Eyewear Financing Options

**GOS_Queen** · 03-23-2006, 06:53 PM

Good afternoon ~

I'm just wondering if anyone is using a service for eyewear financing.

I know that LensCrafters has a "lenscrafters" card that can be used for glasses or exams/contacts.

I know I have seen it mentioned in one of the trade journals ... I can't remember if it was an article or an advertisement ... and I don't remember which trade journal it was ...

I was just at the dentist this week and saw a "capital one" financing available.

I'm just wondering if anyone has information / feedback / experiences on this ...

thanks ~ :cheers:

Karen

**chip anderson** · 03-23-2006, 07:04 PM

Visa, MasterCard, American Express or cash, If they don't have one of these your sure don't want them on your books.

Chip

**GOS_Queen** · 03-23-2006, 07:35 PM

Originally Posted by chip anderson

Visa, MasterCard, American Express or cash, If they don't have one of these your sure don't want them on your books.

Chip

Chip -

obviously that is not a choice you have selected for your practice.

I appreciate your answering my question, however, I find that your comment does not answer the question I posed.

**ziggy** · 03-23-2006, 07:50 PM

I worked for a company in Ky that went through a local finance company. You would have the paitent fill out the credit app, call it in and presto! The patient was able to get glasses, or the were turned down then you spent the next 25 min having to explain why it wasnt your fault. Stick with V,MC,DS,AX or cash like Chip said

**chip anderson** · 03-23-2006, 07:58 PM

I did once work for an optical shop that sold high end hearing aids, they made a dear with the bank to offer credit and had a nice little form note) the patient signed as an agreement to pay (this was before credit cards were quite as popular as they are today. The bank got a little interest if paid, the only problem was, if the patient defaulted, the bank came back on you for the money. Of course you had the use of the money up front from the bank until default.

Chip

**For-Life** · 03-23-2006, 08:14 PM

I find that most that want financing options do not want to finance through creditors and want to go through you.

**CME4SPECS** · 03-23-2006, 08:23 PM

Originally Posted by chip anderson

Visa, MasterCard, American Express or cash, If they don't have one of these your sure don't want them on your books.

Chip

AMEN! If they want terms and they don't have a credit card, that should tell you something!

**For-Life** · 03-23-2006, 09:18 PM

also, do not forget about debit. Probably the best form of payment.

**Jubilee** · 03-23-2006, 09:41 PM

There is a general purpose card call Care Credit that can be used for some medical and vet expenses. It is through GE capital services.. same people that do the LC card.

In our practice, it is Visa/Mastercard or Cash in one office, the other can do debit and Discover as well.

We do make payment arrangements in some circumstances. If you are an established patient, and have not had any past issues, we will work with you. Sometimes this may mean setting up an automatic billing for a set amount every month, taking post dated checks, or sending a monthly statement.

In the past 7 months, I have only written off $50 in bad debt. I have had to send a couple of demand letters and have made a few phone calls, but overall, most patients we work with are sincere about working with us.

Sometimes people get laid off, have a medical emergency, or have any number of issues going on that make it hard to spend the money on a pair of eyewear. One patient we have has gone through a lot medical wise, and has been off work for almost a year. Since she invoked her credit protection plan to cover her minimum payments, she couldn't charge anything on those. She didn't have cash since she was having to pay more each month with a lower paycheck since disability is only paying 50%. We worked with her, and every other friday for the past 4 months she has been faithful in paying her $10 toward her bill.

A recent article in a 20/20 magazine recommended setting up or working with some of these credit options. Especially if there is a lot of young college or recently graduated patients. Might not have the money to pay for all the options now, and wanting to ESTABLISH credit. It may be a great way to increase business.

Cassandra

**Judy Canty** · 03-23-2006, 09:53 PM

I believe that there was a program offered through some labs. I'm thinking "Choices" or something like that.

**PAkev** · 03-23-2006, 10:49 PM

Originally Posted by Judy Canty

I believe that there was a program offered through some labs. I'm thinking "Choices" or something like that.

