FSA/HSA Season Strategy: Drive Revenue Without Destroying Your Margins
Every November and December, a predictable phenomenon occurs in optometry practices across the country: patients suddenly remember they have use-it-or-lose-it FSA funds that expire December 31st, and they're motivated to spend them before the deadline.
This creates a natural surge in patient interest and purchase intent. It's one of the few times in the year when patients are actively looking for ways to spend money on healthcare and vision products.
Most practices recognize this opportunity and respond with what seems like the obvious strategy: aggressive discounting. "20% off all frames!" "Buy one, get one half off!" "Year-end clearance sale!"
And then, when January arrives and they review their numbers, they discover they worked harder, saw more patients, sold more products, and somehow made less profit than usual. Volume went up, but margins collapsed.
There's a better way.
Why Discounting Is the Wrong FSA/HSA Strategy
When patients approach you saying "I have $500 in FSA money to spend before year-end," they're not asking for a discount. They're asking for help spending money they've already set aside specifically for healthcare and vision expenses.
Think about the psychology here: This isn't money they're considering spending. It's money they've already allocated to healthcare that will literally vanish if they don't use it. They're motivated to spend it, not to save it.
Offering discounts in this context accomplishes two things, neither good:
1. It trains patients to wait for sales. When you discount aggressively every November-December, you teach patients that your regular pricing is negotiable and that they should delay purchases until your annual sale. This undermines your pricing power year-round.
2. It destroys your margin during your highest-volume period. FSA/HSA season should be your most profitable time of year—highly motivated buyers with money already allocated. Instead, many practices turn it into their lowest-margin period by competing on price rather than value.
The alternative is to shift from discount-driven volume to value-driven volume. You can capture FSA/HSA spending without sacrificing margin by structuring offers around value, bundles, and enhanced experiences rather than simple price cuts.
Understanding Your Patients' FSA/HSA Mindset
Before we discuss strategy, let's understand what patients are thinking during FSA/HSA season:
Their primary concern: "I need to spend this money before I lose it."
Their secondary concern: "I want to get good value for what I spend."
What they're NOT thinking: "I need the absolute lowest price possible."
This distinction matters. Patients with FSA/HSA funds aren't bargain-hunting in the traditional sense. They're not trying to minimize spending—they're trying to maximize the value of spending they're already committed to.
This opens the door for premium positioning, bundled offerings, and enhanced service packages that provide genuine value without requiring you to cut prices.
The Value Bundle Strategy
Instead of discounting individual items, create bundled packages that combine products and services in ways that feel like comprehensive solutions.
Why bundles work:
Perceived value is higher. A package that includes frames, premium lenses, lens coatings, cleaning supplies, and a warranty feels substantially more valuable than just frames at 20% off—even if the total price is similar.
Cognitive simplicity. Instead of patients calculating "Is this frame worth $200? Are these coatings worth adding $150?" they evaluate a single bundle: "Is this complete vision solution worth $450?" Decision fatigue decreases, purchase likelihood increases.
Margin protection. Bundles allow you to include lower-cost, higher-margin items (lens care products, accessories) alongside higher-cost, lower-margin items (frames, lenses), maintaining overall profitability.
Upselling becomes easier. "Our comprehensive package includes premium progressive lenses and blue-light protection" sounds like better care than "Would you like to add blue-light coating for an extra $80?"
Example Bundle Structures
Here are proven bundle concepts that drive FSA/HSA spending without destroying margins:
Bundle 1: The Complete Vision Package
What's included:
Premium designer frames (patient's choice from designated collection)
Premium progressive lenses or premium single-vision lenses
Anti-reflective coating
Blue-light filtering
Scratch-resistant coating
Lens cleaning kit
Premium case
2-year warranty on frames
Price: $595 (positioned as $750+ value)
Why it works: Patients see a comprehensive solution that addresses everything they need. The premium positioning justifies the price, while the warranty and accessories provide tangible extras without significant cost to you.
