Is NYC is dead business-wise?

[OdTech]

Hello there viewers and repliers
I would like to find out if any of you are dealing with optical industry like having your own chain retail stores and briefly doing just peachy no matter how the outside circumstances may appear.
why i stating above statements its because browsing through some optical websites and speaking with my schools professors and they are all commonly reply that Bussiness is dead in NYC i mean like in Manhattan, Brooklyn, Long Island, and maybe Queens. every one is replying bad opinions about their business.
I understand that its after holidays and for some days or weeks the industry will be slow its common and i have been myself in the industry for a brief time.
I thank anyone who'll reply and view the post in advance;)

[Johns]

OdTech:

From talking to some of the regional sales mgrs for some of the larger frame companies, business seems to be off in many areas. Of course, the amount of business anyone does is usually a closely guarded secret, and getting a straight answer is difficult.

I was recently down south (Georgia), and stopped in at an optical shop to shoot the breeze w/ an old aquaintance. The place was dead. The owner was telling me that since 9/11 his business has really taken a dive. Not 3 miles down the road, another shop was so busy that the owner kiddingly offered me a job. He said he's been swamped for the last year.

The business has to be going somewhere. Most people don't just stop wearing glasses. They might stretch out the lifespan of them, or maybe some have surgery, but the majority of the buyers are just buying somewhere else. The trick is to make your place that "somewhere".

[paw]

Johns,

I'm curious to know if the busy place was high-end or "low-end" and was the slow place high-end or "low-end"? What was different about the busy place that appealed to people?

[OdTech]

When i posted, i meant to find out if anyone had opened the store and doing well in NYC and employs people no matter what and doing just fine in the place. Because, as i see everyone builds their dreams outside NYC, upstate, CA, and abroard. I uderstand everyone wants to find the place where the money is and where the crime is low; but what about NYC, this place its like in a dream, all the negativity and positivity has a compromise and live along just fine. Just A Big Boiling Pot of Global Society!

Since you guys gave an idea reather indirectly by saying "making your business that somewhere" in order for the consumers to come to you. I think i shouldn't think like an business optician but as a businessman who deals with women that work in strip clubs since whether there was 9/11 or not, everyone regardless of their age etc... still want to come to this kind of place in order to get their fast gratification and thus temporarily satisfied.

I think in the future i'll have to custom design the store so it would sooooo appealing that any age of customers would come and had a great experience of their life, i mean in my store and career niche.:D

[Johns]

Paw:

Believe it or not, they were both pretty similar, the only exception being that the place that was busy had a more "modern" look to it. (Newer looking displays/better lighting) I guess you could say that it looked more "cutting edge", but then a shop always looks better when it is filled with customers.

[PAkev]

This issue has always been a tough nut to crack. IT IS DIFFICULT TO GET A STRAIGHT ANSWER FROM ANYONE UNLESS THEY ARE SHARING THEIR W2 OR CORPORATE EARNINGS INFORMATION WITH YOU.

When asked how things are going in other places, It seems like every frame or lens rep walking through the doors will paint an optomistic picture that their sales are booming. If things are so peachy then why do so many end up as a rep for another company 6 months to a year down the road? BECAUSE they wouldn't want to give you the impression you may be doing business with a looser. In this respect I've learned to take any unqualified information from reps with a grain of salt.

As far as the external competitive environment goes the best source of information may be your competition. This is often achieved on a more social and professional level by networking opportunities of local and state associations. This resource provides more comprehensive information and perhaps a means to collectively respond to whats being reported.

The bottom line is that although current economic conditions are sending mixed messages, people are still being born with eyes and a majority of the population needs eyewear and/or sunwear. If they are not buying from you then you need to sit back and ask yourself a few questions what you may be doing wrong or what the compitition is doing right.

My thoughts,
Kevin

[rep]

Gee Whiz Kevin

I suppose every customer you wait on you tell them how terrible your business is? Hopefully you make it a pleasant experience.
Give the reps a break what do you expect them to say. Business is terrible but buy from me anyway? They leave jobs because they get what they preceive is a better offer. Sometimes it is, most times is isn't what they thought.

The absolute worst information comes from optical compeditors. Sales reps actually share information. I have never had that happen among optical competitors without a non disclosuer agreement.

I have been pumped by one account about business is with other account and no I don't go there.

