I've run the numbers- if I sell at wholesale, I don't get paid, unless I quadruple the volume, which would require a name change to Schlock Optical.
I've run the numbers- if I sell at wholesale, I don't get paid, unless I quadruple the volume, which would require a name change to Schlock Optical.
Science is a way of trying not to fool yourself. - Richard P. Feynman
Experience is the hardest teacher. She gives the test before the lesson.
So the other day I had a patient try on our kate spade frame and put it on hold. (She was going to think about it because she was not eligible with her insurance for frames until January.) A few days later she came in with the same frame that she had purchased online for just $20 over our cost, which was about the same price that the frame would have been if she was eligible with insurance. Ticked me off! She did order the lenses through us (using insurance) and I then adjusted her newly purchased online frame for her. UGH!
I know that this has been talked to death, but in a way the patients are building in their own overhead and markups. Want to use your vision insurance benefits? The Doctor is paying for extra staff to sit here and handle all of that for you. I don't want to talk our staff out of their jobs, but we could let 3 people go today if we never had to deal with Eyemed or VSP again. Prices would drop like a stone. It's such an empty system.
I usually do offer discounts to patients who come in without managed care plans, usually 20% off frame priced at usual MSRP/markup. I could do more if we didn't have to cover overhead. Still not as low as they can get online though, and that gap is widening.
“They operate pretty much like you would see in a narcotics network,” says Punderson. He says that manufacturers spread production between several factories, so if one gets raided the rest of the stash will still be intact. Once the goods are ready, they’re immediately moved out. According to him, wholesalers are now the ones willing to take the risk of storing goods and moving them around, so they also have a larger share of the reward and the power.
http://fortune.com/2013/08/27/how-co...ounterfeiters/
Science is a way of trying not to fool yourself. - Richard P. Feynman
Experience is the hardest teacher. She gives the test before the lesson.
No.As others have stated,mentioning your other services is a good starting point.Maybe offering them something extra along with the purchase would be nice too.A special case,cleaners..etc.Most people will see the value in our service.I've found the consumer who is merely for price and not value is not a good long term customer.They constantly seek out the lowest price.Many times they turn out to be 'problem patients' which aren't profitable anyway.Long term,if you decide to price match,you've created more problems than you solved.JMO
The interesting problem is that, for us, it is splitting hairs when agreeing to price match on contact lenses and not agreeing to match on frames. With contacts it is assumed that a CL patient will receive a certain amount of service when acting as a regular customer (contact lens checks, trial lenses, actual chair time with our real live doctor!). Our office agrees to price match on one but not on the other. Someone could buy a frame only and walk out the door with no discount, or schedule 5 CL re-checks (all covered under their yearly CL exam benefit) with the doctor and still get 1-800 prices. I have yet to have a very savvy patient point this out to me and I'm not sure what I will say when someone does. We have set a very poor standard here.
........................my problem got solved 2 weeks ago when the city owned tree roots invaded the sewage pipes under the basement floor. I got the specialist in called Plumber. He came with the big "router " and passed it which solved the problem.
Cost was $ 361.00 including tax for the service and I was glad that the flood retreated fast and I made him a cheque for the amount.
So why can an optician not work on a similar basis?
If you can not see properly you a glad to pay for a solution like I did for my flooded basement.
Somehow this discussion has become focused on either price-matching online sites for frames, or selling at list price. There are other options which will usually result in a satisfied customer such as 20% off list price. Of course, I do understand that the concept of "list price" is often nebulous in the optical world, but I think customers just want to know they got something less than list price to make them feel good about their purchase (like when buying a car or real estate).
In spite of what we think,opticians sell a product...not a service.The patient with the emergency broken frame,lens ...whatever,certainly doesn't shop prices.If you can fix it for them is all that matters.Big difference.
And if the plumber simply used some -Treerootbgone- that you could buy online for 99 bucks,how would you feel about that $361.00 now?
-Tony
Ophthalmic Optician, Society to Advance Opticianry
I have resolved myself to accept that the future outlook for opticianry is dim. The margins we had before will decline....the corportate stores will reduce the need for licensed opticians......online will grow due to the access to new high tech mediums....guarantees / service / client loyalty are not words that the youger crowds understand or want to hear....it is a throw away world where service repairs are more expensive than buying a new product....optical governing bodies will dissolve.....and finally the talent that is represented by all of the Optiboard posters will retire..... the end result IMO will be that in 5-10 years it will be a completely different playing field.
Trying to compete with onliners and disloyal frame distributors / suppliers (who will sell to any company at any price, just to make money) is the reason for this remark. Small independent oprticals, will have to merge under a banner company in order to suceed. IE: auto garages / veterinary clinics / pharmacies etc.
Trying to price match with the onliners is a sure way to a quick end.
Chris the new wave represents only 4% of all optical business. Quit trying to scare everyone.
Your gloom and doom predictions may turn out to be true in the end but it won't be because
of on-line or a new world order, it may be because of demographics that in the years 2025 onward business may soften
because the baby boomers will die off and there won't be the population in numbers to pick up the slack from behind.
I will be fine until I retire around 2022 or so. :)
Regards,
Golfnorth
Totally agree with Paul here! It happens, people can always find a product for less $$$, but if you create great service, it should be a moot point. I get asked often about the difference in price, face to face, it is always a great discussion, with the patient usually choosing to purchase the frame from me anyway. I tell them that I can't dictate where they purchase their eyewear, but tell them also that I would love the opportunity to make it for them. I break down the prices for them, and they see the value in it. If they choose to buy elsewhere and bring in a frame, I charge a pattern fee, and adjustment fee, just like I do when they bring their existing old frame in.
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