Ideas for increasing customer base for new Optometry practice

[Ineed Chocolate]

An acquaintance of opened up her own practice a little over a year ago. So far, she accepts VSP, Davis Vision, and a couple of other insurance plans. She is only seeing about 8-10 patients per week, and I fear that with today's economy, I don't see her office being open this time next year, unless she does something to increase her patient base NOW. I have suggested a few things to her (going to health fairs, local schools, volunteer type stuff just to get her name out there), and I am not sure if she is doing that already, or not. So, my OB friends, what do YOU feel are some of the best ways to increase customer base? I have found (in my experience) that newspaper ads don't usually work, nor to direct mail coupons. I would really like to help her get her practice "off the ground." Thanks!

[Judy Canty]

Calling HarryChilling!!!!!!!!!

[HarryChiling]

An acquaintance of opened up her own practice a little over a year ago. So far, she accepts VSP, Davis Vision, and a couple of other insurance plans. She is only seeing about 8-10 patients per week, and I fear that with today's economy, I don't see her office being open this time next year, unless she does something to increase her patient base NOW. I have suggested a few things to her (going to health fairs, local schools, volunteer type stuff just to get her name out there), and I am not sure if she is doing that already, or not. So, my OB friends, what do YOU feel are some of the best ways to increase customer base? I have found (in my experience) that newspaper ads don't usually work, nor to direct mail coupons. I would really like to help her get her practice "off the ground." Thanks!

If she is in MD or DC have her give me a call. (888)314-LENS, I have a few proven techniques that can drive business her way and would love to help out. Some things are better kept off forums because if everyone knew then they wouldn't be fresh or effective. ;)

[Ineed Chocolate]

If she is in MD or DC have her give me a call. (888)314-LENS, I have a few proven techniques that can drive business her way and would love to help out. Some things are better kept off forums because if everyone knew then they wouldn't be fresh or effective. ;)

Thanks Harry! I will give her your info as soon as I see her this evening!

[LandLord]

Newspaper ads don't work? That's like saying sales pitches don't work. It depends on the salesman, the sales pitch and the customer.

[Johns]

Newspaper ads don't work? That's like saying sales pitches don't work. It depends on the salesman, the sales pitch and the customer.

Most of the newspapers in our area are going belly-up. I think the only people reading newspapers are the folks that write for them, and the people that advertise in them...

[Fezz]

I suggest that you have her contact the FezzJohns Consulting Team. We could swoop in there and whip that place into shape, show her a whole bunch of ways to save some serious moola, show her a few FezzJohns Guerrilla Type Marketing Techniques, show her proper buying techniques, and rally the local community to support the practice!


:cheers::cheers::cheers::cheers:

[vegaspilot03]

so she doesnt take Regence/Premera/BxBS, Tricare?, Eyemed?.... get her on some boards!

[Johns]

so she doesnt take Regence/Premera/BxBS, Tricare?, Eyemed?.... get her on some boards!

I just talked to an OD that is making less than I pay my opticians, and she's wondering how she is going to pay back her school loans. Why is she making so little? She's working for a group of ODs that are so entrenched in the 3rd party system(s) that they are booked all day, and barley (sometimes not) making ends meet.

[vegaspilot03]

I just talked to an OD that is making less than I pay my opticians, and she's wondering how she is going to pay back her school loans. Why is she making so little? She's working for a group of ODs that are so entrenched in the 3rd party system(s) that they are booked all day, and barley (sometimes not) making ends meet.

THIS:

An acquaintance of opened up her own practice a little over a year ago. .......She is only seeing about 8-10 patients per week,.................open this time next year, unless she does something to increase her patient base NOW.............what do YOU feel are some of the best ways to increase customer base?

His friend is not booked until next may with patients. His friend is NOT part of a group or under another OD. MAYBE it would be good for the friend to get on some Regence/Premera plans where you can bill 92004 92015 and even sometimes 92250 with routine codes and make (based on this years Regence price sheet) something like $170 per exam. instead of the crappy davis and VSP $75 exams.

Just a thought.

[cocoisland58]

The ODs I know that are making money hand over fist are billing a lot of medical exams and prescribing lens options from the chair. Our doc does bill medically but she really has to find something to do so whereas the others tell her that "You can always find something honey". Other than that get on more insurance provider lists, you can always drop them later. People are changing and losing insurance right and left so you'll get your name out there in the mean time.

[Happylady]

Can she arrange to do some free screening at schools, churches, health fairs, and senior centers? All she needs is a chart and a NCT machine. And lots of business cards.

