Expense vs real Profit

[OdTech]

Hello fellow optiboarders

P.S. I am not currently in optical biz atmosphere



A question of Business Math in Opticianry



How much Money you make out of a single customer?



A 3-piece frame cost you(optician) $X you mark up $XXX

Depends on prescription (for cylinder $X added and addPower $X) and needs of customer you reccomend

Lens material Poly (Trivex) cost you $XX, you mark up $XX.XX

Additionally ARC(alize) cost you $XX, you mark up $XX.XX and UVC the same routine. you add everything this costs a customer $XXX.XX minus insurance discount=$$$$



Then you call a lab order a lens and additional(ARC,UVC) then optionally, either the lab edges,drills the lens and puts everything together [I guess it'll cost more] or you receive the lens with additional elements then you edge, drill [will cost less]





I just would like to see some real life expense vs profit examples



The Way I See

Expense: frame, lens, coatings, lab fees (how often you receive a bill statement, ex: 2 or 3 months , messenger service fees(how often you receive a bill statement, ex: 2 or 3 months)





Profit: From the fee a customer pays, you subtract: frame cost, coatings, lens, lab service fee maybe, and messenger service fee. What is your profit on hands?



Note: I understand that its impossible to know this from a single transaction but you can give me ballpark number

[Jubilee]

Don't forget salaries, and additional overhead (rent, electric, phone, internet, window washing, mowing, etc) They all cut into the bottom line..

Not sure how many people are willing to post on here what there estimated ratios are..

I know those of a few places. But confidentiality agreements prevail.

Cassandra

[For-Life]

You have to seperate Fixed Costs and Variable Costs

Variable Costs are costs you incure with every sale, such as costs of goods solds, and Fixed Costs are the costs that you pay no matter if you make a million sales or no sales such as rent, salaries ect.

So first you take away your variable costs for the sale and then you figure out how much your fixed costs will be for the year and estimate how many sales you will make.

Essentailly a break even analysis.

[QDO1]

Hello fellow optiboarders

P.S. I am not currently in optical biz atmosphere



A question of Business Math in Opticianry



How much Money you make out of a single customer?

Why not divide your turnover by the amount of customers you get each year, then again for your Net Profit - you will then know average customer spend, and average customer contribution to profits. If you test eyes too, it is interesting to do this for the number of available apointments, and actually used appointments. that figure doesnt half clarify the mind to how expensive chair time really is, and what a professional fee is... especially when stacked up against the break even figure for the year