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Thread: Egads! Costco can't be serious!

  1. #176
    What's up? drk's Avatar
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    THANK YOU, NETTIE.

    So, Nettie is saying that her Costco is independently profitable (and we can infer to the tune of some 200K/yr). That's really good.

    So, this is an example of what?

    Obviously, the profit is respectable.
    The pay is very good.
    But the prices are too low and the margin is too low.


    So, they must be:
    1.) Sharing overhead quite effectively
    2.) Buying at exceptionally low prices

    It comes back to buying low, selling low, and high volume.

    IMO, if a company is profitable on it's own, it's legit and unassailable.

    Thank you for the education.

  2. #177
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    Quote Originally Posted by Fezz View Post
    Be careful here. I believe that most, if not all, Costco opticians must have a ABO certificate. And actually, some of there opticians have a huge amount of experience and knowledge. Check Optiboard for a member: William Walker. He may be a diamond in the rough, but the likes of him are growing!
    Thank you Fezz and as a now certified optician who works @ Costco I must add that most of us have worked in previous dr office or even labs and/or have been mentored by such people.

  3. #178
    OptiBoard Professional William Walker's Avatar
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    Quote Originally Posted by RCB1602 View Post
    Thank you Fezz and as a now certified optician who works @ Costco I must add that most of us have worked in previous dr office or even labs and/or have been mentored by such people.
    Congrats RCB. I don't work for Costco anymore, but feel free to shoot me a line anytime you have any questions. I was with Costco for six years (four of them running a Costco Optical), and I would be happy to help.
    William Walker

    Associates in Science in Opticianry
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    Next Goal: ABOM

    Optician with Lenscrafters in Jacksonville, FL

  4. #179
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    Redhot Jumper Can you change Costco's ways ?????????????????????....................

    Quote Originally Posted by drk View Post

    I don't appreciate it, quite frankly.

    As to Costco, holy smokes, what are they trying to do? I mean, I understand underselling the market, but this is an obscene precedent.

    If this catches on, we are going to be Mc'Ticians for sure. How can you cut that many costs?

    We'll see if they survive this concept. I hope they burn.

    drk..............................................you still believe in Santa ? Check below statistics and decide if they are going to burn, or if you can try to change their way. We should start to think why they have gone this far.........................maybe they do something right.


    Costco Wholesale Industries, a division of the Company, operates manufacturing businesses, including special food packaging, optical laboratories, meat processing and jewelry distribution. These businesses have a common goal of providing members with high quality products at substantially lower prices.


    Key Information
    Number of warehouses: 598 (as of 12/10/11)
    Areas of operation: 433 locations in 40 U.S. States & Puerto Rico;
    82 locations in nine Canadian provinces;
    22 locations in the United Kingdom;
    8 locations in Taiwan;
    7 locations in Korea;
    11 locations in Japan;
    3 location in Australia;
    32 locations in 18 Mexican states
    Membership Data (as of 8/28/11): 64.0 million cardholders
    35.2 million households
    25.0 million Gold Star
    6.3 million Business
    3.8 million Business add ons
    Warehouse sizes: 73,000 to 205,000 square feet
    (average 145,000 square feet)
    Annual revenues
    (FY10 - Ended 8/28/11):
    $88.9 billion
    Fiscal year end: Sunday closest to August 31
    Number of U.S. employees: 107,200 full and part-time
    Number of employees (worldwide): 161,000 full and part-time

    http://phx.corporate-ir.net/phoenix....ol-homeprofile

    http://www.costcoconnection.ca/conne...304?pg=97#pg97
    Last edited by Chris Ryser; 01-16-2012 at 05:55 AM.

  5. #180
    Master OptiBoarder OptiBoard Gold Supporter Judy Canty's Avatar
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    Are we that bored? Starved for news? Sick of primaries and debates? Why are we resurrecting a 5 year old thread??? Who ever you work for, who ever signs your check, who ever owns your business...YOU HAVE A JOB. Many others are not so fortunate.
    Last edited by Judy Canty; 01-16-2012 at 10:08 AM.

  6. #181
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    Resurection of an old thread is like looking at History...........only here we can see how people thought then and how the subject developped. This one for sure developped fast.

  7. #182
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    Quote Originally Posted by CuriousCat View Post
    One question that comes to mind is "Can you afford to shop in your shop?" Can your parents, friends, neighbors? I couldn't pay $800 for a pair of PALs no matter how wonderful the manufacturer says they are.
    Really? Sorry, not picking on you but we hear this from time to time. Its a self defeating way to think about it. I see so many people shelling out 5-10/day for lunch its crazy. That averages to about $1500 per year. For what? Crap food that is not good for their body? I'll gladly bring my lunch to work, eat healthier and cheaper and and save the money to purchase a nice pair of lenses and frames which I can actually see out of and they look great one me too. Some things in life are worth the price of admission, even if you have to give up a few dining out experiences.

