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Thread: Which makes more money?

  1. #1
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    Which makes more money?

    Which DISPENSARY makes more money? (excluding eye exams, and assuming all other factors are equal)

    A) Dispensary within an Optometrist's office

    OR

    B) Retail Optical with a non-dispensing optometrist next door

    AND what's the reason for the difference?

  2. #2
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    Depends on whether the O.D. works or glides through life. An O.D. can easily turn out 4-16 Rx's per hour (Yeah, I know an O.D.'s medical exam can take longer) but if he wants to hustle and is getting all or part of the optical business this is achievable. An independent dispensary unless extreemly well reputed and advertising like the devil is most fortunate if he can get ten paying patients in the door a day. The independent has inventory, help, etc. Where the O.D.'s instrument cost is met the cost is rather static.

    So a dispensary with and economically involved doctor can gross quite a bit more. In fact a rather rudimentary dispensary (10' x 12') can gross a lot if the doctor puts the right (or wrong) directions on the patient.

    What's the reason? Rightly or wrongly patients trust the doctor and does what he says. And of course if the doctor is in the same walls and hands the Rx to the dispenser, the patient has little choice of where to go.

    Chip

  3. #3
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    Quote Originally Posted by optometrist2020 View Post
    Which DISPENSARY makes more money? (excluding eye exams, and assuming all other factors are equal)

    A) Dispensary within an Optometrist's office

    OR

    B) Retail Optical with a non-dispensing optometrist next door

    AND what's the reason for the difference?


    A, A, and A.

    Reason: See Chip's answer.
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  4. #4
    Master OptiBoarder rbaker's Avatar
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    Of course, on the other hand A followed closely by A.

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    Dispesory

    A dispensory will awlays make more profit than just exams. If you have a Dr who is willing to prescribe for the eyewear solution rather than just giving a prescription, any dispensory will make loads of profit. This only works when the prescribing Dr understands that one pair of glasses can't possibly fit all a patients solution.

    If a dispensory has a committed Dr-committed to prescribing a complete eyewear solution they will always be more profitable than a contract Dr who is just in it for the exam fee.

    Long story short-depends on the Dr.

  6. #6
    One of the worst people here
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    Also depends on the Province. ODs who dispense in Manitoba can make way more money than ODs who dispense in Ontario.

    So many factors. Remember, if you dispense your money is tied up in staff, inventory, larger office, and design. Be careful.

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    Redhot Jumper The best solution is...........................

    The best solution and most profitable one is the optical retailer that incorporates and provides refraction services, optical retail services plus limited (non surfacing) lab services. Whatever the commercial arrangement is.

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    ATO Member HarryChiling's Avatar
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    Quote Originally Posted by Chris Ryser View Post
    The best solution and most profitable one is the optical retailer that incorporates and provides refraction services, optical retail services plus limited (non surfacing) lab services. Whatever the commercial arrangement is.
    I would agree with that, the doctor (not to ruffle feathers) is only there as a means to getting the glasses. In our office the number of patients that come in just because; are less than 5%, the other 95% are there for glasses or contacts.
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    absolutely A

    we have "xxx eyedoctors" in our area, about 10 or more , the doctors are extremly nice to the patients, after the exam, the docs escort the patients personally to the opticians there, and hand in the Rx to the opticians, then saying to the patients" she is going to take good care of you".

    On the other hand, one of my OD friend is not very happy with his partenership with an optician, he kept telling me a story of a $1200 sale made by the store due to his reccomendation for mutliple pair , yet he only got his exam fee, with all the quipments invested by him.

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    Jameslex:
    Your doctors are violating eyeglass one. Fine is $10,000 per patient. The law says: "The prescriber must place the Rx in the patient's hand at time of examination."
    If you are going to skirt this I sure wouldn't put it out in writting on an international board where it can be read by the FTC and everybody.

    Chip

  11. #11
    bilateral peripheral scotoma LandLord's Avatar
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    The correct answer is B) because of the freedom to practice marketing, branding and retail markup.

    Other than these major advantages, A) and B) are exactly the same.

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    Not necessarily, the non-dispensing O.D. may think he's a medical doctor and only write two optical Rx's a day. He may not recommend the guy next door, and he has a right to reccommend or condesend anyone he wants as long as he has no ecconomic interest. He may be one of those that has a problem and only shows up to work two unpredictable days a week.

