frame board management

[paw]

I am an op tech, not formally trained in opticianry, but proficient at what I do. I am now in charge of frame board management and very much a newbie in this area. I would like to hear how others do this. At the current time, I am following the procedure my predecessor followed. My difficulties with her methods are:

1. When the reps come in, they show me their frames case by case, and they point out which styles we’ve sold before and which are new. I choose frames as we go along. The difficulty here is, if I plan to buy X number of frames from this rep, on the one hand I may choose too many frames at the beginning of this process then I end up overbuying toward the end; on the other hand, by the time I’ve chosen X frames, we are only halfway through the cases and I have to by-pass the rest of the frames. I would prefer to see all the frames first then decide, yet this seems time consuming. I know some of the rep’s accounts allow the rep to send them a given number of her best selling frames. That doesn’t appeal to me. I prefer to select the styles myself to suit our patient base. Ideas, please, on how to go about this.

2. Do you have a guideline for how many frames you allocate to each company or line? Do you stick to a firm number or allow a range? I’m also curious how many reps you have.

3. Do you have a guideline for how many frames in each price point?

Any tips would be appreciated…thanks in advance.

[Texas Ranger]

PAW, for a "newbie", those are good questions; first i'd like to say that it is NOT too time consuming to see all the styles first(too time consuming for whom?,you or the rep?) When seeing a rep, gather up ALL of their styles currently in your shop, to have there while you're looking at new ones. we put the stocking date on the demo lens, i.e. 11/01 for november 2001, so when the rep is in in 06.02, we readily know how long we've had that frame, etc. you can also see what's NOT selling, or you wouldn't still have it, would you? you'll find that there are, in each line, some styles that sell frequently; keep those on the display, and order a new one for the client being fitted. the frames price points kind of depend on your shop's niche. if your shop is very high end, why your resources buying/showing low end stuff, and vice versa, so I'll tell you this, you'll sell through what YOU wear and like, because people will buy from YOU, a lot because they LIKE YOU! if they like YOU, they'll buy what you like, you'll be more enthused about what you like, and not so about what doesn't impress you; like you won't be really impressed with PALs, until you're forty and experience lined bifocals, you'll wonder how the heck people wear them at all! Just be YOURSELF, sell yourself, sell what you like; but also be aware that you should appreciate that everyone ain't YOU, so give people a little wiggle room to choose something different! An appreciate their decision! best wishes!

[Joann Raytar]

1. Like Texas Ranger, we also dedicate a good chunck of time to go through everything of that reps line that we have on stock and to go through all the reps styles. Before we look at anything new we go through our stock. We try to stick to even exchanges; if something is outdated, soon to be retired or not selling we pull that out to be returned. Once we know the dollar value of our return we know what we have to play with as far as buying new styles.

We then let the rep take us on a tour of all of his styles flipping the frames we would like to purchase over in their cases. We try to at least have two people in each store (Note: there are only five employees between the two stores so this is basically everbody) sit down with the rep. When purchasing we try to fit the styles that most customers seem to want and also pay attention to our patients' fitting needs. For example, we make sure we have a variety of bridge widths and eye sizes. When we'e done "shopping" we add up what the new frames will cost. Now we can either pick out more frames if we are under budget or decide what we will not take because we are over.

Even exchanges may sound strict but it helps to keep us from ending up with dead and discontinued product. If a rep knowingly tries to unload bad styles on us and the frames are discontinued, their real estate on our frame boards automatically shrinks since often they won't make an even exchange for discontinued product. They now have to work to gain their real estate back through good customer service.

2. There are certain lines that require minimum amounts to keep them in stock. Beyond that we stock according to what sells. If we are testing a new line we either stick to the minimum or pick only a couple to see how well the line does and expand later if it sells through well. How many? Hmm. I would say we have about twenty for each major category; mens, women's, unisex and maybe a few less for children's and sunglasses; under each vendor or line. I say line because some vendors have multiple reps for each division. For example, we have a couple of Marchon lines with different reps for each line. We deal with 7 reps for Marchon alone; DKNY, Marchon, Flexon, Nike, Fendi, Nautica and Calvin Klein. That sounds like alot of frames but we try to keep the bulk of our stock to two or three major vendors. There are also lines in which we only stock 20-30 frames total.

3. We don't really stock a ton of low end frames. Half our stock is upper-midrange the other half is lower-upper end.

[PAkev]

PAW,

As you probably already know many popular frame styles with a particular manufacturer have knock off styles from other manufacturers.

As an ophthalmology practice we use the 10-20-30-40 concept:
10% chilrens frames, 20% mens frames, 30% unisex frames, 40% women's frrames.

