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Thread: Davis Vision, A shot across the bow for independent providers.

  1. #1
    Master OptiBoarder Alan W's Avatar
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    Davis Vision, A shot across the bow for independent providers.

    http://www.visionmonday.com/index.asp?page=4_8639.htm

    We are rapidly approaching a threshold in the way independent providers will operate and how they will coexist in a managed care environment. Davis Vision, VSP and others no longer work their original agenda of administrating and marketing managed vision care. They are now full on competitors of independent providers expanding into the marketplace with their own points of service. Behind all of this is a concentrated effort to manage the supply chain and all of its elements from manufacturing to distribution and marketing and merchandising. Independent providers are getting farther and farther away from sustaining their position because all the supply chain management (not profit margin mentality, but contribution to margin mentality) is occuring behind their backs and on the other side of the wholesale door, both lab and frame. No longer can independent providers live by the "buy low sell high" merchants philosophy. Independent providers need to come together on the supply chain side while they are still the largest group in the industry.

    I know independent providers have a problem sitting at the same banquet table with each other. But, for heavens sake, isn't it time for them to grow up and start thinking outside their little shop on Main Street? This is like watching flesh eating bacteria at work. Independent providers are getting eaten alive and don't seem to realize that that little rash is about to eat their arm off. Like terrorism . .. independent providers need to wake up and realize that it's not the "Brooklyn Merchants Discount" they are dealing with. They are undermined and infiltrated in every nook and corner of their professional practice being. It's all the expenses they are footing the bill for to get that piece of plastic called a frame or a lens to their mailbox. Where's the intelligence? It certainly not the one with the retinascope, the laser, or the patternless edger. It's the people the independent provider should be hooking up with.

    I can't believe the general population of independent providers can be so uninformed, unaffiliated, and naive to actually think they will survive without taking full control of the consumers revenue. This is serious stuff.

  2. #2
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    specialty items

    dear independant optical providers, you need to sell something the big chains can't sell. that's anything "complicated".
    the davis people and their like are "down and dirty". they cringe when it comes to expensive items.
    look at what's in the isles of the walmart type stores and compare that with the quality stores. you have to make people want quality. demonstrate the better stuff.
    suppliers could help with providing sales material to pass on to our customers.

  3. #3
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    Well said. We will not compete with their $$$ advertising budget, but we can compete with knowledge and service. How true that we as a group cannot agree to combine our talents and resources together to act as one voice to the public. History has taught us, as was demonstrated in the movie "Gangs of New York", that a group that was being held down by others, could get together and vote themselves into positions of power and take control of their own destiny. Why not the optical field?

  4. #4
    Master OptiBoarder Joann Raytar's Avatar
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    I thin Alan is bringing up the supply issue that has been creeping up spesifically. Yes Alan, it appears that if you take third party, you sometimes feel as if you are working for the insurance company rather than yourself. Now that the plans are pushing frame supplies, we are getting close to the last link. I have to tell you that it is a battle to keep supply and pricing fair for private pay patients. There are so many third party patients in the area of one of our locations that it has actually been a topic of conversation around the office for the past two months.

    The owner doesn't see dropping some of these plans as an option because of the volume of patients. I think seeing that many third party patients could just dig a hole that would be pretty hard to climb out of.

    Is it possible to retain a private identity with so many third party patients out there? If it is, how? If it isn't, how do you stay afloat?

    Is there a way for us to let the public know that the insurance companies are trying to turn a profit by way of their coverage, that insurance companies aren't charitable organizations but companies that in effect force providers to charge for products and provide services at fees that have to compete with insurance plans rather than consumer demand? A local hospital is doing that. Letting its patients know that they are paying so much for services and supplies over their copays because of the reduced prices HMO's are forcing them to submit and charge for. Letting the private pay public know that they are paying for discounts forced on them by heavy weight insurance providers.

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    Alan, can you post a link to the story that's accessible to everyone? The one above only gets to the home page of Vision Monday but does not allow access to the story.
    Thx
    Gil

  6. #6
    What's up? drk's Avatar
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    I have not read the article yet, so this post may be superfluous.

