EV1 wants a discount!!!!!!

**gogetter** · 08-14-2007, 10:30 AM

Ok this is no surprise to me considering about35-40% of my patients are Medicaide/Medicare, 25-30% vsp, spectera, ect. and 20-30% self pay. My patients are low Mid to low income and boy do they nickle and dime you to Death. As some of you may know I took over this optical and it was in horrible shape. I mean COGS 60-70% kinda shape. This place was giving Tommys and JLOS for Medicaide!!!! WTF is that!! Well i put a stop to that and boy were the returning pt's mad! Anyways I wanted some thoughts on something: Ok first off, the Dr.s office and Optical are in totally diff. parts of the building. They walk over with the rx.The Dr gives all his pt's 20% off cards for complete Frame and Lens. knowing this, should i price my products a little higher than normal knowing that they will get 20% right off the bat or they will almost always ask for a discount? Or should I price things according to what i think someone is willing to spend.? Thanks for all the HELP!!!!!!:hammer:

**For-Life** · 08-14-2007, 10:34 AM

Consider the increase, but if patients cannot bear it, then do not go through with it.

If people will not buy the product, because it is too expensive, then what is the point? Repeat sales are a lot cheaper than sales to new customers.

**ziggy** · 08-14-2007, 11:26 AM

I would figure out what you MUST have, not to break even but to make a living, then add 30%. It gives you some wiggle room ant the patients will feel good about "talking" you into a discount. Remember, ones perception is reality.

**gemstone** · 08-14-2007, 12:15 PM

Originally Posted by gogetter

My patients are low Mid to low income and boy do they nickle and dime you to Death.

You mean worse than the high income people do? Well at least they have a need.

**Johns** · 08-14-2007, 12:28 PM

Originally Posted by gemstone

You mean worse than the high income people do? Well at least they have a need.

Yeah...they need Tommys & JLos.:hammer:

You're breadking my heart...

**gemstone** · 08-14-2007, 12:31 PM

Originally Posted by Johns

Yeah...they need Tommys & JLos.:hammer:

You're breadking my heart...

Is Tommies and Jlos nickle and dime?

**Johns** · 08-14-2007, 01:02 PM

Originally Posted by gemstone

Is Tommies and Jlos nickle and dime?

I was assuming that Tommys refered to Hillfiger, not what I would consider a "necessity" for medicaid patients, but I'm old school.

**Uncle Fester** · 08-14-2007, 01:12 PM

gogetter-
Any chance we can talk you into becoming an Optiboard subscriber for $5.00 a month so we can have this discussion in the more private forum for "Eyecare Professionals Only"? Right now you can't find it because you are not a subscriber. It is used to discuss this and other more specific money issues. I think you'd find it valuable:)
Best regards
Fester

**gogetter** · 08-14-2007, 01:12 PM

Originally Posted by gemstone

You mean worse than the high income people do? Well at least they have a need.

Before comming to this office i was at a upper mid to high end suit and tie kinda office. Avg sale 700-900 per patient. i had no prob giving 10-15% discount and an additional 20% off second pairs and they were absolutely happy about that. But now its like totally different. This income type that im dealing with really do try to suck u dry. We give ev1 20% off. I even go as far as 25% and lets say the total comes to 190.00 well they counter and say "can we do 175.00? Really give me a break! Go to freakin Walmart or anywhere else for that matter and see what they tell you. But then again its either 175.00 or BIG GOOSE EGG! i hate to take it because my time, customer service, and craftsmanship and overall patient care is worth so much more. I wonder if these people ask for discounts everywhere they GO!!!!!..

:angry: just venting cause i just took the 175.00.....avalon frame, sv39 w TD2 (NO WARRANTY)..i hope their frames get mangled in the hot houston weather!!!!!!!!!!

**For-Life** · 08-14-2007, 01:20 PM

There are people out there that are deal conscious. I have people who call me and ask what type of discount they get if they buy two pairs. 25% off means nothing!!! A pair of glasses that cost $200 is still less expensive than a $1000 pair at 50% off.