We try not to be redundant with frame styles from one frame company to another and pick the manufacturer which best represents a given style.
Rather than having a few pieces from each frame company we are therefore able to represent nearly all the frames of one manufacturers specific frame line. This gives our customers the confidence they have a better choice of colors, sizes, etc. since they are seeing most everything available.

It is also important to be open minded about new product. Folks purchasing eyewear today shouldn't be seeing the same frame styles when they return in two years otherwise they may have less reason to make a purchase.

Marketing term a product cycle under four easily identifyable categories which can also be used in our optical industry.

STAR - Star products (frames) are difficult to keep on the shelf due to the high demand and is a proven seller in the short term at least. These are usually trendy innovative designs that will eventually fly or die.

CASH COW - Products which have the confidence of both consumers and retailers and require the least effort to sell. This is the majority of product sales which pays the day to day bills.

QUESTION MARK - Product which people like or dislike and are necessary in everyones inventory. These are usually older styles which some people resisting change feel more comfortable wearing.

PROBLEM CHILD - Frame product which is rarely given attention by consumers. There are many frame styles that came directly from the STAR cycle to the PROBLEM CHILD cycle.

To sum up, you can determine your avg. patient sale term ( 1yr., 2yr., 3yr., etc) and incorporate your frame product cycle according to this term. Choosing frame styles in the STAR and CASH COW cycles will enhance consumers expectations while maintaining the integrity of our industry and your practice.

Hope this helps
Kevin

[eyejoe]

something that very few of us tend to talk about is COG "cost of goods" and how to lower it!?!?!? Lets talk about it!;)

[paw]

And what about the hidden cost of postage??? You buy frames for stock...postage. You dropship a frame that a patient wants in a size or color you don't have on the board...postage. You return discontinued or slow-sellers...postage. You return a broken piece under warranty...postage.

We try to "bundle" as many orders, returns, etc as possible to minimize postage, but it seems like it really adds to Cost of Goods Sold, regardless.

[MVEYES]

Straight from marketing in the MBA curriculum.






Jerry

[icare]

Each rep has a number of board spots.

We calculate (by data analysis) the sale of every model and determine its turnover per year.

Each frame has a cost and a sale price, the difference is profit.

We multiply the turnover by the profit of each item and determine how much profit that board space makes.

Every rep knows where they stand in our office. The ones that have a higher total profit per total board space are given more board spaces. Those that are weak sellers are given less space.

I tell the reps which models have to go. They tell us which are discontinued.

We try to pick winners together.

[Alan W]

May I recommend that you read icares posting again. I have no argument with anyones ideas, though. It's all terrific.

However, in this economy we ned to keep in mind that profitability is the key determinant of business actions. I am not saying artistry and customer service take second position. I am saying that every frame on that board occupies real estate. If one frame gives you a net profit of $25.00 and you have 400 spaces, then each time the board completely turns its inventory you have only made in net profits $10,000.00. That doesn't cover very much. So, over the year, the inventory needs to turn, according to many, about four times.

What doesn't fit the criteria needs to be looked at real close. It is in cold blooded terms . . . who shall live and who shall die.

That being said, tracking is important, one should see what sells best. Build on strengths for you marketplace. Old lady frames can do well in one marketplace and not in others. So, you decide based on what sells through for you. Build on strength not on dreams or personal taste. "On the other hand" as they said in Fiddler on The Roof, You need to stand ready to make change based on sales trends in dollars and in fashion trends. Personally, I will adjust my inventory across vendor lines. If someone has a style that has sold better than another vendor and you arent showing all the color possibilities (breadth, not depth), think about building on the strength of the seller and the winner takes the most amount of real estate.

My last comment is: prepare to change. Idle inventory waiting for that one customer in a million will cost you plenty.

[paw]

Yikes, are you saying each board space should turn over 4 times within a year? I'm certain that doesn't happen on our board.

At the moment I am quite frustrated with a certain frame company who will remain nameless. Before my predecessor left, we lost our rep, that is to say, there is no rep covering our territory. (I know we are in a rural area, but for Pete's sake none of the other companies have any trouble giving us a rep.) I decided I didn't want to have those frames on the board without a rep, so I've been calling the company trying to get the frames returned. Customer Service told me that they will only do exchanges, which is not what I want. I've left a message with the regional rep, who has not returned my call after 3 weeks. When I called a second time, Cust. Svc. said she'd have a new rep from a "nearby" big city give me a call. Still waiting to hear from him. The frames I want to get rid of are 10 current and 3 discontinued. This is a sizable investment and I have a sinking feeling that I'm going to get the runaround.

