Optical management

**Fezz** · 09-05-2006, 10:37 PM

I am curiuos to see how others run their businesses. I have talked to enough people in this profession that truly do not have a clue on how to run a practice with sound business desicions. Many of us are employed by people who actually own or manage the practices, but, do we still take these business desicions and benchmarks into our daily thinking?

For example:
1.) Avg. optical sales per day
2.) Avg. frame price
3.) Avg. frame turnover rate
4.) Chair cost per exam
5.) Chair costs per Dr. hour
6.) Avg. dollars earned per exam
7.) Avg. collection time (how many days to turn receivables into cash)
8.) costs of goods
9.) cash flow margins
10.) % of contact lens sales, % optical sales, % professional sale

I do not own the practice that I work at. But, I do try to take "ownership" of the practice into account everyday. I understand that if we as a team do not meet certain numbers.......we as a team maybe out of jobs. Where does one learn more about business management without taking college courses? I took a few business classes in college, took the local S.C.O.R.E course and read what I could. I have been thinking about purchasing the book " Management for Opticians", but have seen mixed reviews. Does anybody have this book, read it and could comment. My understanding is that Optometry schools have lacked the needed business courses, but, are slowly picking up the slack. How about MD's...do they take business courses? I have seen many who have been hoodwinked into signing on with some bogus management companies that suck the practice dry of all profits. Are all management companies bad?

Food for thought.

Fezz
:cheers:

**s-man-optiker** · 09-06-2006, 02:55 AM

I see your point. I've been lucky enough to have the greatest boss I've ever had. She's been in the business about 13 years and seems to know just about everything and be willing to share all her knowledge with me. Another thing that's hard to find is the right crew that can work together and get things done, all the while keeping in mind what goals need to be met with regard to sales and achievement. We've recently had some toss ups here a few of my crew moved away, man I miss them. Anyway, as far as material for learning management... I downloaded one from abo.org it's ok.. but I guess the best way to learn is to have the luxury of working under someone who can show you how it's supposed to be done.

**Leo Hadley Jr** · 09-06-2006, 05:10 PM

Fezz,

You are truly on the right track. Taking ownership in your company is the best way to learn everything. That is how I advanced my career and made myself successful in the industry.
Eventually I was managing stores and then multiple stores. Examining profit and loss margins is where you get to understand everything involved in running a business. If you study the numbers you can learn to micromanage those numbers. Eventually you will think of those numbers in every thing you do. If you were my employee I would be very happy to have you taking ownership and learning everything you can about running it. That kind of employee is indispensible and hard to find.

Experience is the best Teacher!!!

**Fezz** · 09-06-2006, 05:57 PM

OpticalLabRat:

Thanks for the kind words. Question though...is there a point when an employee has taken too much "ownership"? I am not saying that they feel as though they truly own the business, but a point when maybe they give too much, or are to caught up emotionally, or take on too much?

Fezz
:cheers:

**Conoid of Sturm** · 09-06-2006, 06:26 PM

It is so awesome to hear about an employee taking ownership like that. Keep it up and you will be an owner in every sense of the word soon. I personally don't think you can do that too much, though of course being "emotionally" involved is a bit of a different story depending on what you mean by that.
All I can say with authority is that I went to work for LC with zero experience and quickly made retail manager by owning the numbers, and I'm on track for district manager where I'm at now. Don't let people with no goals make you feel weird--own the numbers, own the business, own your future.

**Uni-Clip** · 09-06-2006, 08:14 PM

Fezz,

Let me first say that your attitude is not only honorable but will GREATLY benefit your career in near future. Keep up the good job.

I own an optical manufacturing company here in Hong Kong with factories in China and a wholesale division in Arizona. However, I started with absolutely no business background whatsoever, some 20 years back. I was educated as an electrical engineer in NY, believe it or not. I had a great dad who was in optical wholesale business, who passed me a lot of knowledge and experience. However, business knowledge and ideas evolute through time. Most of the knowledge and insights which I found contributing to my work is through short term business course and majorly through reading. I find it particularly helpful to read business books without optical specifics. This way, it will help you to think more laterally.

