Practice Metrics

[odie]

Hi All.

Long time lurker, first time poster.

For the last few years I have been trying to track certain metrics in my practice. However, over the past few months I have noticed some key metrics declining in my OD practice, namely the following:

1. Average revenue per eyeglass sale
2. Dispensary capture rate - ie number of eyeglass sales per 100 exams
3. Gross margin % per sale (Revenue less Cost of Goods Sold %)

The declines are not hugely significant but something I would like to keep on top of. I would just like to get a better idea of what the norm is among my peer group. Obviously different practices will have varying metrics (ie average revenue will be less for practices focussing on private label frames) What do you guys see as average for the metrics above in your practices?

Thanks,
John

[HindSight2020]

<<See my notes>>

Hi All.

Long time lurker, first time poster.

For the last few years I have been trying to track certain metrics in my practice. However, over the past few months I have noticed some key metrics declining in my OD practice, namely the following:

1. Average revenue per eyeglass sale <<this is the current trend even for suppliers and manufacturers - focus more on your gross margin and profitability rather than your top line figures>>
2. Dispensary capture rate - ie number of eyeglass sales per 100 exams <<fully controllable by OD and staff - imperative the sale starts in the chair and you must have highly trained, committed dispensing staff>>
3. Gross margin % per sale (Revenue less Cost of Goods Sold %) <<call up at least 3 labs and get a quote - compare apples to apples and what extra value add items your lab is willing to perform for you just for being a client - PM me if you're interested>>

The declines are not hugely significant but something I would like to keep on top of. I would just like to get a better idea of what the norm is among my peer group. Obviously different practices will have varying metrics (ie average revenue will be less for practices focussing on private label frames) What do you guys see as average for the metrics above in your practices?

Thanks,
John

[Golfnorth]

Hi All.

Long time lurker, first time poster.

For the last few years I have been trying to track certain metrics in my practice. However, over the past few months I have noticed some key metrics declining in my OD practice, namely the following:

1. Average revenue per eyeglass sale
2. Dispensary capture rate - ie number of eyeglass sales per 100 exams
3. Gross margin % per sale (Revenue less Cost of Goods Sold %)

The declines are not hugely significant but something I would like to keep on top of. I would just like to get a better idea of what the norm is among my peer group. Obviously different practices will have varying metrics (ie average revenue will be less for practices focussing on private label frames) What do you guys see as average for the metrics above in your practices?

Thanks,
John

Hi John;

Welcome to Optiboard!
Speak to Hindsight. He will have some great ideas for you to get your COGS% down while at the dame time selling excellent products.

Regards,
Golfnorth

[Jfern]

Hi All.

Long time lurker, first time poster.

For the last few years I have been trying to track certain metrics in my practice. However, over the past few months I have noticed some key metrics declining in my OD practice, namely the following:

1. Average revenue per eyeglass sale
2. Dispensary capture rate - ie number of eyeglass sales per 100 exams
3. Gross margin % per sale (Revenue less Cost of Goods Sold %)

The declines are not hugely significant but something I would like to keep on top of. I would just like to get a better idea of what the norm is among my peer group. Obviously different practices will have varying metrics (ie average revenue will be less for practices focussing on private label frames) What do you guys see as average for the metrics above in your practices?

Thanks,
John

Hi John and welcome,

There are quite a few avenues available to practitioners that will help the bottom line. PM me, I'd be happy to chat with you about some of the metrics I use to evaluate practices.

[optimensch]

Those are all interesting and important metrics.
But keep in mind your operational costs, including total purchases, rent, payroll, inventory carry, renovations, marketing are all able to impact that bottom line more so. Capture per 100 exams, gross rev./per exam are all important , no doubt, but if you do more exams or get more outside prescriptions, (I am an OD but we fill a lot of outside prescriptions) this can easily overcome the other dropping numbers. Jus' sayin'....maybe focusing on some other metrics and opportunities to grow sales or cut costs would be good....
Our gross per transaction has definitely declined of late, but total sales are up, net revenue is up. Sometimes I am really glad to see more outside prescriptions. We have some days where the exam numbers are low, but sales are great.....opposite happens too.