  8. #183
    Master OptiBoarder OptiBoard Gold Supporter Judy Canty's Avatar
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    I believe my point, 5 years ago, was that there are more options out there in the lens world than the big boys would have you believe. In a struggling economy, that is a factor that make a difference in every practice. While you may be willing to sacrifice dining out, others may not. High price is not necessarily an indicator of quality.

  9. #184
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    Quote Originally Posted by CuriousCat View Post
    High price is not necessarily an indicator of quality.
    Price is almost always a reflection of input costs. Yes, you can have a high quality pair of frames, but that doesn't mean it uses good materials, is unique or any special handling was done. You could put an iron frame on your face, it would never be destroyed and consider that high quality. I wouldn't, but some might. I appreciate the engineering, the design work, selection of materials and craftsmenship that goes into a frame and a lense, and usually, the higher the cost, the more input costs it will have. You almost always get what you pay for unless you are dealing with unsrupulous people.

  10. #185
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    Redhot Jumper You almost always get what you pay for .............................

    Quote Originally Posted by AustinEyewear View Post

    I appreciate the engineering, the design work, selection of materials and craftsmenship that goes into a frame and a lense, and usually, the higher the cost, the more input costs it will have. You almost always get what you pay for unless you are dealing with unsrupulous people.


    Having been a frame distributor for 2 major European companies for 20 years immporting and successfully selling top quality brand name frames which gave me some expirience form back in the 1960s and 1970s. The frames we sold where top quality and sold at a higher price than many others to retailers.

    Today similar top quality frames are on the market and they are selling at prices similar to the ones we did 25-30 years ago, and that does not make sense when high class car could be bought at $ 15,000 then and would be $ 40,000 these days.

    New technology machines allow the manufacturers to makes products faster and better or as good as the. However when looking at the websites from the far east these frames sell at fraction of what an importer/distributor paid in those days.
    The distributor does sell to the retail at heavily inflated prices.....mostly due to the return and warranty factors. If the retailer would not insist on those goodies which are very costly to distributor the retailer could probably purchase those goods at way lower prices.

  11. #186
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    Quote Originally Posted by Chris Ryser View Post
    Having been a frame distributor for 2 major European companies for 20 years immporting and successfully selling top quality brand name frames which gave me some expirience form back in the 1960s and 1970s. The frames we sold where top quality and sold at a higher price than many others to retailers.

    Today similar top quality frames are on the market and they are selling at prices similar to the ones we did 25-30 years ago, and that does not make sense when high class car could be bought at $ 15,000 then and would be $ 40,000 these days.

    New technology machines allow the manufacturers to makes products faster and better or as good as the. However when looking at the websites from the far east these frames sell at fraction of what an importer/distributor paid in those days.
    The distributor does sell to the retail at heavily inflated prices.....mostly due to the return and warranty factors. If the retailer would not insist on those goodies which are very costly to distributor the retailer could probably purchase those goods at way lower prices.
    Ya, its pretty amazing that some of these high quality hand built frames are as cheap as they are when you consider the amount of work that goes into them. The returns you speak of are part of the input costs I refer to - its a value added service which of course must be paid for, its not free, so they are passed on to everyone. Its just giving the consumer what they demand. It allows opticals to provide a great inventory selection and turn it over quite frequently, giving the end consumer greater choices and more selection than they might have otherwise. It allows us to order frames for pts to try on, and if they don't like it, return it should we decide to eat the shipping charges. I think people who say that the Costco frames are a good value, probably haven't spent much time analyzing exactly what it is they are selling and comparing them to better frames. I'd say they are a fair value, but not necessarily a good value. Actually, in general, higher priced frames are probably a better value.

  12. #187
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    They've been eating my lunch for years. I don't think that a day goes by that I don't lose patients to costco. Also, in the So Cal market they carry some very impressive designer frames at rock bottom prices. My only advantage is that we offer one-on-one service which is far more detailed than theirs. Not sure if this counts for anything since most people are just looking for the best deal.

  13. #188
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    Quote Originally Posted by LKahn View Post
    My suggestion is to select a product assortment that is not in Costco, if they are your real competition. If you drive your business on the basis of low selling price you will not pass the test of time. Your product assortment must be different from others, because there will always be some guy out there willing to sell his goods for a ridiculous price.

