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

[Michael I. Davis]

>Can anyone suggest a good reason why we should continue to explore the methods to compete and continue to examine the tools and techniques ?<

If you don't evolve you die.

And; Change is where the fun is!!

[optimensch]

Can anyone suggest a good reason why we should continue to explore the methods to compete and continue to examine the tools and techniques ?

Healthy discussion, debate and food for thought.

Like it or not online is a big issue in optical, and will continue to be for a long long time. If we don't discuss it here, where would we? I disagree with Chris' premise but do like to read his thoughts and those of others on the board.

Viva Optiboard !

[INDIE DesEYEnS]

Online business is here to stay, there is no way around it. Don't get discouraged, there are now options becoming much more easy to manage as well as less expensive.

There are solutions that will work, we just have to beat them at their own game. A new company powered by google has some great solutions at all price points and will even manage for you, check it out how to drive these types of buyers to you without lifting a finger... I just found out about this company at the small show in Indian Wells this spring... its def worth looking into, I'm sure they will also be at Vision expo in Vegas, it would be a crime if they didn't.... I wish they would give me a finders fee because once you check this out you might just want to give it a shoot. here is the link http://optometry.imatrix.com/

[Joe Zewe]

Three ways you can compete with online:

1) Provide outstanding service that demonstrates to your customer that your optical knowledge makes a difference.
2) Offer a better consumer experience through pricing transparency, easy to understand bundled packages and a wide selection of frames and lens products.
3) Travel around the country strategically cutting fiber optic lines thereby bringing the internet down and putting the onlines out of business.

I ran these ideas by one of the guys I work with and he said ideas 1 and 2 would be effective for the long term but number 3 would only be a short term fix.

[Chris Ryser]

I ran these ideas by one of the guys I work with and he said ideas 1 and 2 would be effective for the long term but number 3 would only be a short term fix.

...................and they would flood the net again in no time.

Just lets not pretend that this hammering away in every corner of the web does not affect each and everyone from retail to wholesale.

[Joe Zewe]

...................and they would flood the net again in no time.
Just lets not pretend that this hammering away in every corner of the web does not affect each and everyone from retail to wholesale.

Chris- part of my comment was humor. I do not endorse cutting fiber lines. Just making this clear. I don't want federal agents knocking on my door.

I drive by a chain retailer every day that has a big sign offering 2 pairs for $69 including an eye exam. This has been there for several years. Within a mile of this store are at least 2 thriving independents. There have been low cost alternatives around for many years yet many independents continue to thrive.

I have many retailer customers (especially high end) that feel no threat from online. They have loyal clientele who are looking for personalized service. Having said that, I would be naive not to acknowledge the threat online has to many (but not all) retailers just the threats they face due to managed care, the optical that just opened down the street, etc.

[idispense]

Chris- part of my comment was humor. I do not endorse cutting fiber lines. Just making this clear. I don't want federal agents knocking on my door.

I drive by a chain retailer every day that has a big sign offering 2 pairs for $69 including an eye exam. This has been there for several years. Within a mile of this store are at least 2 thriving independents. There have been low cost alternatives around for many years yet many independents continue to thrive.

I have many retailer customers (especially high end) that feel no threat from online. They have loyal clientele who are looking for personalized service. Having said that, I would be naive not to acknowledge the threat online has to many (but not all) retailers just the threats they face due to managed care, the optical that just opened down the street, etc.

If we could spend less time debating whether on-line is or isn't a threat and less time debating whether it's the guy down the street who is the problem perhaps we could all benefit from simply discussing the modern day tools on-liners use to advance their business ?

Joe, if you were a business consultant, and if a on-line start up were to consult with you today what would you advise the client to do to to gain market share in respect to these specific areas of their startup :

1) Internet presence advertising
2) kijiji advertising, craigslist advertising
3) taxi cabs advertising
4) social media advertising
5) how would you secure insurance company acceptance when you are not a ECP
6) how would a non ECP secure government endorsement and government recommendation
7) how would a non ECP rewrite regulations to legalize themselves
8) how would the startup do the same simultaneously on three continents
9) how would financing be secured institutionally

Joe this is the non imaginary marketing challenge in front of this discussion group today. If you decide to put your mind to this and accept this mission , let's discuss the marketing tools all businesses could choose today to accomplish this seemingly impossible task.

