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Thread: Costco Optical = busy................

  1. #51
    Master OptiBoarder OptiBoard Silver Supporter lensmanmd's Avatar
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    I may be off base or a little behind the times. Last I heard, Costco was using a molded Essilor blank, most likely the Ovations, with a free form back surface, similar to the Hoya IQ series of lenses. Again, this may be old news. So, not a true free form design. I believe Happylady, as several of our opticians came from Costco. They didn’t know what design when asked. All they knew was that it was digital.
    As for AR. I’m sure they are using an Essilor coating as well. It’s not fair to compare all ARs with Crizal. There are many independent labs that dip coat prior to the AR stack, and their coatings are just as durable. Depending on which tier of Crizal, it may come with a primer and/or index matched dip coat.
    Many solvent based spin coats are very durable as well. The big difference is in price. Index matched lacquers with a primer coat costs time and money, therefore are more expensive to produce. A decent factory hard coat and a decent backside spin will yield great results with AR. As long as there is a good hydro and oleo process, they should be fine.

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    Let us not forget in something like custom digital optics, let alone "normal" custom made optics - Quality Control Is King.

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    Master OptiBoarder OptiBoard Silver Supporter lensmanmd's Avatar
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    Costco’s QC is very good. I have no doubt about their base QC. Custom, however, is not their strong point. Big box and chains, though they offer some “custom” lenses, do not do a very good job matching needs. This is best left to the independents.

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    Quote Originally Posted by lensmanmd View Post
    As for AR. I’m sure they are using an Essilor coating as well. It’s not fair to compare all ARs with Crizal.
    Most ARs are fine when new. What I notice about Costco AR is that it becomes hard to clean after 6 months or so. All AR degraded but I find the better Crizals stay easier to clean and stay clean longer.

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    Master OptiBoarder AngeHamm's Avatar
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    Quote Originally Posted by Happylady View Post
    Most ARs are fine when new. What I notice about Costco AR is that it becomes hard to clean after 6 months or so. All AR degraded but I find the better Crizals stay easier to clean and stay clean longer.
    +1. My patients with Costco lenses have more scratching problems than with lenses I provide, too.
    I'm Andrew Hamm and I approve this message.

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    Thing that is funny... these days I could get very close to Costco's prices, like very close. Save on maybe things like Drivewear which is... a very small portion of the lenses I sell. Not on the lenses and coatings I like to fit though.

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    Master OptiBoarder OptiBoard Silver Supporter lensmanmd's Avatar
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    What many don’t realize is once Vision coverage is deducted from out of pocket, many other retailers can provide choices for less.
    I am in no way bashing Costco. They provide quality and value. They are our biggest competition. But, and a big but, we can provide better options and quicker delivery. After shopping Costco, many return to us to fill their orders. Those that don’t still get a good quality product for their dollars. I would rather Costco fill their RXs than America’s Best.

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    Master OptiBoarder DanLiv's Avatar
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    Quote Originally Posted by Tallboy View Post
    Thing that is funny... these days I could get very close to Costco's prices, like very close. Save on maybe things like Drivewear which is... a very small portion of the lenses I sell. Not on the lenses and coatings I like to fit though.
    Agreed, we all could by finding the best-price vendor and using entry-level product. But we generally don't because, first, when restricted to lowest-cost entry-level product, I can provide nothing better than Cocstco (not even much of my expertise, because at least in my are Costco opticians are ABOC and will do a perfectly fine job 80+% of the time). I hate putting that stuff out there because I know it’s passable but will cause disappointment, and customers will direct that disappointment at me. No one loves Costco glasses because they’re awesome, they love them because they’re inexpensive and most of the time work ok. There's no point in working for anyone other than Costco if I'm just trying to be "inexpensive and ok". Second, our businesses can’t survive on that profit margin, Costco can. We don’t have the infrastructure to be able to compete with Costco on price. That’s why we find something that Costco can’t do well, and we need to excel at that.

    I don’t know if Costco optical operates similar to the rest of the store, but consider this:

    Through two quarters of its fiscal 2017, Costco has reported $1.06 billion in income (profit). That number is slightly smaller than the $1.26 billion it collected in membership fees.