    There's lots of things that can go wrong with either set-up. Or either side of the set-up if you will.


    Chip

  13. #13
    bilateral peripheral scotoma LandLord's Avatar
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    Quote Originally Posted by chip anderson View Post
    Not necessarily, the non-dispensing O.D. may think he's a medical doctor and only write two optical Rx's a day. He may not recommend the guy next door, and he has a right to reccommend or condesend anyone he wants as long as he has no ecconomic interest. He may be one of those that has a problem and only shows up to work two unpredictable days a week.

    There's lots of things that can go wrong with either set-up. Or either side of the set-up if you will.


    Chip
    The answer is still B) because I would kick that loser out and get a real optometrist.

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    As a dispensing OD, I feel the answer is "B".

    When one check is written for exam plus glasses, they are $199 glasses ($75 exam, $124 glasses). And they will always be percieved as $199 glasses.

    The one check for glasses only, $124, will be percieved as $124 glasses.

    As a dispensing OD, I have at least two people a month tell me about what they paid for the glasses and include the exam fee as the cost of the glasses.

    Harry

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    Harry 888

    This might mean that what they really wanted was a new pair of glasses and just had to see the doctor in order to get them. Unless something dread is actually found the average patient has little interest in the medical part of the exam, no matter how important it actually is.
    We are not important to them, only the product is.

    Chip

  16. #16
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    Quote Originally Posted by harry888 View Post
    As a dispensing OD, I feel the answer is "B".

    When one check is written for exam plus glasses, they are $199 glasses ($75 exam, $124 glasses). And they will always be percieved as $199 glasses.

    The one check for glasses only, $124, will be percieved as $124 glasses.

    As a dispensing OD, I have at least two people a month tell me about what they paid for the glasses and include the exam fee as the cost of the glasses.

    Harry
    Why one check?

    Our OD is located right in our office, and we require a seperate check for the dr, and a seperate one for the office.

    Two checks, two different businesses, one office.
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    Quote Originally Posted by chip anderson View Post
    Jameslex:
    Your doctors are violating eyeglass one. Fine is $10,000 per patient. The law says: "The prescriber must place the Rx in the patient's hand at time of examination."
    If you are going to skirt this I sure wouldn't put it out in writting on an international board where it can be read by the FTC and everybody.

    Chip

    Uh, Chip, he's in Canada. I don't think Eyeglass One or the FDA pertains to him.
    But in the US, that is correct.
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    The reason

    Thanks for all the great comments.

    The reason for this post is that most ODs in Ontario are only able to sell glasses to about 25% of their patients or less. This leads me to think that the other 75% are going to retail opticals.

    The independant opticals that have a doctor beside, usually have a good rent agreement, so they usually don't push patients to the optical or discourage them. In most cases, though, these doctors are only able to have enough patients for a couple of days a week and not a full week.

    So, which scenario is better?

    A) A week of patients with only 25% buying specs

    or

    B) 75%+ of the people getting eye exams next door buying specs plus the walk-ins from the people who have seen other optometrists in town?

    I understand it is a hard thing to compare.

  19. #19
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    Quote Originally Posted by optometrist2020 View Post
    Thanks for all the great comments.

    The reason for this post is that most ODs in Ontario are only able to sell glasses to about 25% of their patients or less. This leads me to think that the other 75% are going to retail opticals.

    The independant opticals that have a doctor beside, usually have a good rent agreement, so they usually don't push patients to the optical or discourage them. In most cases, though, these doctors are only able to have enough patients for a couple of days a week and not a full week.

    So, which scenario is better?

    A) A week of patients with only 25% buying specs

    or

    B) 75%+ of the people getting eye exams next door buying specs plus the walk-ins from the people who have seen other optometrists in town?

    I understand it is a hard thing to compare.
    Maybe the trouble is with your selection. How many frames do you carry? What's your demographic? Our statistics are the reverse of yours,but more heavily skewed in our favor. I'd say 80% of our sales are to our own patients. Most of the people who see our doctor and need glasses, buy them here. Do you have finishing capabilities? This sounds like a very odd scenario. I'd try asking the patients at the beginning of the exam," do you plan to buy glasses today?" If they say that they would like to walk with the rx, explain that your office carries a large line of quality, fashionable frames and that you have all the latest technology available right there. Offer a competitive price and decent turn around time and I don't see any reason why you shouldn't be OK.

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