Page 1 of 7 123456 ... LastLast
Results 1 to 25 of 168

Thread: Coastal Entry Level Price Increase Up 56%

  1. #1
    Bad address email on file
    Join Date
    Jun 2012
    Location
    Canada
    Occupation
    Other Eyecare-Related Field
    Posts
    532

    Coastal Entry Level Price Increase Up 56%

    The pendulum continues to swing...

    Pressure from shareholders, recurrent annual losses in the millions, a declining contact lens web market and new retail locations have forced Coastal to drastically increase their selling costs to consumers. The most notable being their entry level $38 bait and switch web special which has now increased to $59.

    The honeymoon of unlimited capital and market share at no cost seems to be coming to an end which is great new for Independents. Consumers that have already sampled this low cost, low quality and no service structure are now doing a 180 degree turn back to the Independent professionals realizing that for a slightly higher cost, they can experience and savour the true meaning of personalized service.

    As for the retail chains, they are all hurting and cutting back on staffing and advertising.

    http://www.clearlycontacts.ca/glasse...3Complete59_CA

  2. #2
    Master OptiBoarder
    Join Date
    Jan 2010
    Location
    In Flux
    Occupation
    Dispensing Optician
    Posts
    1,615
    They won't have to raise the price by much to be profitable. The have huge market share. It remains to be seen if it is loyal market share.

    They have made a dent in the marketplace and everyone is suffering, except unique retailers following the Johns principles of marketing. Now is the time for them to stay aggressive and bring prices up slowly to profitablilty as others close.

    Now is the time for everyone to bring pressure to the regulators to insist they start performing their jobs or vote them out.
    Last edited by idispense; 02-03-2013 at 01:12 PM.

  3. #3
    Master OptiBoarder
    Join Date
    Jan 2010
    Location
    In Flux
    Occupation
    Dispensing Optician
    Posts
    1,615
    Wikpedia says Coastal only entered the eyeglass market in 2010 but in 2012 they sold over 1 million pairs of eyeglasses.
    So is it fair to say they are adding 1/2 million eyeglass sales per year ? Whatever, what was their $$ loss in the last year ? Divide that number by 1 million. How much do they have to raise the price per unit by in order to break even ? It's not a large per unit number is it ?

    As the big boys close stores, where does that market share go ? What percentage of the present market does Coastal own ? Apply that percentage to the new customers floating around and drifting without a home . What does that do to their bottom line?

    As the big chains, owned by frame manufacturers, close stores and to the extent that those manufacturer's products are being sold by Coastal now anyhow, then what is the real loss to the manufacturer ? As the manufacturer closes their retail B&M store and they shed that overhead they also increase business to Coastal. How many retail behemoth stores have to close to increase Coastal to profitablility ?

  4. #4
    Master OptiBoarder
    Join Date
    Jan 2010
    Location
    In Flux
    Occupation
    Dispensing Optician
    Posts
    1,615
    Wikpedia says and I quote:

    "Social media :

    Coastal.com uses social media, with both Twitter and Facebook pages where customers can give feedback, share photos and learn about company promotions.[17][18][19] [17][20] The firm puts on large-scale promotional giveaways for their eyeglasses, as many as 10,000 pairs each round. Today Coastal.com has more than 1.6 million global Facebook Fans ranking it as the clear leader in social media among optical retailers. Internet Retailer magazine ranked Coastal one of the top 3 web retailers in social media in January 2013. [21 "


    Interesting 1.6 million facebook fans ? Divide that number into their loss and then what is the break even raise in price figure ?

  5. #5
    Master OptiBoarder
    Join Date
    Jan 2010
    Location
    In Flux
    Occupation
    Dispensing Optician
    Posts
    1,615
    Assuming that Coastal can maintain the 2012 Wikpedia volume of 1,000,000 pairs of glasses sold without losing market share then Hindisght's s quote of a 56 % price raise = 21.00 per unit which translates to $ 21,000,000 .00 to the bottom line without taking into account normal year over year growth/decline , acquisitions and spin off from other competitor closings .

    If they can pull that off , that is not too shabby for a firm selling glasses for $ 58.00

  6. #6
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240
    Wikipedia is wrong................I have been following Coastal fo at least 6-7 years, when laughed at mentioning them.. They started in 2000.


    I also noticed the price increases a few days ago. idispence is right, they might have made the move to become profitable.

  7. #7
    Ophthalmic Optician
    Join Date
    Sep 2001
    Location
    USSA
    Occupation
    Dispensing Optician
    Posts
    12,591
    Quote Originally Posted by idispense View Post
    They have made a dent in the marketplace and everyone is suffering.
    Who is everybody? I know of more than a handful of independent ODs & Opticians that are experiencing all time record profits, and some are planning on expanding their services. Don't assume that just because someone is winning, that everyone else is losing.