Is she involved in the community where her office is? She could check with the city council and city government and see what she could do volunteer wise and just to meet people.

[sharpstick777]

I took an office this slow... and in three years it was making over $1 million a year gross.

Keys:
1) Hire a great Optician
2) Differentiate your self from the competition, you can't offer the same boring frames that your neighbors are they all take the same insurances you do
3) Lavish, and I mean lavish customer service.
4) Let your patients have fun when they come in, establish rapport, and get involved in their lives
5) Ask every patient who comes in if any of their friends or family need an eye exam (easy if you did the first 4 right)
6) advertise every month in the local paper (Not the newspaper (unless its a small town), the neighborhood sheets, or condo association sheets that are handed out for free are terrific if done regularly and offer something)
7) many offices start with WAY too few frames, you need at least 300 before people will even stop to look.
8) if she has not already done so, contact Matsco for financing. You need to be able to continue in business at least 2 years before things start to build.

[Ineed Chocolate]

Looks like I need to keep abreast of my responses a little more closely :) OK, an update...The doc had a mtg with harry, I think, although I won't find out what came of that until I speak to the doc tonight. I have called about a few health fairs in our local area, and also retirement communities. Yes, she is accepting some insurances. Pardon me for sounding uninformed, but I have never heard of Regence/Premera, so if someone can tell me a contact person for them that would be great. I agree that if she gets too far into the 3rd party game, it could work against her money making goals; however, the idea is to increase traffic at this point and increasing the patient base thru 3rd party palns will do that. I have also come up with a referral card for her to look at when I see her this evening. Thanks for your ideas, all! P.S. Fezz...you're going to "swoop down" and solve all this for us, are you? :) Are you bringing the beer?

[jamie w]

I took an office this slow... and in three years it was making over $1 million a year gross.

Keys:
1) Hire a great Optician
2) Differentiate your self from the competition, you can't offer the same boring frames that your neighbors are they all take the same insurances you do
3) Lavish, and I mean lavish customer service.
4) Let your patients have fun when they come in, establish rapport, and get involved in their lives
5) Ask every patient who comes in if any of their friends or family need an eye exam (easy if you did the first 4 right)
6) advertise every month in the local paper (Not the newspaper (unless its a small town), the neighborhood sheets, or condo association sheets that are handed out for free are terrific if done regularly and offer something)
7) many offices start with WAY too few frames, you need at least 300 before people will even stop to look.
8) if she has not already done so, contact Matsco for financing. You need to be able to continue in business at least 2 years before things start to build.

I couldn't agree more!!! I am no entrepreneur, so maybe I'm not the most experinced responder to this post. All I can do is put in my 2 cents from personal experience. Since starting with my OD almost 5 years ago I have tripled her profits. I have done this through excellent customer service. Involving my patients in the process of choosing their glasses,but also edjucating them on proper frame and lens choices at the same time seems to work well for me. Making them feel special and appreciated, taking an intrest in their personal lives by asking questions so I can recommend the right products,and making them feel like I will bend over backwards for them I think are all very important. Also being able to come here and get a great adjustment helps a lot with word of mouth! I am on a first name basis with many of my pts, and I do my best to remember their names and little details about them. On a side note I think running and efficient office is important, keeping your % of remakes and scratch warranties to a minimum will help profit margin.
Jamie

[Johns]

So what's the common thread?

Excellent customer service! (And while it won't triple your business overnight, the business you add will be solid.)

[RedneckDOC]

I've worked in discount retail locations since I graduated optometry school ... many years ago.

Here's some tips to help you have a heads-up on the retail locations:
1. Your staff will make or break you. Hire someone with a brain and people skills. In retail, they hire idiots that they dress up in white jackets. In my state, opticians are not required to be licensed, so they hire people with zero experience because they don't have to pay them as much and they attempt to train the untrainable. They end up faking their way through their job. Patients catch on to it though and word gets out.

2. Presentation is everything. Retail locations are run cheap, cheap, cheap. They won't even pay to make places HIPPA compliant, nor will they even clean the carpets or mop the floors! You have to have a clean, presentable office because we're medical and you have to present a sterile environment.