We entered the "Lifestyle Choices" program a few years ago but found several inherent problems to recognize this alternative as a mutual benefit:

1. We were charged a monthly fee even if we didn't forward any financing applications.

2. They required a minnimum purchase of $250 to finance eyewear.

3. The discount rate was almost triple of what is charged for conventional credit cards.

4. A person purchasing a premium frame and lenses has too much pride to admit they really can not afford the purchase.

5. When folks owe an outstanding balance, they seem to find it much easier to find problems with their eyewear to justify not paying.

The bottom line is that although it was an additional perceived service we offered, I could count on one hand the amount of folks that acutally went through with it......We dropped the program within 6 months.

In participation with local Lions Clubs, Churches, Humanitarian groups, etc. there are many opportunities to provide BASIC eyewear for folks that are down and out at no cost or a very nominal charge. People CAN AFFORD whats important to them.

**Framebender** · 03-23-2006, 11:02 PM

I miss that kind of high end!! Clean, friendly, working your rolodex and sending out birthday and Christmas cards. The guys I worked for would let the good clients run a tab. . .they'd settle up once or twice a year. I don't miss valet feel or the dry cleaning bill!

I hope you're all having fun and making money! ;)

**chip anderson** · 03-24-2006, 07:49 AM

I've never mentioned it before on this board but Pak is right: "People with an outstanding (especially overdue outstanding ) ballance are far more likely to complain. People that pay up front cash almost never complain. For some reason, some people have a concept that as long as they are complaining, they don't have to pay for it.

Many years ago we used to sell, fit, dispense call it what you will contact lenses with a lifetime service warrenty. I was amazed how many young women would wear them until they hooked a husband and then want to turn them back in for a refund.

Chip

**Johns** · 03-24-2006, 07:34 PM

Originally Posted by chip anderson

Visa, MasterCard, American Express or cash, If they don't have one of these your sure don't want them on your books.

Chip

That really does sum it up. There is a reason they can't get credit if they don't already have it.

If they are really that hard up, and you want to help, just give them the glasses for free. It's cheaper that chasing them the rest of their lives for payment.

**chm2023** · 03-25-2006, 12:56 PM

Pearle and LC have been very successful (about 15%) of purchases with their private label cards per Vision Monday article. I know ophthalmogists offer some type of financing for lasik, don't know any details.

See www.lifestylechoicesplan.com

Sounds like a good idea for practices that are really retail oriented and savvy.

**Jubilee** · 03-25-2006, 01:11 PM

Sometimes I am amazed by the attitudes out there.

Sometimes people do have bad credit, and sometimes it happens because of medical reasons, getting laid off from work etc.

The simple fact is that there are a whole lot of people out there living paycheck to paycheck. If they get sick, injured, or laid off then things get tight. If you negotiate with your credit cards to lower interest rates it is possible you have to agree to a lower limit and not open any new revolving charge accounts. It is also possible that if you invoke your credit protection program to cover the minimum payments while you are not working, then you CAN NOT charge a dime on those cards till you agree you can make the payments on your own.

Or we deal with families that have 5-6 kids in contacts or glasses with the parents also needing services and materials. Being able to spread it out helps the family make sure everyone is taken care of, both for glasses and contacts, and increase revenue and good will towards us. These aren't "bad credit" families.. just ones trying to keep everything in good standing and wants some room on those charge cards for car repairs and other unexpected expenses.

Many of our patients will leave us their credit card information and allow us to charge a set amount every month till their accounts are paid in full.

As I said, we have a criteria we use to determine if we would work out a payment situation, and how we will do it. So far in my tenure we have written off $50 to bad bedt, and have collected $6-7 grand.