Your margin: The "value" calculation includes retail prices for coatings that you'd typically sell anyway. Your actual COGS might be $325-375, giving you 35-40% margin—far better than discounting frames 30% off.
Bundle 2: The Sun & Vision Combo
What's included:
Complete pair of prescription eyeglasses (frame + lenses from mid-tier collection)
Complete pair of prescription sunglasses (frame + polarized lenses from coordinating collection)
OR complete eyeglasses + non-prescription premium sunglasses
Price: $650 for prescription sun combo, $550 for non-prescription sun combo
Value positioning: "Get both your everyday eyewear and sun protection for one price—perfect for using your remaining FSA funds."
Why it works: Sunglasses are often an afterthought, but when bundled as part of a complete vision solution, patients see the value. This bundle typically has strong margins on the sunglasses (especially non-prescription), and it moves inventory.
Bundle 3: The Annual Contact Lens Package
What's included:
Full year supply of contact lenses (premium lenses if available)
Comprehensive contact lens exam and fitting
Two bottles of premium lens solution
Contact lens case set
Prescription sunglasses at 20% off (added to bundle only)
Price: Based on lens brand, typically $500-800 for the full package
Value positioning: "Lock in your entire year of contacts at today's pricing, plus get prescription sunglasses you've been wanting."
Why it works: Annual contact lens purchases have strong margins, especially when you include higher-tier lens options. The sunglasses addition leverages the commitment—patients feel they're getting an extra benefit, but you're selling a second optical product at still-profitable margins.
Bundle 4: The Blue-Light Professional Package
What's included:
Premium anti-fatigue or blue-light filtering lenses
Professional-style frame (positioned for office/computer use)
Extended screen-use consultation (10-minute discussion about visual ergonomics)
Blue-light educational resources
Lens care kit specifically for coated lenses
Price: $425
Value positioning: "Purpose-built eyewear for professionals who spend 6+ hours daily on screens, with specialized lenses that reduce eye strain and support healthier vision habits."
Why it works: The "blue-light" trend has strong patient interest but often gets positioned as just an add-on coating. Bundling it as a complete professional solution allows premium pricing while delivering genuine value. The educational component costs you nothing but increases perceived value substantially.
Bundle 5: The Family Vision Package
What's included:
Complete eyeglasses for 2-3 family members from designated collections
Coordinated or complementary frame styles
Premium lenses appropriate for each family member's needs
Cleaning supplies and cases for entire family
Price: $750 for two complete pairs, $1,050 for three complete pairs (scaled pricing)
Value positioning: "Take care of your whole family's vision needs with one convenient package, perfectly timed for your FSA funds."
Why it works: FSA funds often cover family members, but patients don't always think about using them for multiple people simultaneously. This bundle encourages larger transactions while maintaining healthy margins through volume.
How to Structure Your Bundles for Profitability
Creating bundles that feel valuable while protecting margin requires strategic thinking:
Start with your desired margin. Decide you want to maintain 35-40% gross margin on bundles. Work backward from there to determine pricing and components.
Include high-perceived-value, low-cost items. Lens cleaning kits cost you $3-5 but patients perceive $20 value. Cases, pouches, blue-light info cards, and warranty extensions cost little but enhance perceived value significantly.
Tier your bundles. Offer good/better/best options:
Good: Basic bundle with essential features
Better: Mid-tier bundle with premium features and extras (this should be your target—most patients choose middle options)
Best: Premium bundle with all possible upgrades and luxury touches
Make the math work invisibly. Don't display the "value" calculation as individual line items. Present the bundle as a package price, with a subtle mention like "A $750+ value" without breaking down each component.
Limit selections to maintain efficiency. Instead of "choose any frame in the store," designate a collection of 30-50 frames that work well in bundles. This prevents patients from choosing your highest-COGS, lowest-margin luxury frames and claiming bundle pricing.
