Drowning in contact lens bills. What does your office do?

**TNOptiGirl** · 04-09-2014, 04:04 PM

We are tired of the poor ROI for contact lenses. We are thinking about starting a policy where we will either order an annual supply for them (obviously, preferred), or we will order just enough to satisfy their insurance benefits. As the patients leave the office we will give them a flyer that will tell them how to order from our website for any future purchases, and all the benefits that will entail.

Yes, we will lose sales. And we are prepared to just be ok with that. It's paying those $5,000+ bills that are just killing us every month. We've tried having the patients pay before ordering, and that just made them upset. I'm sure this new policy will as well. But it's so much less hassle for us, which allows us to concentrate on patient care.

What different things are you doing in your office to help combat the negligible ROI for contact lenses?

(We are a private practice/single location.)

**jewelzrulez** · 04-09-2014, 05:14 PM

Wait, are you saying you dont require full payment for contact lenses prior to ordering?

**TNOptiGirl** · 04-09-2014, 05:23 PM

Originally Posted by jewelzrulez

Wait, are you saying you dont require full payment for contact lenses prior to ordering?

We tried doing that, but our patients revolted. The precedent was already set prior to my hire.

But regardless, the point is even if we did collect the payment up front, we still are unhappy with the amount of money we bring in, compared to the amount of work it takes to order and process.

**Michael I. Davis** · 04-09-2014, 06:56 PM

Then raise your contact lens fees. You will lose some patients, but the ones you keep should make up for that. You need to charge enough to make it worth your time. You have to figure how much that is for you.

**Johns** · 04-09-2014, 09:51 PM

Have your staff grow a spine. Pts. revolted? Really? THAT'S "revolting"! There must be some way that this is being presented that would cause the pts. to balk.

Why don't you revolt the next time you go to buy groceries! Poof!...free groceries!

Our pt. pay up front for contacts. If they call in, we take a credit card over the phone, or have them stop in to pay. Revolt? Please...

**Chad Sobodash** · 04-09-2014, 11:05 PM

I agree with Johns. This is the normal process as I've come to understand it: if the patient is purchasing spectacles, some form of downpayment is required so that the practice will not lose money if the patient fails to pick up (this also ensures that the patient will pick up their pair). If the patient is purchasing contact lenses that must be ordered, the same rules apply. If the patient is purchasing contact lenses that are on site, then they pay in full.

I don't think I've ever been in a practice where these rules do not apply.

In any case, unless you're offering CareCredit or something, there's no reason you shouldn't have all your money before your patient leaves with their purchase. That's why it's a purchase.

**scriptfiller** · 04-10-2014, 07:21 AM

Payment at time of order is policy at our office, the key it's been like that since we started 20 yrs. ago. Folks can learn to adapt to changes, both patient and staff.

If you are a single location only practice, see if you can join a buying group and get a little lower wholesale cost of goods.

COGS on CLS is astronomically high compared to optical frames and lenses, you need to do volume to make it work.

**optimensch** · 04-10-2014, 07:34 AM

FWIW we keep in stock 2 brands and get a decent pricing discount for doing so. 80% are sphericals anyway between say -1 and -6 or so. Do the math. Client leaves with the lenses in hand and it allows a little more of a quick turnover and a bit more margin. Seems to work for us.

**optimensch** · 04-10-2014, 07:42 AM

contacts are more of a tool than a profit center - it keeps patients coming back more regularly than glasses, they are a commodity (no fashion trends, no dead stock) which will be consumed 100%, and this allows continued contact (no pun) with your client who can be pitched eyewear and sunglasses each visit - if your marketing messages are kept fresh and meaningful. Consider this a marketing expense to keep your clients happy and invest is a stock. JMHO. besides if you keep the contact pricing very competitive (not a loss leader but you get the idea) it reflects on the fact that you are competitive with everything else too - might be a confidence booster for other sales!

**Fezz** · 04-10-2014, 08:11 AM

I don't sell contacts!

I just hand the patient a card with 1-800-contacts on it and tell them to have a nice day!

I have even started doing it with eyewear sales as well!

Patient comes out, hand them a business card with Coastal's web address and send them on their way!

Why bother, there are more important things to do like Facebook updates and Optiboard cruising!

**mshimp** · 04-10-2014, 08:54 AM

Always collect money upfront for contact lens charges... You will lose your hide up to 5000.00 plus a month. Years ago we didn't really collect deposits on eyeglasses. Those days are long gone. Yes our customers had to adjust...comments like "I never had to pay a deposit before" were typical. Nowadays customers expect to pay money down. Always try to collect in full. And yes our contact lens policy is to be paid in full before the order is placed.

**drk** · 04-10-2014, 08:57 AM

Originally Posted by Johns

Have your staff grow a spine. Pts. revolted? Really? THAT'S "revolting"! There must be some way that this is being presented that would cause the pts. to balk.

Why don't you revolt the next time you go to buy groceries! Poof!...free groceries!

Our pt. pay up front for contacts. If they call in, we take a credit card over the phone, or have them stop in to pay. Revolt? Please...

+1

Silly.

**MikeAurelius** · 04-10-2014, 08:59 AM

Originally Posted by Fezz

I don't sell contacts!

I just hand the patient a card with 1-800-contacts on it and tell them to have a nice day!

I have even started doing it with eyewear sales as well!

Patient comes out, hand them a business card with Coastal's web address and send them on their way!

Why bother, there are more important things to do like Facebook updates and Optiboard cruising!

