Gucci advice...

[drk]

I have 12 Gucci's left on the board. "To clearance them" or "not to clearance them", that is the question.

I need the sleek, sexy, serious, Italian look. I have filled it with Prada and Gucci, but I'm looking into Missoni (Allison Eyewear) for that niche. Gucci still may be in the mix, if they are doing fresh stuff.

Looking at the catalogue, I'm not so sure. Any opinions?

Tangentially:
D.O.C., a major (top 10, I think) USA regional midwestern chain that has established itself as a higher-end fashion retailer is doing something I find interesting. They have always had a set-aside area under glass that they call their "optique". Snooping around in the past I have seen quite a variety in there before, but now they are going very "mainline" with what they display there: Versace, Prada, Gucci, Burberry's, Christian Dior. In other words, nothing more unique than any optical can do. (No Italee, Mikli, etc.)

Observations and questions:
1.) Despite the obvious head-to-head mall wars with Lenscrafters, D.O.C. buys from their competition!

2.) Is D.O.C. just doing "smart" business with the major vendors, negotiating big discounts with whom they can, or are they positioning for the more "branded" names (like we've all been hearing from you-know-who)?

3.) If every private and corporate optical is carrying something, should we? (Softball, there...)

[Chris Ryser]

Looking at the catalogue, I'm not so sure. Any opinions?

drk..reserve the weekend and go and research all the frames listed on at least 200 frame websites at http://optochemicals.com/web_ratings.htm

If you won't find anything sleek and sexy, Italian, French or Chinese let us know by Monday.

[drk]

Thanks, CR!

[Jason Carruthers]

My instinct? Don't copy D.O.C just because. Richard Golden recently launched his new retail concept called SEE EYEWEAR (Selective Eyewear Elements). The way I SEE it, SEE competes with D.O.C. And D.O.C Optique competes with the new Lenscrafters Optique which has fancy glass shelving and get this: NO LAB!! What's the optiworld coming to??

Copying Richard Golden won't get you successful anymore than smoking weed will get you as famous as Bobby Brown.
If you want to be successful you have to do what successful people did before they were successful, not after.

[Mikef]

Dr. K

Is this one of those threads that you start leaning one way and than by the end of the thread go back to the other way?

What I think independents should do get a list of the top 20 selling lines. Then refuse to carry any of them. Instead search out small companies with frames that are the same quality and sell those. Forget about using all the big company advertising or brainwashing. Why would you want to sell frames that people want? Don’t target the 80%ers go for the 20%ers. You won’t do as well but does that really matter!

DOC buys from Luxottica, Safilo buys form Luxottica, Luxottica buys form Marchon and Safilo. I have recently heard that Marchon is paying some of it’s sales force to go into Sunglass Hut and teach them how to sell Nike sunglasses.(This is second hand info by the way and may be false)

In New England I call on some of the most successful accounts and about 100% of them carry major name brands form major companies. When they hear a line is hot they get it.!

Many frames lines are well know to Opticians but not to the general public! The general public is lazy. I think most people know that they are paying extra for a name but they trust the name and that saves them time.

[drk]

Thanks for posting, MikeF. I hope you see me as "open minded" instead of "flip flopper":)

Let me ask you this, Mike: We hear a lot about "differentiation" in retailing. What do you think about that concept? Are we past inventory differentiation in retailing and more into service differentiation, only?

In other words, for me to be successful independently, should I just "ride the wave", or should I be "unique"? To use an insultingly ridiculous analogy, should I compete with McDonalds and open a hamburger joint, or should I open up a homemade deli sandwich shop?

Do you see the future as most opticals having the same mass-advertised products? Can the little guy compete with the economies of scale that the big chains will continue to have, especially if there is a downward price pressure due to corporation "A" going after corporation "B", like Walmart does to its competitors? Where would that leave the little guy, with less margin to cut?

I don't really see that trying to be a jr. Lenscrafters would work for a little guy. I think ultimately I'd be playing my competition's game and get eaten for lunch.

What do you think?

[VegasEyes]

Clear them out ! Don't forget to advise customer that no warranty will be offered on clearence merchandise. This has helped us in the past. Order something different. Your customer will thank you for it. Our main customer will buy just because we offer "against the grain" collections. Get the customer excited about your newest products and let them know that you are striving to provide them with collections they can't find at "ABC" optical. We get people in from all over the country and beyond that seek us out because the know they will find something the doctor's office doesn't have back home. Don't be afraid to be different ! Take the plunge. I think you will be pleasantly surprised. Just my two cents. Good luck...

