The percentage of patients who will purchase products from DCs is dependent on a few factors:

1. How well does the DC market them? (In-house and outside.)
2. How effective is their retail effort?
3. What is the demographic of their patients, including percentages of each, etc? For instance, if a DC is heavily involved in sports, training and performance enhancement, that particular practice would not likely be selling a lot of support pillows and things of that nature since the bulk of their patients would be young people in great shape who have not lost any of their natural cervical curve. That same DC, however, may be heavily involved in the supplement market, as their athletic patients are looking for various supplement products that would help boost their recovery and performance.

So, how much profit does a DC stand to make offering retail products?"

Like other elements in this article, there is a real spread when it comes to results of this and the outcomes are heavily influenced by several factors. But just as a baseline understanding, some things to keep in mind:

1. The typical gross, margin and profit today is different than it was three years ago. And by "different" I mean generally "less."
2. The DCs who just barely display retail health care products, and certainly don't promote them, will have virtually non-existent sales. I don't think it's accurate to include those "efforts" into the overall spectrum.
3. The location of a practice also is part of the overall retail market, whether it be the size of the city, the demographics of the people living there, etc. Some areas and towns have a populace who can afford an $80 pillow, while other areas just don't have many folks who can afford such a product. Each area is different.

Down to Brass Tacks

So, bottom line: How much can a DC expect to make retailing products, if they take the basic effort to promote their well-selected product line? First off, it needs stated that the old rule of thumb no longer applies; a few years ago, a DC could expect to sell their products for twice what they paid for them. In certain areas, with a certain demographic of patients, with certain products, that rule of thumb can still exist. But it can no longer be assumed that doctors can double their price across the board. As with most every business, what was assumed a few years ago is no longer the case. That being said, what can a DC expect, even in these times? In order to "ball park" what a DC can make in retail efforts, we are going to have to take averages, in terms of average town size, average affluence in the area, average profile of patient, average number of patients, etc. Below is a realistic sales and return on investment in a real-life, slightly above average DC in terms of all the elements that would influence total sales. The most common, highest volume sales come from supplement, pillow, topical and lumbar cushion sales.

An Example of Financial Assumptions

All of the estimates below assume 52 weeks of sales, but average monthly numbers use totals divided by 12.

Orthopedic Pillows: 3 per week @$65 avg. price = $845 avg. per month/$10,140 year

Massager Units: 1 per week @$214 avg. price = $927 avg. per month/$11,128 per year

Back Packs: 2 per week @46 avg. price = $399 per month/$4,784 per year

Vitamins: 10 per week @$24 avg. price = $1040 per month/$12,480 per year

Analgesics: 10 per week @13.65 avg. price = $591 per month/$7,098 year

Gross Sales: $3802 avg. per month/$45,630 per year

Gross Outlays: $1722 avg. per month/$20664 per year

Profit: $2080 avg. per month/$24966 per year

Some DCs value the above benefits so much, that they sell product to their patients at cost. It is up to the individual doctor to determine what price point makes sense for them, their area, their patient base and their practice philosophy. All that being said, if you do decide to include retail products, please give the program a chance by incorporating the proper protocol that gives your sales efforts a chance. Loading up a closet with products that no one sees simply will never work. That is akin to "winking in the dark." Make sure you do the proper due diligence to ensure patients understand what products you offer and how they can benefit from them.

Phil Mattison is CEO of Core Products, International, Inc. – an American manufacturer specializing in products that promise to "Make your life more comfortable." All their products are designed and manufactured with the non-allopathic health care professional in mind. You can view their entire product offering at www.coreproducts.com or call 1-800-365-3047.