What I would suggest is lower your costs. Get good frames, without the names. Instead of TD2, go with regular scratch coating. Then raise your prices, and offer promotions. 30% off, $50 off, and so forth. With the higher prices, you are now ahead of the game.

**Judy Canty** · 08-14-2007, 01:28 PM

I agree. In addition, be smart about your lens purchases. If you're surfacing your own, look for the best quality at the best price. Not just the big manifacturers, but us little guys as well. If you're doing your own finish work, shop for quality and price as well. If your lab is doing all the work, develop a strong relationship with an independent lab. They'll be far more willing to work with you on prices and service.

**obxeyeguy** · 08-14-2007, 01:30 PM

The Dr gives all his pt's 20% off cards for complete Frame and Lens.

IMHO you are by doing this, setting yourself up as a discounter. This is fine, if thats what you want, if not stop. Just curious, with such a low percentage of "self-pay", do you honor the 20% to all? Patients with insurance don't always understand that you are already discounting by accepting there insurance.

**For-Life** · 08-14-2007, 01:33 PM

What you can do with insurance is price it out normal and then take off the discount. Then when it comes out over the price of coverage, tell them not to worry that you will do it for the insurance price (if you would have already).

**gogetter** · 08-14-2007, 01:50 PM

Originally Posted by obxeyeguy

IMHO you are by doing this, setting yourself up as a discounter. This is fine, if thats what you want, if not stop. Just curious, with such a low percentage of "self-pay", do you honor the 20% to all? Patients with insurance don't always understand that you are already discounting by accepting there insurance.

self pay only

**obxeyeguy** · 08-14-2007, 03:03 PM

self pay only

Are you a captive practice, you said same building, do the patients need enticements to not walk? Is the doc just trying to be nice?? If they don't need the enticement, stop doing it. If they will walk, do it and get creative in your pricing and buying. The ins and caids will continue to come to you. (lucky you) I had an older guy in a branch with25% caid, and he gave them everything, free tints, free frames when they broke because they "could not" afford it. When he left, sure they complained, but tough, thats the way it is now. Ultimately our cogs went down significantly.

**gogetter** · 08-14-2007, 04:33 PM

Originally Posted by obxeyeguy

Are you a captive practice, you said same building, do the patients need enticements to not walk? Is the doc just trying to be nice?? If they don't need the enticement, stop doing it. If they will walk, do it and get creative in your pricing and buying. The ins and caids will continue to come to you. (lucky you) I had an older guy in a branch with25% caid, and he gave them everything, free tints, free frames when they broke because they "could not" afford it. When he left, sure they complained, but tough, thats the way it is now. Ultimately our cogs went down significantly.

IT SEEMS LIKE THE PT'S ALWAYS WANT A DISCOUNT. KEEP IN MIND THAT IVE ONLY BEEN HERE FOR 1.5MONTHS. SO IM BARELY STARTING TO GET A FEEL FOR WHATS COMMING AND GOING. IVE MADE DRASTIC CHANGES AS FAR AS WHERE I ORDER MY LENSES AND IM GETTING MY FIRST PAYMENTS IN FROM MEDICAIDE/MEDICARE. NOT TO BRAG

BUT COGS WENT FROM 60% DOWN TO 20% AND I BELIEVE THERES ROOM FOR MORE. THE DOC HAS NEVER SEEN THE KINDA PROFIT THAT IM BRINGING! YESTERDAY I FOUND A BOX FULL OF DENIED MEDICAIDE PAYMENTS. AT LEAST 150-200.......BUT YES IT SEEMS LIKE THEY DO NEED ENTICEMENTS TO SPEND AND YES THE DOCK IS JUST TRYING TO BE NICE TO HIS PT'S.....