    A wise fellow taught me something very important a long time ago.

    Retail is the art of buying, not the art of selling. If you buy something correctly you can afford to reduce the price when times get difficult.

    Not sure that this works. Most of my clients who opt for costco don't really care what my product is or if it's different than costco. All they care about is that they can get a frame for $50 and an ovation progressive with AR for under $100.

  14. #189
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    Quote Originally Posted by rolandclaur View Post
    After reading this thread, I'm frankly a little scared to post,but I would like to offer some insight if I may.


    I firmly believe that Costco does not intend to run independents out of the ground, The majority of Costco's clientele are in fact middle to upper class. They appreciate designer brands, elegant styles, etc. Our dispensary is kept as bare, simplistic, and minimal as possible. We don't do any type of custom jobs like RXable sunglasses, goggles, tricky prescriptions, slab off's etc. I also believe that the optical department is there mainly as a professional service to Costco's members.

    I believe that I have a lot to bring to the company as far as my optical background and experience goes. And believe me, when I cannot help a member out with something they are looking for, the first thing I do is recommend them to an independent optical store where I know the opticians there can cater to their specific needs. I myself have worked at over 10 different Costco locations, and each location has business cards of independent optical stores all over San Diego that the opticians will hand out to members who are looking for something that we cannot offer. And I have never gotten spoken to, reprimanded, or written up because i recommened a "competitor" to a member, which i am more than happy to do any time of day. In fact, the only companies that we actually price shop and compare are against Wal-Mart and Sam's Club.

    If you guys have any questions for me, I'll do my best to answer them. And if William Walker is out there, just want to say hello from a fellow Costco optical employee
    Thanks for your candor. I've often toyed with the idea of having a pamphlet available to our clients which explains the differrence between what we offer and what Costco and Walmart offer. Some salient points would be:

    -We custom tailor our lenses precisely to what we feel the patient needs. This requires extensive counselling but we can eventually figure it out and make sure that they get exactly what they need. It's not a one progressive fits all kind of deal.
    -We spend 20 mins to half an hour with each client. Costco can't possibly do that.
    -We troubleshoot any adaptation issue with free chair-time with an M.D no matter what the problem is. Costco can only provide a refund but is not in the position to see if there is a problem with the prescription or to laboriously figure out the host of other issues which can cause problems.
    -We spend far more time dispensing the finished product than costco does.
    -We go to bat for the client with freeform, rimless, drill mounts, unusual shapes and curves, specialty lenses,prisms etc. There is no level of complexity that we won't take on, no matter how much time it takes.
    -We keep up with all the latest materials, options etc and are nimble enough to offer these as soon as they become available. Costco is a large ship and takes a while to gage the current.
    -We offer a pleasant boutique atmosphere and not a frenzied warehouse.

    Personally, I love a good bargain and shop often at Costco; however, I would not buy glasses at costco just as I would not go there for my medical care. I believe that glasses are a customized medical product and not a mere commodity. I wish I could make all of this known to patients but rarely have the opportunity to do so. Many of our clients take a perfunctory look at our optical shop and ask for their prescription to take "elsewhere". When I see them next for a medical visit I notice they're wearing the tell-tale Ovation which tells me that they went straight to Costco with my prescription.

    At the risk of sounding ridiculous, I sometimes find this insulting. My practice does an almost ridiculously compulsive refractive exam which involves automated refraction, phorometry manifest and trial framing (on every single patient). I pride myself on being the best refractionist I know and am constantly experimenting with new techniques etc. If there is any problem with the glasses whatsoever I personally troubleshoot the issue immediately (no techs are allowed to do this for me). We will fix the problem to the patient's satisfaction regardless of the cost or how many times it takes us. After a discussion with me (on every patient) the optician labors patiently with every client to provide absolute customization. For all of us it's a labor of love and we take it very seriously. Therefore, to daily see our clients ask for their prescription to take to Costco is very upsetting. Many of them even have the nerve to bring us their costco glasses when they run into a problem thinking that it may be a "mistake" in our prescription (which it usually isn't). OK, now it's out of my system and I feel better.

  15. #190
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    Quote Originally Posted by ilanh View Post

    Personally, I love a good bargain and shop often at Costco; however, I would not buy glasses at Costco just as I would not go there for my medical care. I believe that glasses are a customized medical product and not a mere commodity. I wish I could make all of this known to patients but rarely have the opportunity to do so. Many of our clients take a perfunctory look at our optical shop and ask for their prescription to take "elsewhere". When I see them next for a medical visit I notice they're wearing the tell-tale Ovation which tells me that they went straight to Costco with my prescription.
    You see glasses as a customized product but your patients don't really understand that. Most people have no idea that there are well over a hundred different progressives. And the bottom line is price. Costco sells their progressives very cheap. Most people do okay with them. Those patients coming in with Ovations- are many having issues with them?

