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Thread: Private vs. Retail - Private Optical looking for advice on how to compete with Retail

  1. #1
    OptiBoard Novice crazy4eyes's Avatar
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    Private vs. Retail - Private Optical looking for advice on how to compete with Retail

    Looking for tips on how your private optical has successfully competed with massive amounts of Retail Opticals in your town. We have soooo many, BOGO and 2 for $49, etc. Retailers, we are having trouble competing. Exceptional customer service not a problem, we have the experienced staff, full surfacing lab and excellent product. I would like to hear advice on what helped you succeed against these monster retailers. WE WILL SURVIVE!!Thanks!
    Last edited by crazy4eyes; 09-23-2003 at 01:12 AM.

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    Master OptiBoarder Texas Ranger's Avatar
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    Crazy4eyes; I just answered your other post about getting the doctor to get patients over to you; it being HIS shop, etc...I suppose we all SEE things in a different paradigm...think for a second that you want your patients to have the very best vision possible, what could you offer them that would do that? lenses that are Crizal processed, that are both Anti-reflective, and SRC..right? about 95% of our clients acquire Crizal, and have done since it became available 5 years ago...so, making that assumption, and know that you cannot have these lenses processed in-house, does it not seem in conflict to surface in-house? would you be surprised that people will wait more than an hour or even past today to get their glasses? that they will pay for what they deem worthwhile? Do you think you have to compete with the 'retailers' of your market; believe me you can't; so just look at what you could offer that they can't....Crizal....and not JUST Crizal, but similar products and services not otherwise available, and remember, opticianry is about "relationships", building trust, solving problems, technical know-how, and skilled fitting....
    Last edited by Texas Ranger; 09-24-2003 at 10:57 AM.

  3. #3
    Sawptician PAkev's Avatar
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    Crazy,

    I also posted on your other thread but will offer a little more concerning the "MONSTER RETAILERS"

    Remember these retailers didn't evolve overnight and there is certainly no way you, myself, or other independants will change the way these places will continue to do business when they open their doors tomorrow.

    If you truly enjoy what you do consider yourself in it for the longrun because there will be many disappointments today, tomorrow, and next week that may compel you to throw in the towell. I would also recommend taking the time to develop a good business plan before you throw everything at the wall in order to determine what sticks.

    From my personal experience, it has been the little things that demonstrate interest in our patients that the MONSTER RETAILERS feel is too petty.


    These have included:

    -Special Payment Arrangements
    -Home Dispensing to folks that have transportation problems.
    -Opening my doors during non business holiday hours to replace a broken frame.
    -Community Services such as free adjustments and minor repairs at senior centers.

    Fianlly, I have made it a priority to know each of my patients faces by their first and last name. This acts like the cherry on top of a good eyewear purchasing experience. Nothing more frustrating than parting with hard earned money to someone that doesn't take the time and/or effort to remember you as a person instead of how much money you spent. Most MONSTER RETAILERS fail miserably in this arena due to the volume of their business and the possibility that a different associate will take care of them at each visit.

    Kevin
    Last edited by PAkev; 09-23-2003 at 11:18 AM.

  4. #4
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    I second both comments.

    We are an Opthalmology practice as well and we have a pretty good "capture" rate. The way we compete is not monitary, but rather as the other comments have shown, service driven. When a person gives me the line that they can get two for one at Costmartcrafters, I assure them that our prices are very competative and that our quality is without equal. Usually the person that wants 10 pair of glasses for 20$ is the type of patient that will end up giving you a harder time than you deserve anyways. I don't know why, but that is just how it works.

    Accept the major vision plans in your area not because you like it but because the 3rd parties are here to stay. And have an inexpensive alternative for glasses at your office. Do what Costco does and buy a few dicontinued frames at ridiculous low cost and sell them inexpensive with some lenses. (not 49$, that is just silly :hammer: ) But if you want to get everyone you have to have something for everyone.

    Just make sure that the low price stuff is the last option. Do not advertise it!!! Just have it if needed. Make them feel that if they are going to go somewhere else for glasses that they are missing out. That you have the best COMBINATION of service, selection, and then price. People don't want to make another trip if they don't have too. Make it an easy choice for them.

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  5. #5
    Master OptiBoarder Joann Raytar's Avatar
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    I agree with a great deal of what everyone else has written. I figure that the best way to compete is not to compete. Do what you do and do it well.

    As an independent business, you can't wage a price war without sacrificing products and services that are beneficial to your customers and set you off from the pack. Make sure you're prices are reasonable but you don't have to match the lowest price out there. Just know and be able to show your patrons why the price difference is worth it.

  6. #6
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    From "A-Z" ??

    I dont know what kind of area you are located in or your patient demagraphics. But I do know that you cant sell Cavier in a HotDog district.