    If you examine the company's sales, it brought in $56.59 billion in net sales with a merchandise cost of $50.21 billion and sales expenses of $5.92 billion. That's a small loss when it comes to actually selling goods, but that's not a problem because the warehouse club uses the stuff it sells to drive memberships, indirectly driving revenue.

    https://www.fool.com/investing/2017/...st-of-its.aspx
    They are operating as a loss of sale of goods vs. cost of goods. Can you stay in business selling for less than you buy? None of us can, price competition (in the long run) is impossible.

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    Quote Originally Posted by lensmanmd View Post
    I may be off base or a little behind the times. Last I heard, Costco was using a molded Essilor blank, most likely the Ovations, with a free form back surface, similar to the Hoya IQ series of lenses. Again, this may be old news. So, not a true free form design. I believe Happylady, as several of our opticians came from Costco. They didn’t know what design when asked. All they knew was that it was digital.
    As for AR. I’m sure they are using an Essilor coating as well. It’s not fair to compare all ARs with Crizal. There are many independent labs that dip coat prior to the AR stack, and their coatings are just as durable. Depending on which tier of Crizal, it may come with a primer and/or index matched dip coat.
    Many solvent based spin coats are very durable as well. The big difference is in price. Index matched lacquers with a primer coat costs time and money, therefore are more expensive to produce. A decent factory hard coat and a decent backside spin will yield great results with AR. As long as there is a good hydro and oleo process, they should be fine.
    Again, what make you think its not the top of the line product bought in the millions of quantity? Do you have the access to that type of pricing from the head of Essilor or x company? Just saying...think about it. A big company will want to sell their best products in the largest quantity.

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    Ok, now you are being belligerent, P. I have never attacked you personally. We all have been fairly nice to you and Costco, but you are now starting to cross the line. BTW, I work for a big company that is not part of the Essilux empire, and I participate in sourcing. So yes, we have access to that type of pricing.
    Why does Costco not sell top of the line products? The same reason that Keurig at Walmart, Target, and Williams Sonoma is not the same product, quality wise. The same reason why a Samsung 4K at Walmart is not the same quality as a Samsung 4K from The Big Screen Store. It's basic business. "Where can you cut costs to meet our margins? If you can't, we will not do business with you". Like you say, companies want to do business with Costco, and many are willing to cut corners to meet those margins. Who makes the Kirkland brand frames? Not Costco. It's an OEM. The branded frames at Costco? Discos. It's all about margins based on volume. C'mon, even you know that.
    Again, we all agree that your company provides a valued product for the average consumer, just not top of the line products. I am a Costco member, will continue to be Costco member, and will continue to purchase products from Costco. There are just some products that I choose not to purchase from Costco.

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    Optiboard Professional Bill West's Avatar
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    What most independent's lack

    Quote Originally Posted by lensmanmd View Post
    ok, now you are being belligerent, p. I have never attacked you personally. We all have been fairly nice to you and costco, but you are now starting to cross the line. Btw, i work for a big company that is not part of the essilux empire, and i participate in sourcing. So yes, we have access to that type of pricing.
    Why does costco not sell top of the line products? The same reason that keurig at walmart, target, and williams sonoma is not the same product, quality wise. The same reason why a samsung 4k at walmart is not the same quality as a samsung 4k from the big screen store. It's basic business. "where can you cut costs to meet our margins? If you can't, we will not do business with you". Like you say, companies want to do business with costco, and many are willing to cut corners to meet those margins. Who makes the kirkland brand frames? Not costco. It's an oem. The branded frames at costco? Discos. It's all about margins based on volume. C'mon, even you know that.
    Again, we all agree that your company provides a valued product for the average consumer, just not top of the line products. I am a costco member, will continue to be costco member, and will continue to purchase products from costco. There are just some products that i choose not to purchase from costco.

    marketing

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    Quote Originally Posted by Pdarnall View Post
    A big company will want to sell their best products in the largest quantity.
    Why in the world would a company want to sell their best products at the lowest margin when they could sell those best products at a higher margin and sell "decent" stuff at the lower margin?

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    Blue Jumper I am a Costco member, will continue to be Costco member,......................

    Quote Originally Posted by lensmanmd View Post

    Again, we all agree that your company provides a valued product for the average consumer, just not top of the line products. I am a Costco member, will continue to be Costco member, and will continue to purchase products from Costco. There are just some products that I choose not to purchase from Costco.
    I fully agree with above statement, even if I never sold them anything.

