Who is a price leader?

[eoptics]

In my city, a new optical shop was opened. Its name is Eyemart.
From the beginning to now, day and night, the shop has been advertising on TV.
Its prices are $ 67 per 2 pairs SV...
Some other opticals like Pearle etc started to go down with their prices.
Walmart, Sams are not the price leaders in my city.
Eyemart is.
I don't know how they can keep the lowest price position in spite of others' competition.

4P in marketing means price, place, product and promotion.
As far as I understand, price oriented retail would fall to the pit of worse quality in product, service and end up losing the credibility of pts.
So instead, the important thing is to mix 4p well.

However, I'd like to know how the retail has been keeping the low price for 4 months.
Low overhead cost? Low purchasing price?
Does anybody know?:)

[Senorwes1]

There was an Eyemart near where I used to work and they sold a lot of cheap frames and lots of plastic lenses with no scratch rest, UV, AR coating, etc. When you start adding on or "upgrading" is where they get you. If I'm not mistaken, they do a lot of in house lab business and they can save money that way, plus they don't pay their Opticians/Lab Techs that well. I've had some patients tell me that they went in to Eyemart and asked for Transitions and AR Coated lenses and they were "talked out of it" by the Optician. The Optician wanted them to have their glasses the same day and if they ordered them from the lab it would take 3 weeks with all the "extra stuff" on them. What I did to compete with them was just educate patients on the benefits of all the different lens options (Poly/Hi-Index, Transitions, UV, AR coating, etc.) I would always let my patients know that they can get cheap lenses (CR-39 with no add-ons) if they want but I wouldn't recommend them. Most of the time, patients would choose to go with a better lens option and thanked me for explaining what all that "stuff" means instead of just telling them how much their glasses would cost without any choices. However, if a patient came in and needed glasses the same day in an emergency, I would call Eyemart and see if they could do it. Most of the time they could.

[MarcE]

However, if a patient came in and needed glasses the same day in an emergency, I would call Eyemart and see if they could do it. Most of the time they could.

So you used them as your same-day wholesale lab?

[Chris Ryser]

Its prices are $ 67 per 2 pairs SV...
Some other opticals like Pearle etc started to go down with their prices.
Walmart, Sams are not the price leaders in my city.
Eyemart is.
I don't know how they can keep the lowest price position in spite of others' competition.

That is just about the price on line seller give away their their jobs, but including same day service.

Furthermore it looks that they will be up selling other additional extras, ..........instead having a high price and then have come down in price to an acceptable lever the customer wants.

This is obviously the technique to attract customers that are price conscientious of which there are more and more as the economy takes it's tolls.

If you do your own direct frame importing direct from the manufacturer, you can get even good frames at a fraction of the prices the wholesalers are asking for.

The warranties on frames and lenses are already doubling your purchasing prices.

The following post just about explains how it is done.

There was an Eyemart near where I used to work and they sold a lot of cheap frames and lots of plastic lenses with no scratch rest, UV, AR coating, etc.

When you start adding on or "upgrading" is where they get you.

If I'm not mistaken, they do a lot of in house lab business and they can save money that way, plus they don't pay their Opticians/Lab Techs that well.

The mentioning of cheap frames can only relate to cost, because you can get excellent quality for a lot less if you have the potential and know-how to do it.

Being in the add on business I have first hand experience how you can sell excellent quality lenses if you purchase un-treated CR39 lenses and do the add-ons in house for a fraction of the price it cost's you when you get them through your lab. That goes from UV to tinting and scratch resistance.

These add ons will cost you cents instead of dollars plus a few minutes of your time and you won't need to have a in house lab to do it.

[Jacqui]

I worked for Eyemart Express for a very short time. In the lab we had a full Optronics setup, 2G generator and Horizon 6 edger, etc. All the lnses at that store were Essilor and uncoated. Hard coating added about $10 per pair and tints also were fairly resonable.

The frames However, were just frames.

[For-Life]

In my city, a new optical shop was opened. Its name is Eyemart.
From the beginning to now, day and night, the shop has been advertising on TV.
Its prices are $ 67 per 2 pairs SV...
Some other opticals like Pearle etc started to go down with their prices.
Walmart, Sams are not the price leaders in my city.
Eyemart is.
I don't know how they can keep the lowest price position in spite of others' competition.

4P in marketing means price, place, product and promotion.
As far as I understand, price oriented retail would fall to the pit of worse quality in product, service and end up losing the credibility of pts.
So instead, the important thing is to mix 4p well.

However, I'd like to know how the retail has been keeping the low price for 4 months.
Low overhead cost? Low purchasing price?
Does anybody know?:)

Hi!!!

I have a degree in Marketing and actually teach it at the University (though, I learn as much from the kids as they do from me).

I just wanted to say thank you for actually understanding that price is not the vehicle to the promise land and that there are 3 other Ps in the system. Some people on this board will tell you something else, because they do not understand the concepts, but I am glad you hit it right on the nail.

Now, onto your question, how they have been doing it? Generally, it is through credit. It is a penetration strategy where they try a really low price to get as many people as possible, even if it takes a loss. The goal here is not profit. The goal is market share.

[eoptics]

Hi!!!