    You might not be everything to everyone and carry from "A-Z". I my self carry about "C-W". I know my competition. What they sell and how they sell it. And if I sense that they are a "one legger" or just want to shop around I will give them a dose of Marketing and pricing reality. After all we are ALL consumers. For example, I know that they ("BM" retailers) are bringing them threw the door with $49-$69 eyewear in mind, but there job DEPENDS on how well they bump them up to $189-$250. Because rember that they are looking for higher profit margins too. And knowing how they do it is "KEY".
    "Mr. Jones please keep in mind one thing before you leave here to go look at "XYZ Optical". I am a comsumer too, and we do bussiness here with honest straight forward answers and Facts. They will try to sell you a lens made out of a material called Polycarbonate. Now they will call it the"Super Duper Feather Fancy Lens" or "DuraMax Stronger than Steel Lens" but all it really is is Polycarb. Now I charge an additional $20 is all foir that lens. But even that would be a waste of your money Because your RX doesnt call for that material. And now I know that is the lens that they are going to recommend to you and they will up charge you $60-$80 W/O AR and $120-$150 with AR. Mr. Jones, now I am going to tell you the facts about Polycarb and why we are not keen on using it except for saftey reasons. Polycarb #1)has THE WORST aboration value. #2) the most unstable lens material. #3) The most prone to scratching. #4) Is the real kicker... Polycarb at the wholesale level is just but Dollars more than CR39 (thats why I sell it for just $20 more) But THEY will, again, sell it for an exorbent amout. Then pat you on the shoulder in saying "smart shopping Mr. Jones, please come again." Please rember that we are here to stay and take of you for life. And you can rest assured that you will be given only what you truely need... NOT what we what to sell you due to Profit Margin"

    Long winded I know :-) But if they are going to walk out and never come back.... what do you have to lose by just being honest with them.

    Let them know that you care about there pocketbook and the quality of there eyewear and enjoy a higher rate of patients returning to buy eyewear from honest Opticians. Once you establish that, they will listen to all of your recommendations. Here at our practice we have over 50% AR and over 85% Premium PAL sales due to offering them there options and benifits... then shutting up. They will decide there fate or ask you what you recommend.

    lol... open my mouth and ramble on.

    Last but not least, the only way we can beat the "BM Retailers" is for all of us to know how they work and take who's standing in front of you OUT of the market. And if you cant take them out of the market for eyewear, plant the "seed" of knowledge for when they become disapointed with "Big Monster" because beleive you me, they will at some point.

  7. #7
    Master OptiBoarder BobV's Avatar
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    poly lenses...

    Excellent WTR...Idid that just today. Had a lady in after her appointment. Her Rx was: od:+0.25 -0.50 os: pl ds and +2.50add. Her current glasses were made from poly. I told her she didn't need poly for her script. She purchased a complete pair, then sent her husband over. Sold him 1.60 for his glasses because of higher minus.

    Both patients had been using either a one hour shop or one of the older chains in Kansas City for a long time. Both of them respected the honesty I put forth.

    It doesn't hurt to tell the truth. You just may be able to turn someone to your side if you are willing to forsake a little "extra" profit.

    Bob V.

  8. #8
    OptiBoard Novice crazy4eyes's Avatar
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    Thank you very much for all suggestions given so far. You are all so nice to give your wonderful advice. Unfortunately, I have done all of what you guys have said since the day we opened....all of it. That is what is so frustrating. As you have probably read on my other post, I have no problems once they walk in the Optical...it's just getting them to walk in there! I did this post to see if you guys were doing anything I wasnt in regards to dealing with competition of all types. Unfortunately, I have not heard anything I didn't already know.

    Let's hear some more ideas. I am open to any suggestions you have. If you need more information to give a better suggestion, I will be happy to give you that information!

    Again, thank you for your input, it is greatly appreciated!!


    P.S. Our demographical location is a population of 500,000 in a fast growing suburb, located close to schools, shopping and in a professional center with other physicians, behind a bank. We have a free-standing office not visible from the road, but located behind a bank and is visible when people go throught the drive-through. The average income is middle to upper class. The Optical is 2 1/2 years old and is owned by the Ophthalmologist. He is currently looking for an Optometrist.

  9. #9
    Master OptiBoarder BobV's Avatar
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    Crazy,

    since you have given that last bit of information, start by giving a discount (no more than 20%) to the nurses and techs and support staff of the physicians in your area. Once the docs see what kind of work you do, you may just be able to get their business and their families, and who knows, it may snowball into a bunch of referrals to your shop.

    I did that at KU Med Ctr when I worked there. Built-in business, but the docs wouldn't buy until their staff tried it out.

    Bob V.

  10. #10
    Master OptiBoarder Joann Raytar's Avatar
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    Ahhh...

    crazy4eyes said:
    As you have probably read on my other post, I have no problems once they walk in the Optical...it's just getting them to walk in there!
    We run ads in a local merchant mailer and we have gone out to every company in the area to set up safety accounts. We offer those employees who do not have vision as part of their benefits a percentage off dress eyewear. We also try to get our name out by doing things like giving charities gift certificates to use as door prizes.

  11. #11
    Master OptiBoarder LaurieC's Avatar
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    Yup, Jo on the right track here

    Your marketing must be as a community based merchant. Remember the days when those existed? Vision screenings at schools is a good avenue. Just because the little ones have a low percentage of refractive errors doesn't mean their parents and grandparents do. Make sure you belong and speak at the various service clubs, orgs. Lions, Kiwannas, etc. Participate in health fairs. Sit outside in good weather visible to drive up bank window with a sign that says drive over hear for complementary cleaning adjustments when it's slow. Sounds hokey but I've seen that work even for the big guys. Since you are someone hidden from the street can you negotiate signage at street level?

    I'll keep thinking!

  12. #12
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    On the more pessimistic side, with chains, people know what they are getting. Each chain has an image and marketing plan designed by MBAs to attract their target demographic.

    Independents don't have that instantly recognizable name and image. That is, IMHO, an increasing huge hurdle for independents to overcome.

    And then there is the chain's huge advertising budget to create demand. Why would a person think to go to Independent Optical when he sees TV and print ads for CostMartCrafters? The customer already knows the ballpark product and price, so why bother with the unknown?

    Well, it's no fun being pessimistic. Somebody bring up the optomistic side, please!
    Last edited by paw; 10-01-2003 at 12:16 AM.

  13. #13
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    number one...

    The number one source of new patients and/or repeat business for small business is and always has been REFERALS.

    Any management company that targets small business will tell you the same thing. So with that in mind, the next question is why would people not be telling all of there friends and family about you?

    Are you competatively priced? Have you though about doing in house finishing work to cut down on the time it takes to get a patient there glasses?

    I recently went through a big ordeal with the Opthalmologist I work for. The average length for an exam in this office is about 1 1/2 hours. That is totally ridiculous!:hammer: And to boot, the doctor is usually late and we dilate everyone right before they come to see me in the optical. This of course puts alot of pressure on me to play damage control.

    But before you stop reading...know that because of the way the optical is run, we do very well. And even patients that don't come to see our doctor anymore, still come to us for their glasses.

    If you truely feel that everything has been done internally that can possibly be done, then start advertising in shopping mailers, penny savers, and doing volunteer screenings at the schools is also nice. P.R. is an often ovelooked part of a business plan. You have to give people a reason to come and see you other that sitting attentively waiting for them.

    Oh and buy the way... an Optometrist will help quite a bit. They are usually better at refractions and are more in tune with the optical dept. Does the Opthalmologist do all of the refractions now? How does he do?

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    OptiBoard Novice crazy4eyes's Avatar
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    Awsome replies everyone! Thank you! Give me more! Give me more! :D

    Here are my replies to your questions....

    Texas Ranger: Read my reply to my other post regarding "How do you get pt's to Walk-In to your Optical". I think it will answer your questins. Then reply to me again if you would like.

    PAkev: Read my reply to my other post 1st, then read this.
    I love how you point out to do the "little" things that the Optical chains feel are too petty. I AGREE!! Unfortunately, I do everything you listed except the payment arrangements. Did you know Lenscrafters has their own Credit Card now? :o

    I also make it a point to know the patients by name. I grew up in this town and know alot of people. Believe it or not, most of them actually LIKE me! :drop:

    Aaron: I LOVE your nickname for the Optical Chains...Costmartcrafters...Hillarious!
    I agree with you about the patients that want "cheap" glasses are usually the headaches we dont want. That brings me to another thought. I just remembered, alot of our pt's work at this major nuclear plant and live in our area and unfortunately...Lenscrafters has the HMO on them for eyecare and Optical.
    I also agree with you about referrals.

    LaurieC: You hit the nail on the head! We are currently doing what you suggested. It is just going to take a little more time for our efforts to pay off I think.
    I was JUST thinking about putting one of those signs by the road that said "free eyeglass adjustments Today" with an arrow pointing towards our office. I'm glad to hear you were thinking of something similar. Great minds think alike! Hee, Hee.

    As far as the other suggestions you gave, I agree whole heartedly and do that stuff already. Thanks anyway.

    WTR180:

    I am pretty good at doing what you suggested. As I have said before, the problem is not getting them to "BUY" glasses or come back next year or recommend us....It's getting them to "Walk-In without assuming Costcuttercrafters is the place to go because they saw an "AD for 2 for $49 or $99 Complete pair, etc."
    Paw said it best in his last post! Thanks anyway. I appreciate your suggestions. Can you read my other post and give your advice? I would appreciate it!

    BobV

    Great Idea! We get lots of referrals from other doctor offices, but haven't marketed a discount to them. Thanks for the idea, one of the best ones yet!!

  15. #15
    Master OptiBoarder Joann Raytar's Avatar
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    crazy4eyes said:
    Did you know Lenscrafters has their own Credit Card now? :o
    We just got a memo from our wholesale lab; there is a service that will allow independents to offer store cards as well.

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