Luxottica, SunGlass Hut, and LensCrafters...

**Pete Hanlin** · 04-16-2002, 12:17 PM

As I have mention oft before, I like and use Luxottica products in our practice, and have no problem with the fact that they own a retail chain. Luxottica reps are always telling us that the common ownership of these companies poses no threat to private practices (and indeed, Lux/LC is somehow this benevolent force in the optical industry that only wishes to help us all...).

Recently, one of our patients brought in a really slick SunGlass Hut flyer that had been direct mailed to her house. It did a great job showing off the RayBan and Killer Loop lines. On the back of this little mailer, there was a big coupon (which I've pasted above).

Here's my beef. Over the past couple years, Lux dangled the SunGlass Hut name in front of private practices and intimated that, if they would just put in "Sun Centers" and try to sell through the sunwear, Lux would someday allow SunGlass Hut signage at private opticals. According to Lux, 2700 practices put in sun centers. However, to date there has been no indication that Lux is even beginning to put any SunGlass Hut signage in any private optical.

When queried at Vision Expo East, a Lux representative informed me that, after a year of study, (better sit down folks, this is going to be a shocker) private OD offices by and large don't do a great job at selling plano sunwear! Gasp!

When I asked if ANYTHING was going to be done for the 2700 opticals that did put in Sun Centers, I was told "Well, the Sun Center signage has gotten better."

Come on! Luxottica is doing a lot to get back into private practices (many of which abandoned them when they purchased LC). If you want back in, you are going to have to live up to (and beyond) the promises you imply or implicitly make to your accounts.

"Well, Pete, what do you expect?" Luxottica might ask. I'm so happy you asked! The patient with the flyer wanted to know if we could make SunGlass Hut frames into prescription sunglasses. I informed her that, not only could we fit Rx lenses to the frames, but the RayBans she was considering were less expensive in our office than at SunGlass Hut. Would it kill Lux to put "and participating private offices" next to LensCrafters? Our rep could procure our agreement to honor the coupon and maybe even (Heaven forbid) supply us with pop stuff that says "We can fit your SunGlass Hut frames with Rx lenses." (or something like that).

Will I still buy from Luxottica? Yes, for now. Am I happy with EyeMed? Looks promising, but we're still evaluating it. Will I purchase any more sunwear from Luxottica? Nope, not till they do SOMETHING for the accounts that put in all that sunwear...

I'm not saying Lux/LC doesn't have the right to direct business to each other using the retail and frame lines. However, if you're going to pull this ****, at least have the decency to drop the "we're here to help you" charade!

**spazz** · 04-16-2002, 02:13 PM

Hey Pete:

here's an isiders view of what may have really happened with the Sun Hut in private practises idea. Someone formulated this (I think) great idea. Money and time was poured into it, but at some point this unknown person, for whatever reason, left the company. It seems that when this happens, any thoughts and ideas that they may have had will disappear from everyone else's mind!

It seems to be some sort of rule. If someone else comes up with this idea again, you may yet see sun hut signage. The problem, in my opinion, MUST be some sort of alien death ray thingy orbiting high above the Earth, constantly firing at recent departees of the company!

I hope this has clarified things a little!:cheers:

**Pete Hanlin** · 04-16-2002, 02:50 PM

Thanks for the clarification... I really have nothing against Luxottica refering people to their own retail chain, but after going through the trouble and expense of stocking their sun lines, it kind of bites to watch them pour money into advertising the same product they sell to me for another store (i.e., Sunglass Hut).

Someone at Luxottica really dropped the ball on this whole Sun Center thing. As a result, they've turned a happy customer into a disgruntled one. I will not be purchasing any additional RayBan sunwear, that's for sure!

**John R** · 04-16-2002, 04:18 PM

Pete Hanlin said:
The patient with the flyer wanted to know if we could make SunGlass Hut frames into prescription sunglasses. I informed her that, not only could we fit Rx lenses to the frames, but the RayBans she was considering were less expensive in our office than at SunGlass Hut.

Could you not advertise this fact in your window, local papers etc ??

One thing that does suprise me is the fact they let you sell cheaper than SunGlass Hut.

