Luxotica sets itself up to IMPLODE!

[SailorEd]

Yeah, they're doing it to themselves. Their new policy of charging 30% to return frames if they are over 8 months old is going to kill them.

Now, when it first came out, I thought it was just for frames returned in which other frames were not bought ... WRONG!!!! The policy includes ALL frames returned, whether seperately or in an exchange with the rep, if they are over 8 months old Luxotica will SLAM you with a 30% return fee.

So what they are really doing is charging the Doctors the 30% fee on frames returned, and then turning around and RESELLING those same frames for full wholesale price.

What they are doing is making a extra 30% profit off the backs of the doctors ... what kind of idiot practice is this especially when NO OTHER frame company is doing it.

So, don't want to get "hit" by the 30% charge? All you have to do is everytime a rep comes in, exchange 100% of the frames you have for either the same frames or different ones ... EVERY TIME!

Who has the time or the will to do that?

I want to know, who will continue to carry Luxotica Frames under this new policy? Well, Not Me!

Comments????

[Jana Lewis]

I stopped doing business with Lux a looong time ago. When they decided that my upscale boutique needed to carry 35 pieces of Prada or else I told them to hit the road!

I'm doing just DANDY without LUX!!!

[obxeyeguy]

I want to know, who will continue to carry Luxotica Frames under this new policy? Well, Not Me!

Comments????

Who carried it under the old policy?:hammer:

[sharpstick777]

Yea, that is crazy. When the bean counters gain power a company will only think short term. They are already losing reps like crazy, so who is going to be there to do the return? Worse than the 30% charge, you won't have a rep. Then Luxotticas returns will drop... as fast as their sales.

Look at the good news. This is a sign of a company who is hurting. Hurting badly.

The next step will be the loss of licenses. I am sure some of the licsencees have clauses in their contracts that allow them to cancel the deal if sales drop such and such an amount. You will soon see your brands jump to other vendors. Safilo can't afford to take on another line, so smaller independant frame companies will pick up some of the fallout. It will be good in the long run. Painful for the next two years.

Yea, drop Luxottica while you can.

[Chris Ryser]

Yeah, they're doing it to themselves. Their new policy of charging 30% to return frames if they are over 8 months old is going to kill them.

Now, when it first came out, I thought it was just for frames returned in which other frames were not bought ... WRONG!!!! The policy includes ALL frames returned, whether seperately or in an exchange with the rep, if they are over 8 months old Luxotica will SLAM you with a 30% return fee.

Comments????

What they are actually doing is winding back the clock to the pre 1980s when an optician or optometrist used to purchase frames, pay for them and then sell them. This was standard rules in all frame companies.
Returns were only accepted for defective frames which were replaced by a new one at no charge.

Then in the 1980's there was suddenly an oversupply of frames and some of the companies desperate for sales started to give some sorts of consignments. You either paid for them and could return whenever it pleased you, and others had straight consignment which they did not even have to pay. They only paid for sold frames.

This has been going on forever since then. The free return policy is also nothing else than a consignment. The company is lending you and financing a large part of an optical retail store in the way of stock that could be sent back anytime for credit. So there is no risk for the retailer.

I would assume that retailers are not in favour of cancelling a policy that has been around for the last 25 years and in their favour.

But I would make a bet that if Luxottica is doing it, it will not be long until all the others will follow suit, as this system is very costly to the frame companies and is probably charged in the high prices of frames. You could probably see a drop in prices, at least on new models, if they really are serious about doing it.

[LandLord]

From a completely selfish standpoint, I would prefer that Lux take back the frames for free, or even better give me a 30% bonus!

But logically, they cannot afford to finance all of their customers and eat the cost of frames that will never sell. Certainly if you are returning frames after 8 months, its because you can't sell them. So I don't believe they will resell all of those frames to other dispensers. Most of them will never be sold so they are in fact taking back garbage from you.

[jpways]

Is the cut off point of 8 months so much worse then 13 months (Marchon)? Granted at 13 months Marchon is not charging 30%, but why would you want a frame on you board that you haven't sold in 8 months?
This could simply be a ploy to force the opticals to turn over their board more often to try and increase sales of their frames, rather then trying to wring every penny out of a customer.
Now it would be different if you're not getting rep every 3-6 months, at that point they'd have to provides exceptions, but I doubt Luxottica is that far gone.

