Anyone thinking of the online optical store's big impact on our traditional retail?

[MarcE]

Chris R,

I understand what you are saying, and I don't really disagree.
But I'm not sure you understood what I was saying.

Reasearch shows that being the low-price leader is a terrible business model. The economic times and the specific industry doesn't matter.

Speaking specifically about Zinni's increase in jobs. I noticed that when I searched eyewear, they were the in the #1 spot on Google adwords. That has got to cost over $2/click.
So they are advertising $8 specs at a cost of $2 just to get someone to come to the website.

If that's what it takes to increase market share, then they can have it.

BTW, for those of you that subscribe, Dr Gailmard's, O.D. Tip of the Week was about this very subject internet eyewear.

I know this makes Chris mad, and he has called me "Greedy" in the past for this very thing; but we charge $30 for a mount in a POF. We always have. So I don't care where the frame comes from. If they don't want to buy a frame from us, I will insert new screws as needed, replace the nosepads, replace the temple tips as needed, buff and polish, and perform any adjustments for $30. It just makes sense. The point is that our "dispensing fee" is in the frame not the lens. Because if someone buys only lenses, it doesn't reduce our dispensing time or skill needed. In fact "lens only" orders are more work: Edging while the patient waits, finding a pattern, etc.

It's the way to go with internet sales. You can't keep all your clients, but you don't have to be a chump and do the professional work for free either.

[Chris Ryser]

If that's what it takes to increase market share, then they can have it.

I know this makes Chris mad, and he has called me "Greedy" in the past for this very thing; but we charge $30 for a mount in a POF. We always have. So I don't care where the frame comes from. If they don't want to buy a frame from us, I will insert new screws as needed, replace the nosepads, replace the temple tips as needed, buff and polish, and perform any adjustments for $30. It just makes sense. The point is that our "dispensing fee" is in the frame not the lens.

Actually this is one of the best post's on the subject. Does not get me mad in this concept, and not greedy..........but smart and positive.

[LandLord]

Its true that lowest price does not equal lowest cost.

But since we are making distinctions...

Lowest price/cost does not equal lowest PERCEIVED price/ cost. Once again, it is the perception that counts, not necessarily the actual number of dollars.

Example:

If you want the lowest price you go to Walmart.

If you want the lowest cost you go to Costco.

But how do you know that Walmart really does have the lowest price? Do you check it to make sure? No, because you can't possibly check every product at every store. You go to Walmart because "everyone knows they have the lowest price." (ie: perceived lowest)

[LandLord]

Conversely, if you have the lowest price but lack the perception to support it, you won't attract customers.

Therefore, if you have to choose between

1. Lowest price
2. Lowest cost
3. Perceived lowest price
4. Perceived lowest cost

Which would you choose for your business?

[For-Life]

Tell that to over 30 million unemployed in the USA that have no income, no more health insurance, credit cards full of debt, the house in foreclosure because they can not refinance as they have no income.

But they do have to spend some in order to see clear.

Will they care of what you say............????????????????????

Chris, that makes no sense. What does the definition of lowest price and lowest cost have to do with unemployment?

[For-Life]

Its true that lowest price does not equal lowest cost.

But since we are making distinctions...

Lowest price/cost does not equal lowest PERCEIVED price/ cost. Once again, it is the perception that counts, not necessarily the actual number of dollars.

Example:

If you want the lowest price you go to Walmart.

If you want the lowest cost you go to Costco.

But how do you know that Walmart really does have the lowest price? Do you check it to make sure? No, because you can't possibly check every product at every store. You go to Walmart because "everyone knows they have the lowest price." (ie: perceived lowest)

that is very true. Lowest cost is more important to the business though than it is to the client. It is only when that lowest cost provides the lowest price that the buyer will benefit.

[For-Life]

Conversely, if you have the lowest price but lack the perception to support it, you won't attract customers.

