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Thread: Contact Lens Pricing

  1. #1
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    Contact Lens Pricing

    Just asking what does everyone think of the new pricing structure for Ciba and now Vistakon. What do you see as the pro's and con's of them setting a minimum price?

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    Master OptiBoarder CCGREEN's Avatar
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    I gave up trying to make any money with contacts a long time ago. Just sell the damn things for what you can get for them and try to make your money in chair time. Get them in, get them out, get them gone. With the most simple fit you can do quickly and accomplish what the patient is wanting.

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    are they going to make wal mart and sam's and all of those places sell them at that price? what about online? i feel as though it would be great to set a minimum price to help eliminate online competition, make sure we can make a little money, and everyone wins. however, if places online are still selling it for less than i can buy it for then whats the forking point?
    "what i need is a strong drink and a peer group." ... Douglas Adams - Hitchikers Guide to the Galaxy

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    What's up? drk's Avatar
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    I think this is HUUUUGGGGGEEEEE and will be a great boon to the public health via removal of the incentive to have unknown, nameless, faceless, pirates filling CL "prescriptions".

    Hahahahahahahahahaha online pirates!

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    Can someone explain to me how this is even legal.... Price fixing, no?

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    What's up? drk's Avatar
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    Yep. I wonder the same.

    We'd never get a legal challenge on the blatant disregard for Rx dispensing, but you watch: one of the biggies (think Coast-illor") will challenge this in court.

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    Doesn't manufacturers suggested retail price (which i assume is what they will call it) get them around the price fixing issue?
    "what i need is a strong drink and a peer group." ... Douglas Adams - Hitchikers Guide to the Galaxy

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    What's up? drk's Avatar
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    I guess so, but M"suggested"RP is not "sell lenses for at least this much or we'll close your account".

    (Don't get me wrong, I like this.)

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    Yeah, MSRP is only a suggestion.

    Assuming it is legal, I have never liked brands that prop up their product by saying you can't order it online, or get it from big box stores. All they have done is to raise the wholesale price of the commodity quite significantly. And now they expect the retailers to hold together and overcharge for it. While the big guys are still selling "normal" product often below our cost. The new product is always veiled in some sort of claim of superiority... nonsense.

    call me a cynic...

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    I haven't heard of this. Can someone link a news post to this?

  11. #11
    What's up? drk's Avatar
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    Fj, this is different.

    This is the contact lens industry doing what the government won't: level the playing field.

  12. #12
    What's up? drk's Avatar
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    Quote Originally Posted by jmchapman View Post
    I haven't heard of this. Can someone link a news post to this?
    GIYF: http://eyeguysteve.wordpress.com/tag/upp/

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    Master OptiBoarder OptiBoard Silver Supporter ak47's Avatar
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    Quote Originally Posted by drk View Post
    Yep. I wonder the same.

    We'd never get a legal challenge on the blatant disregard for Rx dispensing, but you watch: one of the biggies (think Coast-illor") will challenge this in court.
    Coastillor must tread lightly...they don't want to upset their buds at Lux that have been doing this for years with Raybn

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    This totally sucks! Also, I'm concerned about Oasys no longer coming in 6 packs so if someone is a month away from expiration they have to buy a 12 pack (per eye with different rx's) to get them by until insurance resets? Glad my rep has told us nothing about any of this and it takes effect in a week.

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    I like the idea of everyone being forced to sell the lenses at least at the minimum, it DOES level the playing field. I agree with Coolkyd that the new packaging will force us to sell more lenses than we want if they are close to their exam. I plan on evaluating that on a case by case basis and may only give trials depending on how close they are to expiration...will have to wait and see. I am also excited that Vistakon is lowering prices and eliminating rebates. The rebates are not great anymore anyway and I haven't really seen them be much incentive for the annual supply purchase. Lots of changes to ponder and see how it all plays out. I hope all other manufacturers follow suit on the pricing policy at least it gives us a chance to make a little money on contacts in-house.

