Thinking about Starting A Lab

**Kevin_Bell** · 03-02-2014, 04:02 PM

Hello everyone! I currently work for VSP Sacramento in the Unity Coating Department as a Hard coater and I am also an Optician/Ophthalmic tech in the United States Army Reserve. I have about 3 years of experience in clinical and dispensing and about a year and a half in production. I'm looking for some information as to some ideal locations to start at and about the rough cost to start one up. I have connections to OD's and VSP I'm sure would be willing to help me out with my adventures if I do. Any feedback would be very helpful!
Thank you!

**Judy Canty** · 03-02-2014, 06:43 PM

That's a heck of a commute!

**LENNY** · 03-02-2014, 10:11 PM

China!?
Dont count on VSP or others help!

**other_bill_fea** · 03-02-2014, 10:16 PM

You can make a small pile of money starting a lab. The trick is that you're going to need a large pile of money to start with.

**mshimp** · 03-03-2014, 12:55 PM

I would be hard pressed to start a lab in todays optical environment. Though if I did it would be free-form only. So you would be looking at a minimum of 350,000.00 plus.

**other_bill_fea** · 03-03-2014, 01:41 PM

You're probably looking at more than $350. That's probably just for free-form equipment. You still have to have staff, a building, insurance, etc. Then you have one free-form line - hopefully you don't have any machine issues. If you need a part, even if you get it next day, that's a day where you aren't making any lenses if you only have one machine.

There's also software costs for the lab to consider.

Then there's AR and hard coating equipment and experience to run it. Starting a lab that's free-form only, but no AR coating probably isn't going to work too well.

Then you need to have customers. Even if you have friends, how many jobs per day are you going to get? Are you fielding a sales force as well? There's another huge cost. How are you going to differentiate yourself from other labs?

**Kevin_Bell** · 03-03-2014, 01:41 PM

Originally Posted by Judy Canty

That's a heck of a commute!

Originally Posted by LENNY

China!?
Dont count on VSP or others help!

Oh I wouldn't be counting on them for help, but sub contract some jobs to them such as coatings. I know they have some equipment that they don't use that I could buy from them as well. Like an SGX Generator, and I got quotes on edgers as well.

**Kevin_Bell** · 03-03-2014, 01:45 PM

Originally Posted by mshimp

I would be hard pressed to start a lab in todays optical environment. Though if I did it would be free-form only. So you would be looking at a minimum of 350,000.00 plus.

Well I can use my VA loan I get from the military. I can get up to $417K. Would it be worth it because I know it's so competitive nowadays.

**other_bill_fea** · 03-03-2014, 01:58 PM

I think you'd be hard-pressed to make it work too well, with equipment, facility, and personnel costs. If you happen to have a bunch of friends that are all lined up to order from you, then it'd be different, but just keep in mind where other market prices are for lenses.

And if you plan to outsource AR - there's going to be additional shipping costs, time delays, and spoilage. I doubt the other lab is going to pay for breakages, coating defects, or whatever else.

**Kevin_Bell** · 03-03-2014, 01:58 PM

Originally Posted by other_bill_fea

You're probably looking at more than $350. That's probably just for free-form equipment. You still have to have staff, a building, insurance, etc. Then you have one free-form line - hopefully you don't have any machine issues. If you need a part, even if you get it next day, that's a day where you aren't making any lenses if you only have one machine.

There's also software costs for the lab to consider.

Then there's AR and hard coating equipment and experience to run it. Starting a lab that's free-form only, but no AR coating probably isn't going to work too well.

Then you need to have customers. Even if you have friends, how many jobs per day are you going to get? Are you fielding a sales force as well? There's another huge cost. How are you going to differentiate yourself from other labs?

Yeah. I know how much hard coaters and AR chambers are. Those are in the millions. That's why I might contact the lab director at my job to see if I do decide to go through with this, if I could sub contract with them for coatings. My lab would do everything else as I know how to generate lenses, edging, mounting, inspections for ANSI and all that. I even have worksheets that break it down barney style to teach others.

As far as marketing, I know a few optometrists in my area that have told me that they would consider helping me with getting work. 2 of them are private practice and do not make there own glasses so I could try to take on their work load.

As far as being different than others, if I happened to open one by sac state, my inventory as far as frame selections would be geared more towards this generations style. Most of the ones I have gone to seem more appealing to the older generations that are going through presbyopia.

**braheem24** · 03-03-2014, 02:07 PM

With the minimal experience you have, You cant open a non Non-Digital Non-A.R. lab because you cant win them over with quality, knowledge or price if you outsource the expensive jobs.

You'd be better off opening a 1 hour optical in a rural town that does not have a lot of competition.

**Kevin_Bell** · 03-03-2014, 07:04 PM

Originally Posted by braheem24

With the minimal experience you have, You cant open a non Non-Digital Non-A.R. lab because you cant win them over with quality, knowledge or price if you outsource the expensive jobs.

You'd be better off opening a 1 hour optical in a rural town that does not have a lot of competition.