Any suggestions, strategies, comments are appreciated.

[icare]

Paw, I recently had the identical situation present itself in my office. This once proud Parisian manufacturer had a prominent place on my frame boards. The reps were professional and precise. Customer service was unfailing.

Two years ago the downfall came. Reps didn't show up and the account I held with them went unattended. I became most dissappointed when even the east coast regional rep began disregarding my inquiries. I pulled their teeth to get one sorry out-of-the-area rep to come in and service my account, yet they just dropped the ball. No amount of courtesy, persistence, or anger on my part could improve or even enliven the relationship. The company stopped listening. One day, even the customer service lines went unanswered by them.

I recently realized that the company was affiliated with another frame group. My questions about their ability to serve me in the future were answered.

So, what to do? I asked a couple of my tried and true reps to 'buy' the board space from me. In essence, they would agree to receive another manufacturer's goods and pay me for the right to show more of their frames in my shop. Not a bad idea, right? Well, nobody really bit the bait on that one, until just recently. My longstanding rep told me he'd pay me half of what I paid. Not bad, but still not so hot.

I asked him, "What will your company do with the frames?" He said, "The owners will contribute them to charity." Cool.

I thanked him and quickly understood that I could donate them to my local blind and visual services center for full value and take the deduction. Everyone wins. I get the tax write off for a charitable contribution for the value of the frames I dontated and the blind center got two dozen new frames in pristene quality to dispense to the needy in my local area.

I trusted L*** for far too long. I should have seen the writing and left them years ago. Frame vendors come and go. Let the failures go, empty their basket and put some of your better eggs in it.

:cheers:

[paw]

The doctor (who is my husband ;) ) loves that idea! I am going to give the frame company a little more time to respond. If they don't resolve the situation, we will try your idea. Thanks!

[icare]

Thanks for the compliment. I'm glad I could help.

[LENNY]

I think you can deduct the retail value of theese frames (not wholesale price that yuo paid)
Correct me if i am wrong but i think thats how the big eyewear company write off their losses!

[icare]

I never thought about it 'till now, but you're probably right Lenny. You ought to be able to deduct the reasonable value of the product or services you donate.

I just wanted to clear my boards of defunct product and get a fair value to cover my losses.

[Alan W]

Please don't let me mislead you. The 4 X turn rule is not a rule. What can be, can be, and what can't, can't.
But, the numbers should be your "cold guide!"
Your planned net profit from one complete board times the number of times required to turn it over will yield the planned net profit for a year, or quarter or whatever.
If the multiplication doesn't look so hot, then in my mind its time to look at the product mix and study sales trends by category etc.
There was a time when we could use the old MGM Movie Studios slogan . . .
Ars Gratia Artis . .. Art for Arts Sake
But, unfortunately, unless we are in a market that eats sleeps and drinks the good life, we would do well to look at the reality of what sells, sells, and what dont sell s'gotta go! And, that doesnt mean the product needs to look like it came from Goodwill. It only means that your market puts food on your and your staffs table. Show what the marketplace buys . . . as often as you can sell it!

One again . . . I'm not trying to sound hard _ _ _ _ d about it. Your CPA can do that when he says your inventory is smuthering you to death.

And, loyalty to brand is not necesarily directly related to required contribution margins. Mr Del Vecchio bought Lenscrafters to move product and didn't particularly care whether you liked the idea or not. He's got the big bucks as a result. But, you can't tell that to the consumer. The consumer outnumbers us.

Gotta make em happy . . . a lot!

[OptiGirl79]

Yikes, are you saying each board space should turn over 4 times within a year? I'm certain that doesn't happen on our board.

At the moment I am quite frustrated with a certain frame company who will remain nameless. Before my predecessor left, we lost our rep, that is to say, there is no rep covering our territory. (I know we are in a rural area, but for Pete's sake none of the other companies have any trouble giving us a rep.) I decided I didn't want to have those frames on the board without a rep, so I've been calling the company trying to get the frames returned. Customer Service told me that they will only do exchanges, which is not what I want. I've left a message with the regional rep, who has not returned my call after 3 weeks. When I called a second time, Cust. Svc. said she'd have a new rep from a "nearby" big city give me a call. Still waiting to hear from him. The frames I want to get rid of are 10 current and 3 discontinued. This is a sizable investment and I have a sinking feeling that I'm going to get the runaround.

Any suggestions, strategies, comments are appreciated.