Build in appropriate lab costs. Premium lenses sound valuable but often have minimal additional lab cost compared to standard lenses. Blue-light coatings, anti-reflective treatments, and progressive designs are high-margin add-ons when positioned properly.
Marketing Your FSA/HSA Bundles
Once you've created your bundle offerings, you need to communicate them effectively:
Update your website: Add a dedicated "Use Your FSA/HSA Benefits" page explaining the year-end deadline and showcasing your bundles.
Email your patient base: Send 2-3 emails between mid-November and late December:
Email 1 (mid-Nov): "Your FSA/HSA funds expire December 31—here's how to use them"
Email 2 (early Dec): "Our most popular FSA/HSA packages" (showcase your bundles)
Email 3 (mid-Dec): "Final reminder: Use FSA/HSA by December 31" (urgency + last-minute scheduling)
Social media posts: Create posts educating about FSA/HSA deadlines and highlighting specific bundles. Use patient testimonials if available: "I used my FSA to get both my everyday glasses and prescription sunglasses—so glad I didn't let that money go to waste!"
In-office signage: Display bundle offerings prominently at checkout and in your optical area. Use clear pricing and value propositions.
Train your team on bundle presentation: Staff should present bundles as the default option, not as an afterthought. "Most of our patients using FSA funds this time of year choose one of our vision packages because they provide everything you need in one convenient solution."
The Front-Line Conversation
Your optical team's presentation makes or breaks bundle success. Here's how to position bundles in patient conversations:
When a patient mentions FSA/HSA funds:
Weak approach: "Great! What would you like to buy?"
Strong approach: "That's perfect timing! We've created several vision packages specifically designed to help patients maximize their FSA benefits before year-end. Most people find that our Complete Vision Package or Sun & Vision Combo works really well because they take care of everything you need in one transaction. Would you like me to walk you through the options?"
When presenting options:
Weak approach: "We have frames starting at $150, or you could get these for $300, and lenses range from $200-500 depending on what you add."
Strong approach: "Let me show you our most popular FSA packages. Our Complete Vision Package at $595 includes premium frames from this collection, progressive lenses with all the protective coatings, plus a cleaning kit and warranty. Most patients find this provides everything they need, and it's a great value. We also have our Sun & Vision Combo if you'd like both everyday glasses and sunglasses together."
When handling price questions:
Weak approach: "Well, without the package it would be about the same, maybe a little less..."
Strong approach: "The package pricing is designed to give you comprehensive value—you're getting premium lenses, protective coatings, accessories, and warranty that work together as a complete solution. If you were to build this out individually, you'd pay significantly more, plus you'd have to make multiple decisions about each component. This simplifies everything and ensures you're getting our best value."
When patients hesitate:
Weak approach: "No pressure! Let me know if you decide you want it."
Strong approach: "I completely understand—it's an important decision. The one thing to keep in mind is that your FSA funds expire December 31, so this is a great opportunity to invest in vision care you need anyway. Would it help to see the frames included in the package, or do you have questions about the lenses or coverage?"
Tracking the Right Metrics
Don't just measure total revenue during FSA/HSA season. Track these specific metrics to understand whether your strategy is working:
1. Optical Capture Rate
What it is: Percentage of patients who need eyewear that actually purchase from you
Why it matters: FSA/HSA season should increase your capture rate because patients are specifically looking to spend. If your capture rate doesn't improve during this period, your bundles aren't compelling enough.
How to calculate: (Optical purchases ÷ Patients needing eyewear) × 100
Target: Your capture rate should increase by 5-10 percentage points during FSA/HSA season compared to your annual average.
2. Average Sale Per Patient
What it is: Total optical revenue ÷ Number of optical transactions
Why it matters: Bundles should increase your average sale because patients are buying more comprehensive solutions rather than single items.
How to calculate: Total optical revenue ÷ Number of optical purchases
Target: Your average sale should increase 20-30% during FSA/HSA season if bundles are working effectively.