BTW- Missoni is beautiful but lots of sparkle ! Will your customer embrace the bling? If not I would skip this one.

[For-Life]

I am furious because I wrote a nice long reply yesterday to DRK, but the OB frooze up when I sent it. So I will have to make this more to the point.

Anyways Drk,

You can be product differentiated. IN my store we have better frames, lenses, warranties, service, location and store design than anyone else. We are the only store that is different, since everyone else does the same thing.

When I got my business degree differentiation was what they told us over and over again, and I strongly agree with them. Why should someone buy from you over someone else? Why if someone gets their eyes examined somewhere else should they buy from you? Essentailly what do you do that makes people want to come it.

Now is there room to be different with lenses, yes and no. The lens industry is competitive, but once you get passed Essilor, Zeiss/Sola, Hoya, and Shamir there is only a little that you can do, but with frames you can.

I am in an isolated, shrinking city of 100,000 people that is no where near another city for about an 8 hour radius. I still see about 20 frame reps. Even so I have ones that do not come here. So if we get that many I could only imagine how many you get, so there are a lot of choices.


Over the past few years we have been made to believe that designer labels are the best; however, I have foun that with most designer labels quality and design has dropped while price has risen. To carry the best you have to look at non-designer names. Frames like Tura have made their name on quality and design, frames like Alan Mikkli and Lafont are doing amazing things. It is time for you to look else where past the designer brands and look at a frame for what it is.

There was a new line that came out this year. Heavily hyped by the company, magazines and OB, I finally decided to check it out. I grab the first frame and go, meh it is good looking but not great. Look at the quality design, mediocare. No spring hinge, no flexibility, screws in the wrong places. Then I look at the price, and boy was I disappointed. I know there is better stuff out there. I have better stuff in my store.


So yes, there is room for frame differentiation.

[rep]

Not suprisingly I suppose but I agree with MikeF totally.

Your analogy is not exactly logical. Hamburges and Chili are two different products. When selling hamburgers you can sell "ground beef" logic being nobody cares about a name - or you can take the Hardy's route and sell "Black Angus Beef". A name that the public relates to beef and quality beef.

Likewise if an optical brand does not relate to fashion, perfume, home furnishing etc. then don't expect it to move like ones that do. In addition, don't be suprised if your nitch product has more returns for patient dissatisfaction. After all there is no reinforcement that they made a good choice with mass advertising after the sale.

I hear your concern about being able to compete at the retail level by, some percieved "downward pressure" however that simply is not happening and has not happened in the past. Lenscrafters pricing is consistently higher, not lower when comparing the wholesale cost of the product. The same will apply to all Lux retail stores. They are not going to trash their wholesale business by discounting in their retail stores.

Finally, it is a total myth that everyone is going to become a cookie cutter store. Luxottica has more than 2700 different frames in usually 4 or 5 colors each. In addition new product is introduced at least twice a year. So the chances of you having the same model, size, and color as one of those stores happens - but not very often. If you do and it's a top 10 seller and it sells - why do you care?

DOC buys from Lux for one reason - our products sell through very well. I was wondering why no one on Optiboard noticed what they were purchasing. If you look around you will find a lot of others too, but they don't say much about it and we don't announce it ever.

As I said previously in another post - prior to the Cole purchase I use to have more than 20 Pearle Franchise accounts. They were in head to head competition with Lenscrafters and yet they were some of my best accounts. Why - because they knew with a contract agreement that required 15% off the top (gross) they damn will better have product that sold through or they were dead in the water and they new Lux would not undercut them regarding pricing.

I am betting you have the same exact styles in your store today that are in the nearest 10 optometric and ophthalmolgy office from Marchon and Safilo. Why are you not concerned about them having the same product in every office? Check it out.

I think the market is beginning to break out this way. Look alike optometric, ophthalmology and optical locations with the same exact ophthalmic only frames on the boards with a scattering of sunglasses and retail oriented private practices that have taken a truly retail approach and embraced the hottest lines, Sun centers and trends the consumer is interested in purchasing.

You have a choice to make.

Rep (Luxottica)

[Jason Carruthers]

Rep has some good points. Your frames will be the same as someone elses. ForLife understands the importance of differentiation.

