employee discounts and commissions

[jessaroni]

I have a few questions for all of you. I recently left a corporate run optical for a private one that just opened. Here there are 2 MDs and 2 ODs. Their main focus is lasik and cataract but they want to capture the sales of those that still need glasses. Anyway....the optical just opened up and the disounts for employees and commisions are still being discussed.

What discounts do you offer your employees and their immediate families? And for those of you that offer spiffs what is the percentage? Thanks in advance!!!

[chip anderson]

Employees and immeadate families: Free at my expense.

Chip

[jessaroni]

Employees and immeadate families: Free at my expense.

Chip

WOW!!! Are you hiring??:D

[chip anderson]

Of course you must realize that I am just a poor struggling independent optician. Them self referring O.D.'s and O.M.D.'s probably can't afford to do this, what with Ferrari's costing what they do to maintain.

Chip

[AutumN]

Our office (Ophthalmic) gives all the employees and their immediate families cost. No limit on how many pairs. I have also worked at another private MD that gave each employee 1 free pair per year, additional pairs were at cost and the immediate family was cost. Immediate family for both places meant your spouse, children/step children, parents and grandparents. Our office does not give commissions, however the employees of the optical get a certain % of the net at the end of the year.

Some have suggested that a bonus like that is ok for the manager, but not the employees because they aren't in a position to make managerial decisions that can affect the profit (crappy manager, crappy profit). I can see their point, but giving commissions can also cause problems with competition/employee issues (who gets the money people) and also employees upselling unnecessarily. (putting -2.00 in 1.67). The bonus thing works well for us.

[lensmama]

I also am with an md practice, and employees get exams and lenses free every year, and frames every 2 years. Immed. family gets 25% off. I don't agree entirely with the set-up, and have suggested cost for family purchases. The upper management did not agree due to the large number of employees and the need to keep our costs confidential to those outside of the optical dept.

Commissions are another story. I used to be a manager with a large retailer and the commission structure was very straight forward--flat percentage of what you sell. Now I have a "bonus", and I am still confused about how it is calculated. Bottom line--as an optician, it is my obligation to present all LEGITAMATE options for my patients so that they can see well and love their glasses and refer their friends and familes to me. I am very upfront and honest about their needs and they always have the chance to deny any and all options. Many feel that glasses are too high as it is, and I want to plant the seed for further purchases, not the feeling of being overcharged. My reputation is important to me, and I want to do right by my patients. Commissions are good and they get better if I am a person that they want to deal with over and over again.

[Chris Ryser]

Employees and immeadate families: Free at my expense.
Chip

I am all with chip.................You gain more than what it cost's you

[cocoisland58]

Employees recieve as many pairs as they want at cost. We encourage our employees to wear what they sell and wear it well. Immediate family is at cost also. Friends and the rest of the family are 50% off retail.

No comp plan. We only have three dispensers and prefer to create a team atmosphere rather than a competitive one. We also pay them well enough to offset that. Occasional spiffs are at the whim of the manager(me) to perhaps get rid of a certain frame line that is going nowhere or sometimes just to have fun.

[For-Life]

I am with Chip too.

Actually, I do very well selling glasses to the employees of competitors. They are so mad at the cheesy discounts that they would rather pay more, come here and get great looking glasses.

Give it to them free. And don't cheap out. The best looking frames, the best quality AR, and the best PAL. Cheap advertisement. Plus a lot of labs and frame companies will provide a discount for them. It is just smart to have your employees wearing your frames and lenses, and rotating them.

I think at our practice we each get like 4 pairs a year, and the customers love it. They want to copy us.

[braheem24]

Employee 1 free yearly (frames up to $200, AR, Transitions extra)

Any family member 50% off total.

Cost is never discussed with an employee, Discussing cost with your employees devalues your product.

Spiffs are 3% of total sale, excluding S/O

[AdmiralKnight]

Cost is never discussed with an employee, Discussing cost with your employees devalues your product.

That's an interesting statement if i've ever heard one.


