In Office Lab

**AustinEyewear** · 04-11-2011, 02:42 PM

Yes, the service you can provide is compelling, so is the satisfaction of knowing you can provide the service and also knowing you may be able to make more money. The finance guy inside of me is asking the hard questions:

Acquisition cost of edger and related equipment
Build out cost of lab (you don't plan on sticking it in the corner somewhere do you?, gonna need more storage space then ever now)

Monthly expenses:
------------------
Debt service of above
Supplies, maintenance and parts
staff costs to run, inspect and do-over when required
staff costs to keep lab clean and dust free
reduced discount with current lab because of lower volume

Headaches:
------------
Dirty lab, noise, smell. Is the dust going to get into our extremely expensive exam equipment? Is the smell and noise going to upset patients? Finding and keeping the person who really can run this stuff. What happens if they leave???

Struggling with all of the questions and more right now.

**David_Garza** · 04-11-2011, 03:03 PM

Originally Posted by AustinEyewear

Yes, the service you can provide is compelling, so is the satisfaction of knowing you can provide the service and also knowing you may be able to make more money. The finance guy inside of me is asking the hard questions:

Acquisition cost of edger and related equipment
Build out cost of lab (you don't plan on sticking it in the corner somewhere do you?, gonna need more storage space then ever now)

Headaches:
------------
Dirty lab, noise, smell. Is the dust going to get into our extremely expensive exam equipment? Is the smell and noise going to upset patients? Finding and keeping the person who really can run this stuff. What happens if they leave???

Struggling with all of the questions and more right now.

**AustinEyewear** · 04-11-2011, 03:09 PM

Thanks pretty funny David, who let you out of the exam room anyway?

**decm1108** · 04-12-2011, 01:52 PM

Thanks everyone for all the great advice and comments. This gives me plenty to consider.
Dawn

**John@OWDC** · 04-12-2011, 03:41 PM

Santinelli and OpticianWorks is offering a free two-day "boot camp" on in-office lens finishing at Santinelli Intl. on Long Island, NY in early May.
Students will receive instruction on lens layout, lab ordering, Rx verification, edging, assembly and much more.
Includes individual hands-on edging of SV, lined multi-focals and progressives.
Enrollment is still open but class size is limited.
Contact Barbara Wagner at 631-731-1349

**NOVUS2** · 04-14-2011, 06:40 PM

If you have volume of work to cover the costs than do it. Stock lenses are extremely profitable if you get a good discount or can find a good buying group. . if you sell lenses at a premium you can recover your initial costs quicker than you think. I got my lab started when a lab rep offered to pay half our edger costs to get our business. The downsides are initial costs, labor of course, and getting an experienced lab tech. Upside is better quality and cost control, less remakes and believe it or not quicker turnaround. I can usually get sv done in 1hr to 2 days and non ar lenses done in 3-4 days including wholesale lab turnaround time.. I also do drills/ and grooved jobs.. As far as wholesale labs if you have enough work, they'll deal with you, ask for their best discounts or shop around, insists that they pay shipping and of course, get a lab that credits instantly for rx changes or wnty work.. If you can't get experienced lab tech, than don't be afraid to send the hard stuff (drills, glass of course, executives etc out to wholesale lab, although you'll quickly see that your quality is better than theirs..)

**Johns** · 04-14-2011, 08:52 PM

An OD friend of mine just went out on his own. He was working for a private optician that had a finishing lab. When my friend sat down and went over price lists from labs that were soliciting him, he couldn't believe how much the lens and edging charges were. He even call me and said that he remembered the optician mentioning that he was paying XX for the lenses, but now, when he gets the price list from the lab, they are XXX, plus the edging charges.

I tried to explain to him the difference in the finished and uncut pricing structure. He kept asking why he couldn't get the stock pricing, and just add the edging charges on. It would be a lot cheaper. I told him it would be like having a steak delivered from your favorite butcher, to your favorite restaurant, and paying them to cook it for you. They don't do it.

There's much more savings to edging than meets the eye, and it isn't all in the edging charges.

