Think Comfort and Convenience when Considering Cash Sale Items

• By Lunzeta Brackens
• Feb 12, 2008

The concept of a predominantly cash sales model or implementing a few cash sales items into one’s existing business isn’t new. It’s a model that has been pursued by some providers for years, and if done correctly it could greatly increase your profit margin. But the key to an increased profit margin is selecting the right mix of products.

Items that translate well into cash sales are typically those that are seen as lifestyle or comfort items — products that aren’t reimbursable by Medicare. Bath safety, home accessibility, auto accessibility, auto racks and urology products tend to fall in those categories.

Adjustable beds for example have great profit margins as they cannot be billed through Medicare, says Alison Nichols, vice president of marketing and advertising at Med-Lift and Mobility, Inc. in Calhoun City, Miss.

Bath lifts are also the way to go when looking to offset some of the cuts particularly in power wheel chairs and competitive bidding, says Ray Norton, vice president of sales at Mangar in New Britain, Pa.

Selling items that complement wheel chairs and ramps and generally products that will make life easier for the end-user and care giver are the products that fit well in the cash sales model, believes Karen Bunch, marketing director of EZ In and Out in Winston Salem, N.C. Excluding Medicare from the mix, allows providers to purchase the product at a whole-sale price and they can decide how much they will charge the customer, she added.

Support garments such as compression and support hosiery can be placed near the counter and used as an add-on sale, suggests Tom Musone marketing director of Juzo in Cuyahoga Falls, Ohio. Musone believes providers should constantly evaluate their stores to determine what cash sale items will complement what they are currently selling.

"There’s not one retail organization that’s not always changing its product mix and evaluating strategically how their product can accommodate and grow revenue.”

This article originally appeared in the February 2008 issue of HME Business.