We, lowly employees, get two free sets on lenses (Curtasy of our labs) with frames at cost, plus as many pairs as cost as we want. Our emediate family gets 1 pair every two years cost, and extended family is discussed at a case to case basis, usually ranging from 30 to 50% off Retail.

[braheem24]

We, lowly employees

While you may understand the hidden expenses involved in maintaining a business such as rent, advertising, employees, health benefits, equipment, displays, etc the average receptionist that just got hired from McDonalds last week should not know your COGs unless you're in the business of advertising your bottom line to the community.

[Christosfer]

I had an issue with the issue of employee purchases at my last employer because the system was senseless. I think it makes very good sense to have your employees advertise your best products, infact I might even insist that employees not wear any cheap stuff, mandatory A/R etc..

I like the system of 1-2 pairs per year free and everything else at cost. As for family, I think half off is fair for immediate family, or cost + %.

My last employer gave us max 20% for immediate family and complained about even that. He thought it was giving away money. Consequently, I encouraged my family to consider going elsewhere, where their business would be valued. My own mother had to pay retail -20%. Ofcourse the doctors friends got 50% off.

Give the employees a nice family discount and they will bring their famiilies in along with their families friends. That is what I think about it.

As for commissions, I have worked in a system that gave weekly sales goals, if we made the goal we all got X amount of money. There were also Saturday goals, 5,000 in sales gets $25, 6,000 gets $50, up to $100. That was a nice system. Giving a percentage of the sale though might also help encourage clienteling. Bottom line, commissions are a good thing, but you have to jump on the sales hounding right away. If they fight over the sale they either split it or lose it...something like that.

Enough said.

[ERFLORIDA]

Employees and immeadate families: Free at my expense.

Chip

What do you do when your employee wants to buy the glasses for let's say their best friend? Then what? Cost, Free, or discount? If discount what is the discount?

[eyemanflying]

While you may understand the hidden expenses involved in maintaining a business such as rent, advertising, employees, health benefits, equipment, displays, etc the average receptionist that just got hired from McDonalds last week should not know your COGs unless you're in the business of advertising your bottom line to the community.

Good point...Employees do not need to know the costs of things. This can come back and haunt you in may ways which I won't get into. A simple policy is list less 25% which still cover COGS and overhead. I have never heard of an optical store for charity.

[MarcE]

[quote=lensmama;221121]I also am with an md practice, and employees get exams and lenses free every year, and frames every 2 years. Immed. family gets 25% off. I don't agree entirely with the set-up, and have suggested cost for family purchases. The upper management did not agree due to the large number of employees and the need to keep our costs confidential to those outside of the optical dept.
[quote]

25% off!?? They can clip a coupon for 40% off at Lenscrafters! How would it look if they bought a pair at LC for less cost What if someone asks "where did you get that great-looking frame?"

You have to hide business costs from your employees?! You work in a physician's office. If they can't be trusted to keep their mouth shut - you've got other problems. If you need to hide the costs because you don't want them to know how profitable you are - don't worry about that. They assume you keep everything already. Our business books are open to anyone that we trust well enough to take care of our patients.

Frames every 2 years? The parterns can't find it in their heart to do better than VSP? Vision coverage is the only insurance that I can afford to offer. I find it hard to believe that a large OMD practice can't afford $3000 worth of eyewear benefits for the practice employees and families.

Our policy. Family members get one free pair per year and an exam. ARC is mandatory. High-index if indicated. Transitions if desired. Additional pairs at 50% off.
Employees; 2 pair per year free (must be attention-getting). Additional at cost.

Looks like I agree w/ Chip. That makes once this year and once last year.

[cocoisland58]

Employee 1 free yearly (frames up to $200, AR, Transitions extra)

Any family member 50% off total.

Cost is never discussed with an employee, Discussing cost with your employees devalues your product.

Spiffs are 3% of total sale, excluding S/O

That makes it difficult for your dispensors to genuinely and enthusiastically sell a frame worth more than 200.00. Cost does not have to be "discussed" with your employees, but unless they are idiots or you are secretly filing every invoice before they get there in the morning, they are aware of what things cost. I mean we can assume that not every employee you hire has no optical experience, can't we?

