P&L Review

[jherman]

What % should an established optical contribute to the bottom line?

Is there a standard?

Just wondering if I should pat myself on the back, or kick myself in the a$$.

James

(Jimmy to Robert)

[rbaker]

James asked:

“What % should an established optical contribute to the bottom line?”

This is a very broad question as the answer could vary from 5% to 95%. There are just too many factors that enter into the equation. For example, suppose the practice is a medical practice that specializes in vitreo/retinal medicine. A 5% contribution to the bottom line could be considered excellent (although the reason you would find a dispensary in this type of practice escapes me.) On the other hand if the practice philosophy is the eye exam function merely serves as the engine that drives the dispensary a 95% figure might not be an unreasonable goal. And there are all sorts of business models in between the two cited here. He simple business practice of “discouraging” Rx’s to “walk” can easily result in a 50% increase in the percentage contributed to the bottom line. You also have staffing issues, number of re-do’s (either dispensing errors or fabrication), and on and on ad infinitum.

If you really want this figure you have to have someone who knows the business inside and out come in and do an evaluation based upon all of your unique business practices and market conditions.

[jherman]

I was referring to an optical P&L, and optical net net. Ya know, I don't think I would open up to this question here.

I keep forgetting this is a public forum.

Is there a private section on the Board, where only eye professionals can view?