Frame inventory levels

[drk]

OK, check out this math.

Assume you expect frame to turn an average 4x/yr.
Assume you see an average number of exams/yr= 2000.
Assume half need glasses=1000
Therefore, you need ONLY 250 frames in your inventory.

Assume 3/4 need glasses=1500 (which is high, IMO)
Therefore, you need only 375 frames.

Is anyone's this low? I'd doubt it. I'd say most have 400-600 frames.

The point? Less is more. If you're a sharp buyer, you can have, say, 300 frames and lessen your inventory investment. Assuming all things above.

[For-Life]

Last inventory count we had 550. The thing is that you do need the extras. People want to see lots of selection, and they want to see something different. Even though some of it is just wallpaper and never moves it has to be there. That is why I only work with frame companies that will exchange, and I keep a sharp eye on what is moving and what isn't.

As for the Doctor, we only see about 1300 a year, but our doctor only works four days and one evening a month.

[drk]

For-Life:

I know what you're saying, but I challenge you to think smaller.

How many segments to the market do you think there are? I see these:

kids/teens: about 3 dozen frames covering about 18 styles

one solid ladies core line of 3-4 dozen

one solid men's core line 2-3 dozen

about 2-3 lesser-priced ($150-200) trendy collections of about 3 dozen each

about 2-3 higher-priced ($250 up) trendy collections of about 3 dozen each

That's about 7-9 collections of 36 frames, or about 336, max. That's minimalistic, for sure, but I think with the right display and inventory, everone will be able to find 3 frames they want to choose from.

[Andrew Weiss]

drk, you make a lot of sense. So why doesn't it work here?

When I came to this office in 1998, I kept the dispensary small, about 400-450 pieces. This practice sees about 4000 patients per year, of whom about 66% get glasses. Our inventory is now about 600 pieces.

Why? Because patients seem frustrated if they have only one, or maybe two, frames that have the combination of color, styling and shape that they're looking for. Not that I carry every color of every style: I'll carry 2 pieces of each style at most (more frequently 1 piece), and I'll cross colors within lines as much as possible -- and of course use those dandy catalogs with color pictures

I do have some deadweight on the boards, and I'm now in the process of trimming the collection by about 50 pieces, maybe more. My test for whether my collection is the right size is how many turns I get per piece. If I get many, then I'm probably too small. If I get between 4 to 8 turns per year, I'm at the right size. When my collection is too big, the number of turns per piece goes down.

I also use board management. It avoids the binge-and-starve billing cycles that this office had before I got here. The office manager loves it because evens out the monthlies, and ties them to the amount of business we do.

[CME4SPECS]

It all depends on where and who you are!
I'm an independent optician, I carry almost 800 frames, people love my selection, I carry alot more than their doctor carries. So, I carry more than I really need. But, I need all that I carry!

[drk]

When I came to this office in 1998, I kept the dispensary small, about 400-450 pieces. This practice sees about 4000 patients per year, of whom about 66% get glasses. Our inventory is now about 600 pieces.

Using the 4x/yr standard, you should have 660 frames. You are on target.

4000 x 66% divided by 4= 660

[Fezz]

I try to keep our inventory very lean. Based on number of sales and assuming a turn rate of 3 to 4 times a year I keep between 350 to 450. It also depends on time of year. I try to slim way down come inventory/end of year. I add to inventory mid December(for January), and mid to end of summer. I must say that it is a big job keeping track, keeping a good mix, and keeping patients happy with the "wow, you have a lot of frames!". Also, I have had a number of people ask me why I don't carry the "name brand, designer frames" anymore! Now most of the people who have asked this were also the people who always complained that I had too many high priced frames! What are you going to do? People are people.

Fezz
:cheers:

[drk]

Fezz, you bring up an interesting point, about stocking up at different times of year.

My wife used to work with me, and she had ladies fashion clothing experience. She sensed a certain seasonality to frame sales. Her opinion was that the clothing fashion changes occurred in spring and fall, and that those are the two "fashion seasons".

Her feeling was darker, heavier frames sold better in fall and winter, and thinner, lighter, more colorful frames sold better in the spring! I've watched it over the years, and it's not a bad theory.

It does seem better, too, from a business psychology standpoint, to reevaluate your inventory annually at the beginning of the year, make a rough buying/sell-off/markdown plan for the upcoming year. If you're like me, it takes the whole year to sell down lines you want to dump, and refresh your inventory completely. It never ends.

[Andrew Weiss]

An annual re-evaluation of the frame inventory sounds like a good thing. I do a kind of informal re-assessment of our frame lines as I go along, but don't really crunch the numbers.

Yeah, it takes ages to sell off the stuff I don't want there anymore . . .

[Jedi]

Her opinion was that the clothing fashion changes occurred in spring and fall, and that those are the two "fashion seasons".

Her feeling was darker, heavier frames sold better in fall and winter, and thinner, lighter, more colorful frames sold better in the spring! I've watched it over the years, and it's not a bad theory.

Your wife is a smart woman. With eyewear evolving from a necessity to an accessory, the potential for multiple pairs is growing, and seasonal changes are a great way to encouarge an additional pair. A nice "retro" looking pair to go with a tweed suit, really comes together nicely and clients appreciate your attention to their look.

