The other day, I had a customer come in. He had been in about 3 months ago and found a frame he really liked, we wrote the info down...he came back in on a day that I wasn't here, saw the other employee and decided to come back when I was in...we pulled the frame, talked about and measured for lenses, etc. We start talking about pricing. We get all finished, and he says, 'well, you know the internet can be a good thing and a bad thing.' Then he pulls out the dreaded printout...yep, he had checked all over the internet and found the exact frame for $50 less than what I was selling it for...not a real shocker, but frustrating none-the-less. I will admit I was
STUPID enough to match.....the.....price!!!!
(or one could argue that I'm STUPID enough not to mark up in order to mark down and still make rent...I hate that sales model, but that's the way the consumer seems to like it best.) Why did I match that price?? Well, I guess it really doesn't matter why, more importantly, will I do it again?...most likely not...or at least not in the same way. I didn't take into consideration all the things RKJ mentions, like adjustments, guarantees, service.
I have toyed with the idea of drastically reducing my frame prices. The two problems I see are 1. Vision Insurance (if an office files insurance) and 2. An office has to make a certain amount of money
just to function; and if you
actually want to service the product you've sold (i.e. unconditional guarantee, etc.), and/or make a paycheck, well then your prices have to be a little higher...I know the "internet people" will say they have the same overhead...but that is not true...when you have a B&M store, you MUST have the store front, sign and decor, you MUST present your items with displays etc., you MUST follow your state's rules of Opticianry, you MUST have liability insurance, you MUST have at least one privilege license, and you MUST have inventory to see and touch for anyone who comes in.
So far the only strategy I've had is to keep my prices fairly low already, and search the internet for any new frames I get in, so that I'm not priced completely out of line, but can still afford to service the product and (one day) make a paycheck.
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