Bright
Futures
“We know that 50% of them are going to ask if this is covered by insurance, and we tell them that we are really a private business,” Chadwell says. “We don’t try to hide the fact that Medicare does not pay for things or apologize for it, and there is no sense in making people think Medicare will cover it. In spite of that, out of 10 inquiries, only one or two people use that as a deterrent not to do anything to their home.” Sometimes clients are undeterred because the changes can be done for a fairly reasonable cost and with little inconvenience. “Ceiling track lifts can be done inexpensively and require very little or no modification to the home,” Williams says. “Stairway lifts are by far the easiest because they do not mount into the wall at any point. These also are the most common modification, and can be installed within a few hours.” As a general rule, home modification providers take the installation process upon themselves, whether that means hiring installers or finding resources for their clientele. “Our company was born out of a construction company, so we have a lot of resources in this area,” Chadwell says. “We have someone we use all the time to install grab bars, we do some demo in-house, and if we are doing a full bathroom, we contract with a licensed plumber or a tile expert.” AABCO usually contracts out with select local carpenters who have been specially trained. However, if a customer already has a contractor they like, AABCO will work with that person. “We initially went through a lot of installers,” Williams says. “To get the right ones with technical expertise and people skills is a lot to ask, and you have to compensate them in order to keep them. A lot of people don’t have the right stuff to do the job.” The lack of people with the right stuff goes for the home modification niche in general. While Williams says he has seen more people become involved in it over the years, there are still few competitors. “They have to make a commitment to doing this type of work,” he says. “That commitment has to be financial and has to involve having the right personnel who are sent to the factories to learn how to install. The sales staff has to know the code issues, plus you need more equipment to do these installations, including vehicles. As the business grows, you then need greater financial resources to keep your cash flow in good shape, especially with elevators.” In spite of the benefits of less competition and the obvious challenges of the home modification business, Chadwell says she would like to see more people learn the methodology. “No, there is not much competition today, and the result is that it is surprising what people will buy over the Internet,” she says. “For instance, we have one client in Denmark whose mother is in Chicago, and I am their provider of products and advice. The bad part about [the lack of competition] is that, if we did have competition, the education level would be higher on the subject.” With few companies in the field, home modification providers also miss out on valuable networking. “I would love to know who else is doing this type of business so we could share information, such as who is a good supplier of products,” Chadwell says. “This is a niche market, so there is not a strong networking system set up. With that in place, we could share our sorrows and our successes, because obviously none of us are really competing in terms of territory.” So, if you are thinking of adding home modifications to your business offerings, be cautious but unafraid. According to AABCO and Life@Home, now is as good a time as any to enter this niche. Liz Finch is a contributing writer for Dealer/Provider. |