[lguess]

I'll have to weigh in with For-Life and CME4SPECS.


We display over 800 frames in each of our three stores, but probably 400 to 500 of them are, as For-Life described them, "Wallpaper". As we position ourselves as a "value" optical company (we're strictly optical shops, no doctors) we don't carry a lot of high priced frames, so inventory costs aren't overwhelming. The couple of times I've tried to reduce the number of frames on display I've inevitably heard "why don't you bring in some new models?" -or- "Is this all you have?". Thus, we have 400+ frames worth of wallpaper, and 250 to 350 frames that we actually sell over and over again. The trickiest part for us is what to keep in "back stock", i.e., what we should keep to supply our stores when a frame is sold. We currently keep over 100 models in stock, with just one or two pieces per model, unless we've got a current hot seller, then we keep about 4 of that model. I'd love to pare that inventory down, but haven't been a very good prognosticator in that area, even when trying to use the data from past sales, carefully reading 20/20, Vision Monday, etc. If anyone has come up with some sort of a formula to help predict what the back stock should comprise I'd love to hear it.

I've been in this business longer than I care to think about, and for those many years the problems of what and how many frames you keep on the frame bars and eyeglass adjustments (whether youir customer or a walk-in) have caused me the most headaches.

[hip chic]

Keeping in mind my shop and our differences (i.e. I have no Dr. on the premises and no Dr. affiliation...don't take insurance...my shop is more high price...low volume...and my customers see eyewear as a fashion accessory and thus many buy multiple pairs)...here's where I stand on this issue.

I have 182 frames currently in my inventory (that includes 32 pair of non prescription sunglasses). I would never buy a frame just to buy a frame...as wallpaper or to increase my volume. I don't see that as money well spent.

I only do business with 4 companies and each of them has their own very unique style so there is no overlap in design. Rarely do I show a frame for one year and often I only sell one or two frames of a certain style before they're replaced by a new style. This suits my clientele perfectly as they love to stop by to see what's new (and they certainly don't want to see the same styles over and over again).

My return rate is not high.


While I don't think what I've described above would suit every dispensary, it suits mine. Some of my points, however, I DO believe are just good business sense including my feeling that "frames are renters"...and not having a ton of inventory just to have a ton of inventory. I also believe it's foolish to have more than just a few lines. I think it's smart to only do business with a few companies for so many different reasons...it's less confusing...it instills loyalty...both from me toward the companies and visa versa...and I have a lot less clutter on my work counter with just 4 catalogs...to name just a few reasons.

So, anyway, that's my take on the whole inventory issue. I have really enjoyed reading this thread

hip chic

[drk]

Hip Chick!!!!!!!!!!!!:)

[Andrew Weiss]

There's a shop nearby my house that has an inventory of maybe 250-300 frames. The display areas are built-in bookshelf-type units with free-standing frame stands and various crafts-objects. There are no nose-boards. It's so well done that it looks like they have a larger inventory than they do.

Our office has two ODs and also takes VSP, which accounts for about 35% of our patient-load. I don't want to be affording wallpaper; as far as I'm concerned, each frame has to pull its weight in some way. Either as an eye-catcher, or as a sell--through item. When I started working here, they had noseboards and some other, outdated eyeglass display units. I had them all taken out and replaced with cabinets with glass shelves, got crystal and multicolored frame stands, and took a page from the shop near my house. What I find is that everyone comments on how many frames we have. We have about 600, and that's not a huge number based on what I've seen in this thread and at shops I've been to. It all has to do with how the frames are presented.

If you ever find yourself in Galveston, TX, check out Texas State Optical for a really good, artsy version of this idea. (No, that's not where I'm from!)

[drk]

Funny thing, Andrew: I have about 600 spaces of "non-flexible display space" on my frame boards, with about 400 pieces on them, leaving about 200 open. Patients notice the open spaces!

I'm having the boards "retrofitted" to look more full!

[Johns]

We stock a lot of frames (8500+ between 5 stores). We try not to order in by the piece because the shipping will eat you alive, and you get tremendous discounts (even from the big guys if you must buy from them) on quantity purchases.

[kjw1231]

Would anyone consider consignment? If you were to consider consignment, what would be fair?

I spoke to a company that offered 20 styles. I was aksed to keep them on the shelves and "DO NOT Sell from display". The rep told me that they would give me 90 days free trial. After that, they would require that I purchase 5 per month, which would be billed as we used them. I think it was a good program, as it only required 60 pairs per year, with no out of pocket expenses. The frames are spring hinged Titanium, some with clips. They cost $20.00-$30.00.

Do thoers offer this? Does this sound legit?

[drk]

What happens if you don't sell your quota? Aye, that's the rub, matey!

[Spexvet]

I have a consignment from Lawrence Eyewear. There's no minimum, I don't get penalized for selling from stock, I even get a discount on my orders, whether for Rx or replenishment. The quality is high and the prices moderate. I'm very satisfied with the arrangement.

[Andrew Weiss]

A second on Lawrence Eyewear's consignment program. We have 45 pieces and they're actually nice. Their Italia Mia line has decent styling and quality. The company is easy to work with: the rep comes every 2 months and refreshes the boards, and we pay for only what we use.

[Johns]

KJW1231

Is this the same titanium line you were selling last year ?