Coastal Entry Level Price Increase Up 56%

[HindSight2020]

They are back on for $38 a pair until March 25th.
I know this is a bit off topic but I was rather upset to see a couple CURRENT Vera Wang models for $99 each with lenses.

Perhaps their price increase has slowed their unit sales and are going back to their roots? When your customer base consists of bottom feeder consumers, there's nowhere to go but down and a 46% price hike will surely send them running elsewhere.

I find it rather humorous - think about it...how can a company that is already the cheapest onliner with a niche market losing millions per year have a sale??? Let's have a sale and lose even more money!!??

They probably need a quick influx of cash to keep up with those $10M loan payments while lowering their inventory levels and holding costs.

Its doomed I tell ya!

[optimensch]

like the old quip, they may lose only a little on each sale, but they plan to make it up in volume!

[HindSight2020]

like the old quip, they may lose only a little on each sale, but they plan to make it up in volume!

Not when your already losing your shirt...I believe it's in desperation.

[optimensch]

Not when your already losing your shirt...I believe it's in desperation.

they are experiencing price compression on contacts as well. they've had to drop pricing on popular lenses due to new CANADIAN online competition. Their low hanging boys are being squeezed, even on their bread and butter contact lens business. Couldn't happen to nicer folks.

[HindSight2020]

they are experiencing price compression on contacts as well. they've had to drop pricing on popular lenses due to new CANADIAN online competition. Their low hanging boys are being squeezed, even on their bread and butter contact lens business. Couldn't happen to nicer folks.

Love it...

[Chris Ryser]

they've had to drop pricing on popular lenses due to new CANADIAN online

......................would like to know who the new competition is

[optimensch]

check visionpros.ca. look at aquacomfort dailies 90 pack ciba and compare with cc price. there are others, and they get 1st page google ranking. so cc is getting squeezed without a doubt. they released q1 results last night. call a medic because they are bleeding green.

[optimensch]

i get a quite a lot of new patients who are university students in my area. many are cc clients. my conversion rate ie. getting them to purchase cls from me, rather than cc, is 110%. the extra 10% is due to some bringing a friend and also buying glasses they hadnt planned to.

[optimensch]

so on $ 54 million in sales for the quarter (an impressive number indeed) CLEARLY had a net loss of $3.4 million (also very impressive). I am no accountant, no mba and i'm not a banker. I don't read a lot of income statements or a balance sheets. But this one APPEARS to be a little, just a teeny little bit, stinky.

[Chris Ryser]

check visionpros.ca. look at aquacomfort dailies 90 pack ciba and compare with cc price. there are others, and they get 1st page google ranking. so cc is getting squeezed without a doubt. they released q1 results last night. call a medic because they are bleeding green.

They are also in BC:

VisionPros.ca
19138 26th Avenue
Suite 206
Surrey, BC, V3S 3V7

Alexa Traffic Rank		Reputation
1,058,402 Global Rank Alexa Traffic Rank A rough estimate of visionpros.ca's popularity. The rank is calculated using a combination of average daily visitors to visionpros.ca and pageviews on visionpros.ca over the past 3 months. The site with the highest combination of visitors and pageviews is ranked #1. Learn more. Updated Daily	28,745 Rank inCATraffic Rank in Country A rough estimate of visionpros.ca's popularity in a specific country. The rank by country is calculated using a combination of average daily visitors to visionpros.ca and pageviews on visionpros.ca from users from that country over the past month. The site with the highest combination of visitors and pageviews is ranked #1 in that country. Updated Daily	48 Sites Linking In

[drk]

I haven't read this whole monster thread, but doesn't it make sense that scabby websites will always pop up, undercutting the more "established" scabby websites?

I think it's a race to the bottom. I'm staying out.

I laugh at those who are buying into this paradigm. Like Eyeconic (VSP). Like Frames Direct (essilor). What losers.

[Robert Martellaro]

I haven't read this whole monster thread, but doesn't it make sense that scabby websites will always pop up, undercutting the more "established" scabby websites?

The maggots burrow through the viable flesh and feast on the dead parts in zombie-like fashion. (Sorry, but the eyes popping out in the other thread got me going).