    Since I'm wasting your time, then, here's what I think is happening at VSP:

    In order to compete with other vision care plans in the boardrooms of corporate America, VSP has to offer the best product at the lowest possible price. Price is probably an increasingly important factor in vision care sales, especially with the corporations getting skinned by the payout for the medical benefits they provide.

    How does VSP do it? Like every other entity with money to spend: do stuff in-house.

    There are two ends to any continuum, and in this case it looks like this:
    "Little VSP carving a little niche, piggybacking on the optical profession" all the way to "Mega-giant VSP with it's own super sales force, own labs, own frames, own contacts, own providers."

    We are just somewhere along that continuum.

    Ultimately, though, "in-house" has it's own liabilities, and many businesses will get back to their core proficiency, in the vicious times.

    I maintain this: if you concentrate on your core proficiency, and are really good at it, and charge a premium fee, and stay lean and mean, you will always have marketshare, because some people will always appreciate quality. Now that marketshare may increase or decrease over time, even dramatically, but it will always be there. Stay conservative and true to your values, and you will always make it.

    On the other hand, if you try to increase marketshare by high volume/low reimbursement strategies, or overexpansion into every nook and cranny of the market for diminishing returns, you leave yourself vulnerable to financial ruin and loss of focus.

    VSP may make us say "no" to being providers, and we may lose marketshare, but we can work smarter and always cater to the people interested in paying for quality.

    Just my opinion.

  7. #7
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    davis vision

    I work for an independent OD. We have a very high percentage of Davis patients. In PA that is the norm. We have found that adding a "budget board" to our frame selection has been a great benefit. We always offer a 2 year warrenty on our frames. Davis only offers one year. This tends to draw the patients to the 2 year deal verses 1 year. Davis only gives you roughly around $7.00 per frame. There are some Davis Vision plans that actually offer $120.00 frame allowances. There are some to be aware of too. Some go by wholesale and not retail. I don't encourage Davis, but if you have to, be very Smart. Sometimes I sell extras. I don't encourage that, but it might be your alternative to make ends meet. Pat

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    Idea its managed care

    take what you can get and be thankful . yes you are the store front for manage care but you accepted the terms. at least you have good location where you were spotted. you want to make a profit, talk with your frame reps spice it up ,have that look thats in , you know keep up, whole sale those frames that have been sitting reduced price ,you know ,if you can not get credit for your stock , then drop it like its hot (the price) be competitive.give reason for the patient to want something not on the tower(but why would you, they offer the better deal)this is going to blow your mind but don't get discouraged ,but what other parties decide to have their own manage care facility produce finished product for you to dispense?lets be thankful of a working system, what if i complained of blurred vision to my primary and, i was sent to your store. lets not ask for a buddy system,thats like the guy you replaced my master cylinder ,then when the brakes would not let up he referred me to his specialist who replaced the harnesses ($2.00 harnesses=$160 labor)here is a thought i am not trying to stir anything up but what if stores offer to sell. like business opportunity.not funny ,ok ,yeah lets just keep pressing on move forward ,manage care are not competitors if you bargained with them.

  9. #9
    Master OptiBoarder Alan W's Avatar
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    I'm really amused!

    Scene 1

    As I look at the posts in this thread I note the span and interval of time of everyones comments.
    Is this a reflection of the thinking of our professions membership? If so, no wonder opticianry is constantly in jeopardy. Sort of makes me think of the jungle explorer who got caught by the local Cannibals.

    Scene 2

    Tied to a tree with burning brush at his feet. Natives dancing around him in a frenzy.

    Caption:
    "All I wanted to do is be nice and bring beads and designer stuff! Ya don't have to be nasty! Oooo, Ooooo . . . that's hot!"

  10. #10
    Manuf. Lens Surface Treatments
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    Blue Jumper Sell extras.....................

    Quote Originally Posted by mypat View Post
    I don't encourage Davis, but if you have to, be very Smart. Sometimes I sell extras. I don't encourage that, but it might be your alternative to make ends meet. Pat
    2 or 3 extras might just make up the difference, specially if you do and apply them yourself.

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