Johns

I am fairly familiar with Georgia and I would love to know if one of those locations was heavy into managed care and one of them was not. Can you check it out?

I can tell you that is making a big difference right now in a lot of places.

Od Teck

The name of the game today is nitch marketing. What ever you decide your target market is; your store location, store design, inventory, decor, personnel and attitude must follow. Especially in New York City. No one can be all things to all people anywhere anymore. The only place where that doesnt apply much is in rural settings. But even in those locations if everything about you says high dollar they will not even walk into the place if it looks like it's expensive.

P. S. I can tell you that one major frame company is doing just fine in New York City. Maybe your talking to the wrong people.

Rep

[Chris Ryser]

JOBS, SHUT 11 STORES

By PAUL THARP
--------------------------------------------------------------------------------

January 17, 2003 --
Bloomingdale's' and Macy's parent is in a bigger jam than Wall Street expected - and will have to fire 1,900 staffers.

Federated Department Stores, the nation's biggest chain of traditional department stores, said its profits will be lower in 2003 than analysts' forecasts.

To cut costs, the company intends to close 11 stores, but the New York area stores are being spared in the bloodbath, at least for now.

The closest store affected is a Macy's in South Brunswick, N.J., that will shut down.

Bloomingdale's still plans to open its previously announced, small-scale boutique store downtown in the coming months.

The profit warning sent shares tumbling 9 percent before they recovered late in the session to close at $28.35, down $1.55, or 5.2 percent.

Analysts said investor disappointment is likely to grow because the chain has been promising a turnaround for a while.

"For some time now, Federated has been expecting same-store sales to turn positive in the next quarter or two, but they are just not getting there," said analyst Joe Grabowski of Strong Capital Management.

Federated said it will cost about $115 million to shutter its 11 stores around the U.S.

The company's Atlanta operations are taking the heaviest hit, with the elimination of seven Rich's and Macy's stores and 1,500 workers in the area.

Despite its financial troubles, the chain also plans to open 12 new stores in 2003 in potential growth areas at new malls around the U.S.

Federated forecast 2003 earnings of $3 to $3.20 per share, well below the $3.71 per share that analysts had expected.

The company also said it expects sales at stores open at least a year will be unchanged to down by 1.5 percent in fiscal 2003.

See it at:

http://www.nypost.com/business/53220.htm

[walt]

xx

[OdTech]

:drop: I thank those who reply and view the post even though the comments aren't optimistic in terms of bussines booming ideas; it all comes to the appearence of the staff and the owners' personality.
I understand that the overall appearence is everything for the look of the store either its affordable looking or expesive and high tech. However it isn't everything since, as a patient not as a boss of the store i would be more effected at how i was serviced and treated with kind of courtesy that a patient should get. Although everyone is money wise they looking how to rip off the customer and only under certain cituations that should be done i.e. when you know you'll definitely looose the lease for the next three years.

By the way Mr Walt you may have misunderstood me that wasn't what i had planned to accomplish. Please don't get the idea that i will turn my store into a second LAS VEGAS, LOS ANGELES and HOLLYWODD one is enough.:angry: :finger: :cheers:

[walt]

xx

[paw]

How can everyone have a niche, or be unique, when there are a thousand other places doing the same thing? How many unique niches are there???

[Jeff Trail]

It's not the CNN poll or anything so "scientific" :-) but I belong to an optical wholesale buyers group with 40 some odd labs across the US and every ONE of them are down anywhere from 10% to 35% ..and talking to people across the state and other labs in FL. it is about the same as the group (give or take) ,,the OD's I talked that were at the same place right now as last year were Ins. bogged..more work for the same amount of money .. Usually you can gauge it pretty well from the volume in the labs to what is happening on the retail side..
I know I get plenty of calls (higher average than usual) from reps looking for connections as well, that is another usual indicator that it is slow..
I think it is more the worry about war/gas and economy more so than a 9/11 thing.. just another point of view coming from the other end of the market.. Oh but I do I have one friend (fellow lab owner) who has gained some..but than again he cut his prices 10% across the board as well.. actually LOSES money if he has to grind a SV, Dr. change or optician redo at this new price, breakeven on FT's ..YIKES

Jeff "no quote today" Trail (can't afford one :)

[Jeff Trail]

It's not the CNN poll or anything so "scientific" :-) but I belong to an optical wholesale buyers group with 40 some odd labs across the US and every ONE of them are down anywhere from 10% to 35% ..and talking to people across the state and other labs in FL. it is about the same as the group (give or take) ,,the OD's I talked that were at the same place right now as last year were Ins. bogged..more work for the same amount of money .. Usually you can gauge it pretty well from the volume in the labs to what is happening on the retail side..
I know I get plenty of calls (higher average than usual) from reps looking for connections as well, that is another usual indicator that it is slow..
I think it is more the worry about war/gas and economy more so than a 9/11 thing.. just another point of view coming from the other end of the market..