    Family Dollar may have had a great 3 year run, but that takes nothing away from Nordstrum who also continue to achieve success.


    http://www.marketwatch.com/story/ros...mps-2013-01-03

    If you are an online retailer, then yes, compare the trends, but for many of us, it is merely pruning the market, allowing other sales to grow stronger.
    Ophthalmic Optician, Society to Advance Opticianry

  8. #8
    Master OptiBoarder
    Join Date
    Jan 2010
    Location
    In Flux
    Occupation
    Dispensing Optician
    Posts
    1,615
    did you misread the exception list to "everyone" ?

  9. #9
    OptiBoard Professional RT's Avatar
    Join Date
    Feb 2001
    Location
    CT
    Occupation
    Lens Manufacturer
    Posts
    879
    Assuming that Coastal can maintain the 2012 Wikpedia volume of 1,000,000 pairs of glasses sold without losing market share then Hindisght's s quote of a 56 % price raise = 21.00 per unit which translates to $ 21,000,000 .00 to the bottom line without taking into account normal year over year growth/decline , acquisitions and spin off from other competitor closings .
    You are assuming that all 1M pairs were originally sold at the $38 price, and now will be sold at the $59 price. Since Coastal has multiple price offerings, it's not a good assumption that all 1M pairs are going up by $21. Also, you're ignoring the possibility that they will sell fewer units at the higher price (normal price elasticity).
    RT

  10. #10
    Master OptiBoarder
    Join Date
    Jan 2010
    Location
    In Flux
    Occupation
    Dispensing Optician
    Posts
    1,615
    Quote Originally Posted by RT View Post
    You are assuming that all 1M pairs were originally sold at the $38 price, and now will be sold at the $59 price. Since Coastal has multiple price offerings, it's not a good assumption that all 1M pairs are going up by $21. Also, you're ignoring the possibility that they will sell fewer units at the higher price (normal price elasticity).
    The theory of price elasticity holds true in normal marketplaces using normal marketing methods in practise at the development time of that economic theorem, however it is not particularly suited to these circumstances in time as price elasticity relies on standardization of some variables being held constant, which is not the case here.

  11. #11
    Ophthalmic Optician
    Join Date
    Sep 2001
    Location
    USSA
    Occupation
    Dispensing Optician
    Posts
    12,591
    Quote Originally Posted by idispense View Post
    did you misread the exception list to "everyone" ?
    I guess so!
    Ophthalmic Optician, Society to Advance Opticianry

  12. #12
    Master OptiBoarder
    Join Date
    Jan 2010
    Location
    In Flux
    Occupation
    Dispensing Optician
    Posts
    1,615
    For instance, price elasticity theorem does not anticipate or allow for the following factors:

    ... Purchasing market share by giving away mass amounts of merchandise free
    ... Pricing product below BE to purchase market share
    ... Removing licensing barriers,forcing the competition to assist not compete
    ... Selling product into otherwise licensed areas in contravention of local applicable laws
    ....Regulators at many levels turning blind eyes to their own local applicable laws
    ....Members of regulated bodies will not stand up to the regulators they vote in
    ....Membership continuing to pay regulators rather than demand the laws be upheld
    ....Politicians pushing the matter on TV
    ....Sheer determination and dedication and quality of leadership team

    "Normal price elasticity ?" Is there something normal here ?
    Last edited by idispense; 02-03-2013 at 11:36 PM.

  13. #13
    Master OptiBoarder
    Join Date
    Jan 2010
    Location
    In Flux
    Occupation
    Dispensing Optician
    Posts
    1,615
    Quote Originally Posted by RT View Post
    You are assuming that all 1M pairs were originally sold at the $38 price, and now will be sold at the $59 price. Since Coastal has multiple price offerings, it's not a good assumption that all 1M pairs are going up by $21. Also, you're ignoring the possibility that they will sell fewer units at the higher price (normal price elasticity).
    If their loss was only $ 5 million then they will only need a $ 5.00 increase per each of last years 1 million eyeglass sales or only a $ 2.99 increase per each of 1.67 million Facebook fans or to look at it another way if they achieve a $ 21.00 increase on only 238,100 eyeglass sales then they will still reach Break Even.

    We are only talking about reaching break even though eyeglass sales too, not contact lenses or accessories.

  14. #14
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    Maybe it is now the time to buy some shares................................

    Quote Originally Posted by idispense View Post

    If their loss was only $ 5 million then they will only need a $ 5.00 increase per each of last years 1 million eyeglass sales or only a $ 2.99 increase per each of 1.67 million Facebook fans or to look at it another way if they achieve a $ 21.00 increase on only 238,100 eyeglass sales then they will still reach Break Even.

