Black Friday Meltdown, is it affecting the optical retail.............

**Chris Ryser** · 10-10-2008, 05:24 AM

A retired friend living in Florida told me yesterday on the phone that they just lost 40% of their savings.

The wheel of business has started to slow down. As a supplier in the optical industry selling to some small as well large customers we are now getting regular orders more spaced out and so are payments. This translates to the fact, that not only my business has slowed down, but so have just about all levels in the optical trade.

This morning there is panic on stock markets:

LONDON (Reuters) - Europe joined Asia's panic selling of stocks on Friday, knocking the benchmark world equity index to a 5-year trough, while the low-yielding yen jumped as fears grew that policymakers' efforts to contain the global financial crisis won't be enough. http://www.reuters.com/article/hotSt...49871U20081010

I am just wondering how OptiBoard members are going merrily along without ever mentioning the real threat that is now affecting everybody worldwide and how is it going to evolve as well as what are the possible solutions for our business sector.

**pga0008** · 10-10-2008, 08:14 AM

I think that the state of our business is pretty solid. What i think is going to change is people choosing not to buy the "Brand Name" expensive glasses and electing to have a "non-brand". Because the lenses are the important part, the frame is just glitz.

As long as people have insurance money to use and need to be able to see they are going to get glasses, now they may push it off an extra month which does affect us all but they will get it done.

If we want all want to have a real chance at saving the economy and our small businesses then we need to VOTE!!!

**DocInChina** · 10-10-2008, 08:21 AM

I watch the markets everyday (particularly HSI and DJIA). It is like watching a car accident in slow motion. You do not want to watch but you cannot help yourself.

My friend is working for an enormous paper manufacturer in China. He told me they can produce 1000 tons of paper per day. Last month they sold 90 tons for the entire month. Thats less than 10% of one days production in a month. How is that for scary??

For those that have not made their businesses lean, you better get moving otherwise you will have a rough ride. Lower your cost of goods and, if possible, your fixed costs today.

**DoubleD** · 10-10-2008, 08:43 AM

I knew this was coming, just not so fast and severe, since last january at least. No matter how you prepare, this is going to smack eveyone. Liquidated my1business last month, just in time. Our optical is seeing the major slowdown, but increase in state medicaid.
Like said earlier, prepare now and VOTE!!!.
Denny

**barryh66** · 10-10-2008, 09:01 AM

Like said earlier, prepare now and VOTE!!!.
Denny[/quote]

I agree get out and vote. Let your local reps in congress know that they are being held accountable make them do there job.

**chip anderson** · 10-10-2008, 09:20 AM

Odd those I know in the medical field (not optical medical) say they can't keep up with what they have to do.
Everybody else seems to be dead in the water. One of our largest and weallthiest real estate people was in yesterday and told me that thier phones (it's a very large firm) had stopped ringing. A relative has a house for sale (been on the market a year without offers) in one of the more ethnic neighborhoods. I went by to check on it and found that almost the whole neighborhood was for sale. Some houses that were listed a year ago for $135,000 are selling for $35,000.
Some of these houses are not selling because the potential buyers can't afford flood insurance.
Me, I haven't noticed any difference but I was broke to begin with.

Chip

**Jacqui** · 10-10-2008, 09:46 AM

Our number of paying orders is down about 10%, so far, and the number of charity Rx's is up about the same.

**Happylady** · 10-10-2008, 10:35 AM

Yes, it's going to effect us. People will put off buying new glasses and will want to buy less expensive ones.

**KBC** · 10-10-2008, 10:46 AM

Since we are located in a neighborhood that is always feeling economic pain, the office had to be lean from day-one. I have seen other threads with the philosophy that has worked best for us: give only what the patient wants, nothing more, nothing less.

**Johns** · 10-10-2008, 07:39 PM

Originally Posted by KBC

Since we are located in a neighborhood that is always feeling economic pain, the office had to be lean from day-one. I have seen other threads with the philosophy that has worked best for us: give only what the patient wants, nothing more, nothing less.

We're in the rust belt, and we've continued with the philosophy that nobody walks. We don't however, back off from what we offer. In fact, we have a great new product, that is an add on (see Eyenovation) that increased our sales by $1800 this week.

I have given our employees the tools they need to make a sale out of everybody, including free frames, percentage discounts, and spare pairs. The funny thing is, with the concern of the economy, we are focusing more on capturing everyone, and our sales are up a bit. Not up enough to throw a party, but up enough to be able to face another week with enough to pay the light bill!;)

**optigrrl** · 10-10-2008, 11:19 PM

but up enough to be able to face another week with enough to pay the light bill!;)
__________________

You have electricity???

:D

**Jacqui** · 10-11-2008, 08:49 AM

Originally Posted by optigrrl

You have electricity???

:D

I was going to ask the same thing :) Maybe I could go to work for Johns, it would beat powering the generator from a water wheel ;)

**bob_f_aboc** · 10-11-2008, 08:52 AM

Originally Posted by optigrrl

You have electricity???

:D

I prefer refractions by candlelight. It seems to be a more intimate setting.

It gets a little more dangerous when using the slit lamp though.:angry:

**Johns** · 10-11-2008, 10:52 AM

Originally Posted by optigrrl

You have electricity???

:D

At my office Silly! Not my house!:D

**chip anderson** · 10-11-2008, 11:57 AM

There was a time when slit lamps and ophthalmometers were illuminated by carbide lights. I used to use a carbon arc retinal camera myself!

I'm old.

**OpticianVlad** · 10-11-2008, 04:16 PM

Chris,

I am very sorry that your friend lost part of his savings. I wish that they had their money in safer investments since they are retired. Experts recommend that you don't invest in stocks when you are soon to retire or already retired. You must transfer your money to safer investments like bonds and treasuries. Some people invest too aggressively to play catch-up and earn higher yields.

My heart goes out to them, it's brutal out there.

My IRA took a big hit too! but I have another 30 or so years before I even attempt to retire.

**chip anderson** · 10-11-2008, 05:04 PM

Sam Walton was once interviewed and asked if he was worried about how much money he had lost that day (Wall-Mart stock had nose dived that day). He said: "What loss?"
The interviewer said: "You're stock lost 20%."
Sam said: "No loss, I haven't sold it."

It's somethng to think about. Now or very soon is the time to buy, It'll come back, just don't sell it when it's at the bottom.

Chip