small business leverage?

[opti-refractonator]

Do small businesses, (single optician, 1/2 staff) have any leverage available to them whem it comes to dealing with big chains or suppliers.

As a small store, I often times find it hard to compete with other optical *****houses that offer most of the same products that I do but at a unreasonably low price. My tiff is with the walmarts and the costco that sell boxes of contact for only a buck over the cost price. Ciba says that they sell them the product at the same price, which i don't believe.

My tiff with optical suppliers like lux, is that they sell frames to us that may be new, but were available in lenscrafters ( aka sears, pearl) many months before we were allowed to order them. Also, there are a ton of websites that sell frames and sunglasses and contacts online, I don't know whether the companies are turning a blind eye to this( maybe because they are moving product) or they actually can't do anything.

I have asked my contact lens reps about online sellers and they say that they are trying to deal with them but its very difficult to find where the product is coming from. I personally find this to be bull**** because anything can be traced to its origin.

I asked my lux reps about this, and there response has simply been that they cannot do anything about it.

My question is, do we have any leverage whatsoever?

[obxeyeguy]

I asked my lux reps about this, and there response has simply been that they cannot do anything about it.

My question is, do we have any leverage whatsoever?

First, stop giving money to your competition. Second, sell products that they don't. Third, SERVICE! Contacts and the internet are hard to compete with, not impossible, I do it.

Do you really believe Lux cares when you get a "new" release?? Does ciba care who buys their lenses?

Find ways to separate yourself from all the competition. Either with products, service, or find a better gimmick than they have.

[For-Life]

Absolutely. We have the ability to buy almost any product in the World. We have the ability to ensure that things are done our way. We have the ability to speak with our own clients in a personal setting.

Problem is, we get so obsessed with price as the only variable of competition, that we ignore everything else.

[rbaker]

No

[orangezero]

There is a very good reason you don't see too many small, mom & pop operations selling the very same thing as walmart or costco.

[jameselex]

There is a very good reason you don't see too many small, mom & pop operations selling the very same thing as walmart or costco.

I agree with not selling the same as big box stores, but "mom & pop" stores sell 2liter Coke for $1.99 special while Walmart sells that for 98cents all the time. that is what happening in my town at least, but the point is the same: don't compete on the same thing, especially on things you can't win.(Walmart sells Serengeti for $129, ye its disco , what's your cost)

[LandLord]

Do we have leverage? Yes and no. Head to head competition will always be won by the bigger, richer company. It's that simple. David cannot beat Goliath in an arm wrestle. You have to find the weakness in your enemy and exploit it.

[C-10]

First, stop giving money to your competition. Second, sell products that they don't. Third, SERVICE! Contacts and the internet are hard to compete with, not impossible, I do it.

Do you really believe Lux cares when you get a "new" release?? Does ciba care who buys their lenses?

Find ways to separate yourself from all the competition. Either with products, service, or find a better gimmick than they have.

This says it sell something different than the chains get service that know one else would there is contact lens out there that are great and are not sold on line look around.

[M_Optics]

There are lots of ways of competing with the big box stores, chains and web based retailers.

For branded contacts (Acuvue, ciba, etc.) In the US, close to 50% of the contact lenses come from distributors and not the manufacturer. The distributors can often make deals on specific lenses. In Canada you can contact Optik K&R.
Unfortunately, the ECP's in Canada are not accustom to "shopping around" to find the best price when it comes to contacts.
Let's face it, contact lenses have become a commodity. It doesn't matter if the O2Optix comes from a distributor or direct from the manufacturer. It's the same box.

As for finding a lens that is not available on the net, there is a lens sold in the states called the Definition brand by Optical Connection. It's an aspheric 55% methafilcon. In Canada it is sold by Centennial as the Definition Brand. Optik K&R offers it as the Crystal Eyes brand and can also private label it.

[renee1111]

As for finding a lens that is not available on the net, there is a lens sold in the states called the Definition brand by Optical Connection. It's an aspheric 55% methafilcon. In Canada it is sold by Centennial as the Definition Brand. Optik K&R offers it as the Crystal Eyes brand and can also private label it.