I have had a similar problem with a certain "Dark Overlord"of the optical industry who has recently restructured several times and left us hanging with discontinued and old frames with no certainty of when a new rep would be assigned. Thankfully, with the economy as it is even the larger companies are ready to listen when you say you are ready to drop them. I was told the same thing about only being able to exchange so I asked for my districts manager. While he was harder to get a hold of he was much more apologetic and willing to work with me on getting the situation resolved. It's better for them to take things back now and not burn a bridge in the future. Just keep asking for the next person up and see where that gets you!

[Johns]

Paw, I recently had the identical situation present itself in my office. This once proud Parisian manufacturer had a prominent place on my frame boards. The reps were professional and precise. Customer service was unfailing.

Two years ago the downfall came. Reps didn't show up and the account I held with them went unattended. I became most dissappointed when even the east coast regional rep began disregarding my inquiries. I pulled their teeth to get one sorry out-of-the-area rep to come in and service my account, yet they just dropped the ball. No amount of courtesy, persistence, or anger on my part could improve or even enliven the relationship. The company stopped listening. One day, even the customer service lines went unanswered by them.

I recently realized that the company was affiliated with another frame group. My questions about their ability to serve me in the future were answered.

So, what to do? I asked a couple of my tried and true reps to 'buy' the board space from me. In essence, they would agree to receive another manufacturer's goods and pay me for the right to show more of their frames in my shop. Not a bad idea, right? Well, nobody really bit the bait on that one, until just recently. My longstanding rep told me he'd pay me half of what I paid. Not bad, but still not so hot.

I asked him, "What will your company do with the frames?" He said, "The owners will contribute them to charity." Cool.

I thanked him and quickly understood that I could donate them to my local blind and visual services center for full value and take the deduction. Everyone wins. I get the tax write off for a charitable contribution for the value of the frames I dontated and the blind center got two dozen new frames in pristene quality to dispense to the needy in my local area.

I trusted L*** for far too long. I should have seen the writing and left them years ago. Frame vendors come and go. Let the failures go, empty their basket and put some of your better eggs in it.

:cheers:

So there I am, sitting with my feet up on my desk at the corporate executive offices of FezzJohns Inc. I buzzed the executive lounge to bring an Ale up, so I wouldn't be disturbed by having to take the beer slide down. Turns out, the wait staff was entertaining the employee of the month, DRK, in the jetted beer tub, so I had to go and get it myself.

I ambled into the lounge, and there was Brother Fezz, sitting in one of the massage chairs, in front of the Optiboard jumbo tron monitor. I said, "s'up?" He didn't answer. I asked again, "S'up Fezz?" It was then I noticed he was reading this thread, and had tears streaming down his face.

"You allright?" I asked. He snifffed a bit and said, "Yeah, I'm fine. I just can't believe I lived through that crap for so long. I can't believe we escaped the Island. We've got to help those guys that are still there somehow..."





to be continued...



We now return you to the Board Management thread.

[Jana Lewis]

So there I am, sitting with my feet up on my desk at the corporate executive offices of FezzJohns Inc. I buzzed the executive lounge to bring an Ale up, so I wouldn't be disturbed by having to take the beer slide down. Turns out, the wait staff was entertaining the employee of the month, DRK, in the jetted beer tub, so I had to go and get it myself.

I ambled into the lounge, and there was Brother Fezz, sitting in one of the massage chairs, in front of the Optiboard jumbo tron monitor. I said, "s'up?" He didn't answer. I asked again, "S'up Fezz?" It was then I noticed he was reading this thread, and had tears streaming down his face.

"You allright?" I asked. He snifffed a bit and said, "Yeah, I'm fine. I just can't believe I lived through that crap for so long. I can't believe we escaped the Island. We've got to help those guys that are still there somehow..."





to be continued...



We now return you to the Board Management thread.

DRK made employee of the month? How'd that happen? ;)

[Johns]

DRK made employee of the month? How'd that happen? ;)

Dedication to the profession!:cheers:


(Now let's return to the thread....)

[k12311997]

thread is seven years old

[Johns]

thread is seven years old

Amazing isn't it?

And folks still have the same problems...

[drk]

Best move I ever made, boss.

[Dougfir8]

I thanked him and quickly understood that I could donate them to my local blind and visual services center for full value and take the deduction. Everyone wins. I get the tax write off for a charitable contribution for the value of the frames I donated and the blind center got two dozen new frames in pristine quality to dispense to the needy in my local area.

:cheers:[/QUOTE]
That would have worked to benefit your local area. However, in a purely bottom-line manner, getting 50% of the value in cash/credit is more than you could have saved on taxes for a donation, unless you claimed the retail value rather than your cost. Having said that, I would have given locally...charity begins at home!:D

[chip anderson]

Anyone know whatever happened to PAW?

Did she get mad at us or find an honest way to make a living?

Chip