Jeff "no quote today" Trail (can't afford one )

[walt]

xx

[paw]

Walt said,

"Thousands? That's the whole point! The only way out of the commodity rut is to stop copying each other and offer something the guy down the street doesn't."

Walt, that's exactly what I mean!!! I want to offer something the guy down the street doesn't offer, and that guy wants to offer something I don't, and the next guy wants to offer something the other two don't, etc, etc, etc. Exactly how many "somethings to offer" are there?????? There are too many business establishments (thousands) for each to offer something no one else has. Sure you can pick your market niche: eye health, high-end materials, budget-materials, trendy, safety work, sports, CL, sunwear... but again, there are many, many others in the same market.

My conclusion is, I'll say for the record, that the market, across all niches, is extremely saturated. When demand goes down, we all feel it greatly.

[Johns]

REp:

I can't say that either of them are heavily into managed care-one way or another.

As far as reps being open with each other as to how the business is going... It reminds me of the time I walked into one of my better accounts just as my competition was telling the account that the company I was repping for had just gone out of business! They were number one at the time (they probably still are), and the rep had never really had to work before the market started getting crowded.

Everybody knows who can be trusted; whether it's a rep, a coleague, or a friend.

[rep]

All markets are segmented into nitches. In the past everyone bought everything from "the general store". That has been drilled down year after year since the first guy traded something of value to someone else for what was determined was equal value.

Many, many businesses have been established by someone noticing a need and filling that need no matter how small it may be. Doing it profitably is the key.

Many times large companies overlook nitches and whole industries are born. It reminds me of a quote from the one time past president of IBM who made the statement that " no one would ever have the need for a personal computer" The result was that they gave away an entire industry to a guy name Bill Gates.

Can anyone deny that Pearle missed a nitch when a former P & G product manager noticed that a percentage of the population wanted their glasses in "about an hour"

There are a number of good books on just this subject.


If the optical market were completely saturated someone would have a store that only sold rimless glasses or a store that just repaired and replaced glasses. I have seen some in my area trying to find their nitch with an executive mobile eyeglass service.

The nitch is hear to stay. I am sure in the times of early commerce when trading first began someone complained that all of the "nitches" were taken.

[LENNY]

How about the store in Manhattan that sells only RED frames!?

[Johns]

Lenny<

I did have an account call me once and I went to his office and exchanged every one of our frames for blue colored frames ??
Believe it or not, the guy is still in business. His niche ? He speaks fluent Hungarian. The funny thing is, he's in a predominantely Italian area !?!? Some people succeed (survive) in spite of themselves.

[Optical Plumber]

LENNY said:
How about the store in Manhattan that sells only RED frames!?

This idea is not as silly as it might seem at first glance. Perhaps not specifically just 'Red' frames, but how about 'Paisley' frames, or 'Neon' frames.

The other thing about finding a niche is not to look solely for a 'product' niche, but a 'business' niche that takes into account things like age, economic and 'fad' demographics, for example, 'teen sports goggles', or 'pre-teen retro fashion frames'. or 'discount progressives for seniors'. Once you start combining product categories with demographics, and life-style alternatives, the number of potential niches goes through the roof! Deciding on the niche can also help you make the very important first three decisions for retail business success; location, location and location. Locate your 'discount progressives for seniors' store near the place where the retirement home tenants do their shopping. Locate the 'teen sport goggle shop' where the after school crowd hangs out ...

One more thing about niche marketing ... you have identified a subset of the buying public who already know what they want, making your selling job much easier and shortening the selling cyle considerably ... BUT make sure you do your marketing homework first to make sure the niche market actually exists and someone else isn't already filling the void adequately, unless you are one of those deep-pocketed brave souls who want to try to create a market.

Terry