3 More Labs Join Essilor..........................
PR Jan 22,2010
Essilor has increased its market share in the U.S. by acquiring a majority or all the interest in three prescription laboratories: Ultimate Optical in Florida, with $6.3 million in annual revenue, Optical Dimensions in Michigan, with $3.7 million in annual revenue, and Truckee Meadows Optical in Nevada, with $3 million in annual revenue.
essilor
Congratulations to those 3 labs! Sounds like they've made a good decision for their owners/shareholders. Free enterprise working as it should.
thanks for the info
I'm not going to comment.Originally Posted by lind2020
I think his comment was more tongue-in-cheek.
Here is something I don't understand though. Many people do not like the fact that Essilor likes to snatch up labs, but they are doing the exact same thing that many on this board are doing: Buying and selling to make a profit. So is it only ok if you are a Mom & Pop shop, or are only a small business? Is it only bad when its a large multinational company like Essilor?
Please don't confuse what Essilor is doing to selling retail eyewear. Mom and Pop's do not buy and sell million dollar wholesale labs. They are buying up all the competition, and then one company controls the vast majority of a market, you have a monopoly ( ie. Microsoft ). That company now sets market standards for pricing and products to all retailers.
I could care less how much money E makes, and there is much more at stake here than just money. It is about one company controlling a vast majority of our labs, and that will not be a good thing.
Ok, so what are all the other companies (Hoya/Zeiss/Shamir) doing? Are they expanding? Are they too buying up labs or just sitting back while Essilor does it?
Side note, does anybody have actual data on what Essilor's Actual market share is?
Remember what Steve McQueen learned at the very last second? Only freezing the beast and dropping it in the frozen ocean stopped it from encompassing our doom. When is Essilor's next board meeting and who's got the liquid nitrogen?? Or at least a can of that instant wart zapper!
Chris Beard
The State of Jefferson !
I'm a Medford man – Medford, Oregon. Up in Medford, we take our time making up our minds."
Is it only bad when its a large multinational......................
What happened to the independent Gas stations ? They got taken overr by their suppliers who now control the total market supply and dictate the prices and supplies.
Optical Dimensions too? Seems Essilor likes the Detroit market because I think that's at least two now and one maybe both are also VSP labs.
In defense of the lab owners, at this point in the game, the owners are looking at retirement, the economy sucks and someone (doesn't matter who) throws you a bone. I'd grab it.
Not to be too contrary, but independant gas stations still exist. They just fly under the national banner for better recognition. I have several patients that own gas stations. By the way, next time your filling up, go inside and get a coke too. thats how those guys make money. The gas is a break even game.
Maybe not even a bone...
When I first began in the optical industry here in Tidewater, there were 3 wholesale labs: B&L in downtown Norfolk, Hilbert-Burdell also in Norfolk and New City. I worked for New City when it was just a finish lab on Brambleton Ave. The surface work came down every night from Richmond. New City moved to an industrial park and expanded into a full service lab. Hilbert-Burdell became Hilbert-Walman and B&L closed. POL opened a lab and eventually so did Homer.
POL is gone from Tidewater, but still operates in Roanoke. Hilbert-Walman is gone. New City was bought by Southern and Southern was bought by Essilor. Homer was bought by Essilor.
So if your primary need is that occasional job that you need brought to you or you need to pick up at the lab, here in Tidewater you can choose between 2 Essilor owned labs and that's the kind of control that obxeyeguy is talking about.
If you study Economics you know that in the long run Monopolies do not last very long and are usually a short term phenomena. As far as controlling prices keep in mind these goods (Gas in this example) and eyeglasses, to a point, are very elastic. If people stop demanding them their price drops.
So the money is now going to a large Corporation, but doesn't it also support those same lab personnel who are working and fabricating those lenses?
*** Yes it makes people "feel" good to support small independent labs, but even if you were purchasing from "Independent Lab" which is now an Essilor lab, is there such a huge price increase that it affects how you do business and of those purchasing from you? Just a genuine question if some one can answer.
No.