**Joann Raytar** · 04-16-2002, 08:16 PM

I wonder which of the Sunglass Hut opticians verifies Rx's to make sure that they are compatable with various frames? It wouldn't be good to have someone purchase a frame with too much wrap only to find out that they can't get it Rx'd and the coupon won't help them any. I guess you send the customer back to Sunglass Hut within 30 days for a refund or an exchange.

**edKENdance** · 04-16-2002, 09:52 PM

Anyone at any time could take a frame purchased at SGH and have them rx'd. I think Lux is trying to create a synergy between the 2 businesses. The failing point is that the labs can't match the tints, the rimless can't be rx'd due to the assembly. The expectations are being raised but in reality everything is the same as it has always been.

**Pete Hanlin** · 04-17-2002, 09:50 AM

I've had an evening to think about all this (which usually affords me time to calm down and be a bit more rational), but all I've become is more agitated!

Maybe all of you who have complained before have been saying this all along and I just didn't "get it." Basically, I'm buying a product from someone who spends the money I pay them for the product to make it harder for me to sell the product by advertising for my competition!

Following my own advice (i.e., "Quit crying about it and just find other ways to compete."), I suppose I need to just "get over it." I just can't believe a company could be so malignantly myopic when it comes to PR and servicing clients! I certainly wish our office received such slick flyers to send out to patients!

Anyway, I have the 24 page, glossy colored flyer nailed to my office wall to remind me why I'm not going to purchase products from my Luxottica sun reps (who I like very much, btw)! Well, at least Costa Del Mar and my Nautica rep will be happy!

PS- We HAVE advertised, internally and externally, that we have tons of sunglasses, we honor our warranties (unlike the Hut, from what I've heard from their customers), and that our prices meet or beat SH. Unfortunately, in the mind of the typical consumer, they just want to stop by the mall and look in at what MUST be good deals. I wish Luxottica all the success in the world- I just don't want to hear another word about how "we don't advertise product we sell at our retail operations."

**Blake** · 04-17-2002, 11:01 AM

To answer Jo's question, all of the Rx-able frames at SGH are labeled, as they have supposedly been approved by someone at LC. Most wraps and all rimless are excluded. Of course, there are always going to be exceptions!
Of course, that doesn't make Pete's argument any less valid. Too bad they can't envision a situation where everyone wins.

**Pete Hanlin** · 04-17-2002, 05:30 PM

Too bad they can't envision a situation where everyone wins.
Especially when such a win-win situation is so easy to imagine!

It would be just splendid if the exact same 24 page flyer was sent out with all the Sunglass Hut nomenclature... All they would have to add is "RayBan, Vogue, Killer Loop are also available locally at: xxxxxxxxxxxxxxxxxxx"

Luxottica wins because they can require a certain level of inventory to be included on the mailer. The practice wins because it gets included on a truly great looking piece of advertising. The patient wins because they can purchase frames and Rx lenses all in one place!

How is it that this thought never dawned on anyone at Luxottica? If they really want to take advantage of their different operations, why not send a flyer that directs people to everywhere that sells their product? I suppose the only downside for Lux would be the patient might choose sunglasses from some other manufacturer if they visit their doctor's office...

**Judy Canty** · 04-17-2002, 05:46 PM

They forked over a cool $600 million plus for LC and I'm not sure how much the final price was for SGH. They have to drive business into their own locations to recoup the bucks. Business is business, after all....

**Joann Raytar** · 04-17-2002, 08:33 PM

Blake said:
To answer Jo's question, all of the Rx-able frames at SGH are labeled, as they have supposedly been approved by someone at LC. Most wraps and all rimless are excluded. Of course, there are always going to be exceptions!
Of course, that doesn't make Pete's argument any less valid. Too bad they can't envision a situation where everyone wins.

Blake,

It's not exactly a win/win situation for you guys either. It is a way to bring in market share but can kill your average sale and second pairs, especially if those folks don't buy a dress pair at LC. I hope the company has found a way to compensate their employees for these kind of deals. You are the folks doing all of the work.

**Mikef** · 04-17-2002, 08:54 PM

Pete,

Luxottica did try a flyer for a select accounts across the country about a year ago. It sported most of our brands and had a coupon on the back. I had a customer that we mailed out 15,000 for! They had about 30 to 50 customers bring in the coupon! At a cost at least $10,000. Postage was over $4,000 alone. Not a great return on investment!
I think this add is an attempt to stop people from going to Sunglass Hut and taking the frame to another chain!

