Originally Posted by
sharpstick777
I am in a unique position since I have about 300 accounts across 5 states of the western US, and visit another 400 practices a year. I SEE WHAT WORKS. Plus before I came back to the lab side I dispensed and managed huge opticals for 12 years.
Strangely, my busiest and fastest growing accounts TAKE NO MANAGED CARE. Accepting managed care is not a function of your area, its a function of your marketing. I have an account that is in 70% VSP area, doesn't take VSP, yet is going to gross $5mil this year in the optical side alone. The owner Dr. makes so much money he just bought his mom a house in Malibu. For most of his frame vendors, he is their largest retailer in the world. Yes, he gets free trips to Paris every year to buy frames and takes the ENTIRE staff with him at his expense.
How does he do this? Super service and great quality, even though he is in a lower middle class area, in an out of the way location. The service is so legendary people FLY in to buy multiple pairs of eyewear (he has an inventory of about 1500 pairs). He is 100% AR, 100% Free-form in Progressives and picks each Progressive lens based on the patients lifestyle or RX. Everything he offers is top line quality. His turn is over 4.2 to 1, so yes, he is selling over 6400 pairs a year. His frames are all very high quality and unique, no Kate Spade or Coach here. For many of his lines he has exclusivity for about 100 miles or more. His products are all top notch, but his markup is below what most charge. He is so busy he has to put of stanchions outside during Dec and Jan to keep the line outside in order (yes, people wait to get in). High end products but warm and friendly service, at reasonable pricing.
The biggest problem he faces is that his frame orders are so large, it can take manufacturers months to fulfill them.
I also visit many practices who don't get it. If you want success, you need great quality, great service, and then insurance or Warby simply won't matter. Create your own market. Create your own brand. Do both with knock your socks off service.
Managed care has peaked, its jumping the shark, Warby Parker and Managed Care are a threat, but only if your product quality is low and your service is average. No matter where you are people will pay for selection, quality, and life enhancing eyewear. The Dr above charges below average but reasonable pricing, but its not what you charge, its what you provide. Value becomes a decision based on soley price when the other factors are missing like excitement, selection, and quality.
Private Practice can never compete on price. But you can still beat Costco, Warby and anyone on Value. Create an experience and you'll steal patients from Costco every day.
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