Optician Mark Ups

[Excalibur]

What is the average mark up for lenses in your store? What is the average mark up for frames? What is the average mark up for add-ons such as A/R coating? Does your mark up differ from industry averages?

How many opticians charge cost plus a flat dispensing rate for their wares?

[k12311997]

What is the average mark up for lenses in your store? What is the average mark up for frames? What is the average mark up for add-ons such as A/R coating? Does your mark up differ from industry averages?

How many opticians charge cost plus a flat dispensing rate for their wares?

As per posting guidelines costs are not permitted to be discussed in the general forums.

I'd ask that you'd join the professional forum to discuss these things, but I realize that wouldn't help that ax you have to grind.

[Excalibur]

As per posting guidelines costs are not permitted to be discussed in the general forums.

I'd ask that you'd join the professional forum to discuss these things, but I realize that wouldn't help that ax you have to grind.

You are right. Why would opticians want to discuss their mark ups??

[AdmiralKnight]

Seriously? Again? You seriously have to stop making new threads just to take pot shots.

Look, there are specific guidelines on what is appropriate on this forum, and what is not. There IS a forum for discussing pricing, etc, but it's not open to the public, and it SHOULDN'T be. You know damn well that markups are fairly even (atleast when it comes to independants) or else there would be no way for them to be competitive. Do you go around telling all your patients how much markup is on YOUR glasses? I doubt it. So don't get snippy when we don't want to discuss it in open forums. It's $5 to join the professional forum and get your answer. With your 16,000 patients I would think you could scrape that up.

[Ory]

Excalibur,

You are embarassing yourself, and by association all the other optometrists who post here.

The posting guidelines for this forum are quite clear. We do not discuss markups, wholesale prices, etc. because it is an open forum. It is just not appropriate because none of us want someone coming into our office saying "I know you only pay X for these lenses so you can discount them for me." Consumers will ignore the thousands of dollars in edging systems, etc. needed to cut the lenses.

All three Os have their place in the eyecare industry. Personally I don't believe opticians should refract, but I also don't believe optometrists should be doing surgical procedures. Not what I signed up for.

Optiboard is a great resource. I get a lot out of it. It becomes a lot less enjoyable when a pointless bout of name calling starts. You're not the only one to blame here, and some of these guys will take every opportunity to tell you how optometrists are somewhere between bellybutton lint and pond scum in their opinion. Trying to stir things up only reinforces this opinion and the rift between our two professions. How annoyed do you get when you read an ophthalmologist's opinion that only medically trained doctors should do anything ocular health related?

[Excalibur]

Several things:

1. My question about mark-ups is fair, but granted it could be dealt with in another forum.
2. Optiboard is a very good resource. I learned a few interesting things about several progressives whilst perusing the board.
3. I don't see optometry lobbying for surgical procedures, and I don't foresee that for a very long time... if ever.
4. Optometrists have an excellent track record in caring for patient's ocular health. Please read the following report by an academic panel struck to study this issue:

http://hprac.org/en/reports/resources/New_Directions_April_2006_EN.pdf

If you read pages 115-129 of this report, it will clarify your misconceptions.
5. I am not allowed to mark up in my jurisdiction. Unlike opticians who typically charge 250% or 300% markups.

Sorry to induce the shrill responses that I received from my post.

[AdmiralKnight]

You're not allowed to mark up? So you charge COST for everything in your dispensary? I somehow doubt that.

[Excalibur]

You're not allowed to mark up? So you charge COST for everything in your dispensary? I somehow doubt that.

Believe it. Cost plus a flat dispensing fee for services. No hidden markups.

[AdmiralKnight]

So, not cost then. You charge a 'dispensing fee', I include the fee in my price, or 'markup' as you say. Everything is 'marked up' in this world. How much do you think medication costs? You wanna talk markup, heh. As much as we're optical professionals, we still need to make a living. You're the oddball when it comes to pricing, as most other dispensarys will have similar markup to eachother to be competitive.

[k12311997]

Believe it. Cost plus a flat dispensing fee for services. No hidden markups.

Are your patients aware of the dispensing fee? Is the dispensing fee fixed for all optometrists in your area or is it a maximum allowable model? Are your exam fees set by the regulating agency or do you have freedom to determine what your exam service is worth?

on a side note of consumers in general. they don't care about the rent, utilities, insurance, payroll, equipment, shipping and other expenses. They see a widget costs a retailer $.50 and sells for $1.50 a 300% mark up so they feel they should be able to get it for $.55 what they don't realize and what you refuse to take into account it costs the retailer $1.12 per widget to bring it to the consumer, less than a 35% mark up.

[Excalibur]

Are your patients aware of the dispensing fee? Is the dispensing fee fixed for all optometrists in your area or is it a maximum allowable model? Are your exam fees set by the regulating agency or do you have freedom to determine what your exam service is worth?

on a side note of consumers in general. they don't care about the rent, utilities, insurance, payroll, equipment, shipping and other expenses. They see a widget costs a retailer $.50 and sells for $1.50 a 300% mark up so they feel they should be able to get it for $.55 what they don't realize and what you refuse to take into account it costs the retailer $1.12 per widget to bring it to the consumer, less than a 35% mark up.

Maximum dispensing fee is set by our association/regulatory bodies. My fee is lower than the maximum amount and is not hidden like a mark up would be in an optical shop.

[Excalibur]

So, not cost then. You charge a 'dispensing fee', I include the fee in my price, or 'markup' as you say. Everything is 'marked up' in this world. How much do you think medication costs? You wanna talk markup, heh. As much as we're optical professionals, we still need to make a living. You're the oddball when it comes to pricing, as most other dispensarys will have similar markup to eachother to be competitive.

Of course we need to make a living. The bill to the patient is itemized -- our wholesale cost of the appliance plus a flat service fee as per regulation. Do you supply your customer with your wholesale cost?

[AdmiralKnight]

No, I don't. As I said, you're a little bit of an oddball when it comes to things like this. You asked about Industry standards when it comes to pricing, and yes, we fall within that standard, infact are lower than most of the chains around us.

[Just Optician]

Their is room for both type of systems. I think consumer confusion will be allayed when optometrist go to a retail pricing system in the future. In my area I think some have already begun this practice(quietly). If you are in a dispensing fee model and you chose frames and lens price carefully your markup (sorry dipensing fee) is greater than most opticians. As well most optometrists sell lenses only at the same dispensing fee. It doesn't pay to bring in expensive lines that bring your inventory up as you make more on a cheaper brand. But all this doesn't amount to a hill of beans. The customer/patient will pay more if they get value for their money. Some will want to choose something that not everybody is wearing and they're willing to pay more for it. That is why some dispensaries will bring in more exclusive product at higher pricing for the discriminating customer. If we pay more for a product so does the patient/customer. This model allows for a reasonable risk versus reward scenario and that is why we use this model. The other side of the coin is the price houses. They are the ones with the high markups. So when you wish to complain about your lot in life don't blame the independents as they are only providing a service for the patient/customer that purchase elsewhere anyway.

[For-Life]

To clarify the laws, ODs in Ontario are forced to charge Cost Plus (correct me if I am wrong). The fitting fees are between $75 and $125 (that I have seen).

So if you fit up a pair of Physio 360s with Alize and Transitions in a Sihlouette rimless, the final price of the item is the cost charged to the OD for the Physio, AR, Transitions and frame + the dispensing fee of $75 to $125.

In my opinion it is a lose/lose situation for ODs and Opticians.