**Johns** · 08-14-2007, 05:04 PM

Originally Posted by gogetter

IT SEEMS LIKE THE PT'S ALWAYS WANT A DISCOUNT. KEEP IN MIND THAT IVE ONLY BEEN HERE FOR 1.5MONTHS. SO IM BARELY STARTING TO GET A FEEL FOR WHATS COMMING AND GOING. IVE MADE DRASTIC CHANGES AS FAR AS WHERE I ORDER MY LENSES AND IM GETTING MY FIRST PAYMENTS IN FROM MEDICAIDE/MEDICARE. NOT TO BRAG

BUT COGS WENT FROM 60% DOWN TO 20% AND I BELIEVE THERES ROOM FOR MORE. THE DOC HAS NEVER SEEN THE KINDA PROFIT THAT IM BRINGING! YESTERDAY I FOUND A BOX FULL OF DENIED MEDICAIDE PAYMENTS. AT LEAST 150-200.......BUT YES IT SEEMS LIKE THEY DO NEED ENTICEMENTS TO SPEND AND YES THE DOCK IS JUST TRYING TO BE NICE TO HIS PT'S.....

This would be a great thread to take over to the "Private Forum", as Uncle Fester mentioned.

We can solve your problems there.:cheers:

**obxeyeguy** · 08-14-2007, 07:35 PM

This would be a great thread to take over to the "Private Forum", as Uncle Fester mentioned.

I third it. Private forum.

**obxeyeguy** · 08-14-2007, 09:26 PM

NOT TO BRAG

BUT COGS WENT FROM 60% DOWN TO 20% AND I BELIEVE THERES ROOM FOR MORE. THE DOC HAS NEVER SEEN THE KINDA PROFIT THAT IM BRINGING!

this in it self is a great reason to move it, but if its true

,and your worried about discounts? I could say a lot more, but not in this forum. I will start a new one where we can discuss this candidly.
mark

**cocoisland58** · 08-15-2007, 06:08 AM

Originally Posted by gogetter

IT SEEMS LIKE THE PT'S ALWAYS WANT A DISCOUNT. KEEP IN MIND THAT IVE ONLY BEEN HERE FOR 1.5MONTHS. SO IM BARELY STARTING TO GET A FEEL FOR WHATS COMMING AND GOING. IVE MADE DRASTIC CHANGES AS FAR AS WHERE I ORDER MY LENSES AND IM GETTING MY FIRST PAYMENTS IN FROM MEDICAIDE/MEDICARE. NOT TO BRAG

BUT COGS WENT FROM 60% DOWN TO 20% AND I BELIEVE THERES ROOM FOR MORE. THE DOC HAS NEVER SEEN THE KINDA PROFIT THAT IM BRINGING! YESTERDAY I FOUND A BOX FULL OF DENIED MEDICAIDE PAYMENTS. AT LEAST 150-200.......BUT YES IT SEEMS LIKE THEY DO NEED ENTICEMENTS TO SPEND AND YES THE DOCK IS JUST TRYING TO BE NICE TO HIS PT'S.....

Sounds like you are doing a great job so far. You can't change everything overnight. If you haven't done so already you need to price shop your competitors in the area. Your competitors being all private offices since I assume you are. If your prices need adjusting than do so. Our exam price had been the same for so many years we were afraid if we raised it we would lose patients. We did anyway and they never blinked an eye. We try to stay just a little lower than our surrounding competitors and we do offer incentives off the patient's portion after insurance but not so much as to hurt us. Everyone does want a discount these days and if you do it right you can still stay ahead of the game.

**gogetter** · 08-15-2007, 08:55 AM

Originally Posted by cocoisland58

Sounds like you are doing a great job so far. You can't change everything overnight. If you haven't done so already you need to price shop your competitors in the area. Your competitors being all private offices since I assume you are. If your prices need adjusting than do so. Our exam price had been the same for so many years we were afraid if we raised it we would lose patients. We did anyway and they never blinked an eye. We try to stay just a little lower than our surrounding competitors and we do offer incentives off the patient's portion after insurance but not so much as to hurt us. Everyone does want a discount these days and if you do it right you can still stay ahead of the game.

thanks. great idea. as a matter of fact im going to "secret shop the prof. bldng. next to us.theres an optical there. Yes we are a private office. Well i think my biggest prob. is the way i view the production here compared to where i was. Thanks!