Convert private to franchise? Convert back?

[harry888]

Anyone out there converted their private independant office to a franchise like Pearle?

Myself, I'm a bit discouraged with the public in general and it's tastes for the
big box stores, chain restaurants etc. I see my downtown dying, all mom and pops
closing. Yes there will always be a market for "boutique" but I feel that
market will decrease as all the suburbs change to Best Buy, Home depot,
Applebees, Walmart, Target, etc. A recent weekend in Maine looked like any
suburb of Atlanta, Houston, or Boston.

It's all about expectations, the chains give the same mediocre service/food, but
it's a safe mediocre.

Maybe that's the way to go, adapt or die?

Anyone out there convert over? Or defranchise/convert back?

[Johns]

Harry! Harry! Harry!

Get a hold of yourself man! It sounds like you had a terrible week. It pained me to read this post, because I know how you feel, however, don't fall on your sword yet. Step away from your office for a few days and spend some time going to other (succesful) practices in the surrounding area. Surely, they're not ALL franchised.

Did you used to be a franchise? If yes, why did you switch ?

I know that franchising works for many folks, but it seems like you are then beholden to 2 masters.

What do they have to offer that you can't do yourself ? Why not hire an outside sales rep to go out and sell your office to the local industries and businesses? Hire a marketing specialists to revamp your image and give your practice a shot in the arm.

[Chris Ryser]

Hire a marketing specialists to revamp your image and give your practice a shot in the arm.

Tha sounds like a much better idea....................I have also brought up many times that their is a recession or even a depression is looming in the background. The US dollars is at it's lowest in 20 years against other currencies, soon hitting the 1 to 1 with the Canadian dollar which was 40% lower 2 years go.

Here on the optiboard many or most posters are still gleaming with their success of only selling the most expensive lenses, frames, AR's instead of facing the reality of coming tough times and preparing for it.

The optical retail and down the road their suppliers and manufacturers will feel the punch first, together with the dental industry.

When poeple are not willing to buy new glasses until needed, because they are in a financial squeeze originated by the economy, the retailer has to take proper measures ahead of time. When the need araises they want to get new lenses into the old frames, they will not go for the most expensive variations of lenses anymore, but go for some more basic solutions.

[rep]

Anyone out there converted their private independant office to a franchise like Pearle?

Myself, I'm a bit discouraged with the public in general and it's tastes for the
big box stores, chain restaurants etc. I see my downtown dying, all mom and pops
closing. Yes there will always be a market for "boutique" but I feel that
market will decrease as all the suburbs change to Best Buy, Home depot,
Applebees, Walmart, Target, etc. A recent weekend in Maine looked like any
suburb of Atlanta, Houston, or Boston.

It's all about expectations, the chains give the same mediocre service/food, but
it's a safe mediocre.

Maybe that's the way to go, adapt or die?

Anyone out there convert over? Or defranchise/convert back?

I have actually seen a number of franchised location convert from Pearle back to independent private practice. In every case the went high end designer and not a one of them is doing poorly. Remenber however that they already have developed their market by years of national consumer advertising and have a good data base of customers who are already comming to the locations for optical services.

Despite the number of OB posters who spout that designer brands are easily swayed by optical personnel to their own private brands, there is a large segment of the population that are looking for designer products from Lux and other major vendors and if you don't carry them they will find a location that does carry them.

I think the middle and low ends segements are where the little or no growth is occuring. Most of it is insurance and customers who will buy once and switch retailers at the drop of the had looking for the ultimate low price.

Think designer and high end. It's also where the margins are best and there is little insurance to deal with. Forget all this recession/depression talk - it is just an excuse. There are lots of people with money out there you just have to carry the products they are seeking.

P. S. this is not a put in a "line and see how it goes" solution. You will need to completely rethink your operation including personnel, image, location, product lines, promotion, interior design and sales training. Look around at the operations that are sucessful in high end and see where you can modify your operation with the minimum expense.

Rep

[GOS_Queen]

Harry -



If I were in that situation you described, I would resist that until the very end ...

You've been given many great suggestions ~

Johns mentioned: Why not hire an outside sales rep to go out and sell your office to the local industries and businesses? Hire a marketing specialists to revamp your image and give your practice a shot in the arm.

I think this is a great point ~ I don't know how many people you have in your office but I would suggest doing this yourself if you can.

Partner with your frame reps and put together a trunk show - perhaps one a quarter- (two of our offices did this recently ... I'm amazed at what a trunk show can do for business ... )

Think about your area ~ are you in a high tech corridor? Even if your not, think about how many people use computers today. Perhaps go around to large offices and make a call to introduce yourself to the office staff. Put together a basket of goodies (perhaps individually wrapped food treats or perhaps some eyewear accessories or both). Gather some information about computer vision syndrome (maybe something like a quiz) and then leave it with the them.

Every paper has a "living" or "lifestyle" section. Begin working with the editor of your local papers section and become their source for anything optical, fashionably-optical related. Send out properly formatted press releases regularly. Think about the seasonality - perhaps something tied into the "glaucoma awareness month" (or any of those "awareness months") "back to school eye exams - what's new & hot in kids eyewear" (if that is something you want to focus on), "what's hot & new in sunwear". Try to plan it so that every month you have something in the paper.
If you want to go more high end, then I would recommend partnering with some of the higher end clothing boutiques and salon/spas. Go in, meet with the owners - offer to take a few cards/brochures of their business in exchange for some of yours. Obviously, the people who frequent such places are looking for a certain level of unique products and unparralled, personalized service.

hth -

[harry888]

Johns, chris, goddess, and rep,

There was no post of "I franchised and am happy" on this thread or another internet list I read/post. Just comments on establishments that have defranchised and been satisfied with the defranchise. So, question answered.

Thanks for the advice and encouragement.

Harry

[rbaker]

The one thing that all successful businesses have is a unique place in their market. The proliferation of big boxes and chains provides you with a wonderful opportunity. Strive to provide unique products and services. Deliver them in such a manner as to delight everyone you serve.

Don’t try to compete on price, as the economies of the large organization can not be matched. Compete on quality and value. Build an organization that can think on it’s feet and rapidly respond to the inevitable changes that it will face in the future.

If you fall victim to the fallacy that you can not compete in the marketplace this self fulfilling prophesy will come true. The present eye care market place will cull the inept and incompetent and only those who truly know their cookies will survive. There is ample evidence of this right here on OptiBoard.

[66Lenses]

I don't know about you, but franchise system throws in same expectations from all such outlets and if any of them falters, its brand or name that gets affected. Thats something which can be scarry at times. Otherwise its a good system in practise and offers good opportunities and advertisements, besides building up a name in market. Again its a risk to take in my opinion.