[AdmiralKnight]

While you may understand the hidden expenses involved in maintaining a business such as rent, advertising, employees, health benefits, equipment, displays, etc the average receptionist that just got hired from McDonalds last week should not know your COGs unless you're in the business of advertising your bottom line to the community.

I'm sorry, but while I understand your point, I still think that the ammount of free advertising you get from having every one of your staff members wearing nice frames with coatings will EASILY offset any ding you might get in your 'overhead' on a few pairs of glasses a year.

*Edit* I've got three pairs of glasses in the past 6 months. I love them. I love showing them off. I love when people ask me where I got them, I can tell them. And I know damned well the ODs love it when my friends come in and buy from them, because they liked my frames.

[eyemanflying]

I'm sorry, but while I understand your point, I still think that the ammount of free advertising you get from having every one of your staff members wearing nice frames with coatings will EASILY offset any ding you might get in your 'overhead' on a few pairs of glasses a year.

*Edit* I've got three pairs of glasses in the past 6 months. I love them. I love showing them off. I love when people ask me where I got them, I can tell them. And I know damned well the ODs love it when my friends come in and buy from them, because they liked my frames.

Spoken with true passion...sounds like something 'Bubbles' would say.:)

[Audiyoda]

I have a few questions for all of you. I recently left a corporate run optical for a private one that just opened. Here there are 2 MDs and 2 ODs. Their main focus is lasik and cataract but they want to capture the sales of those that still need glasses. Anyway....the optical just opened up and the disounts for employees and commisions are still being discussed.

What discounts do you offer your employees and their immediate families? And for those of you that offer spiffs what is the percentage? Thanks in advance!!!

From the various independents I've worked for the policies have generally been:
Employee: One or Two pair free per year (based on lab policies and comps from frame companies...but at least one freebie a year). Everything else at cost. Free exam each year.
Immediate Family: Optical goods at cost plus 10%. Exam at 50% off.
Friends & other Family: 50% off retail for optical goods. Exam at 30% off.

[DragonLensmanWV]

[quote=MarcE;221585][quote=lensmama;221121]I also am with an md practice, and employees get exams and lenses free every year, and frames every 2 years. Immed. family gets 25% off. I don't agree entirely with the set-up, and have suggested cost for family purchases. The upper management did not agree due to the large number of employees and the need to keep our costs confidential to those outside of the optical dept.

25% off!?? They can clip a coupon for 40% off at Lenscrafters! How would it look if they bought a pair at LC for less cost What if someone asks "where did you get that great-looking frame?"

You have to hide business costs from your employees?! You work in a physician's office. If they can't be trusted to keep their mouth shut - you've got other problems. If you need to hide the costs because you don't want them to know how profitable you are - don't worry about that. They assume you keep everything already. Our business books are open to anyone that we trust well enough to take care of our patients.

Frames every 2 years? The parterns can't find it in their heart to do better than VSP? Vision coverage is the only insurance that I can afford to offer. I find it hard to believe that a large OMD practice can't afford $3000 worth of eyewear benefits for the practice employees and families.

Our policy. Family members get one free pair per year and an exam. ARC is mandatory. High-index if indicated. Transitions if desired. Additional pairs at 50% off.
Employees; 2 pair per year free (must be attention-getting). Additional at cost.

Looks like I agree w/ Chip. That makes once this year and once last year.

Getting a little codgerly in your old age, Marc?:D

Here, every employee gets one or two pair a year, whatever they want. Usually some frames are comped by the reps. Immediate family - one pair a year N/C, others at cost.

[Lucky20/20]

We offer free eye exams for interm. family members- optical goods at cost. And for other family members-Example mother or father or brother/sister's we offer 40% off total...

[AdmiralKnight]

Spoken with true passion...sounds like something 'Bubbles' would say.:)

Don't be dissin Bubbles. He's a nice guy. Met him a couple times... plus his club downtown is pretty sweet. lol

[Lucky20/20]

ok..don't know who bubbles is .....