The most recent book I've just finished and found very insightful, is about US consumer behavior:

Treasure Hunt - Inside the Mind of the New Consumer, by Michael J. Silverstein

I hope this helps.

Lak Cheong
www.acuityeyewear.com

**Bev Heishman** · 09-06-2006, 08:38 PM

Fezz,

Include capture rate as this is as important as the other numbers you are listing.

Me

**Fezz** · 09-06-2006, 11:00 PM

Thanks all for the replies...lets keep them coming!

At times, I have felt that my attitude toward "ownership" was worthless, unimportant, and detremental(sp?) to my employement and mental well being. But, I step back and realize that if all fails, I lose my job, etc.. I can truly say that I gave it my all!

Bev...
There are many other points that I did not hit on. As you said, capture rate is vital! We could also consider:
1.)Fees per square foot vs. income/profit
2.)Sales per staff hour
3.)New patient exams
4.)Existing patien exams
5.)Recall return rates

So..the list goes on and I would really like to hear more from the Optiboard members. I truly would like to LEARN more.
I understand that many of us never really see the "numbers", but I truly feel that if we have a base knowledge of business, take that knowledge into consideration into our daily activities that not only will the practice succeed, but we as individuals will succeed!

Keep the posts coming and thanks all for the kind words. If I am ever looking for work, out of a job..I hope to hook up with like minded professionals who may give me the chance to have "ownership" of your business.

Fezz
:cheers:

**MedicLINK** · 09-07-2006, 01:50 PM

It's great to see staff and owners trying to take such a pro-active approach on the business they own or work in.
The more information you know on your business and your customers, the more successful you will be.

In our latest version of our software, Eyesistant 2.0, we really tried to change the focus of the software and make it a tool to grow your business. We specifically have a section where Management can go and get a real-time ticker on nearly every aspect of their business. We include many of the areas you guys have mentioned, including capture rate. We include a Marketing Initiatives module where Management adds their various marketing campaigns (radio, newspaper, etc) and it will tell you the capture rate, ROI, total sales generated, total new customers and so on.
Most of these features have come directly from our user's requests on how they can grow their business. Basically, we incorporated a lot of things that we use to help grow our business.

We are preparing a new website launch, www.eyesistant.com over the next few days. I welcome everyone to have at it. We will release a formal press release on launch-day.

The MedicLINK Team

**optigrrl** · 09-07-2006, 09:38 PM

Thanks for the kind words. Question though...is there a point when an employee has taken too much "ownership"? I am not saying that they feel as though they truly own the business, but a point when maybe they give too much, or are to caught up emotionally, or take on too much?

Fezz - taking "ownership" of anything is taking pride in one's abilities. The only time you could possibly overstep your boundaries is to start making decisions that are not yours to make.

Try not to get caught in the emotional process. It clouds your ability to make sound, impartial decisions. This is especially important when managing a staff. You have to be in the mindset of "How will this affect the business" and not "How does this affect me". (some people want their staff to like them and so they avoid any confrontational situations - for fear it will create animosity regardless of the other problems that will be created by not addressing the issue at hand)

Thirdly, you are no good to anybody if you are spread too thin. If you find that by trying to do everything you are doing everything so-so, it's time to re-evaluate your time management skills and prioritize responsibilities.

It sounds like you are a self starter (and a smart one, at that!). Just throw in some good negotiation skills (vendors/labs) and you can write your own ticket! I track selling trends for just that reason - lens styles, materials and coatings as well as sunglass sales vs. clear, accessory sales and average price per transaction. I also track payroll to sales %.

I would love to have 10 of you! You have all the traits of a highly successful individual! I am sure you will go far in your career. ;)

**GOS_Queen** · 09-07-2006, 09:44 PM

Originally Posted by Fezz

Thanks all for the replies...lets keep them coming!