    And really, 20 minutes to half an hour isn't all that long to spend with a patient.

  16. #191
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    Quote Originally Posted by Happylady View Post
    You see glasses as a customized product but your patients don't really understand that.
    If they don't, it's your/our fault.
    Ophthalmic Optician, Society to Advance Opticianry

  17. #192
    Master OptiBoarder OptiBoard Silver Supporter Barry Santini's Avatar
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    Costco, Zenni, Coastal, Warby Parker, etc., have come to simply define or redefine what the average consumer will find adequate and acceptable in eyewear. Your job, as Johns has pointed out, is to redefine what you offer and communicate, and to groom a clientele that appreciates it and is willing to pay for it.

    Yeah, its a big job. And it never ends.

    B

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    Quote Originally Posted by William Walker View Post
    Congrats RCB. I don't work for Costco anymore, but feel free to shoot me a line anytime you have any questions. I was with Costco for six years (four of them running a Costco Optical), and I would be happy to help.
    Thank you Mr. Walker...I haven't started yet, but once I begin studying for the ncle I will be sure to ask you

  19. #194
    OptiBoard Professional William Walker's Avatar
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    I have to say that I have a little issue with the way you approach this. I mean this 100% respectfully, but I wanted to touch on what you've written a little. My point of perspective - I ran a high end private practice 3 miles away from a Costco for 5 years, worked for Costco for 6 years (managing for 4 of the 6), and now work for LC literally walking distance away from Costco.

    I've often toyed with the idea of having a pamphlet available to our clients which explains the differrence between what we offer and what Costco and
    Walmart offer. Knowing what separates you from your clientel is very important. However, taking the time to make a pamphlet to hand to patients really looks like you're more interested in getting their sale then you are in what's best for the patient. Your pamphlet is going to be interpreted as 'This is why we are best...', and it comes across as another sales tactic. Be honest with your patients, and with yourself - I'm guessing you have options in your optical for a reason - each option has a pro and a con. When you show the differences between you and another optical, respect your patient enough to show them both the pro and the con. Let them make the educated decision, and if you truly have the better value, you will (I repeat you WILL) get the sale. Some salient points would be:

    -We custom tailor our lenses precisely to what we feel the patient needs. This requires extensive counselling but we can eventually figure it out and make sure that they get exactly what they need. It's not a one progressive fits all kind of deal. How exactly do you custom tailor a lens? Would your Varilux be any different than another optical's Varilux? It wouldn't, and at that point, you will have lost the patient's trust. If instead you started out by saying that there are hundreds of lenses in the market, and they fall into a handful of categories. Compared to some opticals that have only one option, we can choose from any lens to get the best type for how you use them. (The biggest key point here is that you never had to bash another optical - you just showed that you have more options. Maybe the best lens for the patient happens to be the same lens that the other optical carries? You have to be open to that possibility.
    -We spend 20 mins to half an hour with each client. Costco can't possibly do that. They can, they have, and I'm pretty sure they still will.
    -We troubleshoot any adaptation issue with free chair-time with an M.D no matter what the problem is. Costco can only provide a refund but is not in the position to see if there is a problem with the prescription or to laboriously figure out the host of other issues which can cause problems. You've basically just stated that your optical is the only one with qualified opticians, because of course no other optical can do what you do, and all it takes is a quick call to Costco to find that they will remake your lenses at no charge, even if it is a result of the RX needing to be changed.
    -We spend far more time dispensing the finished product than costco does. That statement says that you take longer to do the same thing Costco does. Not the best marketing statement.
    -We go to bat for the client with freeform, rimless, drill mounts, unusual shapes and curves, specialty lenses,prisms etc. There is no level of complexity that we won't take on, no matter how much time it takes. This is your best statement so far - there are things you can offer that the competition can't. It can't be twisted, and it's not a salesman's statement - it's just an honest fact. (With the exception of prism - Costco does prism, and they don't charge anything extra for it). And please quit harping on the amount of time you take - taking a long time does not equal quality.
    -We keep up with all the latest materials, options etc and are nimble enough to offer these as soon as they become available. Costco is a large ship and takes a while to gage the current. Being able to offer the latest and greatest is another good tool.
    -We offer a pleasant boutique atmosphere and not a frenzied warehouse. You might as well add that patients should also buy from you because you look better in purple - it really has nothing to do with optics (which should be your prime focus).