Ok, now you have to buy me a new monitor and keyboard from the coffee I just spewed laughing at this post.

**drk** · 04-10-2014, 08:59 AM

Originally Posted by Fezz

I don't sell contacts!

I just hand the patient a card with 1-800-contacts on it and tell them to have a nice day!

I have even started doing it with eyewear sales as well!

Patient comes out, hand them a business card with Coastal's web address and send them on their way!

Why bother, there are more important things to do like Facebook updates and Optiboard cruising!

This is the ultimate answer.

**drk** · 04-10-2014, 09:02 AM

The mensch is spot on, as usual.

If your patients want a CL store, and they want cash-and-carry, you can adapt to that.

If your doc will narrow his/her prescribing formulary to one or two spherical brands, then you can carry a decent inventory. The supplier discount will help offset the financial risk of carrying and maintaining inventory.

But mensch is also right with the point that CL supply is more of a service than a big-time money-maker. I liken it to "whole patient care"...soup to nuts (what a lame phrase).

But Fezzy's right: a little here, a little there, over time...you put food on the table.

**mshimp** · 04-10-2014, 09:21 AM

Originally Posted by Fezz

I don't sell contacts!

I just hand the patient a card with 1-800-contacts on it and tell them to have a nice day!

I have even started doing it with eyewear sales as well!

Patient comes out, hand them a business card with Coastal's web address and send them on their way!

Why bother, there are more important things to do like Facebook updates and Optiboard cruising!

**Fezz** · 04-10-2014, 09:28 AM

Originally Posted by drk

This is the ultimate answer.

Thank you!

According to the Optical Messiah (Mr. Ryser), we will make it all back on charging for pd measurements, adjustments, repairs, and contact lens box versus rx verification anyway!

Why sweat the small stuff?

Life is short, urinate it away on mediocrity!

**optimensch** · 04-10-2014, 10:12 AM

Thanks for the thumbs up, drk.

"If your doc will narrow his/her prescribing formulary to one or two spherical brands" - there is ZERO legitimate optometric/health reason that the vast majority of patients can't be fitted with 2 brands - a 2 weeker (don't force me to mention the brand ;)) and a monthly. Patients love that we stock these, and often we will get some ophthalmic work - whether lenses or frame + lenses.
In fact I wish our contact lens bill was MUCH MUCH higher!!! wouldn't that mean more sales??? Same goes for my frames and lab bills too!!
What are we, in Cuba??? USSR??? And, I'm the socialist Canadian here man!

**David_Garza** · 04-10-2014, 10:38 AM

Originally Posted by TNOptiGirl

We tried doing that, but our patients revolted. The precedent was already set prior to my hire.

But regardless, the point is even if we did collect the payment up front, we still are unhappy with the amount of money we bring in, compared to the amount of work it takes to order and process.

Sounds like your patients run your office. If you clinic is charging appropriate fitting fees and your markup is at least on par with the MSRP you should not feel like you are losing money on CLs. Your patient's are probably revolting because they know they can't get a better deal anywhere else so you are stuck unless you change your policies and pricing ASAP.

**Chris Ryser** · 04-10-2014, 10:43 AM

Originally Posted by Johns

Our pt. pay up front for contacts. If they call in, we take a credit card over the phone, or have them stop in to pay. Revolt? Please...

Credit Cards ........................that is the new wave in giving credit as long as the customer wants.
You will not have to wait for your money which might be on the never never list with the customer.

At the point of sale ask for a credit card and the bank will give you the money and make a ton of interest if the customer is slow in paying, but that is his business.

You can also give a customer an open credit line if you have a valid credit card number on file. They can be checked so easy on a terminal.

**Chris Ryser** · 04-10-2014, 11:07 AM

Originally Posted by Fezz

Thank you!

According to the Optical Messiah (Mr. Ryser), we will make it all back on charging for pd measurements, adjustments, repairs, and contact lens box versus rx verification anyway!

Why sweat the small stuff?

Life is short, urinate it away on mediocrity!

Thank you Fezz for inventing a new title. Never knew there was such a thing as an "Optical Messiah". Would you suggest that I get myself registered on OB with a second ID like some
others have been doing ?

I have 2 daughters that have been wearing contact lenses all their lives and have always purchased them from an Optometrist and hopefully paid for them. So some people do want the service.

I am in the supply business and we have kept the Credit Card terminal busy more and more over the last few years.

**EyeCare Rich** · 04-10-2014, 12:26 PM

Good Lord!! People pay up front when they order them from 1-800-whateveryouwanttobuyonline, why not pay you upfront for their product. I tell the patient/customer, I have to pay for them when I order them, why shouldn't you? Of course, stocking them does help as well.

**Robert Wagner** · 04-10-2014, 01:18 PM

Why don't you just say at final check out "How would you like to pay for your visit/contact lenses/ eyewear today" cash, check or credit card.
If your patient says "just bill me like before" say something like "we have had a policy change and require 1/2 down today and the balance when you
pick up your product. and just leave it at that.

**David_Garza** · 04-10-2014, 02:08 PM

Originally Posted by Robert Wagner

"we have had a policy change and require 1/2 down today and the balance when you
pick up your product. and just leave it at that.

"We no longer order CLs until the balance is paid in full.....will that be cash check or CC?"

**optical24/7** · 04-10-2014, 02:09 PM

The OP's is complaining about ROI, not the collecting of funds up front or not.

Raise your single box fee, give a discount on a years supply and move on.