Respiratory
Therapists, Nurses,
EquipmentTechnicians,
Customer Service
Representatives, Billing
Clerks, Certified fitters and
Durable Medical Specialist.
What do they do?
Full service Home Medical
Equipment Company that
specializes in Medical
Equipment for home and
facility use.

6. 6
At A Glance

7. 7

8. 8
Revenue Stream

9. 9
Black Bear Medical
 Large showrooms
 Personal service
 Two locations
 Satellite location
 Comprehensive
product offering

10. 10
Black Bear Medical Retail
Model
 Product Mix: 48% - Complex Rehab 23% -
Retail 22% Supplies 7%-DME
 Retail focus since 1994
 Surpasses $1 million in Retail-only revenue in
2004
 Use Rehab and Supply business to
compliment Retail
 Convenient Location in a known but lower
rent location

11. 11
Good–Better-Best Selection

12. 12
PERSONALIZED SHOWROOM

13. 13
Advacare is a locally
owned provider of
respiratory, sleep apnea
services, home medical
equipment, and retail
sales, and has been
serving the Pittsburgh
tri-state area since 1996
13

14. 14
Locations
1. 2001 ~ Beaver first retail
(450 sq ft)
* 2006 ~Relocated and expanded to
1400 sq ft
Beginning of branding our retail stores
2.2004 ~ Pittsburgh retail
(1000 sq ft )
* 2007 remodeled to mirror store design
3.2010 ~ Uniontown retail
( 1500 sq ft - retail - 1000 sq ft Warehouse)
Store layout and design is consistent w/ other retail stores
4.Bridgeville (10, 000 sq ft main location)

15. 15
Destination of Locations
Bridgeville – Main Location (13 miles from downtown)
Beaver is 35 miles West (40 minutes)
Downtown Beaver on Main Street
Pittsburgh is 22 miles East (30 minutes)
Downtown Aspinwall on main corridor
Uniontown Retail location is 56 miles South East ( 1.4
hours)
Strip Mall Plaza

16. 16
How Did Advacare Get Started in Retail?
 A competitor went out of business
 In 2006 Advacare got serious about the retail
business after attending the Medtrade Fall
Conference. Competitive Bidding was looming and
more reimbursement cuts were on the horizon…retail
sales became part of our strategic plan
 Current revenue mix
16

17. 17
 3 Retail locations: 1
Pharmacy & DME, 2
DME only
 Started as retail
pharmacy in 1936,
added retail DME in
1989.
 Didn’t hire first outside
salesperson until 2001
 42% Cash
 21% Medicaid
 17% MedicaidWaiver
 11% Medicare
 9% Private Insurance,
Workers Comp

18. 18
Three Retail Locations
All in Suburbs of
Cincinnati

19. 19

20. 20
Tammy Zelenko
AdvaCare Home Services
Advertising/Promotions

21. 21
Branding Enhancement
 New Brochures
 New Delivery
Truck/Van Design
 Billboards
 And More

22. 22

23. 23

24. 24

25. 25
Christmas Layaway

26. 26
Radio

27. 27
B. J. Bowser
Advertising/Promotion

28. 28

29. 2929

30. 30
WOMENS BOUTIQUE
ALTERNATIVE HEALTH
IN-STORE PROMOTIONS
SPECIAL NEEDS SECTION
Changing the Future of
HME Retail
WELLNESS AND FITNESS

31. 31
Tom Mullaney, R.Ph.
Mullaney Medical
Advertising/Promotions

32. 32
We print these on
small pads (Rx size)
and pass out to
referral sources.
Chain pharmacies are
one of our best
sources of walk in
business.

33. 33
We split
advertising cost
with 2 other
Rx/DME stores that
don’t compete
geographically
with us for retail
business.
We each spend 1/3
of what we were
spending!

34. 34
Tracking Advertising
Response
 Use a unique phone # on your ads to track how
many phone calls they generate.
 Have a different # forYellow Pages,TV,Web, etc.
 Have your CSR’s ask walk in customers how they
heard about you & track them just like you do
referral sources.
 You need to know what works so you know
where to spend your $$.

35. 35
Television
 Network & Cable
 Who is your audience?
 Medicare/Medicaid Patients or Cash Patients?
 Use Spots from your Manufacturers and just
add your Name & Phone #
 Use Co-Op Dollars
 Set up a year long schedule, you can cancel
anytime.

36. 36
TV Commercial

37. 37
In Store
 Think like a retailer
 Impulse sales
 Add on sales
 Up-Sell: Good, Better, Best.
 Set up your show room to do this
 Seasonal Products ( SAD Lights, Holiday
Gifts)

38. 38
Jim Greatorex
Black Bear
Advertising/Promotions

39. 39

40. 40
Merchandising
 Put your best looking
high volume cash items
in front of store
 Put bigger ticket items
and “scary“ products in
a remote part of
showroom
 Hire CSR’s with big box
store experience

41. 41

42. 42

43. 43
Questions and Answers
Thank you everyone!