Innovation, education key to boosting DME profits

The growth potential behind the sale of durable medical equipment may be beginning to percolate, industry leaders said. The oldest of the baby boomers turns 70 in 2016, which suggests that within the next five years and beyond, the need for everything from walkers and bath safety equipment to rollators and wheelchairs is only going to grow. And there is a shift from Medicare reimbursement of such items to cash that will help migrate customers of home medical products from specialty shops and through mainstream retail pharmacy doors.

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“Finally, there has been an increase in non-professional care takers making DME purchases,” noted Brendan McEvoy, product marketing manager for Carex. “[These customers] need extra attention to help educate them on their purchases.”



The challenge for DME within retail is the amount of shelf real estate many of these bath safety and mobility assistance products occupy. The large individual SKU footprint can make for some unattractive profit-per-square-inch metrics. “If you’re going to innovate, you need to truly innovate, and not just in packaging, but in form and function,” noted Curt Behrens, president P2B, which represents Jobri in the space. There’s also aspirational adjacency opportunities that may resonate especially well with today’s boomer, Behrens noted, such as yoga accessories or ergonomic and comfort products.



Carex continues to bring DME solutions to retail with a focus on products with small retail footprints, informative packaging, easy-to-assemble items and stylish designs for in-home use.



Education at shelf is key, McEvoy noted. “Educating the pharmacy and retail staff is ... important so they can assist with questions and capture the sale in the moment,” he said. “Most DME transactions have a short window due to the immediate need for the end-user, and a consumer is more likely to complete the purchasing process if they feel well-informed. We have partnered with a number of our retail customers creating unique product installations, extend-a-shelf capabilities and education collateral.”