[cocoisland58]

I agree, if a frame has been sitting on your board for 8 months your rep should have pulled it if you didn't. The exception being those frames you buy without the option of return and those classics that you know you need to keep. Trends turn very quickly. I wonder what Lux has that no one else has that would make you want to carry their stuff anyway? I haven't since they took over Armani what, 15 years ago? Haven't missed a thing.

[eyeguy123]

From a completely selfish standpoint, I would prefer that Lux take back the frames for free, or even better give me a 30% bonus!

But logically, they cannot afford to finance all of their customers and eat the cost of frames that will never sell. Certainly if you are returning frames after 8 months, its because you can't sell them. So I don't believe they will resell all of those frames to other dispensers. Most of them will never be sold so they are in fact taking back garbage from you.

you smoking something Landlord, what do you think Lux's retail outlets are for?

[Johns]

What they are actually doing is winding back the clock to the pre 1980s when an optician or optometrist used to purchase frames, pay for them and then sell them. .

See Chris, I know that when I read enough of your posts, sooner or later, I find something that we both agree on.

I don't remember the last time I asked what a company's return policy was. What for? I'm not buying frames so I can keep the post office and UPS in business. Buy to sell.

Doing find w/out Lux? Great! All the more reason to break the habit of returns. If you deal w/a company w/an "awesome" return policy, then you're paying too much.

[scriptfiller]

We require our frame reps to visit at least in 3 to 6 month intervals and remove all older product. If you do not service your account you are replaced.

[carnzo]

Duh, why would any ECP/Optician carry this manufacturer? If you sell Lux frames you are supporting your competition i.e. Lenscrafters,Pearle & Sears Optical. We dropped Lux years ago and surviving w/o them just fine. What about EyeMed, do they help or hurt you? Ever look at the patient's EyeMed card, they list their locations first and the lonely ECP last.

[Striderswife]

Duh, why would any ECP/Optician carry this manufacturer? If you sell Lux frames you are supporting your competition i.e. Lenscrafters,Pearle & Sears Optical.

This is how I explain why we don't carry Ray Ban or Versace. I've had a couple people actually respond by saying they don't really think Lenscrafters is our competition; we're better than that. It's a great compliment, but it doesn't help that I can't provide the patient exactly what they wanted. :(

[Johns]

Duh, why would any ECP/Optician carry this manufacturer? If you sell Lux frames you are supporting your competition i.e. Lenscrafters,Pearle & Sears Optical.

No Sheet! :D

This thread title should have been, "ECP's Still Using Lux Set to Implode!":hammer:

[optical24/7]

Lux tried this before in the late 80's-early 90's, except it was a 20% re-stocking after 6 months. Reps were returning product and re-ordering the same exact product for their accounts. They found it didn't work then, nor will it this round.




*disclaimer; I do not work for the above company but I profit greatly by not carrying them.


:cheers:

[SailorEd]

Duh, why would any ECP/Optician carry this manufacturer? If you sell Lux frames you are supporting your competition i.e. Lenscrafters,Pearle & Sears Optical. We dropped Lux years ago and surviving w/o them just fine. What about EyeMed, do they help or hurt you? Ever look at the patient's EyeMed card, they list their locations first and the lonely ECP last.

Supporting the competition? Nah. Not really. We're not in competition with Lenscrafters. People who go to Lenscrafters go there because they can get their glasses in about one hour. In order to do this, each store must keep a full cadre of lab techs and opticians and therefore their overhead cost is much greater and thus, they must charge higher prices. I've shopped them and the price we charge for Brooks Bros. frames is lower than the price they charge. The lenses we offer here can't compare to their lenses (ours is much better).

A survey was done to find out why people continue to go to a practice or leave that practice. In the top three were: Customer Service, Trust and Quality of product. We've got Lenscrafters beat on all three. So, are they in competition with us? Well, if they closed down in Erie, we might get a few of their patients, but I bet those people would go to somewhere like Vision Works (Davis Vision) or some other "quicky - cheapy" store.

As far as Eye-Med is concerned ... well, we do have a decent number of people coming in with that insurance. We take it and it has provided us with new patients which means, it has helped our practice grow.

