Home Medical Equipment Retailers Speak Out

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HME RETAILERS HME RETAILERS SPEAK OUTSPEAK OUT

Medtrade Spring Retail PanelMedtrade Spring Retail Panel

Retail TrackRetail Track

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Panelists & FacilitatorPanelists & Facilitator

Jim Greatorex, Pres. & CEO, Black Bear Jim Greatorex, Pres. & CEO, Black Bear MedicalMedical

Jeff Kelemen, Pres. & CEO, Everything Jeff Kelemen, Pres. & CEO, Everything MedicalMedical

Tom Mullaney, R.Ph., President, Mullaney Tom Mullaney, R.Ph., President, Mullaney Medical, Inc. (Material presented by Medical, Inc. (Material presented by Colette)Colette)

Colette Weil, Managing Director, Summit Colette Weil, Managing Director, Summit Marketing (facilitator)Marketing (facilitator)

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Panel Discussion ObjectivesPanel Discussion Objectives

Learn about different business models and Learn about different business models and the role retail/cash sales playsthe role retail/cash sales plays

Learn about the panelistsLearn about the panelists’’ varying varying marketing strategies and retail views marketing strategies and retail views

Discuss future strategy considerationsDiscuss future strategy considerations

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Program OutlineProgram Outline

About the PanelistAbout the Panelist’’s stores & business s stores & business modelmodel

How they built retail/cash sale businessHow they built retail/cash sale business– Location & brandingLocation & branding– Revenue, product & services mixRevenue, product & services mix– Advertising, promotion, sales, internetAdvertising, promotion, sales, internet– In-store merchandisingIn-store merchandising

Q & AQ & A

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Black Bear MedicalBlack Bear Medical

Large showroomsLarge showrooms Personal servicePersonal service Two locationsTwo locations Satellite locationSatellite location Comprehensive Comprehensive

product offeringproduct offering

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Black Bear Medical Retail Black Bear Medical Retail ModelModel

Product Mix: 48% - Complex Rehab Product Mix: 48% - Complex Rehab 23% - Retail 22% Supplies 7%-DME23% - Retail 22% Supplies 7%-DME

Retail focus since 1994Retail focus since 1994 Surpasses $1 million in Retail-only revenue Surpasses $1 million in Retail-only revenue

in 2004in 2004 Use Rehab and Supply business to Use Rehab and Supply business to

compliment Retail compliment Retail Convenient location in a known but lower Convenient location in a known but lower

rent location rent location

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PERSONALIZED SHOWROOMPERSONALIZED SHOWROOM

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Good–Better-Best SelectionGood–Better-Best Selection

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3 Retail locations: 1 3 Retail locations: 1 Pharmacy & DME, 2 Pharmacy & DME, 2 DME onlyDME only

Started as retail Started as retail pharmacy in 1936, pharmacy in 1936, added retail DME in added retail DME in 1989.1989.

DidnDidn’’t hire first t hire first outside salesperson outside salesperson until 2001until 2001

42% Cash42% Cash 21% Medicaid 21% Medicaid 17% Medicaid 17% Medicaid

Waiver Waiver 11% Medicare11% Medicare 9% Private 9% Private

Insurance, Workers Insurance, Workers CompComp

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Three Retail LocationsThree Retail Locations

All in Suburbs of All in Suburbs of CincinnatiCincinnati

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Everything MedicalEverything MedicalLas Vegas, NVLas Vegas, NV

ThatThat’’s our service s our service mottomotto

Started as a wholesaler Started as a wholesaler of disposables in early of disposables in early 8080’’s s

Launched retail in Launched retail in ’’9797 Good opportunitiesGood opportunities We know the productsWe know the products

Two Locations, central Two Locations, central Las VegasLas Vegas

Primary: 5000 sq. feet Primary: 5000 sq. feet retailretail

Second: 2000 sq. feet Second: 2000 sq. feet retailretail

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About Las VegasAbout Las Vegas

Among highest Among highest foreclosure levelsforeclosure levels

Among highest Among highest vacancy ratevacancy rate

High unemploymentHigh unemployment Recipe for HME Recipe for HME

Retail? Retail? 3 senior 3 senior

communitiescommunities VisitorsVisitors

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Our Business ModelOur Business Model

75% Retail75% Retail 25% 325% 3rdrd Party Party

90% Medicaid90% Medicaid Centrally LocatedCentrally Located

Location 1Location 1• Across from the Across from the

county hospitalcounty hospital Location 2Location 2

• 1 mile from 3 1 mile from 3 hospitalshospitals

Service: we will Service: we will find exactly what find exactly what you need – you will you need – you will love us, you will tell love us, you will tell your friends (cause your friends (cause we know you will we know you will be a customer for be a customer for life)life)

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Selection, Selection, SelectionSelection, Selection, SelectionGood – Better - BestGood – Better - Best

Commitment to inventory !!Commitment to inventory !! Train employees on differing Train employees on differing

products and value for price – products and value for price – explain the why.explain the why.

