Finishing lab work for other offices

**mjod** · 12-01-2012, 09:42 AM

I currently have a Briot and cutting mainly SV lenses. I would like to upgrade to a high end edger that will do drilling, facets and Trivex. I can't justify the 65K cost even with the tax break and the up front write-off with the number of jobs that I do. I would like to offer this service to a couple of offices near me so that we can make efficient use of the machine and help cover the cost of labor and the machine. My thought was to charge a flat rate for cutting the lenses and they could buy their own un-cuts or I would recoup the cost of the lens. I figured that there is about $7 in employee costs and $5 in edger wear and tear in each job so I was going to charge $12. The labor cost isn't just the lab tech but the administration of the lab (accounting, tracking, packaging etc.) I've offered it to two offices and no one has taken me up on it.

Does anyone have a model that works and is fair and equitable to all parties involved? I'm willing to foot the bill for the edger and pay the employees. All the other offices would have to do is send me the jobs and pay their lab bill.

**Fezz** · 12-01-2012, 09:44 AM

I think it is a bad idea.

How will you handle breakages? Warranties? Deliveries?

**mjod** · 12-01-2012, 09:53 AM

My thought would be that everyone is on their own, just as if they had the edger in their office. I've done a thorough analysis and clear show the profit margin for each lens. We pick and choose what we edge based on the profit margin. I would expect the other office would do the same.

Even with my current machine we have almost zero operator error and I think the machine I'm looking at is commercial lab grade and will eliminate the machine based errors we are getting. It is the Optek Shape. Very unique in how it cuts. It uses cutting tools instead of wheels so I think slippage will be non existent.

**optical24/7** · 12-01-2012, 10:55 AM

So if you do screw up an accounts lens, they pay for it? How about if in their opinion you edged it off axis/out of tolerance PD ect, they eat it? Not a great deal for them imho. Also, what you would like to charge is more than some labs charge to edge. I don't think it's worth getting into. To get more value, stop farming (picking and choosing) the jobs you'll do, do them all!

**mdeimler** · 12-01-2012, 11:05 AM

No way kimosabe. Either handle the entire job (ordering the lenses AND edging them) or don't do it at all.
Having outside accounts is nothing to get into half-a$$ed. I've worked where we had 80+ accounts and I managed
only 3 outside accounts. Trust me, if it can bite you, it will.

**mjod** · 12-01-2012, 11:18 AM

I will take all your comments under careful consideration.

**GokhanSF** · 12-03-2012, 07:32 PM

Wow that is the worst offer any optical store can get themselves into. If you can't justify having an edger and a lab tech on your own that means you sent all your jobs out to a wholesale lab and forget about uncuts. Plain and simple.

**Jacqui** · 12-03-2012, 07:57 PM

I think it's a bad idea too. Let the wholesalers do it, we have much more experience with this.

**mjod** · 12-03-2012, 08:43 PM

I have received a number of comments suggesting this is a bad idea. While I appreciate brutal honesty doesn't anyone see ANY positives with the efficiencies gained by this arrangement?

I'm not offering the service to just anyone, only to colleagues I know and that I'm friends with. My current edger has proven to be cost effective and I get my lenses the next day. Why does it make sense for each office to spend the money on an entry level machine, train and pay the staff and designate office space when the service can be centralized. Additionally, if we work together we can support a higher end edger which will offer the ability to do more jobs. If I could improve their turnaround time and reduce their COG's while keeping my edger busy and reducing my equipment and labor costs at the same time, why doesn't anyone else see this as a win-win.

**optical24/7** · 12-03-2012, 09:24 PM

You are not factoring in the problems mentioned already. Unless you wish to go the wholesale route (i.e. supply finished work for a fee, including lenses.) it's just not worth it to you or your accounts. In other words it's not worth it unless you become the wholesaler supplying finished work ( including lenses). Many of us have done this at one time or another. Take our collective wisdom for what it's worth, we say, no, not worth it.

**Plausible** · 12-04-2012, 06:33 AM

[QUOTE=mjod;445744]I have received a number of comments suggesting this is a bad idea. While I appreciate brutal honesty doesn't anyone see ANY positives with the efficiencies gained by this arrangement? [QUOTE]

I see a positive for you as long as you have (as Fezz suggests) the breakages, Warranties, and Deliveries are figured out and agreed upon with your friends / new business partners. A good deal is when the buyer and seller are happy, not when the internet community is happy.

**SharonB** · 12-04-2012, 08:09 AM

Originally Posted by mjod

I have received a number of comments suggesting this is a bad idea. While I appreciate brutal honesty doesn't anyone see ANY positives with the efficiencies gained by this arrangement?

I'm not offering the service to just anyone, only to colleagues I know and that I'm friends with. My current edger has proven to be cost effective and I get my lenses the next day. Why does it make sense for each office to spend the money on an entry level machine, train and pay the staff and designate office space when the service can be centralized. Additionally, if we work together we can support a higher end edger which will offer the ability to do more jobs. If I could improve their turnaround time and reduce their COG's while keeping my edger busy and reducing my equipment and labor costs at the same time, why doesn't anyone else see this as a win-win.

Please PM me - my husband has been doing this successfully for years!

**Jason H** · 12-04-2012, 08:20 AM

I think you would have to charge a lot less to undercut a wholesale lab to the point where they would take the hit in turnaround time (it has to take longer to send it to two seperate labs). And even if that were attractive, you would have to eat whatever breakage you had and tell all your accounts you don't handle warranty work - putting you at a competitive disadvantage. But if you're really serious - see if these other colleagues want to go full partner with you. Share the expense and the risk. Then if you can find enough people who are thinking the same way you do you might have something.

**GokhanSF** · 12-04-2012, 05:50 PM

Just do it and see yourself. And remember we have warned you.

**CME4SPECS** · 12-04-2012, 07:23 PM

Let's see...the employee cost is $7, the edger cost is $5. You are going to charge $12. Is it worth breaking even just to keep the wheels turning on that machine? What do you see as the advantage for you?