Therefore, if you have to choose between

1. Lowest price
2. Lowest cost
3. Perceived lowest price
4. Perceived lowest cost

Which would you choose for your business?

Lowest cost. Then I can see if what price I can charge :)

Customers do not care if you have the lowest cost. Only if you have the lowest price

[LandLord]

Lowest cost. Then I can see if what price I can charge :)

Customers do not care if you have the lowest cost. Only if you have the lowest price

All this time I thought you were talking about lowest cost to the consumer. But you are talking about lowest cost to the company. That's different.
My post referred to lowest cost to the customer and customers do care about that.

Costco gives customers the lowest cost but not the lowest price.

[Chris Ryser]

All this cost and price haggle ------------------------> it boils down to what the consumer looks at: a 300 Dollar pair of glasses or an advertised $ 50.00 pair of glasses in order to see properly.

[For-Life]

All this time I thought you were talking about lowest cost to the consumer. But you are talking about lowest cost to the company. That's different.
My post referred to lowest cost to the customer and customers do care about that.

I agree, but to have the lowest price, you have to have a cost benefit. Not everyone who tries to have the lowest price has a good cost system.

For instance, Wal-Mart can sell its products for cheaper than I can buy them. So if I sell the same product, there is no way I can compete if I try to have the lowest price. I remember a few years ago, Opticians on this site were saying that they can sell a pair of glasses without AR for the price Wal-Mart does with AR. This is how they compete with Wal-Mart. So they are essentially selling a worse product to compete with Wal-Mart's price.

Does not matter what economic situation you are in. Customers do not like that

[For-Life]

All this cost and price haggle ------------------------> it boils down to what the consumer looks at: a 300 Dollar pair of glasses or an advertised $ 50.00 pair of glasses in order to see properly.

No it doesn't. There are many thoughts and ideas that go into the consumer buying decision. To assume everyone will think that way is myopic.

Otherwise my former store would not be easily selling $700 during a recession.

[Chris Ryser]

Example, that is non offending to established patients as well as to newcomers with glasses purchased wherever.....................

Market Place Optical
Downtown Market Place
South Carolina

NOTICE ON OUR PRICING POLICY

Our selling price on new glasses includes a $ 50.00 fee for after sale services of, from us purchased glasses.

This includes cleaning, adjusting, minor repairs and consulting service for as long as you own the glasses.

Above policy also applies for glasses purchased outside our business after the $ 50.00 fee has been paid.

[For-Life]

Not saying that you are wrong, but how do you know that the sign is not offending people?

[Chris Ryser]

Opticians have forever given this service for free after purchase of glasses.

In today's world, when your lawyer tells you that he thought of you this morning under the shower, you da... well know he is adding another $ 50-$ 200 to your account...............

...........had a flat tire yesterday in my parking lot at the office, pumped it up with my in house compressor and hurried to the neighborhood gas station where they fixed it in 10 minutes at a cost of $ 25.00. (= $ 150.00 p.hour) while I waited and watched. Pull out the nail insert a cord and light it = done.

People today are used to pay for services everywhere and will not be offended when learning that continued service was included in the purchasing price, that is equal to a warranty that the glasses will always fit.
........and the ones that purchased elsewhere will then know that they have to pay for that service because it was not included at the point of purchase. (= on line) Or it was an optical retailer who was not able to perform that service.

[For-Life]

The place where I bought my car give 4 year freedom maintenance where they do your oil changes, rotation of tires, and an annual check up for free.

In the past three years, they have opened up two more dealers.

[Chris Ryser]

The place where I bought my car give 4 year freedom maintenance where they do your oil changes, rotation of tires, and an annual check up for free.

That is beautiful...................but you paid for when purchasing your car included in the price. There is nothing for free in this world, there is always a pay for out front or pay later. :D

[For-Life]

That is beautiful...................but you paid for when purchasing your car included in the price. There is nothing for free in this world, there is always a pay for out front or pay later. :D

and we may know that, but consumers don't. And if you start charging them separately, they may not understand

[Chris Ryser]

and we may know that, but consumers don't. And if you start charging them separately, they may not understand

Scroll back to the sign, it is meant for the ones that buy on line and if they do not understand .................you explain and explain all over again until it sinks in.