How many customers have bought shades form the Hut and brought them in for you to RX in the past?

Michael

**Johns** · 04-17-2002, 09:13 PM

My New Year's Resolution was "if I couldn't say anything nice, I'd say nothing at all" I have kept my resolve, and with this in mind, I will mention that Lux reps have nice shoes and they seem t be very well groomed. There, I said something nice about Lux.

Pete:

It sounds like you're begining to see the light. I was blasted back in November for making statements about the exact type of advertising you posted, but I didn't have the proof.

You're right, it is time to move on, and it's a big world out there. I've devolped some great relationships w/ some very progressive sunglass companies that are interested in making money while not "sticking it" to the small guys. They don't wax on about being you "partner". They show the product, you buy it, you sell it. They take it back if it doesn't sell. They don't force you to overbuy product that would never sell in your area, but they will let you take a chance on some wild new styles. Just like the old days.

It was really nice to see a post from a well respected opti-boarder that backs up what many of us have been saying all along. Thanks.

Jo:

I don't think that whether or not the frames can accomodate the prescription is their concern. Their concern is that you don't go to an independent to find out; you go to LC, where they can always switch to some other style, while keeping the $$ in their pockets.
It is cross marketing at its finest.

Johns

**LENNY** · 04-17-2002, 09:30 PM

Strange !
I dont see any Luxottica people or Reps comenting on this issue!
Strange !

They probably very busy now.
Oh oh

**Mikef** · 04-18-2002, 05:37 AM

I am a luxottica rep!

**Pete Hanlin** · 04-18-2002, 10:01 AM

Luxottica did try a flyer for a select accounts across the country about a year ago.
It sported most of our brands and had a coupon on the back. I had a customer that we mailed out 15,000 for! They had about 30 to 50 customers bring in the coupon! At a cost at least $10,000. Postage was over $4,000 alone. Not a great return on investment!
I understand what you are saying, and I'm not proposing that the flyer be specific to our location at all... All I'm asking is that the other offices in town that carry the product at least receive a mention! This would make a lot of sense in Tallahassee, since there aren't any LensCrafters in town anymore (they had two locations, but we have a very powerful local chain that basically put them out of business).

I have ALWAYS agreed that Luxottica/LC/SGH should do (and be free to do) whatever is in their best interests. However, this ad is NOT in their best interest, in my opinion. Not only does it alienate some of its customers (e.g., myself), it fails to promote Luxottica's products in all the locations it is available in!

Moving on, however- I have procured several of the flyers and have them posted around the office (they are a great looking piece, after all- and they promote the products much better than the "Sun Center" stuff we lowly private practices get), with notations on all the prices indicating that we beat SGH's prices. This will help me sell my current inventory of RayBans and Killer Loops. When they are gone, Luxottica won't have to be concerned about what I think, because I will no longer be a sunwear customer (which I am sure is no great concern to them, because they don't seem all that concerned as it is).

Perhaps the other 2,699+ offices lured into installing SunCenters with the implied hope of acquiring SunGlass Hut signage will react the same way, but I'm sure many will simply continue to be sucked in to stocking product that is competatively advertised by the company selling it to them.

Just an analogy... Let's say Ford Motor Company purchased an on-line website and started advertising the heck out of it as an alternative to "the traditional dealer." Instead of fooling around with the independent Ford dealers who sell Ford products, they could go straight through a company owned by Ford directly. I'm sure Ford's local networks of dealers would be pretty non-plussed. Some of them might look into dealing with Chevys, Toyotas, or some other manufacturer who was more "dealer friendly."

Not angry anymore, just awake... As Judy said, Business is business, after all....

**Mikef** · 04-18-2002, 12:32 PM

Pete,

I only sell to independents and not LC so I tend to be on your side. But Many companies sell products direct and through independents as well . Every clothing designers have company stores and sell to others as well. Many companies sell on-line as well as to stores.

When Lenscrafters advertised Flexon everyone sold more! Varilux did an add for pearle! and so on.

I understand your pain!

How many times do cutomers bring in Plano's to get an Rx? Most of my customers tell me that the send people into Sunglass Hut to look and then they order the frame for them!