Merchandise like a grocery Merchandise like a grocery store or pharmacy – big store or pharmacy – big movers with better margins at movers with better margins at eye level – economy lines at eye level – economy lines at top or bottom of section.top or bottom of section.

Utilize companies with self Utilize companies with self service packaging but always service packaging but always back up with serviceback up with service

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Sales & Top CategoriesSales & Top Categories

Over $4 1/2 million Over $4 1/2 million and growingand growing

Top areasTop areas Disposables Disposables Compression hosieryCompression hosiery OrthoticsOrthotics Lift Chairs & ScootersLift Chairs & Scooters Basic DME & Basic DME &

AccessoriesAccessories

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Jim GreatorexJim GreatorexBlack Bear Black Bear

Advertising/PromotionsAdvertising/Promotions

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MerchandisingMerchandising

Put your best looking Put your best looking high volume cash high volume cash items in front of storeitems in front of store

Put bigger ticket items Put bigger ticket items and and ““scaryscary““ products products in a remote part of in a remote part of showroomshowroom

Hire CSRHire CSR’’s with big s with big box store experience box store experience

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Jeff KelemenJeff KelemenEverything Medical Everything Medical


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AdvertisingAdvertising

Yellow Pages primary Yellow Pages primary sourcesource

2 million people in one 2 million people in one phone bookphone book

Still the reference tool Still the reference tool herehere

Print in the beginningPrint in the beginning Now specialty print mags Now specialty print mags

& online& online TV advertising using Co TV advertising using Co

OpOp

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TV Advertising to WomenTV Advertising to Women

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TV Advertising to MenTV Advertising to Men

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Results of High Touch, High Results of High Touch, High Care, High ServiceCare, High Service

Average 150 walk in customers/dayAverage 150 walk in customers/day Cash customers return but small returns Cash customers return but small returns

(<3% due to service)(<3% due to service) Why? We personally help them with Why? We personally help them with

exactly what they need with trained exactly what they need with trained personnelpersonnel

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WhatWhat’’s Next?s Next?

Yellowpages.comYellowpages.com Digital and social media presenceDigital and social media presence Community Service days get free publicityCommunity Service days get free publicity Work with high active doctors/prescribers Work with high active doctors/prescribers Specialty & Niche MarketsSpecialty & Niche Markets

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Tom Mullaney, R.Ph.Tom Mullaney, R.Ph.Mullaney MedicalMullaney Medical


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We print these on small We print these on small pads (Rx size) and pads (Rx size) and pass out to referral pass out to referral

sources.sources.

Chain pharmacies are Chain pharmacies are one of our best sources one of our best sources

of walk in business.of walk in business.

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We split advertising We split advertising cost with 2 other cost with 2 other

Rx/DME stores that Rx/DME stores that dondon’’t compete t compete

geographically with geographically with us for retail us for retail business.business.

We each spend 1/3 We each spend 1/3 of what we were of what we were

spending!spending!

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Tracking Advertising ResponseTracking Advertising Response

Use a unique phone # on your ads to track Use a unique phone # on your ads to track how many phone calls they generate. how many phone calls they generate.

Have a different # for Yellow Pages, TV, Web, Have a different # for Yellow Pages, TV, Web, etc.etc.

Have your CSRHave your CSR’’s ask walk in customers how s ask walk in customers how they heard about you & track them just like they heard about you & track them just like you do referral sources.you do referral sources.

You need to know what works so you know You need to know what works so you know where to spend your $$.where to spend your $$.

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TelevisionTelevision

Network & CableNetwork & Cable Who is your audience?Who is your audience?

Medicare/Medicaid Patients or Cash Patients?Medicare/Medicaid Patients or Cash Patients? Use Spots from your Manufacturers and Use Spots from your Manufacturers and

just add your Name & Phone #just add your Name & Phone # Use Co-Op DollarsUse Co-Op Dollars Set up a year long schedule, you can Set up a year long schedule, you can

cancel anytime.cancel anytime.

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TV CommercialTV Commercial

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In StoreIn Store

Think like a retailer Think like a retailer Impulse salesImpulse sales Add on salesAdd on sales Up-Sell: Good, Better, Best.Up-Sell: Good, Better, Best. Set up your show room to do thisSet up your show room to do this Seasonal Products ( SAD Lights, Seasonal Products ( SAD Lights,

Holiday Gifts)Holiday Gifts)

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Questions and Questions and AnswersAnswers

Thank you everyone!Thank you everyone!