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    Quote Originally Posted by Tallboy View Post
    Why in the world would a company want to sell their best products at the lowest margin when they could sell those best products at a higher margin and sell "decent" stuff at the lower margin?
    Maybe to recoup R&D at a faster pace. The manufactures cost per lens is fixed unless they crank volume. They can pay for the R&D, assembly line faster with quantity...not selling a few to mom and pops.

    Why would a volume retailer even bother with buying a midrange product when they can get the top of the line for another .50 cents?

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    Quote Originally Posted by Pdarnall View Post
    Maybe to recoup R&D at a faster pace. The manufactures cost per lens is fixed unless they crank volume. They can pay for the R&D, assembly line faster with quantity...not selling a few to mom and pops.

    Why would a volume retailer even bother with buying a midrange product when they can get the top of the line for another .50 cents?
    You are really spinning your wheels here. Electronics at costco, walmart etc are special models MADE for those retailers.

    People looking to save money on something inherently are willing to put up with the occasional inconvenience or older tech. People who want cutting edge tech, white glove service and much more than just a money back guarantee are not.
    Last edited by Tallboy; 08-19-2018 at 12:39 AM.

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    Quote Originally Posted by DanLiv View Post
    entry-level product. But we generally don't because, first, when restricted to lowest-cost entry-level product, I can provide nothing better than Cocstco (not even much of my expertise, because at least in my are Costco opticians are ABOC and will do a perfectly fine job 80+% of the time). I hate putting that stuff out there because I know it’s passable but will cause disappointment, and customers will direct that disappointment at me. No one loves Costco glasses because they’re awesome, they love them because they’re inexpensive and most of the time work ok. There's no point in working for anyone other than Costco if I'm just trying to be "inexpensive and ok". Second, our businesses can’t survive on that profit margin, Costco can.
    So you say we have a 20% return rate? Dude, Damage and Destroy or D&D better be under 2% or you will be looking for a new job. One way to pump up your $ is productivity. Do you sell two pair per hour, do you sell 20-40% multiples all day, do you sell 30% or more Transitions, do you sell Drivewear everyday and does your office sell 300-400 pair per week? What is your redo rate? If its over 2% you are getting a write up and working getting a new job wrapping hot dogs . Do you have your ABO and NCLE? You have one year to get the ABO or you are gone and the next year to get the NCLE or your gone. These are all great ways to watch your prifit margin...etc

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    Quote Originally Posted by Tallboy View Post
    You are really spinning your wheels here. Electronics at costco, walmart etc are special models MADE for those retailers.

    People looking to save money on something inherently are willing to put up with the occasional inconvenience or older tech. People who want cutting edge tech, white glove service and much more than just a money back guarantee are not.
    You are right and I'm just full of BS. Three times today, I had to go through this same BS roundabouts explaining why a local Big Pratice wanted an EXTRA $100/140 for their Trivex option on a Transitions FT 28. Our price is $140 total for the entire lens. Of course Big Pratice Trivex FT28 is WAY better than the competition!

    12 years on OptiBoard has much of the same old "you sell junk", private practice sell premium unicorns, etc. as it always has.

    It will be fun to look back on this thread in another 12 years. I'm sure we will still be using that same "old Ovation lens" from 2003... We will still be using a chisel and hammer to make it. Oh and dont forget the rattle can to spray on the A/R!

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    Quote Originally Posted by lensmanmd View Post
    What many don’t realize is once Vision coverage is deducted from out of pocket, many other retailers can provide choices for less.
    I am in no way bashing Costco. They provide quality and value. They are our biggest competition. But, and a big but, we can provide better options and quicker delivery. After shopping Costco, many return to us to fill their orders. Those that don’t still get a good quality product for their dollars. I would rather Costco fill their RXs than America’s Best.
    You mean
    VSP
    MES
    Spectera
    Davis Vision
    Superior
    and another 3 or 4?
    Yip it does lower the patients out of pocket at Costco.

  19. #69
    Master OptiBoarder OptiBoard Silver Supporter lensmanmd's Avatar
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    Quote Originally Posted by Pdarnall View Post
    You mean
    Yip it does lower the patients out of pocket at Costco.
    So, you are saying that Costco accepts Vision Plans now? When did that change? Costco's business model has always revolved around keeping their receivables at the absolute minimum. Receivables from plans have always been a pox on the industry.