**John@OWDC** · 04-15-2011, 06:42 AM

NOVUS2: Very well said, it sounds like the voice of experience! I would chime in with, "I can usually turn around a SV job with or with out AR in about 10 minutes..."

**NOVUS2** · 04-15-2011, 08:25 AM

It's amazing how much the costs can go up from uncut to finish, especially on some smaller wholesale labs. We've even experimented with cutting lenses for other practices (We matched their normal wholesale lab prices plus a few percent discount) and the profit was worth the extra time..

**Darryl Meister** · 04-15-2011, 11:38 AM

While it is tempting to see dollar signs flashing before your eyes when considering in-office lens finishing, remember that operating a finishing lab isn't necessarily all "peaches and cream":

1. You will now absorb the costs associated with the breakages associated with lens finishing, and even "off-power" errors in your uncuts will become more problematic. This also results in a greater tendency to let your quality slide in order to minimize lab costs and delivery times.

2. You become the "manufacturer" in terms of FDA impact-resistance testing. This means that you will also need to put an impact testing protocol in place and begin documenting this testing.

3. In order to produce truly quality work, you will definitely have to employ a skilled bench optician. Even with the latest patternless edgers, a skilled optician is a necessity in the finishing lab for a number of reasons.

4. A finishing lab will require a dedicated space with appropriate wiring, plumbing, and so on. Your customers may also have to contend with the noise and smell associated with finishing labs, if the area is not sufficiently isolated from the clinical areas.

5. You will also take on the other responsibilities associated with operating a finishing lab as required by federal, state, and local statutes, such as disposal of waste materials, OSHA requirements, etcetera.

If you take the investment of a finishing lab seriously, you may indeed be able to deliver better service to your patients while reducing your cost of goods. However, if you see the installation of a finishing lab only as an opportunity to start making money hand over fist, you and your patients are likely to be disappointed.

Best regards,
Darryl

**jefe** · 04-15-2011, 11:56 AM

You could get started for much less than $50,000, but you must have someone who is a craftsperson operating the equipment. I, too, have a Briot Accura, and I would put the quality of my work up against what I've received from any finish lab I've used.

**Jacqui** · 04-15-2011, 12:22 PM

I agree with Darryl on this, having an in-house finishing lab is not what most people think it is. Your best bet at this time is to consider each of his points. I am against in-house labs because of some of the rotten work that I have seen from them, but some wholesale labs are now just as bad.

**Jacqui** · 04-15-2011, 12:26 PM

Originally Posted by jefe

You could get started for much less than $50,000, but you must have someone who is a craftsperson operating the equipment. I, too, have a Briot Accura, and I would put the quality of my work up against what I've received from any finish lab I've used.

For about $30,000 you can get a rebuilt Santinelli 9000 and the rest of the needed equipment. The $20,000 saved buys lots of stock lenses or helps to pay a big chunk of the lab bill.

**decm1108** · 04-15-2011, 05:50 PM

Great Info! Thank You All!
Dawn

**Johns** · 04-15-2011, 08:22 PM

I've found that the most ardent opponents of in-house labs are usually wholesale labs.

**Darryl Meister** · 04-15-2011, 08:36 PM

I've found that the most ardent opponents of in-house labs are usually wholesale labs.

That stands to reason. Just as the most ardent proponents are usually edger manufacturers. ;)

Best regards,
Darryl

**CNG** · 04-20-2011, 04:40 PM

The volume of your operation and the need of your patients is the most important one. If you can negotiate with a major lab to do free edging, then pass on your own lab. I'm a one man operation and it seems that in the beginning it made sense having my lab (still do) for those single vision lenses but the reality is that my customer base became more demanding and older. We only use our inhouse lab if the patient needs a temporary pair of eyeglasses in single vision until ther high end one comes in from our outside lab. We still pay the same for the lenses wether edge or unedge.

My time is more valuable now more than ever....remeber optics is a waiting game at times but other times you need help in keeping up with the orders. Get the edger you want as long as it does not create an added expense or added time for you at work.

CNG