How to compete with on-line optical businesses ............................

[Chris Ryser]

I have been thinking how I could start an immediately profitable optical retail store on a new basic idea. It is all open for discussion ........................


Location: Small industrial unit in an industrial park close to a bus stop, plenty of parking spaces, big sign on street side advertising renters names and business.
Store at front entrance, cut and grind lab and storage in warehouse area. Office space in between. Rent not more than $ 2500.00 plus tax (refundable)

Design: Simple and basic

Lab: Basic used modern equipment including basic services for tinting, basic coating and AR coat stripping which are not provided now. No AR coating unit.



Sales pricing of Products:

Policy: Prices are not including any conventional optical services, as taking measurements, fitting and adjusting service.

Frames: Similar to average of 10 most popular online opticals.

Lenses: Similar to average of 10 most popular online opticals.

PD only
measurement: $....................... (propose $ 25.00)

Full
measurements: $.................... . (propose $ 45.00)

One time
adjustments: $....................... (propose $ 55.00)

Any time
adjustments: $....................... (propose $ 90.00)

Assistance to
choose frames:$......................(propose $ 85.00 per hour service charge)

Any type of
optical work: $........................ (propose $ 85.00 per hour service charge)



At this stage we could charge on a local stage basic prices as the one liners do, competing with them on their level with the added benefits, they now do not get.

[Golfnorth]

I have been thinking how I could start an immediately profitable optical retail store on a new basic idea. It is all open for discussion ........................


Location: Small industrial unit in an industrial park close to a bus stop, plenty of parking spaces, big sign on street side advertising renters names and business.
Store at front entrance, cut and grind lab and storage in warehouse area. Office space in between. Rent not more than $ 2500.00 plus tax (refundable)

Design: Simple and basic

Lab: Basic used modern equipment including basic services for tinting, basic coating and AR coat stripping which are not provided now. No AR coating unit.



Sales pricing of Products:

Policy: Prices are not including any conventional optical services, as taking measurements, fitting and adjusting service.

Frames: Similar to average of 10 most popular online opticals.

Lenses: Similar to average of 10 most popular online opticals.

PD only
measurement: $.......................

Full
measurements: $.......................

One time
adjustments: $.......................

Any time
adjustments: $.......................


At this stage we could charge on a local stage basic prices as the one liners do, competing with them on their level with the added benefits, they now do not get now.

In my opinion the only way for you to have some credibility here regarding your advice on how to compete with the on-liners is for you to actually take your own advice and start such a business and report back to us.

Regards,
Golfnorth

[tx11]

Chris, the problem and the answer is low prices. People want inexpensive glasses.Eyeglasses are durable goods...if you sell a decent quality product it will last at least a year. You must have an high enough margin to keep your doors open and earn a living until the pts come back the following year. At such low margins you would have to have extremely high volume almost immediately. Many people would probably get their PD for free somewhere else and come get their glasses from you (so you would miss out on that revenue more often than not).
To sell low end it would probably be better to have more than one type of business operating out of the same location...share the expenses and overlap the customers.

[optical24/7]

Chris, there are already a ton of B&M's out there that sell for internut prices. Just a few of them....

http://www.americasbest.com/eyeglasses 2pair for 69 bucks

http://www.eyeglassworld.com/promotions/ 2 pair for 78 bucks

http://www.jcpenneyoptical.com/offers-discounts/ one pair 29.99

http://www.eyemart.com/coupons/ 2 pair for 69 bucks


As a highly skilled Optician, you would be better off spending 8-12k a month on a storefront with a ton of foot traffic in an upscale urban area, carrying high-end products and offer un-paralleled service and knowledge.

[tx11]

Chris, there are already a ton of B&M's out there that sell for internut prices. Just a few of them....

http://www.americasbest.com/eyeglasses 2pair for 69 bucks

http://www.eyeglassworld.com/promotions/ 2 pair for 78 bucks

http://www.jcpenneyoptical.com/offers-discounts/ one pair 29.99

http://www.eyemart.com/coupons/ 2 pair for 69 bucks


As a highly skilled Optician, you would be better off spending 8-12k a month on a storefront with a ton of foot traffic in an upscale urban area, carrying high-end products and offer un-paralleled service and knowledge.