3. Gross Margin Percentage
What it is: (Revenue - COGS) ÷ Revenue × 100
Why it matters: The entire point of the bundle strategy is maintaining margin while driving volume. If your margin percentage drops, you're effectively discounting even if you didn't explicitly cut prices.
How to calculate: Pull your optical COGS and revenue from your accounting system for Nov-Dec and calculate margin
Target: Your gross margin should stay flat or improve slightly during FSA/HSA season compared to the rest of the year. If it drops more than 2-3 percentage points, your bundles need adjustment.
4. Units Per Transaction
What it is: Average number of items purchased per optical transaction
Why it matters: Bundles should increase units per transaction (patients buying multiple pairs, or glasses plus accessories)
How to calculate: Total items sold ÷ Number of transactions
Target: Units per transaction should increase 30-50% during FSA/HSA season as more patients purchase multiple pairs or add accessories
5. Bundle Adoption Rate
What it is: Percentage of FSA/HSA patients who choose a bundle vs. individual items
Why it matters: If patients aren't choosing bundles, either the offerings aren't compelling or your team isn't presenting them effectively
How to calculate: (Transactions using bundles ÷ Total transactions) × 100
Target: 40-60% of patients should choose bundles if they're well-designed and well-presented
Common Mistakes to Avoid
Mistake #1: Creating too many bundles
More choice doesn't equal more sales. Stick to 3-5 clear bundle options maximum. Too many choices create decision paralysis.
Mistake #2: Making bundles too restrictive
If your bundle requires patients to choose from only 10 frames, and none of them appeal to their style, they'll reject the bundle. Ensure you're offering sufficient variety within your bundle parameters.
Mistake #3: Positioning bundles as "deals" rather than value
If you say "This bundle saves you $200!" you're reinforcing discount mentality. Instead say "This bundle provides comprehensive vision care with everything you need."
Mistake #4: Failing to train staff
If your optical team doesn't understand how to present bundles confidently, they'll default to presenting individual items. Role-play bundle presentations until everyone is comfortable.
Mistake #5: Not adjusting based on data
After your first FSA/HSA season using bundles, review what sold well and what didn't. Adjust your bundles for the following year based on actual patient response.
Mistake #6: Forgetting about insurance coordination
Many patients have vision insurance AND FSA/HSA funds. Train your team to stack these benefits appropriately: use insurance for the base exam and basic eyewear, then use FSA/HSA funds for upgrades, second pairs, or premium features.
Beyond Bundles: Other Margin-Protecting Strategies
While bundles are your primary strategy, supplement with these approaches:
Premium positioning: Introduce truly premium options (luxury frames, advanced lens technologies) during FSA/HSA season. Patients looking to spend FSA money are often willing to upgrade.
Extended warranties and service plans: Offer 2-3 year extended warranties or "eyewear care plans" (includes adjustments, cleanings, basic repairs). These have high perceived value and excellent margins.
Gift certificates: Patients with FSA funds can purchase gift certificates for family members (within FSA rules). This extends your FSA revenue into January and beyond.
Prepay for next year: Some practices offer "prepay for next year's exam and get 10% more value in services." Check FSA rules and your CPA on this, but it can smooth revenue and provide value.
Take Action This Week
FSA/HSA season is already underway. Don't let another year pass where you drive volume but destroy margins.
Monday: Design 3-5 bundle packages using the frameworks above
Tuesday: Calculate your COGS and margin for each bundle to ensure profitability
Wednesday: Create pricing and marketing materials (signage, website copy, email templates)
Thursday: Train your optical team on bundle presentation and objection handling
Friday: Launch your bundles via email, social media, and in-office promotion
Ongoing through December 31: Track your metrics daily and adjust as needed
This is one of the most concentrated revenue opportunities of the year. Execute it strategically, and you'll drive volume while protecting margins—the definition of profitable growth.