There are many ways to differentiate. Frames, lenses, service, customer, atmosphere, price, distribution, to name a few. The key is to differentiate in the mind of the customer, not your own mind.

[drk]

Well, the thing I believe is this:

Differentiation is important. If you send your clients out into the community with a GOOD unique look, they are going to get the "where'd you get those glasses?" responses.

If you send them out with something ubiquitous, it may not be as effective. I know that there are ubiquitous-but-eye-catching styles that you could buy at Lenscrafters, but it's easier to stand out buying from unique companies like Allison, or Prodesign, or Mikli, or Lafont, etc.

I think the overall botique concept involves original, exclusive product and quite a bit of "experience". That is a very safe niche, IMO, since it is so difficult to do properly.

For run-of-the-mill optometric practices such as mine, where we crank through medical problems, pediatrics, contact lens care, and the all-important spectacle patient, and where vision care insurance isn't a dirty word, I'm sure I could do fine just providing frames from the Big 3, since my draw seems to be "doctorly". But I do try to model my optical after the botique model.

Man, if I were an indy optical, I'd have my place looking like an art museum displaying orginal works of art with a Starbuck's kiosk and live music.

[ikon44]

Well, the thing I believe is this:

Differentiation is important. If you send your clients out into the community with a GOOD unique look, they are going to get the "where'd you get those glasses?" responses.

If you send them out with something ubiquitous, it may not be as effective. I know that there are ubiquitous-but-eye-catching styles that you could buy at Lenscrafters, but it's easier to stand out buying from unique companies like Allison, or Prodesign, or Mikli, or Lafont, etc.

I think the overall botique concept involves original, exclusive product and quite a bit of "experience". That is a very safe niche, IMO, since it is so difficult to do properly.

For run-of-the-mill optometric practices such as mine, where we crank through medical problems, pediatrics, contact lens care, and the all-important spectacle patient, and where vision care insurance isn't a dirty word, I'm sure I could do fine just providing frames from the Big 3, since my draw seems to be "doctorly". But I do try to model my optical after the botique model.

Man, if I were an indy optical, I'd have my place looking like an art museum displaying orginal works of art with a Starbuck's kiosk and live music.

the 20/20 optical store in london has a nail bar and a coffee bar.

[drk]

Hey...interesting idea...

Can you envision a "studio" or "salon" that has optical, cosmetics, hair/nail care, all the while with a cutting edge feel? Would go through the roof, I say.

[For-Life]

Hey...interesting idea...

Can you envision a "studio" or "salon" that has optical, cosmetics, hair/nail care, all the while with a cutting edge feel? Would go through the roof, I say.

A few years ago we were on a city block that was dying and our building sucked.

Across the street from us was an old furniture store. Use, a hair and nail salon. a coffee shop, and a few other complimentary businesses looked at going in their as an open concept place of business.

Unfortunately, the narrow minded city stepped in. While they only wanted about $50,000 for the building, they also wanted over $200,000 in back taxes from the former owner of the building.

So all of the businesses, including us, moved to a different location and the city has yet to rent that building out.

I guess they still need the taxes

[Jason Carruthers]

Hey...interesting idea...

Can you envision a "studio" or "salon" that has optical, cosmetics, hair/nail care, all the while with a cutting edge feel? Would go through the roof, I say.

Great idea! Add a 1-hour photo desk and a tire center and call it Costco!

[drk]

Great idea! Add a 1-hour photo desk and a tire center and call it Costco!

BOO, Jason:shiner:

[Snitgirl]

Morning Drk,

Don't forget to think about your Optician's that are selling the product. If the product is somethng they wouldn't wear themselves, or their not excited about in general, they will not show it. It will just sit and be a waste of money. Unless of course you have an Optician that can sell anything....

About the Gucci's frames...exchange them out for some Gucci Sunglasses and then put those on sale... the Sunglasses should move faster..

[Jedi]

I don't want to get long winded on this so I'll make it short. I've come to the conclusion that recognizable brand names are best suited for bringing people into you store and keeping them there until you can show them something better. Case in point, yesterday I had a mother and daughter come looking for Chanel (we don't carry it, long story ;) ) and other "high end brands". We looked at the Bulgari, Prada and Versace, then I told them what the celebrities were really wearing was Oliver Peoples and Christian Roth. "OMG, you carry Oliver Peoples!!!", they tried on a couple of pairs and then we got to the Christian Roths and they almost fell over. They loved the fit, the colours, the style. Daughter bought and non-rx, Mom is RXing her pair. They retail for about $550 each. My conclusion, the brands brought them in, but the better product spoke for it's self. My recommendation, have the designer stuff accessable, but don't go overboard with it and diversify with "exclusive" and higher end pieces.