At least, not for us. In fact, we pay a good deal less with the ELoA lab than we do with four of the largest independents locally. These guys are my friends and have been for years (the independents I mean). I have no beef with their quality of work, nor the selection of lenses they provide. But the reality is they do in fact cost more.There are a number of buying groups who use various labs to manufacture their finished work. The labs are owned/run/organized by a variety of lens companies including Shamir and Essilor to name two. Sometimes that cost savings can be significant.
Last edited by Uilleann; 01-26-2010 at 06:11 PM.
Thank you for the reply Uilleann. I think what I was getting at is at the end of the day the patient could care less where you get your lenses. The only thing you can control is how you run your business and who you choose to do business with. We need lenses regardless who the check is written out to.
I guess in the short term, your premise is right, at least in your area. However, in the long term, what happens when there are only manufacturer owned labs to choose from? There will be no need to be competitive.
Not entirely true. They often do care. Taking a cue from our local lab Vision Craft which tucks a little card in with the lenses we have created a visible sign in our office. "Your prescription has been custom made in a Michigan laboratory and proudly hand crafted by skilled Michigan opticians. Thank you for supporting the growth of our local economy".
Many, many people have commented on it very favorably. Around here buying "local" is patriotic.
Chris,
How much control over the price of gas did independent gas station owners have? I see where you're going w/this, but I don't think the gas stations are a good example...
Ophthalmic Optician, Society to Advance Opticianry
Touche. However what I meant is that they probably wouldn't care if their lenses came from a lab owned by Essilor, or a company called Zeiss, Hoya etc. The company name, in itself, to most consumers, means nothing.
So Cocoisland58, let me ask you something. Do you think your customers would still think it patriotic if they knew the lenses were made in Taiwan, The Philippines etc, or at least the raw starting material??
Because if being made "Locally" and "In-state" are such a selling point every LC, Eyemasters etc could claim the same thing. I can see the appeal of marketing "Made in USA" or the like, however most of that, in my opinion, is smoke and mirrors.
Those companies that owned the labs would still be competing among themselves. The Optical Industry is no different than those industries that see Big Corporate taking over the Independent companies. We have to remember that its 2010, not 1950. People can accept that the business model has changed, work it and use whatever distinguishes them from other companies to their advantage, or sit back reminiscing about the good ole days.
Please take this as just my thoughts from a relatively "young" person in the industry. I think to some degree our thoughts on Business and the Optical Industry as a whole are generational.
Cheers! :cheers:
~Crazy
[QUOTE=Crazy-bout-Optics;329371]So Cocoisland58, let me ask you something. Do you think your customers would still think it patriotic if they knew the lenses were made in Taiwan, The Philippines etc, or at least the raw starting material?? [QUOTE]
They don't care that far down the line because if they call me out on that they know I'll call them out on the fact that half of the parts on the cars they want me to buy are from "out of town". There's a fine and blurry line there you know? They also like the fact that we are privately and locally owned which LC and the like can't lay claim to.
They could, and the SHOULD!
This IS a global economy for sure, so it is assumed that many of the "ingredients" may not be indigenous to the state of Michigan. However, how many of our parents, back in the 1950's, drove on tires that were manufactured in Akron, Ohio, with rubber harvested from trees in Maya? This is not a new concept.
Every business that has any hand in manufacturing their products should tout that fact, wave the flag, and be proud of it. If LC makes (part) of their products in house, then by all means they should promote that. It sure beats 100% made, manufactured, and dispensed in China via online!:angry:
Ophthalmic Optician, Society to Advance Opticianry
Seems you contradicted yourself.
I love the boys @ VC - I've know Jason and his Dad for a number of years. But I hate to break it to you - they're an Essilor lab
Actually they're a Essilor Partner Lab - not controlled by ELOA or as Jason would say - the culture of Vision Craft with the resources of Essilor.
I can't tell you how many former owners have used that exact same phrase when explaining to me that they are still the "same old lab".
Hey, whatever it takes for them to justify to themselves that they made the right move is fine w/me, but don't expect me to participate in their therapy.
Ophthalmic Optician, Society to Advance Opticianry
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