PLUS I would bet that the opticians that work in those places make very little money

[idispense]

its a race to zero on the front end
but very profitable on the back end

[tx11]

its a race to zero on the front end
but very profitable on the back end

[chaoticneutral]

Chris, there are already a ton of B&M's out there that sell for internut prices. Just a few of them....

http://www.americasbest.com/eyeglasses 2pair for 69 bucks

http://www.eyeglassworld.com/promotions/ 2 pair for 78 bucks

http://www.jcpenneyoptical.com/offers-discounts/ one pair 29.99

http://www.eyemart.com/coupons/ 2 pair for 69 bucks


As a highly skilled Optician, you would be better off spending 8-12k a month on a storefront with a ton of foot traffic in an upscale urban area, carrying high-end products and offer un-paralleled service and knowledge.

http://www.stantonoptical.com/ This is another 2 pair for 69 with a free eye exam. That's tough to compete with, even on line

[tx11]

http://www.stantonoptical.com/ This is another 2 pair for 69 with a free eye exam. That's tough to compete with, even on line

Do you think that IF you had a shop that offered BOTH middle of the road product and low end product that the majority of customers would choose low end?

[tx11]

STORE FRONT....What other business is it best to be located next to or close to (besides ODs &OMDs)?

[Chris Ryser]

Chris, there are already a ton of B&M's out there that sell for internut prices. Just a few of them....

http://www.americasbest.com/eyeglasses 2pair for 69 bucks

http://www.eyeglassworld.com/promotions/ 2 pair for 78 bucks

http://www.jcpenneyoptical.com/offers-discounts/ one pair 29.99

http://www.eyemart.com/coupons/ 2 pair for 69 bucks


As a highly skilled Optician, you would be better off spending 8-12k a month on a storefront with a ton of foot traffic in an upscale urban area, carrying high-end products and offer un-paralleled service and knowledge.

To make myself clearer I have modified my first post with some real figures that make more sense that none. I do want to make a decent income by being cheap and just make some money for invested time.
I believe I would be ahead of the on-line optical. Check it out.

[tx11]

I have been thinking how I could start an immediately profitable optical retail store on a new basic idea. It is all open for discussion ........................


Location: Small industrial unit in an industrial park close to a bus stop, plenty of parking spaces, big sign on street side advertising renters names and business.
Store at front entrance, cut and grind lab and storage in warehouse area. Office space in between. Rent not more than $ 2500.00 plus tax (refundable)

Design: Simple and basic

Lab: Basic used modern equipment including basic services for tinting, basic coating and AR coat stripping which are not provided now. No AR coating unit.



Sales pricing of Products:

Policy: Prices are not including any conventional optical services, as taking measurements, fitting and adjusting service.

Frames: Similar to average of 10 most popular online opticals.

Lenses: Similar to average of 10 most popular online opticals.

PD only
measurement: $....................... (propose $ 25.00)

Full
measurements: $.................... . (propose $ 45.00)

One time
adjustments: $....................... (propose $ 55.00)

Any time
adjustments: $....................... (propose $ 90.00)


At this stage we could charge on a local stage basic prices as the one liners do, competing with them on their level with the added benefits, they now do not get now.

I still think that people will bring you their PDs that they got for free and take your unadjusted glasses to somewhere else to get them adjusted for free. Now that being said you could treat it like tire sales...sell the lenses and frames separate and then charge to edge and mount them...just sayin' (they would be hard pressed to find a place that could or would be willing for a nominal fee).

[Chris Ryser]

I still think that people will bring you their PDs that they got for free and take your unadjusted glasses to somewhere else to get them adjusted for free. Now that being said you could treat it like tire sales...sell the lenses and frames separate and then charge to edge and mount them...just sayin' (they would be hard pressed to find a place that could or would be willing for a nominal fee).