At times, I have felt that my attitude toward "ownership" was worthless, unimportant, and detremental(sp?) to my employement and mental well being. But, I step back and realize that if all fails, I lose my job, etc.. I can truly say that I gave it my all!

Bev...
There are many other points that I did not hit on. As you said, capture rate is vital! We could also consider:
1.)Fees per square foot vs. income/profit
2.)Sales per staff hour
3.)New patient exams
4.)Existing patien exams
5.)Recall return rates

So..the list goes on and I would really like to hear more from the Optiboard members. I truly would like to LEARN more.
I understand that many of us never really see the "numbers", but I truly feel that if we have a base knowledge of business, take that knowledge into consideration into our daily activities that not only will the practice succeed, but we as individuals will succeed!

Keep the posts coming and thanks all for the kind words. If I am ever looking for work, out of a job..I hope to hook up with like minded professionals who may give me the chance to have "ownership" of your business.

Fezz
:cheers:

Fezz -

One of my most favorite email subscriptions is: Optometric Management Tip of the Week - I really enjoy the topics and have shared with friends in the industry and coworkers at work.

http://www.optometric.com/om_mtotw.aspx

This link should take you the list of "past" topics.

hth -

**s-man-optiker** · 09-08-2006, 01:30 AM

Optigrrl mentioned negotiation - I think I'm worst at dealing with vendors. It doesn't matter if it's lenses or frames, I'm always worried that we're not a big enough customer and that the sales rep on the other end is like "Wow, this tiny little business has so many questions." I also just recently started learning about buying groups. I guess I should take a different perspective as to what I am allowed to expect from my vendors.

**elena** · 09-08-2006, 02:24 AM

'Practice is the best teacher'
It's true!
Sometimes, we never know what will happen unless we start doing
Sometimes, we think too much ahead and we read too much about theroy.
Especially in business management, theroy is theroy. But I count more on practice.

Just do it, let practise tell you if it works. And always make improvement according to progress.

Of course, only my personal opinion:cheers:

**optigrrl** · 09-08-2006, 12:19 PM

s-man-optiker wrote - Optigrrl mentioned negotiation - I think I'm worst at dealing with vendors. It doesn't matter if it's lenses or frames, I'm always worried that we're not a big enough customer and that the sales rep on the other end is like "Wow, this tiny little business has so many questions." I also just recently started learning about buying groups. I guess I should take a different perspective as to what I am allowed to expect from my vendors.

There are other points of negotiation besides just sales volume. For example - we only use premium products which create a better profit margin for the lab. I look at what we are selling the most of and in what material. If you find that you are selling x brand of progressive in poly every month, ask the lab if they will give you "line" pricing on that product in that material.

I also maintain a low re-do and breakage number, so I can negotiate that way because I don't cost the lab in errors.

Don't focus on what you don't do "compared to bigger accounts". Look at what your business does that is an advantage for a vendor to do business with you and negotiate accordingly :)

It should always be a win-win for both the account and the vendor!

**optigrrl** · 09-08-2006, 12:20 PM

..

Originally Posted by optigrrl

s-man-optikerOptigrrl mentioned negotiation - I think I'm worst at dealing with vendors. It doesn't matter if it's lenses or frames, I'm always worried that we're not a big enough customer and that the sales rep on the other end is like "Wow, this tiny little business has so many questions." I also just recently started learning about buying groups. I guess I should take a different perspective as to what I am allowed to expect from my vendors.

There are other points of negotiation besides just sales volume. For example - we only use premium products which create a better profit margin for the lab. I look at what we are selling the most of and in what material. If you find that you are selling x brand of progressive in poly every month, ask the lab if they will give you "line" pricing on that product in that material.

I also maintain a low re-do and breakage number, so I can negotiate that way because I don't cost the lab in errors.

Don't focus on what you don't do "compared to bigger accounts". Look at what your business does that is an advantage for a vendor to do business with you and negotiate accordingly :)

It should always be a win-win for both the account and the vendor!