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    Master OptiBoarder OptiBoard Silver Supporter lensmanmd's Avatar
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    Quote Originally Posted by Pdarnall View Post
    12 years on OptiBoard has much of the same old "you sell junk", private practice sell premium unicorns, etc. as it always has.
    I don't think anyone here said that Costco sells junk lenses. They use the same pucks as other labs. Pucks are pucks. Younger, Hoya, Essilor, Zeiss, etc. Volume dictates negotiations on pricing. I can see why Costco lowered the prices on Trivex. Many California labs and large retailers have due to Prop 65. Trivex, however, is one of the smallest lens segments in the industry. Great material, however. Ovations are Ovations. Accolades are Accolades. Image are Image. No matter where they are purchased.
    Point is, Independents do provide personalized freeform designs. Independents provide solutions for those that are not 'bread and butter' consumers. Independents provide up to date frames. Independents provide boutique frames. Independents provide a total experience from start to finish. They may not sell trivex or Drivewear for lower than Costco. And you are correct, out of the box, they are the same product. But does Costco sell them in more than one basic freeform design? Does Costco provide these in compensated Wrap designs? You still have not answered that one.
    Last edited by lensmanmd; 08-19-2018 at 09:11 AM.

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    Master OptiBoarder OptiBoard Silver Supporter lensmanmd's Avatar
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    Quote Originally Posted by Pdarnall View Post
    Why would a volume retailer even bother with buying a midrange product when they can get the top of the line for another .50 cents?
    I don't ever recall seeing a Canon 5DMKIII or MKIV at a Costco. I don't ever recall seeing a Marantz, Bowers & Wilkins, or even Definitive Technologies at Costco.
    I wanted to replace my Canon 7D with a newer model and saw one at a Costco-once. I got excited and brought it home. I returned it the same day, as it was not of the same quality as my older 7D.

    That said, I don't believe that Hobie frames are top of line for an additional .50 cents.

    Just saying.

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    Pdarnell, final note before I take off to shoot a few frames today.
    I wish I had employees with your level of dedication. The kool-aid they serve must be pretty powerful.
    Back in the dark ages, I worked for Lenscrafters, and they conducted annual "visioning" meetings to get all of its employees to the level you are currently at. As you can see, it didn't work for many of us, and we parted ways.
    Keep doing what you are doing. i am happy for you. You obviously are in a position that you truly enjoy. Costco is lucky to have you.
    Peace

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    Blue Jumper Exclusive to Costco Canada .................................

    Quote Originally Posted by lensmanmd View Post

    Costco’s QC is very good. I have no doubt about their base QC. Custom, however, is not their strong point. Big box and chains, though they offer some “custom” lenses, do not do a very good job matching needs. This is best left to the independents.

    Here is what Costco offers..........................
    KIRKLAND SIGNATURE™ HD PROGRESSIVE LENSES

    Exclusive to Costco Canada


    • Some competitors' digital progressive lens designs surface only the back side of the lens. From a lens design standpoint, the most beneficial approach is a superior dual-side design, with controlled processes and high precision manufacturing equipment to transfer the design to the lens.
    • Costco uses only the most advanced digital ophthalmic lens manufacturing process available, shaping the lens surfaces for much-improved performance. Our dual-surface Kirkland Signature HD progressive lenses have three areas of improvement over older generations of lenses since they:
      • allow for a faster and more comfortable adaptation,
      • have a wider intermediate vision zone with quicker access to near- vision, and
      • provide greater long-term comfort, thanks to a smoother peripheral zone.

    See all of it:



    https://www.costco.ca/lenses.html
    Last edited by Chris Ryser; 08-20-2018 at 12:34 PM.

  24. #74
    What's up? drk's Avatar
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    WOW! I'll take a industrial-sized 24-pack!

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    Quote Originally Posted by Pdarnall View Post
    It will be fun to look back on this thread in another 12 years. I'm sure we will still be using that same "old Ovation lens" from 2003... We will still be using a chisel and hammer to make it. Oh and dont forget the rattle can to spray on the A/R!
    The Costco Optical near me has a google rating of 2.6 stars. My business that I pour my heart and soul into has a 4.8 star rating.

    Now I know my employees and I are good, but is it just US that makes us 2.2 stars better? Maybe we are just that awesome!

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