On my proposal there is no acceptance of outside PDs, no sales of frames or lenses to take out.

I would make a living mainly from service charges not from selling the actual product. However I would do any type of outside work this profession can provide and I can do for an hourly price of $ 85.00.

Thanks for the tip and I re-corrected the my first post. I might even end up making some money after all.

[Chris Ryser]

STORE FRONT....What other business is it best to be located next to or close to (besides ODs &OMDs)?

My imaginary store, subject of this thread, is nowhere close to any one of them, it is in an industrial park.

It contains any type of products, from high end to low end, only the basic pricing is on a similar footing as the products sold on-line.

So I will not be upset if you come in with a pair of glasses purchased on-line to have them checked and adjusted. I will apply my price list published in post 1 of this thread and charge for the work you want me to do. So I will get for whatever you want me to do.

Furthermore nobody will be able to claim that they have been pushed to purchase any high end materials as the markup on sold products is minimal.

[m0002a]

PD only
measurement: $....................... (propose $ 25.00)

Full
measurements: $.................... . (propose $ 45.00)

One time
adjustments: $....................... (propose $ 55.00)

Any time
adjustments: $....................... (propose $ 90.00)

Assistance to
choose frames:$......................(propose $ 85.00 per hour service charge)

Any type of
optical work: $........................ (propose $ 85.00 per hour service charge)

I would suggest $25 for lifetime mono-PD. They shouldn't ever change, so this is a bargain.

I don't know what "full measurements" means, since I think any other measurement requires a frame, which I assume are being purchased online.

I think the others are a little too high, and all prices should be fixed charges (not hourly), unless you are just trying to scare people off.

[idispense]

the most successful on liners make their money by reverse engineering the profit and the loss which is why you cant compete.

[optical24/7]

In my opinion the only way for you to have some credibility here regarding your advice on how to compete with the on-liners is for you to actually take your own advice and start such a business and report back to us.

Regards,
Golfnorth

Chris, you already have a warehouse and all the stuff you list you'd need. I agree with Golf on this one...

[Hayde]

I really enjoy the thought experiment! Thanks for the tour, Chris!

It seems to me you're not so much competing with online opticals as finding a niche around them in a future where they've taken over the market to a degree that none of your brick-and-morter competition is adjusting eyelgasses for free any more. I like the idea of the "subscription" price for adjustments, but I'm still doing that for free. Figure it'll be many more years before I have to start charging for adjustments, if ever. Before I do, you can't count on many takers there.

Your ambition to compete for the low ticket eyeglass shopper with a retail space puts you in competition with the corporate optical chains like those optical24/7 mentioned more than the online guys. That'd take a lot of volume to float. "Immediately profitable" would be awfully ambitious. The bigger the population center, the better.

The discrete pricing for every component service makes sense for an internet shopper, but would probably just confuse and irritate those who came in the door. With those hourly prices for frame stylists, you're clearly setting yourself as a notch above the entry level optical retail 'opticians'/optometric techs (as you should!) But if you're stuck with a small stock of the cheapests frames and lenses, you're not marketing to nor reaching the customer base that's willing to pay for that kind of service.

It's an intriguing template, but I think it'd be a log into the buzzsaw in the current competitive environment. At least in the States. Some catastrophic evolutions in the market would have to occur first for this to work, (at least I think so.)

Perhaps it could work as an adjunct to a large lab operation? Since you're in an industrial park, maybe you've got a large space for that lab instead of just a small one? Maybe you even have one of those online storefronts doing your heavy lifting, ; ) The retail floor could be an affordable experiment into the 'low-end botique' you've articulated that plugged into your internet brand after the volume lab got on its legs?

[idispense]

You can't compete with something you don't understand especially when you are continuing to try to meet that comptetion on your grounds instead of theirs.