[drk]

I don't want to get long winded on this so I'll make it short. I've come to the conclusion that recognizable brand names are best suited for bringing people into you store and keeping them there until you can show them something better. Case in point, yesterday I had a mother and daughter come looking for Chanel (we don't carry it, long story ;) ) and other "high end brands". We looked at the Bulgari, Prada and Versace, then I told them what the celebrities were really wearing was Oliver Peoples and Christian Roth. "OMG, you carry Oliver Peoples!!!", they tried on a couple of pairs and then we got to the Christian Roths and they almost fell over. They loved the fit, the colours, the style. Daughter bought and non-rx, Mom is RXing her pair. They retail for about $550 each. My conclusion, the brands brought them in, but the better product spoke for it's self. My recommendation, have the designer stuff accessable, but don't go overboard with it and diversify with "exclusive" and higher end pieces.

I'd love to see your optical, Jedi. It sounds amazing.

[For-Life]

I'd love to see your optical, Jedi. It sounds amazing.

I was there back in 2001. Truely a store that makes you go "wow."

[Jedi]

Thanks guys. The two stores are quite amazing, though I can't take any credit for them. Our owner has fantastic taste and is very intuitive when buying. I'm just trying to learn all I can and I do look forward to the day I can open my own shop.

[For-Life]

Well Jedi, that is because your boss sat down and decided to target a market.

The decided high end and to set the market. Hot the market and stay in that market.

I am not high end. I classify myself as mid to high end, but we are probably more mid end. We try to carry some high end, but we still do a lot of lower stuff (good quality though). We both talked about Mikli. Maybe it is my fault that I do not target the higher end better. I blame it on the economics of the city, but I could try to capture a higher market. However, I do think I have done rather well raising expectations.

I think sometimes we are afraid to do something different and raise expectations, so we dmb down what we do.

[DaveD]

[QUOTE=drk]
Looking at the catalogue, I'm not so sure. Any opinions?
QUOTE]




as a former frame rep I would hate it when a doctor / buyer would not at least give me a chance to update my line after not seeing it "in person" for a long time. Ask yourself "when is the last time I saw this rep" worst case scenario is you swap out some styles and have better product to sell off. Not giving the rep a chance to at least show you some new styles is not the way to do it. Be honest with your rep after you see them and let them know you'll see how the new styles go but you may be going in another direction. At least you'll have new product to sell or sell off. A lot of Doctors / buyers unfairly string reps along i.e. schedule appointments and cancel them time and time again. Reps have a business to run too!

[drk]

I'm glad you posted, Dave D., because of your expertise in this area.

Serious question: which is better (or worse):
1.) I have 12 frames and I'm not sure I'm going forward with them, so I look at a catalogue, and if it's not enticing, I sell them off without involving the rep.

2.) I have 12 frames and I'm not sure I'm going forward with them, so I have the rep come in, show me the new stuff, do some trading-out, but netting out only a very few pieces, since you're still not sure if the line is going to work, long term.

My goal is to be fair to the rep, not to make them service a line that I'm questionable on, anyway, or lead them on. I certainly don't want to string anyone along. I'm trying to save everyone's time and effort, and not waste it!

Please advise!

[DaveD]

As a former Safilo rep I can tell you that generally by the time a catalog hits an accounts hands it is 1 to 3 release cycles behind. Many frame vendors (Safilo included) have websites that are updated more frequently. As far as "stringing a rep along" my theory is if you haven't seen the line in person in a long time I would at least bring the rep in and be honest with them. Honestly it will take you a long time to sell off 12 old Gucci frames. Like the person suggested earlier swap half of them for suns. I think you'd have a better chance selling some of them off. As a rep I would feel better if a doc just brought me in and said, "I think a may be going in a different direction, if you would like to change out a few of these older styles and see if things pick up that's fine if not I understand" the ball is in their court. No harm no foul. Some doctors tend to over analyze everything (which isn't always a bad thing):) .