Cassandra

**chip anderson** · 03-25-2006, 02:54 PM

Cassie: If you have kids in disposable contacts how far can you spread out the payments (unless you force them to buy a years worth at time. They will need more before they ever get the first ones paid for and be stuck with whatever interest rate you (or the credit company) charges too. Of course with todays credit plan interest payments (especially for those who are likely have credit difficulty and run late on payments) the whole idea seems to be to get them hopelessly in dept. Ever wonder how these people can come in with $100.00 jeans, $125.00 tennis shoes and need credit help?
These people tell thierselves that they are "entitled" to some of the better things in life that they cannot afford to end thier depressed (because of low income) feelings. Any shrink will tell you this does not break the cycle, it mearly enforces it. If you can't afford a thing do without it, if it's a necessity, do without something else that isn't a necessity.

Chip

**Chris Ryser** · 03-25-2006, 03:19 PM

This is an interesting and serious thread. According to many reports the financial situation of many people will worsen. It seems to be iomportant to know what to do when times go worse.

Here is an excert from a report:

The share of national income going to wages and salaries is at the lowest level since 1929 -- the year that kicked off the Great Depression. The share going to after-tax corporate profits, which heavily benefit corporate executives and other wealthy Americans through increased dividends and capital gains, is at the highest level since 1929.

"In 2005, for the first time since the Great Depression, Americans borrowed more than they earned," Parade magazine reports in "What People Earn."

Fueled by obscene wage inequality and tax cuts, income and wealth are piling up at the very top. More and more jobs are keeping people in poverty instead of out of poverty. Middle-class households are a medical crisis, outsourced job or busted pension away from bankruptcy.

Find the whole report at: http://www.dissidentvoice.org/Mar06/Sklar24.htm

Another:
Growing Credit Card Debt
March 25, 2006
The problem of excessive credit card debt is growing. In fact, Americans have racked up a record $700 billion dollars by charging it. Whether it's a brand new house, luxury car or big screen TV, it seems more and more Americans are buying things they can't afford.

See at : http://creditcardsmagazine.com/Manag...p?C=50&A=10926

**Johns** · 03-25-2006, 03:23 PM

I had a guy come in to pick up glasses today and said "Oh, I didn't know I had to pay today." He hemmed and hawed and in the end said, "If there's no way to take them home without paying for them I'll pay, but I really hadn't planned on it." It was a Nike w/ vlx & crizal - over $550 including tax. He was acting like he was bleeding and I was selling him a band aid!

Chip is right; people find a way to pay for the things they want, and the things they MUST pay for. The problem is, glasses are perceived as necessary, and so many people are used to having their necessary items (rent, food, electricity, etc...) paid for by someone else, that they think it's an entitlement.

Speaking of necessary...I can't believe the gutless parents that will empty their wallets and purses so they can buy their 13 year old colored contacts, while the whole time complaining about the price!!!!! Give me a break!

:hammer:

**2Quyen** · 03-25-2006, 03:49 PM

I don't think that you should give finance option to new customers. There's no trust, honesty, and integrity relationship established yet. You will be surprise by how many scammers out there. They already have bad credit and it doesn't bother them that they have another. I'm a sole proprietor and you want less headaches as possible. You already have so many financial obligations already. Only when an established customer buys a substantial amount should you consider. I would suggest the payment be broken down into four 1-month installment. Any longer and you're asking for headaches.:finger:

**Jubilee** · 03-25-2006, 09:14 PM

Originally Posted by chip anderson

Cassie: If you have kids in disposable contacts how far can you spread out the payments (unless you force them to buy a years worth at time. They will need more before they ever get the first ones paid for and be stuck with whatever interest rate you (or the credit company) charges too. Of course with todays credit plan interest payments (especially for those who are likely have credit difficulty and run late on payments) the whole idea seems to be to get them hopelessly in dept. Ever wonder how these people can come in with $100.00 jeans, $125.00 tennis shoes and need credit help?
These people tell thierselves that they are "entitled" to some of the better things in life that they cannot afford to end thier depressed (because of low income) feelings. Any shrink will tell you this does not break the cycle, it mearly enforces it. If you can't afford a thing do without it, if it's a necessity, do without something else that isn't a necessity.