1) onliners plan to make their largest profit from their very last sale, not the little daily sales
2) onliners use your public money from your own pocket and government funds to finance the losses. The losses are absorbed by the share capital/equity financings
3) onliners are open 24/7 not just half a day
4) onliners are open for business on every computer and cell phone device not just at your single fixed address
5) onliners don't pay licensing fees and they are not scared of licensing boards like you would be and they know the licensing boards won't touch them , but the licensing boards will come after your registered license .... your renewal fees work against you not for you

If you want to compete with on liners then you have to realize they are disruptive technology but you are not. You are hampered by your own legalities and you are being hunted. Your thinking does not allow you to be the hunter.

It's not possible to compete, against something you don't understand.

[Johns]

STORE FRONT....What other business is it best to be located next to or close to (besides ODs &OMDs)?

Some of my most profitable stores have been next to low end/low socioeconomic attracting stores such as tobacco and video stores. Of course, most video stores are gone, but the tobacco stores still flourish. I did not like the business, but they were a destination for people ALL day long. And endless stream of humanity that would not otherwise know we were there.

[rbaker]

A veritable rogues gallery of schlock houses.

http://www.americasbest.com/eyeglasses 2pair for 69 bucks

http://www.eyeglassworld.com/promotions/ 2 pair for 78 bucks

http://www.jcpenneyoptical.com/offers-discounts/ one pair 29.99

http://www.eyemart.com/coupons/ 2 pair for 69 bucks

http://www.stantonoptical.com/

[optimensch]

"Location: Small industrial unit in an industrial park close to a bus stop, plenty of parking spaces, big sign on street side advertising renters names and business.
Store at front entrance, cut and grind lab and storage in warehouse area. Office space in between. Rent not more than $ 2500.00 plus tax (refundable)"

Right away the population base for this small space in an industrial park near a bus stop are the folks who work at this industrial park. A small space in such a place might be cheap (and rightly so) but it offers no visibility.

Now if you are willing to spend a fortune on marketing in order to drive city folks to come all the way to you for glasses (and to come back to pick them up when ready) you need to budget for this. Your business plan line item for cheap rent all of a sudden should be followed by a very big marketing spend.

I think that without any weekend traffic and after quitting time at 5 pm (no nights) on weekdays, the sound of the crickets from the grassy knoll near the parking lot might drive you mad.

If you, the owner, are also willing to live in a van down by the river that is near the industrial park to save some money, this might help a bit.

Yes. I am very negative on this concept. I'd love to know how it works out though and would be ready to eat a big plate of crow....if it flies. (the business plan, not the crow).

Oh, and security might be an issue, if you are in a very deserted area at night and you are known to carry high end goods.

[idispense]

you would not be competing with on line opticals as this thread heading suggests, you would only be competing with other nearby brick and mortars for the limited buying power of workers in the immediate geographical area.

on line opticals compete against all of us everywhere, anywhere, anytime, all the time.

you can't compete against what you don't understand

[Chris Ryser]

In my opinion the only way for you to have some credibility here regarding your advice on how to compete with the on-liners is for you to actually take your own advice and start such a business and report back to us.

I am not giving nor taking advice ............I have started a discussion here because I see the on-line type businesses growing at a super fast pace.

What the on-line companies do sell and to whom they sell .....................the B&M optician is not.

Opticians have forever existed on their markups and done well, but that system is being undermined by the big artillery of on-line opticals as their website traffic measurements indicate.
In my opinion, to counter this mounting threat, opticians will have to justify their much larger markup bundle, one way or another, if you like it or not..

My proposal is just one example and others or better ones are welcome. Maybe we can keep it civilized and without insults and try to be positive.

Obviously the theme of this thread has attracted 22 posts and 366 views in the first 18 hours since the first post was made. So, such a result indicates that there is a lot of interest on the subject.
At the time of this post there are currently 349 users online. 5 members and 344 guests

[Chris Ryser]

on line opticals compete against all of us everywhere, anywhere, anytime, all the time.

you can't compete against what you don't understand

Now that you indicate that you do understand...................would you mind to give us some education ?