    We are only talking about reaching break even though eyeglass sales too, not contact lenses or accessories.


    Nice mathematics...........................

    Would this apply ???????????????????





    The three wise monkeys over the Tōshō-gū shrine in Nikkō, Japan



    The three wise monkeys (Japanese: , san'en or sanzaru, or , sanbiki no saru, literally "three monkeys"), sometimes called the three mystic apes,[1] are a pictorial maxim. Together they embody the proverbial principle to "see no evil, hear no evil, speak no evil".[2] The three monkeys are Mizaru, covering his eyes, who sees no evil; Kikazaru, covering his ears, who hears no evil; and Iwazaru, covering his mouth, who speaks no evil. Sometimes there is a fourth monkey depicted with the three others; the last one, Shizaru, symbolizes the principle of "do no evil". He may be shown crossing his arms.
    There are various meanings ascribed to the monkeys and the proverb including associations with being of good mind, speech and action. In the Western world the phrase is often used to refer to those who deal with impropriety by turning a blind eye.[3]
    In English, the monkeys' names are often given as Mizaru,[4] Mikazaru,[5] and Mazaru,[6] but the last two names were corrupted from the Japanese originals

    http://en.wikipedia.org/wiki/Three_wise_monkeys






















  15. #15
    Bad address email on file
    Join Date
    Jun 2012
    Location
    Canada
    Occupation
    Other Eyecare-Related Field
    Posts
    532
    Although in theory a simple price increase would seem to make one more profitable, however this is not always the case and guaranteed will not have them break even next year. They are also in desperate need of an operating cost reduction. Don't be fooled folks, they are hurting and may never recover to emerge from the red ink.

    Chris, I must ask why you're such an advocate for CC and suggesting now is the time to purchase some stock? Seems a bit hyprocritical to me considering what your customer base is comprised of.

  16. #16
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240
    The saying goes that you buy stock before it goes up and sell bedore it goes downs. I have never played the stock market anymore since my first try in 1972 and lost $ 2,000

  17. #17
    Ophthalmic Optician
    Join Date
    Sep 2001
    Location
    USSA
    Occupation
    Dispensing Optician
    Posts
    12,591
    Quote Originally Posted by Chris Ryser View Post
    The saying goes that you buy stock before it goes up and sell bedore it goes downs. I have never played the stock market anymore since my first try in 1972 and lost $ 2,000
    I play the stock market because I can do it from my Droid w/out having to get on a plane to LasVegas.
    Ophthalmic Optician, Society to Advance Opticianry

  18. #18
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240
    To come back to the thread, does anyone think that they will sell less with their price increase ? I still see them hammering away with their advertising everytime I ask GOOGLE a question.

  19. #19
    Bad address email on file
    Join Date
    Jun 2012
    Location
    Canada
    Occupation
    Other Eyecare-Related Field
    Posts
    532
    Quote Originally Posted by Chris Ryser View Post
    To come back to the thread, does anyone think that they will sell less with their price increase ? I still see them hammering away with their advertising everytime I ask GOOGLE a question.
    The only thing that has gotten them to where they are today is cheap, cheap and cheap, with alot of investor money to advertise heavily and operate their own manufacturing facility. But, when your entire customer base is made up of bottom feeder consumers, and you now raise your prices, they will begin to boycott and flock somewhere else.

    They have proven they could gain a ton of marketshare with their free pair giveaway and low web prices but they will continue to lose a ton of money. I feel they are now saturated and on the decline and is evident with their CL sales. Glasses will do the same in time.

    As for the investors - they are becoming very antsy and impatient. All of these variables are negative and is just a matter of time before they spiral dive and eventually crash.

  20. #20
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    All of these variables are negative and is just a matter of time ....................

    Quote Originally Posted by HindSight2020 View Post

    But, when your entire customer base is made up of bottom feeder consumers, and you now raise your prices, they will begin to boycott and flock somewhere else.

    As for the investors - they are becoming very antsy and impatient. All of these variables are negative and is just a matter of time before they spiral dive and eventually crash.
    When the Dollar, continously being printed like the Weimar Republic did in the early 1900s by the Fed, will be devaluated by the Chinese taking over the oil currency:

    "For the first time since the 1970's, when Henry Kissenger forged a trade agreement with the Royal house of Saud to sell oil using only U.S. dollars, China announced its intention to bypass the dollar for global oil customers and began selling the commodity using their own currency.
    http://www.examiner.com/article/doll...oil-using-yuan "

    There will be another big bunch of above called bottom feeders , when inflation shoots up and a loaf of bread might cost $ 50.00 or more when the dollar gets devalued, because it has no backing as the chinese yen which is fully backed by gold..

