Pricing

[Cateye88]

Hi fellow opticats, just a quick question?? I have a small boutique and I am wondering what kind of markup you guys are using on frames. I know it varies everywhere but I'm particularly interested in other Florida stores. Some of the lines I carry are Charmant Titaniums, Elle, A.Klein, Tura, Multi-facets, Silhouette. Thanks in advance

[Maria]

As I'm in England, this is hardly going to be a benchmark for you, but we mark up 1,000% on the expensive frames, 2,000% on the cheaper ones.

[RichardS]

Cateye88,

You are asking a sensitive qeustion and I don't know how readily anyone will reply. My suggestion is that you price shop your competition, see what they charge more than what their markup is. Keep in mind that as a small boutique, you might be able to charge more, but you better hope that there is not an Eyemasters or Lens Crafters down the street from you, unless of course you deal with exclusives, which, if you do, then that is a whole other story.

As for the markup that we use here, I am not really comfortable telling you that, sorry.

Richard "bored to death" S

[Optician]

Hi Cateye,

We generally markup as follows (and this is approximately the formula I've seen in use in dozens of operations):

wholesale below $40= $50 markup
wholesale $40-100= 3x markup
wholesale >$100= 2.5x markup (although we "customize" some markups in this range depending on competition and exclusivity)

To the consumer who may wander onto this string who thinks "hmmmm, why should I pay all that markup?" I respectfully say, "you are paying for the skill and expertise of the dispenser. If you can procure the frame over the internet at a cheaper price- and are satisfied with the quality of the workmanship and service associated with the finished product- by all means do so with my blessing."

To the dispenser out there who is having an apoplectic fit concerning the divulgence of "trade secrets," I would comment that many of my patients know pretty much exactly what my markup is... they don't seem to mind, because they won't get better service/product anywhere in town for less.

[Texas Ranger]

Cathy, well, I did e-mail you a more personal point of view on this matter, but thought of another resonse relative to these comments. First, consider that as a small boutique, no one else is YOU! it doesn't really matter what everyone else's markup is. price is NOT the priority with YOUR clientele. carry great stuff, use great quality control, don't worry so much about how fast/how cheap as much as customer satisfaction in the long run! you can make anybody happy in an hour, but will they be happy next week, next month , the next time they want glasses? Al.

[PAkev]

I have an Idea of what my competition is charging for the same products. Once in a while I will ask a frame rep or lab rep (for lenses) if my prices are competetive with my other competitors. I don't expect them to tell me what a specific local retailer is selling eyewear for but they usually will indicate if I am over or under competetive pricing standards to a market serving the same demographics.

The other issue is if you are established for a while then you can substantiate higher prices for your quality, service, and good reputation. However, as a new guy on the block, you may have to settle for a little less until you can develop a good clientelle.

When pricing some of your designer eyewear, be careful because some manufacturers do not allow their product to be discounted. You can price to have a $20.00 or $200 profit margin on a frame but they won't allow any discounting on your established price. The way I usually handle this is by offering an add on such as AR, UV & Tint, etc. with a designer frame purchased over a certain price point.

Happy pricing,
Kevin

[Matthew]

Remember there are many people who look at this board who are not in the business.. They may not understand all the cost that is involved in running a business and why a product needs to be priced so you can keep your head above water and be in business next year. A private email about pricing may be more discreet.