I use the Definition AC quite a bit, and it is a good lens. It comes in a standard base curve (so doesn't fit everyone) but the price point is great! ...to bad it's no longer available in toric though...oh well

[Golfnorth]

Do small businesses, (single optician, 1/2 staff) have any leverage available to them whem it comes to dealing with big chains or suppliers.

As a small store, I often times find it hard to compete with other optical *****houses that offer most of the same products that I do but at a unreasonably low price. My tiff is with the walmarts and the costco that sell boxes of contact for only a buck over the cost price. Ciba says that they sell them the product at the same price, which i don't believe.

My tiff with optical suppliers like lux, is that they sell frames to us that may be new, but were available in lenscrafters ( aka sears, pearl) many months before we were allowed to order them. Also, there are a ton of websites that sell frames and sunglasses and contacts online, I don't know whether the companies are turning a blind eye to this( maybe because they are moving product) or they actually can't do anything.

I have asked my contact lens reps about online sellers and they say that they are trying to deal with them but its very difficult to find where the product is coming from. I personally find this to be bull**** because anything can be traced to its origin.

I asked my lux reps about this, and there response has simply been that they cannot do anything about it.

My question is, do we have any leverage whatsoever?

Why any independant would deal with Lux for frames is beyond me.
I have never stocked any one of their products. When will you realize that Lux is not your friend?

Regards,
Golfnorth

[geoligeo]

if you're small dont buy brand name frames, probably cant meet minimums on them to get competitive prices anyways. operate it like a generic mom and pop shop by providing good service and selling low price generic frames but do pick the fashion oriented styles.

stock deep in, when a frame breaks just give the customer another one for free. generic stuff's quality is almost as good as the brand name ones anyways..if not the same.

[Chris Ryser]

In addition to all the good advise our friends have given you, there is one more thing you can do, what the others as WalMart and Costco can not do.

You can promote Rx sunglasses done and tinted on your premises, UV done right here, strip old scratched AR coated lenses remove the hard coats so that lenses look like brand new............all things your large competitors have to send out to be done. Start repairing frames. Take advantage of the sinking economy where people dont or can not afford the expensive items.

I believe you are in Brampton and there is a Ford plant. You will know better how the economy looks there.

Actually there ways today that you can do it while the customer waits. None of your large stores can do that. Concentrate on good fast service and you will gain customers.

Also, I remember the times when Hakim used to give the frames at no charge and customer only paid the lenses at full price. At the time he would only purchase discontinued frames at rock bottom prices.

[opti-refractonator]

Thanks for the response guys and I appreciate your advise. My only follow up question is that the neighbourhood that I am in is a middle to lower class neighbourhoood. Most of the customers can afford an armani or a gucci ($300 budget), and the rest who cannot, aspire to wear name brands because it gives them the feeling that they are equal. I currently deal with a few small companies but still customers come in and ask for armani or DG or other name brands.

Even with stellar customer sevice, will my business be left behind others?

Do you think that I should just abondon Lux, or most of the BIG companies?

[MarcE]

but still customers come in and ask for armani or DG or other name brands.

If they are lower or working class. They won't buy anyway. You can't afford to cater to them. They just want to look and try on. If they really want them, they will buy counterfeit.

When I was eastern Europe, everyone who earned at least $200/month (equivelant) had D&G or Versace suns. Guess what? They didn't pay $300 for them from their local Lux retail outlet. They were everywhere on the street for $15. They looked pretty good and were shamelessly stamped "Made in China"

Location, location, location.

[Golfnorth]

Thanks for the response guys and I appreciate your advise. My only follow up question is that the neighbourhood that I am in is a middle to lower class neighbourhoood. Most of the customers can afford an armani or a gucci ($300 budget), and the rest who cannot, aspire to wear name brands because it gives them the feeling that they are equal. I currently deal with a few small companies but still customers come in and ask for armani or DG or other name brands.

Even with stellar customer sevice, will my business be left behind others?

Do you think that I should just abondon Lux, or most of the BIG companies?

The point of my post was that you don't have to deal with Lux to be successful.
Yes they have some nice lines but I'm an example of an optician who has done well without ever handling their product. I wouldn't abandon all the large companies....just Lux.

Regards,
Golfnorth