3. OK. So places like Vista Optical will run sales like "all frames 59 dollars." They do sell frames that sell for 179 and their lowest prices frames sell for about 59 (retail). Wal-Mart has frames that start at nine dollars and run all the way up to 179. Their average price is 98 for a frame. They have about 20 nine-dollar frames, ten for men, ten for women. The next jump in price is 18, and they have about 24 of those, 12 men, 12 women. The next jump is 28 I think, and they have about 28 frames in that price range. Most frames at Wal-Mart are 68 to 98 dollars. You don't have to be as cheap as Wal-Mart, but you need to be comparable. Sell your lowest frames starting at, say 29 dollars. Have about 24 frames this price. Next highest is 39. Next 49. Run your ad saying "Frames starting at 29 dollars." All people remember are the numbers, so they'll see Wal-Mart's huge sign for 38 (and not take the time to see that's for a complete pair) and see Vista's price for 59 for frames and then when they see yours, the bargain hunters may pop in for a visit. Hey, just get them in the door. It may sound slimy, but you know what, this is a cutthroat business. Just don't lie. That's a key.

4. Don't lie! Don't exaggerate. Don't tell lies of omission ... like don't forget to tell the people getting transitions that they won't get dark in the car.

5. Have a kid's play area. Tells parents your office is family friendly. The retail locations will not do this, trust me. It also keeps the kids from using your frames as a chew toy.

6. Have comfortable waiting room chairs.

7. Hey, have a flat screen available for the drivers (family members who come who aren't getting an exam).

8. Have cool magazines available that are current.

9. Get on all insurance plans. Stuff like Eyemed is a LOSS LEADER. That means that you will do their exam at a loss price-wise. You take it so they can recommend friends or family that don't have Eyemed.

10. Make sure insurance is verified BEFORE the patient sits down to fill out their paperwork. People get peeved when they find out they aren't covered or that the Dr is not a provider. You've wasted their time. This is the number one thing that makes angry customers at the retail location I'm working at now. And there's no reason for it. It happens because the staff is lazy and stupid.

11. Designate one person in office to be the expert in insurance.

12. Give staff a dollar for every eye appointment they make as a bonus ... given the patient shows up. This motivates the staff to fish for exams and motivates them to confirm appointments. It ads up over a month's time.

13. Pay opticians partly by commission and they don't get paid if the insurance stiffs you. That motivates them to verify the insurance correctly. If you don't get paid, they don't get paid.

14. As a doctor, push your products. Patients listen to the dr's suggestions. Let your staff do the selling. Give the patients what they need (what doctor says) and what the patient wants.

15. Give staff breathing room and flexibility.

16. Consider giving non-insured patients a hefty discount. Bill insurance the regular amount.

17. It worse comes to worse, bribe referrals. One office I worked at, private, had on the back of business cards an ad that said they'd give a 25 dollar credit to a future purchase for referrals (for new patients). All you have to do is keep track. Allow some flexibility for insurance people ... like it can be credited to a loved one as a gift certificate. And I do believe this can be written off as advertising.

The retail locations do none of that. I really don't push products at the retail locations in my state because it's illegal for me to promote them and them to promote me. Private practices don't have this limitation and it should really be used.

Most importantly, focus on high quality eyecare. The retail locations ONLY care about selling glasses.

[chip anderson]

Question: Insureance and other third parties base thier fees (supposedly) on usual and customary fees (which accounts for a lot of the price spiral, if you are going to get 70% you just mark things up to the point where 70% equals what used to be 100%. If one discounts all cash customers, does the discounted fee become the usual and customary?
I have some ocularist friends who have gotten so tired of negotiating with third parties to the point where they have reduced fees from $2,700.00 to $1000.00 if paid cash in advance and they are not obligated to deal (even fill out forms) with third parties at all.

Chip

[AustinEyewear]

I just talked to an OD that is making less than I pay my opticians, and she's wondering how she is going to pay back her school loans. Why is she making so little? She's working for a group of ODs that are so entrenched in the 3rd party system(s) that they are booked all day, and barley (sometimes not) making ends meet.

This is something that most people who have never started their own business don't understand. You don't hang an shingle and get rich, it takes a long time, lots of lost personal hours, and big risk taking to ever get to that point. Here's some quick numbers for a decent rental spot:

500,000 - doors open
300,000 - lost wages before breaking even
500,000 - opportunity cost in lost investment income that above 800,000 could have been put into safe investment and not have to pay interest on loans
---------

1.3M spent before you ever start making a normal Wal*Mart Salary.

Now you have to make up for this investment down the road. So when you see your doc pulling in "Big bucks", don't forget the investment he has to recover, the 80 hour work weeks lost from his life forever, and all the headaches and risk that come with it. It should not be viewed as making the big bucks, its RECOVERING YOUR INVESTMENT. And this doesn't even include the 8 years of school that the doc could have been out making a living or the school loans that have to be paid back.