    Personally, I love a good bargain and shop often at Costco; however, I would not buy glasses at costco just as I would not go there for my medical care. I believe that glasses are a customized medical product and not a mere commodity. I wish I could make all of this known to patients but rarely have the opportunity to do so. Many of our clients take a perfunctory look at our optical shop and ask for their prescription to take "elsewhere". When I see them next for a medical visit I notice they're wearing the tell-tale Ovation which tells me that they went straight to Costco with my prescription.Optically speaking, the Ovation is a great lens. Is it the most perfect lens out there? No, but it is by no means a bad lens. It uses seven of the eight design patents created for the Varilux Panamic, and being the 'generic', if you will to the Panamic the only design difference is in the blend of the lower outer quadrant. When I worked in private practice, the Ovation was one of my Go-To lenses when the patient needed a great all purpose lens at a mid level price. It comes with a few compromises compared to the much more expensive ones, but has a great price for performance.

    The biggest problem I see, and I see it in a lot of places, is this attitude of scarcity. It's not a matter of me vs. you. If you truly care about your patient, find what's honestly best for your patient. If you find that more often than not, you are not what's best for your patients, you need to change something.

    William

    P.S. - My one little anecdote. Patient comes in and starts the conversation with me by asking, 'Tell me why I should buy glasses from you?' The first words out of my mouth were, 'I don't know that you should yet.' and then I started to ask them about their RX, their previous eyewear, and what they needed now. At that time, I worked at Costco, but I've said it many instances like that. That patient came in a week later for dispense, and while there, he told me that the main reason he bought them from us at Costco was because we were open and honest to him - and that we were not acting like 'salesmen'. (It's because we were being opticians). :)

    I'm sorry to pick apart your post. If you really are interested in helping your staff differentiate yourselves from your competition, I would be more than happy to give you ideas and honest feedback. Feel free to message me anytime.
    William Walker

    Associates in Science in Opticianry
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    Next Goal: ABOM

    Optician with Lenscrafters in Jacksonville, FL

  20. #195
    OptiBoard Professional William Walker's Avatar
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    This is just for fun...

    "My practice does an almost ridiculously compulsive refractive exam which involves automated refraction, phorometry manifest and trial framing (on every single patient). I pride myself on being the best refractionist I know and am constantly experimenting with new techniques etc."

    Are you secretly a robot? ;)
    William Walker

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    Next Goal: ABOM

    Optician with Lenscrafters in Jacksonville, FL

  21. #196
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    The more time you spend focusing on your competition the less time you are putting into your own office.

    Somebody help me here: looking for a quote, I believe it was John wooden: something along lines of being more concerned with what you can control etc...

    Also, really it doesn't matter who thinks an ovation is a good lens, ok lens, bad lens whatever. All that matters is they're happy, I'm happy and can I afford surf n' turf twice a week :D

  22. #197
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    Quote Originally Posted by William Walker View Post
    Personally, I love a good bargain and shop often at Costco; however, I would not buy glasses at costco just as I would not go there for my medical care.
    William...really? You worked there for 6, managed for 4 and you didn't wear the glasses you sold? Or is it only since they are now your competition? Don't get me wrong, I wouldn't buy glasses from them either, but I don't shop their either.
    Ophthalmic Optician, Society to Advance Opticianry

  23. #198
    OptiBoard Professional William Walker's Avatar
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    Quote Originally Posted by Johns View Post
    William...really? You worked there for 6, managed for 4 and you didn't wear the glasses you sold? Or is it only since they are now your competition? Don't get me wrong, I wouldn't buy glasses from them either, but I don't shop their either.
    I was quoting someone else's post - My words are in red. I have lots of glasses from Costco (get plenty of compliments daily on my Mikli regular glasses and my MODO sunglasses. They are great glasses.
    William Walker

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    Next Goal: ABOM

    Optician with Lenscrafters in Jacksonville, FL

  24. #199
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    Quote Originally Posted by William Walker View Post
    I was quoting someone else's post - My words are in red. I have lots of glasses from Costco (get plenty of compliments daily on my Mikli regular glasses and my MODO sunglasses. They are great glasses.
    Oh! I thought I must be missing something! (Quit tying to confuse us old guys!)
    Ophthalmic Optician, Society to Advance Opticianry

  25. #200
    What's up? drk's Avatar
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    Optometrist
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    9,385
    Darn I used to be fiery.

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