Chip

We don't force them to buy a year at a time, but do encourage it. Often times companies offer rebates to make the financial impact less. There are also lenses such as the Acuvue torics which are a 6 month supply in a box, and therefore fairly expensive compared to regular Acuvue or Soflens etc..
Or how about the sunsoft multiple torics? Quarterly lens you have to purchase in quantities of 3.

None of the patients we have arrangements with have ever acted like they were "entitled" to this option. The doctor has either made an offer to extend the payments after talking with the family, or we have made a discrecianary judgement at the front desk. Most cases the patients have half down on eyewear, so costs are covered and for contacts, we normally either utilize the charge $x every month option, or in the case of SSMT we will dispense as paid.

While in many cases patients will afford what the may actually need, there are times when they can't. Monday I am seeing a lady that is on Medicaid. According to Indiana's Medicaid Code, a patient over the age of nineteen is only entitiled to one exam every 24 months. Well she is 23 and can not see out of the glasses she got elsewhere under Medicaid a 16 months ago for her to pass the vision screening at the BMV. Most programs in this area would turn her down since she has Medicaid. Medicaid will only cover if there is more than a diopter change in her rx or a 15 degree axis change. She needs an exam and probably new lenses. Should we tell her she is SOL? OR do we work with her to make sure she can keep her license and actually be able to.. I don't know.. get to work?

Our practice currently is 80% repeat business and 20% new. These are people that the doctor goes to church with, plays golf with, etc. Maybe you all don't have the relationships we do with our patient base.. but the people we work with are also people we KNOW. Not just people we've met.

Cassandra
P.S. We don't charge interest though we have talked about adding a small service fee for each month.

**chip anderson** · 03-25-2006, 09:22 PM

Do you know why many things are not covered or have limited coverage by Medicaid after age 19? Because the patient should be able to get up off of thier lazy behind, get a job and earn living, pay thier own expenses after this age. The more worthwhile human beings in ths world do it long before that.

**spartus** · 03-25-2006, 09:36 PM

Originally Posted by Jubilee

While in many cases patients will afford what the may actually need, there are times when they can't. Monday I am seeing a lady that is on Medicaid. According to Indiana's Medicaid Code, a patient over the age of nineteen is only entitiled to one exam every 24 months. Well she is 23 and can not see out of the glasses she got elsewhere under Medicaid a 16 months ago for her to pass the vision screening at the BMV. Most programs in this area would turn her down since she has Medicaid. Medicaid will only cover if there is more than a diopter change in her rx or a 15 degree axis change. She needs an exam and probably new lenses. Should we tell her she is SOL? OR do we work with her to make sure she can keep her license and actually be able to.. I don't know.. get to work?

(I'll pretend I fell through a wormhole, and you all pretend this post was timestamped 20 minutes previous to when it actually is.)

Hey, I wish an unreconstructed neanderthal would come by and explain why this poor woman is SOL. If I'm really lucky, maybe this--purely hypothetical, mind you--neanderthal would cast aspersions on the character of a wide swath of people he's never met.

**For-Life** · 03-25-2006, 09:37 PM

Originally Posted by chip anderson

Do you know why many things are not covered or have limited coverage by Medicaid after age 19? Because the patient should be able to get up off of thier lazy behind, get a job and earn living, pay thier own expenses after this age. The more worthwhile human beings in ths world do it long before that.

or the union can force the company to carry health insurance and thus force the company to lay off 29,000 workers in the US and only 1,000 in Canada (Ford)

**Johns** · 03-25-2006, 09:42 PM

Originally Posted by Jubilee

These are people that the doctor goes to church with, plays golf with, etc. Maybe you all don't have the relationships we do with our patient base.. but the people we work with are also people we KNOW. Not just people we've met.

If the patients that play golf with the doctor can't afford glasses, something is definitely wrong with this picture.

I'm sure that every optiboard member is aware of relationships.

I happen to have a great realationship with the cashier at the grocery store. I pay her for the groceries and she let's me take them home.

My relationship with the waitress is not as good as I would like. (She hasn't even hinted at a payment plan for any of my meals.)

Even the preacher expects me to put a little something towards the light bill.

I don't golf - I can't afford it. :o