Independent labs vs. Supplier-owned labs:

[drk]

Reading this month's Vision Monday, it shows the sales success of the Essilor/Hoya/Zeiss labs vs. the independents.

Assuming this trend continues, what should the "average joe" retail account and the end-user consumer expect, in the future?

[Chris Ryser]

Maybe you did not see.................

Assuming this trend continues, what should the "average joe" retail account and the end-user consumer expect, in the future?

drk, If you have not seen the future coming.........provided it all works out according to plans........."elimination" is the word.

After elimination comes the next stage..............."domination of the marklet."

Fidel Castro is on the way out .................but they are on the way in and if their plans will work as long as Castro did, ..........you and me will be 6 feet under ground for many years, until there will be a new change.

:bbg: :hammer:

[DocInChina]

drk, If you have not seen the future coming.........provided it all works out according to plans........."elimination" is the word.

After elimination comes the next stage..............."domination of the marklet."

I could not have said it better. We are seeing this very fast in the independent lab business in the US as well as in the retail optical chains. Market share will drop for independents in both sectors. The difference between the 2:
- independent labs willingly sold their position to one of the big boys
- independent practioners are giving their dollars to eyewear manufacturers who re-invest their profits to open and/or buy other chains to further increase their retail market share.

Likely scenario....at some point we will see mergers between eyewear and lens manufacturers who then will grow their retail positions further.

Doc

[Chris Ryser]

Opticians Like Gas Stations.....................

Likely scenario....at some point we will see mergers between eyewear and lens manufacturers who then will grow their retail positions further.
Doc

Doc, You spun the thread even further.....................

It is kind of sad to see a profession paying itself, for the contract to get killed, out front.

Remebember the old independent gas station ?.............where you could get repairs done on your car for good hourly rate...........change and rotate the tires..........gey some free air in your tires.

Today they are mostly corporation owned self service stations with a 24 hour food store where the operater can make an extra buck. All the gas of the different brands come out of the same refinery = being the same product at the same price. The only competition is the location.

The optical retail outlets will become a similar concept in the very near future, run and directed by the corporations.

:hammer:

[drk]

How will the loss of independent labs put optical retailers out of business? I understand how the Luxottica vertical integration strategy hurts us, but what about the labs? Are you predicting a lens manufacturer/lab merger with a retail giant? Essilor and Luxottica?

[Chris Ryser]

Future .......................

How will the loss of independent labs put optical retailers out of business? I understand how the Luxottica vertical integration strategy hurts us, but what about the labs? Are you predicting a lens manufacturer/lab merger with a retail giant? Essilor and Luxottica?

The frame manufacturer is using his profits to purchase and buy out optical retailers. They just did buy another bnch right in China. Ultimate goal = eliminating competitors

The lens manufacturers buy up labs, Zeiss just announced another one this week.

Many independent labs do not qualify anymore for certain products made by the large corporations.

Lens manufacturers will go even more high tech............so that you can measure everything you need in the retail by high tech instruments, and can eliminate professional emplyoees, because the order goes straight on line to the lab, who does the producing and finishing of the glasses.

A optical store will become an order and delivery kiosk and not more than that. Places like that can be run by the corporations who then will take the profit from manufacturing the lens...........processing the lens..........and retailing the lens.

You, as an optometrist will not loose your profession but you will be downsized to supplying prescriptions..............day in day out and you will be dreaming of it at night.

When everything is in place you wioll be able to see the final fight.................which is who gobbles up whom. By then you will have 3 or 4 dominating companies in the optical trade and they will merge or swallow each other and then cremate and bury the balance.

I am no Orwellian but the the light at the end of tunnel is visible.

[Mikef]

Actually,

If you talk to people in the real busines world! Consolidaition only hurts the comsumer. (Higher prices)

If all the labs were owned by one company, price would not be a factor everyone would make more money. They would not have to give discounts to bigger stores and the smaller stores would pay the same.= easier to compete.

I tell all my customers that Luxottica should buy every chain in the country. which would = less 50% off free this free that. They would make more money and so would the idependent.

Idependent opticals can thrive if you are willing to change. If not ?

Has anybody check the prices at LC lately on lenses?

I got a call from a customer that had to get a job done at 8:00AM this morning for a patient. He called me last night and said his lab could not get him the lenses on time. He called Lenscrafters and ordered the lenses. He was shocked. Ploy for 180 and he charges $129. By the way being a wonderful rep I picked them up for him and drop them off last night a 8:30PM at his store. He closes at 9:00PM on Firday.

[chip anderson]

Mikef: Please explaine: "Ploy for 180, he charges 129."

Thanks,

Chip

[Jubilee]

What he means is the LC charges $180 for poly (I believe this is Featherwate Plus..Tegra Aspheric) and the account only charges $129 for the same product.

The point being, LC isn't the cheapest place in town...

Cassandra

[Mikef]

Mikef: Please explaine: "Ploy for 180, he charges 129."

Thanks,

Chip

He had to buy his lenses from Lenscrafters for his patient.(Lab closed and all other Independent shops that might have had them in stock, Also closed. He had to have the job done in the morning and that was the only way he could get the lenses in time.

He did lose money on the job but save a patient that buys many pairs per year!

[Mikef]

What he means is the LC charges $180 for poly (I believe this is Featherwate Plus..Tegra Aspheric) and the account only charges $129 for the same product.

The point being, LC isn't the cheapest place in town...

Cassandra

What she said!

They are actually the more expensive than about 95% of Idependents in the area by quite a bit!

[spartus]

$180 for Poly? In single vision?

Wow.

[lee1590]

What he means is the LC charges $180 for poly (I believe this is Featherwate Plus..Tegra Aspheric) and the account only charges $129 for the same product.

The point being, LC isn't the cheapest place in town...

Cassandra

Featherwate Plus (Poly Ashperic) is $210.00

[Chris Ryser]

Beware..............................

Featherwate Plus (Poly Ashperic) is $210.00

Why the heck aren't you people not seeing the writing on the wall ?

All the announcements of people loosing their jobs all over the place..............fom the car industry to the major banks, while the media tell you it;s never been as good. Interest's going up.

When the public is getting scared, thet are holding on to their savings, will not make majour purchases, and if purchases are needed they will go the less expensive way.

Why not prpeare yourself with less costyly frames and also lenses to get at least some market share of the perople affected adversly by the new economic trend.

[Jubilee]

That is the point ;) Most independants are cheaper than the big box corporate hogs... when I can sell the same lens for significantly less, it makes the patients think. Then is the frames are cheaper too.....

As I mentioned in a previous post, I stay current on their pricing so I can make sure my patients who ask about them can compare apples to apples. If they need a rush, my lab can have it in my hand next day. Most patients can wait, and if they can't.. then its time to call in a favor to the lab. (Who has allowed us to send patients to them for "while you wait service" before.)

Cassandra