  21. #21
    Master OptiBoarder
    Join Date
    Aug 2006
    Location
    Oakville
    Occupation
    Dispensing Optician
    Posts
    823
    Quote Originally Posted by HindSight2020 View Post
    The only thing that has gotten them to where they are today is cheap, cheap and cheap, with alot of investor money to advertise heavily and operate their own manufacturing facility. But, when your entire customer base is made up of bottom feeder consumers, and you now raise your prices, they will begin to boycott and flock somewhere else.

    They have proven they could gain a ton of marketshare with their free pair giveaway and low web prices but they will continue to lose a ton of money. I feel they are now saturated and on the decline and is evident with their CL sales. Glasses will do the same in time.

    As for the investors - they are becoming very antsy and impatient. All of these variables are negative and is just a matter of time before they spiral dive and eventually crash.
    I agree with you.

    Regards,
    Golfnorth

  22. #22
    OptiBoard Professional gibby2020's Avatar
    Join Date
    Jun 2008
    Location
    BC
    Occupation
    Optometrist
    Posts
    104
    The "bottom feeders" could be any of us or our families/friends etc as the economy continues its downward spiral. We may not be price shoppers for eyewear, but for other products/services we may behave like our clients/patients/customers.
    If necessary people are willing to give up service if the price is right.
    So time will tell if CC can turn a profit. I doubt it, unless production is moved to China.
    That would be a cruel joke for all Canadians as one of the reasons for the Eyecare Modernization Act the BC gov't rolled out in 2010, was to protect the jobs of 250 BC residents that CC employed.

    I agree with Chris wrt future buying power of fiat money.
    Gonna stock up on Chinese made product while it is still cheap. Until I can figure out how to make them here!

  23. #23
    Master OptiBoarder
    Join Date
    Mar 2012
    Location
    canada
    Occupation
    Optometrist
    Posts
    706
    "... as the chinese yen which is fully backed by gold"
    Hi Chris - to my knowledge, the chinese currency is NOT gold-backed, in fact no fiat paper currency is. Not yet anyway....

  24. #24
    OptiBoard Professional gibby2020's Avatar
    Join Date
    Jun 2008
    Location
    BC
    Occupation
    Optometrist
    Posts
    104
    Quote Originally Posted by optimensch View Post
    "... as the chinese yen which is fully backed by gold"
    Hi Chris - to my knowledge, the chinese currency is NOT gold-backed, in fact no fiat paper currency is. Not yet anyway....
    The Chinese are reportedly passing the Indians in yearly importation of gold, so some think a gold backed RMB/yuan is in the future. Makes sense for them to do something with the depreciating pile of cash and IOU's they have: buy gold, silver, industrial metals, etc. No harm in hoarding them for future use. In case of war they can draw on those supplies.

    Anyone open a Yuan account with the Bank of China?? Thought about that a while ago but never followed thru....

  25. #25
    Manuf. Lens Surface Treatments
    Join Date
    Aug 2002
    Location
    in Naples FL for the Winter months
    Occupation
    Other Optical Manufacturer or Vendor
    Posts
    23,240

    China Launching Gold Backed Global Currency ....................................

    China Launching Gold Backed Global Currency

    Posted on October 9, 2012
    World Truth TV According to the article, China is recasting all of their gold reserves into small one kilo bars in order to issue a new “gold-backed” currency. Many say this will disrupt global trade and will eventually cause a collapse of the US dollar.

    There can be no doubt that the US dollar will soon be history. China is recasting all of their gold reserves into small one kilo bars in order to issue a new ‘gold backed’ global currency. This is surely a strategic part of their recent push to sign new trade agreements with Russia, Japan, Chile, Brazil, India, and Iran. The cat is now out of the bag, the US will be given the ‘bums rush’ by the largest trading nations in the world and the dollar will go down in flames. GATA now estimates that 80% of the gold that investors believe they have in allocated accounts is long gone, the majority of it probably wound up in China.


    As the Canadian Dollar is tied to the US one it will suffer along with a collaps of the US currency if and when it happens.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Entry level position in SC.
    By joshjuba in forum The Job Board
    Replies: 0
    Last Post: 11-01-2012, 05:37 PM
  2. Entry Level NY Optician Needed in The Bronx
    By The Eye Group-OPT in forum The Job Board
    Replies: 0
    Last Post: 11-03-2010, 09:39 AM
  3. Probably an entry level question but here goes...
    By Quantrill in forum Progressive Lens Discussion Forum
    Replies: 1
    Last Post: 10-19-2009, 05:58 PM
  4. Entry Level Part Time Surface Technicians Needed
    By Maryann in forum The Job Board
    Replies: 0
    Last Post: 02-14-2008, 06:37 PM
  5. entry level positions available
    By browneyedr in forum The Job Board
    Replies: 0
    Last Post: 03-28-2007, 11:36 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •