Luxottica/ Eye Care Plan of America

[rep]

I am a Luxottica rep.

I am responding to numerous post and comments that advocate that Eye Med is not assisting the three O's in meeting their managed care needs.

I have just been informed that Luxottica has made a tender offer to purchase Eye Care Plan of America for 25 million dollars in cash. This managed care company has 11 million lives and approximately 7,000 panel members. The combined lives and panel members puts EyeMed as the third largest eye care managed care player in the market. Upon completion of the purchase, Eye Med panel members will have immediate access to the ECPA plans and lives and ECPA will have access to Eye Med lives. A letter will be mailed to all accounts detailing the purchase and answering a number of frequently asked questions about this aquisition. For further information contact you Luxottica rep. I will be pleased to answer any question anyone might have about these two recent purchases providing Steve thinks this is proper for this forum.

Thanks

[Matthew]

So what does this mean for current ECPA providers who are not Eyemed providers?

[rep]

Matthew:

You will have the option to access to all Eye Med discount and funded plans in your area immediately upon completion of the purchase.

Beyond that nothing has been determined. This purchase was just announced today. Check with ECPA and your Luxottica rep for details in the future.

[LENNY]

Who are they going to buy next?
Burger King ?
So they could feed us too!(we would not dare to eat at mcdonalds)

[marblez]

Dear Rep

When my doctor receives this letter, she will not participate in ecpa any longer. We have the the thought that by doing business with a competitor gives them money. Why would we want to give them the opportunity to come into the office and and let them make more money. Not;-( Ecpa doesn't pay much now and now we will have the excuse to drop it.

Good luck
Christina

[pedseye]

Sounds like Luxottica/Lenscrafters is trying to monpolize the optical industry.

[hcjilson]

I'll only believe that if they make a move to aquire Essilor!

[EyeManFla]

Originally posted by hcjilson:
I'll only believe that if they make a move to aquire Essilor!

THey did. Essilor and Sola turned them down about three years ago.

[Jim Seebach]

OK, Lets get down to the basics. To be on the EyeMed panel you have to buy 200 Luxottica frames and keep that number in stock. To be on the ECPA panel, it runs $25.00 per year. Do the people that are on the ECPA panel have to buy the 200 frames because Luxottica owns ECPA. Same question for the Coast to Coast panel people. If I am an ECPA panel member and don't have to buy the 200 frames, and can access all the EyeMed bodies then how is it fair to the people that went on the EyeMed panel and bought 200 frames. Some folks spent 8 to 10 thousand bucks to get on this deal, and know some will get on for a $25.00 a year fee. Sounds like we all better have our backs against the wall when we bend over to pick up the soap in the shower from here on.
Jim Seebach

[Optiopti]

If luxottica bought V.S.P. Would you dump V.S.P?????

If luxottical bought Safilo & Marchon would you dump them?????

[chip anderson]

If anyone bought or formed a business in retail competion with me, I would concider dumping them as a wholesaler.

Chip

Note: Concider, haven't dumped Lux for this yet, but they didn't do anything I liked when they slid over to retail, reguardless of promomotions done by that retailer that are "going to help me."

[rep]

Hi Jim:

I am a Luxottica rep.

Good to hear from you. Down to the basics, as I know them so far. (remember that this was announced when the market closed only 24 hours ago)

As I said in my earlier post, EPCA will have the OPTION of accessing the additional 19 million lives of Eye Med by signing up with the same requirements (200 board spaces and $7500 annually). They can keep on seeing the 11 million EPCA lives without putting in frames.

Eye Med accounts, without doing anything, will have immediate access to the 11 million EPCA lives. More important, the national and regional chains that are currently on EPCA will fall off the panel when their agreements are up. Only ECPA members, Eye Med members and LensCrafters will have patients/customers directed to them in the future for EPCA.

The $7500 is not exactly as you described, a fee spent for being part of the program. You purchased quality frames at competitive prices, without paying a premium (like at least one other optical managed care plan with a tower) Is a commitment of 7 to 18 percent of your annual frame purchases an outrageous amount to have managed care patients/customers directed to you for free? (based on a 20 to 40 thousand dollar inventory with one turn) How much would you have to pay to go out an solicit your own managed care companies and contracts? Many of you pay two or three time $7500 to many companies annually . How many patients did they send you this year.

You gotta buy frames from somebody -- you might as well buy them from us and get the benefits.

Don't know about Sola and Essilor, but I doubt it, in fact as I said in another post they got out of the REVO RX business immediately. However with 1.325 Billion (spent on RayBan/Sunglass Hut/EPCA) they could have. Its not a matter of IF they(Sola/Essilor) wanted to sell or not, these are publicly held companies and cash purchases of outstanding shares are not usually friendly takeovers anyway.

Hope this answers your questions.

[rep]

Dear Marblez:

Do you really think that's a good idea for you or your doctor?

There are currently 17 EPCA members and 10 Eye Med members in Jacksonville or Jacksonville Beach. The area is one of the strongest in the country for EPCA and Eye Med.

5 National Chain locations are moving off the panel when their contracts are up. That means lots of lives available for the remaining 20 some odd outlets to split up.

You might want to think about that a little more. You don't have to join Eye Med as I said previously, why not wait and see?

[Jim Seebach]

Hello, Rep;

Sooooo, I could drop EyeMed and the #7500.00 a year, and keep my ECPA spot and still be able to access EyeMed bodies. I would not have to do all the paperwork and life would be great. I have had 1 (ONE) person call and ask if we did EyeMed from the time we started it. They ended up buying glasses from the OD that examined them because he convinced them that he would do a better job on the glasses. Wow, my investment has sure paid high dividends. Jim Seebach

[EyeManFla]

Is it just me, or does anybody else see Luxottica as a company with a death wish.
Don't get me wrong, I have used Luxottica frames for over 26 years. I am also a member of Eye-Med, much to the dismay of Cole National (who just this month came out with a new Vision One plan that is EXACTLY like Eye-Med).
But, the company keeps buying up more and more of the optical business (and yes, they did try to buy Essilor and Sola, but it was at the same time they bought Lenscrafters.)and in the process, they tick off their most loyal customer base, the small optician that made them a big company in the first place.
Even worse, the people who work for them are like rats jumping a sinking ship. Right now, SW Florida is covered by ONE rep! And it has been that way for almost eight months.
And then there is that consignment B.S.!!!
Oh, and by the way, their corporate customer service sucks....pretty bad when you have to go to the president of the company to resolve a matter that could have been resolved by the rep!

Don't get me wrong, I see nothing wrond with Luxottica trying to control all the means of production for their Lenscrafters stores, but in areas where a Lenscrafters has real competition, they get beaten on like a drum every time.

[rep]

Dear Jim:

I am a Luxottica rep.

In my opinion, over time ECPA will convert to Eye Med requirements as contracts renew or expire.

You have already met the requirements, now you get the additional lives for nothing. There was some talk about a reenlistment fee for those that dropped off and wanted to return to the program. (a lot of accounts are doing that as we continue to add lives). Just curious, has Luxottica busted your chops about maintaining the board space since you are not seeing many patients? The rule usually is if you are not seeing any lives, they are very accommodating.

Even though you are not seeing many lives you may see more soon. BCBS this year, TVA this year and a slew of others. In addition remember That the new combined group will have a greatly expanded sales force and a lot of new contracts with the additional number of providers for coverage. In short more providers and more sales personnel = many more plans and lives.

Texas is a tough area for us right now, as is Maine where Jackie O is from, so I understand her comments about being able to do without.

However in many areas Eye Med and ECPA are doing quite well.

Your investment paid you 155%. 150% from the normal 2.5 times markup and 5% for LAP Co-op. Based on that you should have received a check for at least $375 IF you signed up for LAP.

Questions:

How much CASH did any OTHER vendor send you for your last years annual sales?

How many other vendors gave you $10,000 worth of product, discounted it to $7500 and financed it for you interest free for 12 months ($625 per month)

Just some things to ponder. Hope this helps.

How many other vendors give you ANY terms longer than 6 months? (most max out at 90 days).

[rep]

Dear EyeManFla:

As I said don't know about Sola/Essilor but they rarely do anything that does not sell frames and I can't picture how those companies could sell them more frames.

Independent Pearl owners are flocking to EyeMed because it's a good plan and they are not crazy about losing BCBS customers to LensCrafters. I have signed up a bunch.

I am really suprised by your number of lives, they are pretty low in comparison to others in your area. Just north of you on this side of the bay is a HUGE area of lives and some are doing very very well. (maybe the best in the country)

In regards to death wish it is just the opposite. It is a life wish.

