Growing Retail Margin in the Face of Medicare Cuts

By Jason Davis In today’s HME retail environment, businesses all across the country are struggling to figure out ways to make up for deep Medicare reimbursement cuts. A business which sells oxygen or sleep aids took a reimbursement cut of at least 25% over the last 12-18 months. Some of these companies decided to shut down the retail side and sell only oxygen to pick up more of those customers. To try to break even, these companies need to expand with new business in order to make up that 25%. There are several ways to try to make up the difference:
  1. Invest heavily in marketing and increase referrals
  2. Buy DMEs or other respiratory companies
  3. Use a third product category in retail to increase cash flow
Let’s talk about option three – by opting to increase your focus on retail, you will automatically yield the benefits. You’ll keep the lights on and employees whole. Golden offers one of the biggest retail margin products in the industry – lift recliners. Retailers who are most successful have lift recliners on the showroom floor and marry them up with other products for respiratory issues, oxygen needs, and medical devices. A patient’s mobility is decreased due to lack of oxygen in the system. Why not offer other retail products that will help customers deal with their issue in several ways and enhance their quality of life? If a customer has COPD or congestive heart failure, they may be more comfortable sleeping in a lift recliner. If someone uses a CPAP machine, they may get better sleep in a reclined position, not completely flat. Our lift recliners offer true zero gravity and, for some people, that may make all the difference in their comfort level. Retailers should bundle sales to free up cash flow. By selling power lift recliners with respiratory or sleep aids, you will help make up that margin and compensate for the reimbursement cut. Medicare also delays in making payments. Why not increase your high retail margin products and enjoy immediate cash in hand? Our team is trained to help you do this with products, tools, and marketing materials. Call your Golden Representative and we’ll show you how to increase your retail margin. Jason Davis is the Vice President of Sales for Golden.
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