Now, we can decide not to take it ... Like we have with Davis Vision ... but, then we need to answer a question ....

How much profit do you make from a person who goes somewhere else just because you don't carry their insurance? And the answer is ???? Well, as you say ... "Duh"!

The reason we don't use Davis Vision is because they would force us to carry 200 of their frames and use their lab (we don't have a choice, so we opted out).

Thank you though for your opinion.

[rdcoach5]

What they are actually doing is winding back the clock to the pre 1980s when an optician or optometrist used to purchase frames, pay for them and then sell them. This was standard rules in all frame companies.
Returns were only accepted for defective frames which were replaced by a new one at no charge.

Then in the 1980's there was suddenly an oversupply of frames and some of the companies desperate for sales started to give some sorts of consignments. You either paid for them and could return whenever it pleased you, and others had straight consignment which they did not even have to pay. They only paid for sold frames.

This has been going on forever since then. The free return policy is also nothing else than a consignment. The company is lending you and financing a large part of an optical retail store in the way of stock that could be sent back anytime for credit. So there is no risk for the retailer.

I would assume that retailers are not in favour of cancelling a policy that has been around for the last 25 years and in their favour.

But I would make a bet that if Luxottica is doing it, it will not be long until all the others will follow suit, as this system is very costly to the frame companies and is probably charged in the high prices of frames. You could probably see a drop in prices, at least on new models, if they really are serious about doing it.

In the early 70's, you only had a choice of a few dozen styles that were mostly made in America and were offered in 4 to 6 eye sizes and 3 or 4 bridge sizes. Did you want a P-3 shape with a saddle bridge or a keyhole bridge? Frame companies that are mostly gone like B&L , AO, Artcraft, Univis, Shuron offered similar shapes but the colors of their tortoise shells varied. A different time.

[Chris Ryser]

In the early 70's, you only had a choice of a few dozen styles that were mostly made in America and were offered in 4 to 6 eye sizes and 3 or 4 bridge sizes. Did you want a P-3 shape with a saddle bridge or a keyhole bridge? Frame companies that are mostly gone like B&L , AO, Artcraft, Univis, Shuron offered similar shapes but the colors of their tortoise shells varied. A different time.

I had a frame company for 1962 to 1981aqnd represented L'Amy France and Nigura Germany, My competitors were Marwitz, Rodenstock,Metzler, Safilo, Luxottica and many more of the known European companies

[geoflem]

I don't know any happy lux employee's but in a tight economy where will you go/ they don't seem to recognize when money is tight don't expect more sales and higher sales. It's like they are in another alternative universe where everyones rich , yet customers are balking and laughing at the prices at lens crafters. even with the bogus 30% off spectacles will cost you.

[DragonLensmanWV]

I had a frame company for 1962 to 1981aqnd represented L'Amy France and Nigura Germany, My competitors were Marwitz, Rodenstock,Metzler, Safilo, Luxottica and many more of the known European companies

Remember the infamous Metzler "Batglasses"?

[flexonman]

I would make the rep com in every 7 months..return all frames and restock me with all new and current =)

nothing would ever get over 8 months and I could reduce their frameboard space considerably as they watched.

ohh the fun =)

[SailorEd]

I would make the rep com in every 7 months..return all frames and restock me with all new and current =)

nothing would ever get over 8 months and I could reduce their frameboard space considerably as they watched.

ohh the fun =)

However, your profit on those frames would also shrink since you have to return frames, in their original cases, with postage and insurance and then pay the postage for the frames you ordered in.

ohh, not so fun.

[bob_f_aboc]

I would make the rep com in every 7 months..return all frames and restock me with all new and current =)

nothing would ever get over 8 months and I could reduce their frameboard space considerably as they watched.

ohh the fun =)

Don't forget the contract minimums on some of the brands...

[flexonman]

The goal for all is to not have any returns but to sell the line off and replace with a more profitable one with no minimums.

For the first time ever, we actually have a true picture of what sells and what doesn't. The bad news is the Marchon, Revolution and the Safilo lines are dead so it is time to sell off and not replace. We added some new lines that offer diversity and that is what is is selling. The margins are much better and necessary.

[Johns]

The bad news is the Marchon, Revolution and the Safilo lines are dead so it is time to sell off and not replace.

Uh...I'm sorry...what's the bad news?