Luxottica purchased PLC BECAUSE from 1990 to 1994 the asian product imports went from 20% to 50% in the U.S. because of managed care. They purchased PLC because they felt they had to stop that trend to survive.

It was not so much about vertical intergreation of the market as it was about maintaining the increased profits from designer eyewear in the face of a rapidly changing managed care. (Hillary care)

At that time third party payers accounted for 1/3 of the all eyewear purchased.

Luxottica wanted to create the demand from the consumer for quality eyewear in managed care, by using the largest advertising budget in the optical world - LensCrafters.

Luxottica had used that strategy before, presuading major optical chains - which were initally resistant to their designer brands -to start carrying those lines after they used advertising to create demand among consumers.

In short it was a move to preserve the middle market. Did it work? You bet it did. Look at the numbers. Look at the stock. Look at the other frame companies who are losing market share every year and you know the reason for those going under and merging. Luxottica is gaining market share during a flat market. Results somebody loses market share.

In regards to sales reps. That region lost a long time manager who went on to become a national sales manager for another major company. (a great guy and we all miss him)

This business is not the same as it was for sales reps, just like it is not the same for owners. Its tough to make a living with the cost of traveling, etc. Remember we have 2% unemployment. I'll bet you are having a few personnel problems of your own.

Those positions will be filled, expecially with the new sales generated by the aqusitions. In a lot of areas we have 5 applications for every position. It takes about two years of training and this job is not for everybody.

By the consignment B.S. I take it you have a lot of companies willing to give you 200 frames to sell for six months BEFORE you have to pay a dime and then interest free for the next six months. Lets see you sell the 200 for 2.5 markup and pocket $25,000. You pay $1250 starting in the 7th month through the 12th month. Sounds like your using someone elses money to pay for your inventory to me. Do you like paying for your inventory BEFORE you sell it?

Just kidding - but I wish I had had that when I owned dispensaries just to save the property tax on inventory.

The customer service issue should have been handled better. No question about it,but if your telling me we have the only problem......pleaseeeeee.



[This message has been edited by rep (edited 03-03-2001).]

[pedseye]

Luxottica/Lenscrafters/ECPA/Eyemed are
steadily getting the Optical Industry by the b***s, just as BCBS has the O.D.'s and M.D.'s by the b***s.
More people need to stay firm and stop buying all the b.s. and support the MANY other insurance companies and vendors who are on OUR side and yes, there are PLENTY who can give you thousands of members and deals where you won't be helping increase the stock of your competitor, instead you'll be increasing yours. Rep guy, you sound brainwashed and almost textbook. No offense, your comments make sense....to your people. You guys sound so conceided though, like, oh my gosh, I'm scared, I better run out and get on ECPA/Eyemed or my Optical won't survive! Luxottica, been without since the buyout...no loss in my profit margin. Please, the last Optical I ran before relocating did not accept your plan and made a substantial profit the first year and the next and the next and so on. We just offered a discount as a non-participating provider and still got members of insurance carriers. I understand you are just trying to do your job and probably do it very well, but it's one thing to give a good pitch for your service, it's another to try and monopolize the industry. Whether YOU think that or not, you will find it is the general opinion of the rest of the optical industry that got Luxottica where they are now. Bravo to Luxottica for their wise business moves, thumbs down to them for not being happy with what they've got. We all know what happens to the greedy.

[rep]

Dear Pedseye:

I cannot disagree more.

Sorry you feel that I am brainwashed, heaven forbid textbook. You see I witness it every day. Decisions made by emotion rather than logic.

I do not believe and never said, that Eye Med is for everyone, it is not. In a few areas we don't have a lot of lives, yet.

I also don't believe that you shouldn't check it out because a competing rep browbeats you into an emotional frenzy for HIS or HER own, profit motive.

The one true constant I have found is that the sharper the buyer or decision maker, the less LensCrafters - Luxottica are an issue.
They, just don't care

Those buyers are looking for quality first, value second, and third, how they can maximize their buying power into increasing their business.

My suggestion is to look at the success stories, the best run, most profitable, optical operations, you will find our frames and programs in place there.

Then go to those not so successful and see what's on their boards and what their attitude is towards our company.

A perfect example is the two discussions threads about "Competition for LensCrafters and "Working for LensCrafters. Who do you think in those two groups are the emotional, irrational beings and who do you think are the analytical, rational, and more professional beings.

