Cash Products & Insurance Driven HMEs

Posted on: August 4th, 2017 by Rob Baumhover

 

Hello Again,

We last talked about the benefits of carrying cash or incremental products in your store, today I’m going focus on the how-tos. The first thing we need to know is what products should we be carrying? Let’s first start here.

What Should Providers Carry?

There are a few reasons I hear on why providers don’t get into retail, one of those reasons is because there are so many products in the market, providers are overwhelmed about what to choose first. Another is the unknown if and what products will actually sell. Depending on who you ask, every item out in the market is the best, right? Let’s simplify the process, so it’s a no brainer for you to carry incremental products and diversify more of your business towards “CASH”.

To start the process you will need to analyze your numbers to verify your best category. Find the category that brings in the most customers or generates the most revenue, “your bread and butter.” This one shouldn’t be a huge surprise to you.

Now that you have confirmed the category, we will need to identify at least 5-10 products that go with or add on to the item or items you sell the most of in that category. My recommendation here would be to talk amongst your employee base and discuss what they think will sell and what their customers have been asking for. You could also reach out to a trusted vendor partner or a retail expert (I just so happen to know of a few), as they know what is moving in the market place.

Once you have identified some nice incremental products, ordered them, received them, merchandised them, and trained the staff (all topics we will be discussing in upcoming blogs), you’re now ready to recommend/educate every customer on the products. After you build some momentum with this first category, you can then feel comfortable to branch out into other categories and build a very nice profitable cash business.

The Process by Example (See the attached PDF) 

Here’s an example: Let’s say your top category is CPAP. The following items are some great incremental items that we are seeing generate profit. Some products include CPAP pillow and cover, CPAP wipes, batteries, cleaner/sanitizer, hose covers, bedside holder, and a travel/portable machine.

One of our why’s on carrying incremental products was to increase our revenue. All these products have margins between 20%-50%, creating a nice stream of new “immediate” revenue. By carrying these items, it also gives your staff the correct tools they need to truly assist the customer. Customers now have everything they would need to improve their quality of life. In turn, these products make you a customer’s trusted partner, and them a customer for life.

Incremental Sales CPAP PDF: IncrementalSalesFlyer_CPAP

Looking ahead…

Thank you for reading my latest blog. I encourage you to be on the lookout for blog #3, which highlights how to properly train your staff so they can feel confident recommending the new incremental products.