I have a degree in Marketing and actually teach it at the University (though, I learn as much from the kids as they do from me).

I just wanted to say thank you for actually understanding that price is not the vehicle to the promise land and that there are 3 other Ps in the system. Some people on this board will tell you something else, because they do not understand the concepts, but I am glad you hit it right on the nail.

Now, onto your question, how they have been doing it? Generally, it is through credit. It is a penetration strategy where they try a really low price to get as many people as possible, even if it takes a loss. The goal here is not profit. The goal is market share.

Hi, For-Life. Thank you for your comments.
Eyemart's strategy might be compared to Dumping one in int'l trade.
We have seen what are the result of the business.
Low prices could kill competitors in the industry. Specially, without unique technology but common products, if a new runner wants to enter into the saturated market.

My concern point is "what would be the good points for the future of whole optical industry after taking great market share?"

The Eyemart might think that it'd raise the prices after killing nearby competitors. But most patients would think that the right prices are the ones that Eyemart has offered, and they'd expect even the lower prices in the shop.

What should be the good model in competition for the future optical business?
I think we cannot apply the traditional marketing tools to ophthalmic optics business. We must find the best way for both Ecps and pts.

[For-Life]

Hi, For-Life. Thank you for your comments.
Eyemart's strategy might be compared to Dumping one in int'l trade.
We have seen what are the result of the business.
Low prices could kill competitors in the industry. Specially, without unique technology but common products, if a new runner wants to enter into the saturated market.

My concern point is "what would be the good points for the future of whole optical industry after taking great market share?"

The Eyemart might think that it'd raise the prices after killing nearby competitors. But most patients would think that the right prices are the ones that Eyemart has offered, and they'd expect even the lower prices in the shop.

What should be the good model in competition for the future optical business?
I think we cannot apply the traditional marketing tools to ophthalmic optics business. We must find the best way for both Ecps and pts.

Well the biggest thing is differentiation. What can you do differently than Eyemart? Obviously you cannot fight on price. So definitely carrying different products (as long as it is not just different names, but different styles) and you may do different services.

[eoptics]

Well the biggest thing is differentiation. What can you do differently than Eyemart? Obviously you cannot fight on price. So definitely carrying different products (as long as it is not just different names, but different styles) and you may do different services.

Differentiation should be one of the good marketing tools. Another ones might be concentration or expansion according to its abilities in finance, technologies...
And others....

However, differntiation as it is said is not easy to attract pts minds.
If you are not bothered, would you tell me your thoughts about the ways in detail how an optical shop makes a differntiation in the eye of patients, nowadays?

Can I ask?:cheers:

[For-Life]

Differentiation should be one of the good marketing tools. Another ones might be concentration or expansion according to its abilities in finance, technologies...
And others....

However, differntiation as it is said is not easy to attract pts minds.
If you are not bothered, would you tell me your thoughts about the ways in detail how an optical shop makes a differntiation in the eye of patients, nowadays?

Can I ask?:cheers:

Differentiation can attract customers. Take a look at Quiznos. Came out with the toasted sub, and became successful with it.

Differentiation for us was offering prescription sunglasses when everyone else was pushing magnetic clips. It was discussing the benefits of AR when everyone else thought it was too expensive to mention. It was bringing in frames that were thought to be too unique to sell. It was offering warranties that others thought were too costly.

[au]

Over the world, when the economy is not good, these kind of "shop" appear. I am very favour to Senorwes1, to educate to consumers about different on coating, I believe nowadays Crizal with Scotchguard, SFT of HOYA, Teflon etc... must have very obvious different slippery surface than standard AR, some tools like video for marketing can show to customers and show them it is the latest technology in the optical industry, tell them you will be sorry to buy a 20 years old standard AR with that bit of $ difference !

Remember, they are coming to complain means you still have a choice to explain and tell them the difference. If they want the low-end products, they just go already, shall not come to you and tell you I am going now, bye!

Never do the same thing like the "shops" doing, because people just go there and have the same service with lower price, you better do something with techniques, must be totally different from them!

For mass production company, they almost do no checking before delivery, because too many spectacle to delivery at the same time. In your shops, we are not doing mass production, it MUST sure every pair of spectacle is properly adjusted and checked detaily.

All budget spectacle always couny on $$$, the customers will never buy the quality, instaed of will give customers uncomfort, not appropriate pd, uncoat lens, wrong Rx or mistakes .........as the result, customers with NO satisfaction.

Hope this help

:cheers:

[eoptics]

My question comes from an assumption that the Eyemart has or can have such a product line-up at any time. What variation can others have in retail level?

The following case may be an example about differntiation in retail.

Every Sunday, even if there has been some exceptions, I go to a subway restaurant after finishing worship service at a church. There are several subways and one is near to church and my house. But my family always want to go other sub. rather than nearest one.

The prices of subs are all same. And why?

Our favorite sub. restaurant usually gives us more vegetables in the breads with nice small talks.

In others, we felt their no-generous mind.

But this case might not apply to optical retail biz because the prices and products are variable in the daily practice.

[kirase optical]

For the cheap price , it's normal. because i have many customer buy the lenses from China with a low price.

The cost for the products is low, plus the strategy and low administration charge. they definetly can quote the cheapest price.

Things change, roll with them.