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    Quote Originally Posted by Coolkyd View Post
    This totally sucks! Also, I'm concerned about Oasys no longer coming in 6 packs so if someone is a month away from expiration they have to buy a 12 pack (per eye with different rx's) to get them by until insurance resets? Glad my rep has told us nothing about any of this and it takes effect in a week.
    when did this happen/when does it start???!!!! i havent heard about this.
    "what i need is a strong drink and a peer group." ... Douglas Adams - Hitchikers Guide to the Galaxy

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    JOHNSON & JOHNSON VISION CARE INTRODUCES NEW SIX-MONTH SUPPLY PACK FOR
    ACUVUE® OASYS® BRAND CONTACT LENSES
    JACKSONVILLE, Fla. (June 26, 2014) – Johnson & Johnson Vision Care, Inc., today announced that ACUVUE® OASYS® Brand Contact Lenses, the number-one selling contact lens brand in the world, is now available in a new six-month Supply Pack (12 lenses per box). The new six-month Supply Pack will replace all three-month Supply Packs (6 lenses per box), which will be discontinued effective July 1, 2014.
    “In a study that captured actual product use patterns among ACUVUE® OASYS® Brand three-month and Annual Supply users across a four-month time period, research showed that patients with larger pack sizes tended to be more compliant in replacing their lenses bi-weekly as recommended by their doctor, had a significantly better wearing experience with respect to better comfort throughout the day, at the end of the day, and throughout the wear cycle,” according to Laura Angelini, president, Johnson & Johnson Vision Care Companies, North America. “Additionally, patients with larger pack sizes said they were more likely to return to their doctor the next time they need an eye examination.”*
    ACUVUE® OASYS® six-month Supply Pack will be available in all parameters that are currently available in the current three-month and Annual Supply packs: Power ranges of 8.4 and 8.8 BC including -0.50D to -6.00 in 0.25D steps, -6.50D to -12.00D in 0.50 steps, +0.50D to +6.00D in 0.25D steps, and +6.50D to +8.00D in 0.50D steps.
    ACUVUE® Brand Contact Lenses are indicated for vision correction. As with any contact lens, eye problems, including corneal ulcers, can develop. Some wearers may experience mild irritation, itching or discomfort. Lenses should not be prescribed if patients have any eye infection, or experience eye discomfort, excessive tearing, vision changes, redness or other eye problems. Consult the package insert for complete information. Complete information is also available from VISTAKON® Division of Johnson & Johnson Vision Care, Inc., by calling 1-800-843-2020 or by visiting www.ACUVUEProfessional.com.
    # # #

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    Master OptiBoarder optical24/7's Avatar
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    I'm glad they are going to 12 packs. I'm tired of wasting staff time on single 6 pack orders. They are a waste of time and money (which we know there isn't any already in CL's). This will also make selling year supplies easier IMHO. (Which we all should be encouraging already.)

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    How long til the 12 pack goes beyond oasys? I'd love to see it go across the board that if you buy, you buy a year supply. That would save a lot of footwork on our part. BUt I'm sure there'd be fall-out with long time (over) wearers.

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    I think its a mistake for dispensers to sell product at cost just to pacify patients. If a product doesn't generate useful income for your practice, don't carry it. Leave it to someone that can.

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    Just got off phone with my rep. She does anticipate that the other products will go from 6 - 12 packs over the next year or so. I am also pleased with the elimination of unwieldy rebates. They also reduced our purchase cost significantly.

    My rep said that they will be policing online and through secret shoppers in order to enforce the policy. If you (Costco, 1-800, WM, etc.) violate the policy, you will receive a written warning, and if you persist, your account will be shut down for a year. I also asked about discounting for a year supply. The answer was that if your discount takes you below the UPP, then you are in violation.

    I like this policy, although I can definitely see challenges in court. However, Vistakon has probably done its homework, and I think they have a great chance of winning.

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    OptiBoard Professional Michael I. Davis's Avatar
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    This is great. All I need do is compete on customer service. I can beat the competition all day long there.

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    Did anyone see the story today in Optometry Times, or was it iTech?... The government of China has imposed fines on J&J, B&L and Alcon for trying to enforce uniform minimum pricing on its contact lens products. That's right, China, not the USA.

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    Cool! If Congress and the Obama administration think quickly, they can probably convince J&J, B&L, and Alcon to move all operations, including manufacturing, back to the good 'ol USA! (probably not)

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    Just to be clear, that article was in Optometry Times and the fines were against J&J, B&L, and Essilor.Nikon and Zeiss. The fines were cumulatively about $3 million.

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