[marblez]

Dear Rep

Actually after reading about the purchase I did ask my doc and she said she would not continue with ecpa. With the lack of seperation between the companies(meaning the Lux and the manged care)she refuses to give business to the competitor.

christina

ps few and far between are those on ecpa happy due to the fact the most need and want progressives and the cost is out to this world to use it. Check for your self city of jax(example)only has a 59.00 allowance towards lenses the generally run in my office from 179.00 to 289.00 and the patient pays difference to allowed reinbursment.

[Cindy Hamlin]

Rep,
I for one am willing to listen to you and hear your "side/spin" on the facts. I cannot condone your attempting to profit under your veil of secrecy. Optiboard members are a unique group who share a wealth of information on many optical topics and occassionally we do tend to comment negatively on certain aspects and companies (that is only human).

None the less, we are up-front about who we are! We do not call ourselves "rep" and hide from the world. Is your scheme to test the waters and provide feedback to your superiors? Or to try to increase your business? The latter would be impossible without your identifying yourself!

I challenge you to name yourself and come out of the shadows! Stop being on the periphery and come out into the light! I am sure others would be interested in knowing who you are as well!

[Joann Raytar]

cah2020:

In all fairness to rep, there are others who use nicknames on this board and we are fine with them. I think we all understand that rep works for Lux and he is entitled to post his opinions here as much as the rest of us are. I would actually like to compliment Alan W, TReynolds and rep for posting here. We rarely get upper level corporate posters and reps from the big boys posting here and all three of them were very good sports. Quite a few of us on the board tend to get a little defensive when the other side speaks up, at times, myself included.

In fairness to your request for rep to disclose his name don't you work for Vista Eye Care? Are you a personnel recruiter; I believe I have seen your name on various employment mailers and job opportunity advertisements online? Vista is in competition with rep's parent company.

[This message has been edited by Jo (edited 03-01-2001).]

[Cindy Hamlin]

Yes, I do and that is all listed as well as my e-mail address in my profile. I am not hiding who I am or who I work for.

My only complaint with rep is his anonymity. I think he should at least post his e-mail address or a first name. Check his profile under "who?" If you check the same for mine it says who and what and where I am!

[rep]

Dear Cah2020:

Sorry you feel that way and that you are
"fed up". But your side/spin is very very bias!

It is exactly these types of post that prompted me to respond to the numberous deliberate attempts to distort the facts, by those who have axes to grind (former employees), or direct conflicts of interest.

Since your e-mail address is "vistaeyecare.com" I take it that you work for Wal-Mart, a direct competitior of LensCrafters. You kinda forgot to mention that in your post. (attention Steve)

I identified myself as a Luxottica rep on almost every post.

There is no "veil of seceracy" as you imply. My e-mail address is however restricted because I use it for business and with the amount of junk mail I get these days I try to limit the number of solocitations. What more do you need to know?

I have responded to a number of members who wanted further information and only one was in my territory and I forwarded that to another rep. So the "profit" comment is bogus. As an independent contractor I make nothing on the sales of other reps. Nice spin though.

Unless the guidelines have changed, this is an open board, not a closed community as you are implying,and my opinion counts equally as much as yours.

I think a lot of individuals on this board have guessed by the depth and information levals of my post who I am.

Why does it matter to you?



[This message has been edited by rep (edited 03-01-2001).]

[Steve Machol]

Originally posted by rep:
Since your e-mail address is "vistaeyecare.com" I take it that you work for Wal-Mart, a direct competitior of LensCrafters. You kinda forgot to mention that in your post. (attention Steve)

For the record, Cindy (aka cah2020) has never kept her identity a secrect. She posts frequently in the Job Forum using her real name and address. Also to my knowledge she's never used these forums as a platform for promoting and/or defending her company.

Please don't interpret this to mean I think what you are doing is wrong. I've set up OptiBoard as a resource of free and open communication for the industry. As long as people abide by the posting guidelines and clearly identify their conflicts of interests, then they have the right to post their views.

I identified myself as a Luxottica rep on almost every post.

And that is greatly appreciated - thanks! :) However please correct me if I'm wrong, but I don't think you identified your affiliation until you were challenged on it by some other members. It would have been better if you had identified this from the start.

Nonetheless, I think this exchange is good for the industry and I encourage everyone to continue posting their views.


------------------

OptiBoard Administrator