OBJECTIVES: The Kerraboot is a non-pressurized boot-like dressing designed to provide an environment for improved healing without the need for conventional dressings and which can be more readily replaced by the healthcare professional or patient. The cost benefit of this product compared to conventional dressing management was investigated. METHODS: A cost model based on published costs for conventional dressing treatment was developed and the costs of conventional dressings versus the Kerraboot compared for different grades of diabetic foot ulcers, excluding those that require surgical re-vascularization. Sensitivity analyses were performed for different treatment regimens, reduced nursing requirements as a result of increased patient self-dressing, use of longer intervals between dressing changes, differing dressing types and dressing costs. RESULTS: Use of the Kerraboot compared to conventional dressings saves nursing time resulting in a reduction in nursing costs of 29-78% per dressing change. Use of the Kerraboot results in overall labour cost savings per patient of -181% (£516 v £184 – Ulcer grade; Level 1), 15% (£990 v £1,139 – Level 2), and 48% (£3,805 v £7,300 – Level 3) compared to standard conventional dressing. Assessment of Kerraboot use across all levels weighted by severity incidence results in labour cost savings. Patient benefits such as convenience and improved social acceptance have not been costed. CONCLUSIONS: Modelling the variable labour costs of treating diabetic foot ulcers with the Kerraboot verses conventional dressings demonstrates that overall costs will be reduced with the Kerraboot. The greatest saving is seen with level 3 ulcer management. Indirect costs provide further savings.