Thanks for your honesty. I do live 5 minutes away from a very rural town as well. While I work at VSP, it's all about numbers in my department. Low breakages, high yields and all that while my military side we have to provide quality care. Weather it's for someone in a foreign country or a soldier serving overseas. This idea is for the future and not anytime soon I might add.

**Speed** · 03-03-2014, 07:21 PM

Originally Posted by Kevin_Bell

Well I can use my VA loan I get from the military. I can get up to $417K. Would it be worth it because I know it's so competitive nowadays.

That is not enough. Open yourself a nice retail store. More money, less headaches.

**other_bill_fea** · 03-03-2014, 08:33 PM

I think the short answer is that if you plan on having to outsource both free form and AR, don't consider a lab as anything other than supplemental to retail operations where you have control of what lenses are used.

**Jubilee** · 03-04-2014, 12:03 AM

While in the past I have considered opening a lab, right now the only way I think I could justify it is through the not for profit model. With the prevalence of managed care plans, and so many dictating which labs and products to use; the ability to differentiate yourself and grab a slice of that pie is really diminished. It is not a reach at all to end up spending a million plus that couple of years in rent, equipment, marketing, sales, consumables, etc and not even come close to breaking even.

As Bill was stating, I think using having your own surface/finish capability within the concept of support for retail operations has some merit. You might even get a doc or two to support you in that endeavor. Unfortunately with the trends of alliances and vertical integration, I don't think there is much room for "the next big lab..."

**himmeroo** · 03-04-2014, 10:25 AM

My God, if your successful, you could make HUNDREDS of dollars. The owner of an optical lab hit the lottery for a few million dollars. A local reporter ask him what he would do with the money. After some thought he replied,"I think I'll just keep grinding lenses til I use it all up.

**scriptfiller** · 03-04-2014, 02:22 PM

Not to throw cold water on ya, but, the moment I discovered you couldn't do A/R in house our conversation would be over.

Watching TV on Sunday afternoon I saw two Crizal commercials, A/R percentages are going up. I'd recommend investing about a million plus on an A/R coat/ finishing center and a million five on a FF center in your lab.

I'd seriously look for a town of about 50K pop. that has an optical or two with no in house lab and be the first in the community to offer such.

**Java99** · 03-04-2014, 03:14 PM

Just a thought, but if you get called up from reserve duty, who's going to run the business?

**Craig** · 03-05-2014, 07:33 AM

Buy an ME1200 and be the best finish lab! Why would you want to buy surfacing equipment when you can get it from the best uncut lab in the world. I would never buy surfacing equipment unless you can do the whole enchilada which is actually a 3million+ venture to do it correctly. You need redundant systems or I would never even think of doing business with you.

I found Pech Optical 10 years ago because they had more than one ar machine.

You can negotiate a great price on uncuts while spending your time on the real details that make work amazing and unique.

Just another way of looking at it.

**Fezz** · 03-05-2014, 07:46 AM

I suggest taking the money and opening a business where you sell stuff that people actually want!

Examples:

Bar
Pizzaria
Bike Shop
Tattoo parlor
Tea Parlor
MMA Dojo
Knife shop

**CCGREEN** · 03-05-2014, 09:14 AM

I vote for the bar. Regardless of how hard times get people will continue to spend money at the bar to make themselves happy and ease the pain of the world. They will sacrifice things needed at home to come and get happy at a friendly bar. And the more happy they get the more they spend.
Or how about a bait and tackle shop on the waters edge somewhere.

**MikeAurelius** · 03-05-2014, 09:16 AM

Find a niche market that is underserved and set out to rule it. Doesn't matter if it is a bar, pizza house, or lab. If you offer a product that fulfills a need, the folks who need it will find you.

**other_bill_fea** · 03-05-2014, 09:35 AM

Originally Posted by MikeAurelius

Find a niche market that is underserved and set out to rule it. Doesn't matter if it is a bar, pizza house, or lab. If you offer a product that fulfills a need, the folks who need it will find you.

That's a very important piece of advice. You can easily see it in the optical world with a company like VisionEase, since they have a lot of niche products, like a photochromic poly flat top, Coppertone, and they even carry glass.

It's also the philosophy we used when starting with glass free-form.

**Jason H** · 03-05-2014, 10:31 AM

Kevin,

Take a job in the industry for a few years. Build your experience a bit and ask as many business -oriented questions as anyone will answer. Get familiar with practices that might make up your clientele. Solve problems the big factory labs don't or won't. Small labs in the day and age of digital are at a huge disavantage. Service and ingenuity never are. Save your money, build a reputation for quality and hit it hard when you're ready. I'm suspicious you aren't quite yet. No offense, but make sure you are prepared.

**Johns** · 03-05-2014, 10:41 AM

Excellent advice in this thread. Having been in the business for quite awhile, and having been fortunate to make a few dollars doing it, I don't think there's enough money in the world to open a lab. I like the advice of starting a retail, and have a finishing lab along with it. Then, take 25% of your profits and buy Essilor stock.