[For-Life]

Scroll back to the sign, it is meant for the ones that buy on line and if they do not understand .................you explain and explain all over again until it sinks in.

yeah but Chris, knowing these customers, they will see the sign and see "omg, their prices are $50 more, because they add it into the price of the product." And may be scared away.

You can't assume that customers are rational

[Chris Ryser]

And may be scared away.

You can't assume that customers are rational

......................the be flexible, and charge them less than the gas station would if your happy with that, or let them go somewhere else where they charge less...............you have your standards and should stick to them.

[tigerlilly]

Its true that lowest price does not equal lowest cost.

But since we are making distinctions...

Lowest price/cost does not equal lowest PERCEIVED price/ cost. Once again, it is the perception that counts, not necessarily the actual number of dollars.

Example:

If you want the lowest price you go to Walmart.

If you want the lowest cost you go to Costco.

But how do you know that Walmart really does have the lowest price? Do you check it to make sure? No, because you can't possibly check every product at every store. You go to Walmart because "everyone knows they have the lowest price." (ie: perceived lowest)

This is very true. There is a perception that private offices always cost more than box box discounters, and it's not actually true. I know of one private office that charges half of what we do for Transitions, and another that offers a kids' package with a better price.

[eyeguy123]

This is very true. There is a perception that private offices always cost more than box box discounters, and it's not actually true. I know of one private office that charges half of what we do for Transitions, and another that offers a kids' package with a better price.

FREEZE THIS IS THE LC POLICE, you will be drawn and quartered for your heresy.:bbg::cheers::D

[Chris Ryser]

Speaking specifically about Zinni's increase in jobs. I noticed that when I searched eyewear, they were the in the #1 spot on Google adwords. That has got to cost over $2/click.
So they are advertising $8 specs at a cost of $2 just to get someone to come to the website.

If that's what it takes to increase market share, then they can have it.
.................... you don't have to be a chump and do the professional work for free either.

Marc E...............I just checked with Google for the price of the ads, they cost nothing, but go by click and then cost:

"There's no minimum spending requirement – the amount you pay for AdWords is up to you. You can, for instance, set a daily budget of five dollars and a maximum cost of ten cents for each click on your ad."

I have a few hundred Google ads on my website and get a small percentage of the click charges by Google. So the cost is not that drastic and neither is the pay the website owner makes.

Good website site traffic can be achieved by being listed on the first page in Google and other search engines and that can be achieved paying an arm and a leg for continuing submission to search engines or do a lot of work on your website consciously and have many reciprocal links. So actually you can have a website that is top ranking at very little cost.

Zennioptical 32,657, 1,572 Sites Linking In

while

Luxottica has 76,221 317 Sites Linking In

Lux is presently the best ranking supplier website, http://www.alexa.com/siteinfo/luxottica.com

[Firmoo]

So far as I know, Zenni started to use Google AdWords and AdSense to promote their site, while the cost of PPC years ago was much lower. Today's PPC for most of the high quality key words is really expensive, around 1-2 dollars per click(just click, and the conversion rate is about 1-5%). The cost of PPC is tremendous for most of the online retailers.

While Zenni has been running for years, they have got good organic ranking for most of the words in the search result of Google, this is partly attributed to the years of press release with their links and buyers promoting Zenni via word of mouth in their blogs etc.

It is really not so easy for online retailers to stand out, it takes time and energy and needs wisdom. Most of the online retailer will just fade out after months or at most 1-2 years.

[KStraker]

One of our patients just came in with a pair of progressives he ordered online. Guess what, he can't see jack squat! The measurements are horribly wrong. Combine that with the cheapest progressive known to man and you get a complete failure. Good thing they were cheap, because they are worth nothing.