I think that the Lencrafter customer and the Independent customer are not the same.

I tell all my accounts if you want to do well service your customer well. Give them what they want and make them happy. Independents can do alot more for their customers and any chain can do. You can offer your customers twice the sunglasses that Sunglass Hut can.

O.K. I did not want to stir the pot! TOO LATE!

I like Harry's John Wanye thread much more!

Michael

**Mikef** · 04-18-2002, 12:34 PM

Pete,

On the flyers! I wish they could include you!

I will try to find if it is possible!

**Pete Hanlin** · 04-18-2002, 04:24 PM

Michael,

Actually, I really like Luxottica products, and Pam and Linda Ellis (no relation) are great Luxottica reps!

I guess I'm just a bit peeved because of the "put in the SunCenter and we'll get you a Sunglass Hut" line that I was fed when we put our sun lines in. That makes this particular advertisement just a bit too much to stomach. Taken by itself its no real big deal, but like I told a Lux guy up at Expo, "If you can't give the SunCenter locations a Sunglass Hut, give them something better than "SunCenter" logos!

To answer your question, no- we don't get a lot of plano sunwear from customers who wish to insert their Rx (although we've done two this week). The point, however, is this: if you have the advantage of having control of the product and a retail outlet, why not take full advantage of your position and tie all your distribution points (Sunglass Hut, LC, and private practice accounts) into your advertising?

**Mikef** · 04-19-2002, 12:40 PM

Pete.

I check with my manager today. I was told that they are going to start a test with 2 accounts in each region(about 30 or so accounts) So Sunglass Hut is still in the cards! (According to my Manager)

Have you talked to Pam about this Yet?

Michael

**LENNY** · 04-20-2002, 09:14 AM

This is toomany accounts!:bbg:

**EyeManFla** · 04-20-2002, 05:11 PM

I just wish that when I order black Ray Ban temples, they wouldn't keep sending me gold ones!

As much as I like Ray Ban, Persol and Revo...I do much better with Costa Del Mar and Maui Jim.

**Joann Raytar** · 07-15-2002, 09:36 AM

Pete,

It looks like the flyer was the least of your concerns.

VMail, from Vision Monday for Monday, July 15, 2002.

http://www.visionmonday.com

Sunglass Hut Rolls Out Rx-Sun Program

CINCINNATI--In a move to capitalize on the proximity of its LensCrafters and Sunglass Hut stores in malls and other shopping areas, Luxottica Group ’s (NYSE: LUX) retail division has launched a cross-marketing program to promote prescription sunwear through Sunglass Hut. Said Kerry Bradley, COO of Sunglass Hut North America, "Many Sunglass Huts have great opticians right down the hall at LensCrafters, so Sunglass Hut personnel are now asking customers if they’re interested in prescription sunglasses. If so, they’re referred to LensCrafters for their Rx lenses." The program, being operated in virtually all Sunglass Hut locations except those without a LensCrafters nearby, was launched in March after a three-month test.

**JennyP** · 07-15-2002, 11:02 AM

Jo and Pete,

I work at one of the mall LC with 2 sister sunglass hut units....

After a big push (with extra spiffs for rx referrals) and a lot of misunderstanding about what frames will actually work for the majority of rxs, we are getting maybe an average of 2 or 3 a week. This tends to include one "Oakley" to have Oakley lenses, and 2 others we can make on site. We do so few that we arent very proficient yet at the extra computer processing or paperwork, and I havent seen an increase either since the first month. It was a good idea, but it hasnt really affected our business that much yet on the LC side...dunno if it is helping the huts either (just the referring associate). Do you really think you need to worry??

Just my .02....
JP

**Joann Raytar** · 07-15-2002, 11:24 AM

Jenny,

The issue isn't with Sunglass Hut referring to LC it is with them not referring to those independent stores that bought X amount of frames thinking that at least some type of marketing would increase sun traffic their way.

Think about how hard your store tries to maintain its controllables and monthly budget. What if you put a grand or more into a concept that you were promised support for and in the end recieved very little co-operative effort to make it work? You would feel like you just blew a good chunk of money that could have been better spent. You now have to spend even more of your money to market all of those frames because outside advertising sources aren't going to give you a simpathy break for a business venture that flopped.