[drk]

I like it.

[optical maven]

So if they charge $48/ box of Dailies, what is their cost per box? if they are paying the same wholesale price as the rest of us, how do they make any money? So do they pay the same price as us, or do they get some other deal and so are making more?

[drk]

Gosh, I wonder how much Alcon sells these lenses for to the Chinese? In Mexico? I wonder how much cheaper they'd be for me to buy with my US dollars, and just ship over a boatload?

[optical maven]

So, I think I understand that, but how much would they pay for the lenses? Also, these guys are located in BC. Without sounding too naive, how do they import lenses into Canada under Alcon's nose?

[idispense]

So if they charge $48/ box of Dailies, what is their cost per box? if they are paying the same wholesale price as the rest of us, how do they make any money? So do they pay the same price as us, or do they get some other deal and so are making more?

Why would they pay the same price as you ? Do you buy the quantity they do ? Do you have the demonstrated selling capacity they do ?

[idispense]

So, I think I understand that, but how much would they pay for the lenses? Also, these guys are located in BC. Without sounding too naive, how do they import lenses into Canada under Alcon's nose?

Why would it be done "under Alcon's nose ?"

[edKENdance]

so on $ 54 million in sales for the quarter (an impressive number indeed) CLEARLY had a net loss of $3.4 million (also very impressive). I am no accountant, no mba and i'm not a banker. I don't read a lot of income statements or a balance sheets. But this one APPEARS to be a little, just a teeny little bit, stinky.

I thought the same thing. How can they lose so much money and be a viable business?

[Judy Canty]

Amazon.com failed to produce a profit for years.

[edKENdance]

Amazon.com failed to produce a profit for years.

different model by a long shot. I don't think amazon ever gave away low quality DVDs and books for free to entice the possibility of return business.

[idispense]

different model by a long shot. I don't think amazon ever gave away low quality DVDs and books for free to entice the possibility of return business.

Every company that ever lost money was giving away something!

[Chris Ryser]

While traditional optical retailers say they offer better service and quality, Mr. Hardy defends his products, saying he orders premium eyeglass lenses from South Korea, Germany, France and the United States. He expects many people who obtained free glasses to return as paying customers in future.

Some institutional investors have toured Coastal's plant, located in a technology park on Vancouver's east side, and they are pleased to see automated machines reshape glass "pucks" into lenses for specific frames, Mr. Hardy said. Workers manually fit the glass lenses into frames, but the earlier automation speeds up the production process and cuts costs.
"We find that there is a real 'aha' moment for people when they come in here and say, 'Now I get it. You have to actually manufacture.' Each order is custom-made for each person in that day, so getting the fit right and speed is part of it," Mr. Hardy said.

Coastal's Vancouver plant produces more than 4,000 pairs of eyeglasses a day for customers in North America, Australia, New Zealand and Brazil. The automated machines are capable of handling nearly 12,000 daily in Vancouver, so there is plenty of room to ramp up production.
The company sought to raise $40-million (U.S.) through an offering of common shares in November, but cancelled the plans owing to unfavourable market conditions for financing, Mr. Collins said. Still, Coastal remains keen on the large U.S. market and is well-positioned to expand its customer base south of the border in 2013. "It's a big market for us and a real opportunity," Mr. Collins said, emphasizing that he is looking ahead and not reminiscing. "I spent 14 years in politics and that was a long time. It was a great experience, but I'm happy doing what I am doing now."


See all of it --------------> https://secure.globeadvisor.com/serv...GLASSESJANGATL

[HindSight2020]

I haven't read this whole monster thread, but doesn't it make sense that scabby websites will always pop up, undercutting the more "established" scabby websites?

I think it's a race to the bottom. I'm staying out.

I laugh at those who are buying into this paradigm. Like Eyeconic (VSP). Like Frames Direct (essilor). What losers.

+1

[HindSight2020]

Why would they pay the same price as you ? Do you buy the quantity they do ? Do you have the demonstrated selling capacity they do ?

Maven is just asking a simple question...no need to be rude or sarcastic. Man, you really must have been a lonely child growing up.