When we understand how to employ these techniques then we understand business. Then we have options to use in part or whole.

[tx11]

Chris- part of my comment was humor. I do not endorse cutting fiber lines. Just making this clear. I don't want federal agents knocking on my door.

I drive by a chain retailer every day that has a big sign offering 2 pairs for $69 including an eye exam. This has been there for several years. Within a mile of this store are at least 2 thriving independents. There have been low cost alternatives around for many years yet many independents continue to thrive.

I have many retailer customers (especially high end) that feel no threat from online. They have loyal clientele who are looking for personalized service. Having said that, I would be naive not to acknowledge the threat online has to many (but not all) retailers just the threats they face due to managed care, the optical that just opened down the street, etc.

Are those independent opticians or OD offices? OD have the benefits of insurance driving customers to them. Independent opticians do not have that.

[tx11]

maybe low price for products is why on line thrives even if you get your name in front of the people 100% of the time..if you don't offer what THEY consider a good value ...you will lose.

[coupe]

A key issue with online sales would be to know the break down of the age groups buying online. I truly believe that it would show a greater influence towards the 18- - 30 year old bracket. Children today become computer savvy very quickly and think nothing about buying online. While, older age groups still seek out guarentees,quality & service. The younger groups will take over the internet purchasing power in the years to come.

Online sales of the future are like a Tsunami heading towards your island. One day it will arrive and the damage will be critical. It is unstopable and age related. Youth will conquer old age and youth is compter power motivated.

[idispense]

A key issue with online sales would be to know the break down of the age groups buying online. I truly believe that it would show a greater influence towards the 18- - 30 year old bracket. Children today become computer savvy very quickly and think nothing about buying online. While, older age groups still seek out guarentees,quality & service. The younger groups will take over the internet purchasing power in the years to come.

Online sales of the future are like a Tsunami heading towards your island. One day it will arrive and the damage will be critical. It is unstopable and age related. Youth will conquer old age and youth is compter power motivated.

Ok so demographic targeting is an element to marketing our business, thank you.

[Joe Zewe]

Are those independent opticians or OD offices? OD have the benefits of insurance driving customers to them. Independent opticians do not have that.

They are independent ODs. One in particular expanded a few years ago and built a very high end office.

[idispense]

maybe low price for products is why on line thrives

Ok, so having a unique offer is crucial to advertising our businesses, thank you.

[edKENdance]

They are independent ODs. One in particular expanded a few years ago and built a very high end office.

We are a brand new independent OD office. Been open for less than 2 months. We did a targeted postcard drop (so far only in one area of town) and the results have been fantastic. We lean towards upper middle end and our store was custom designed by the owner and her business partner and it's gorgeous. We are definitely different than anything else in our city and word is spreading like wildfire. I've never been more certain with my career choice.

[idispense]

They are independent ODs. One in particular expanded a few years ago and built a very high end office.

Ok, so demographics , perception, display, location and control of the Rx are important considerations. Thank you.

[idispense]

We are a brand new independent OD office. Been open for less than 2 months. We did a targeted postcard drop (so far only in one area of town) and the results have been fantastic. We lean towards upper middle end and our store was custom designed by the owner and her business partner and it's gorgeous. We are definitely different than anything else in our city and word is spreading like wildfire. I've never been more certain with my career choice.

So would it be fair to conclude this success is targeted marketing combined with Rx control and demographics ?

[edKENdance]

So would it be fair to conclude this success is targeted marketing combined with Rx control and demographics ?

I think that's fair to say however you also need incredible staff. Presently our office is 4 people. There's room for another lane when it becomes necessary.

[Joe Zewe]

If we could spend less time debating whether on-line is or isn't a threat and less time debating whether it's the guy down the street who is the problem perhaps we could all benefit from simply discussing the modern day tools on-liners use to advance their business ?

Joe, if you were a business consultant, and if a on-line start up were to consult with you today what would you advise the client to do to to gain market share in respect to these specific areas of their startup :

1) Internet presence advertising
2) kijiji advertising, craigslist advertising
3) taxi cabs advertising
4) social media advertising
5) how would you secure insurance company acceptance when you are not a ECP
6) how would a non ECP secure government endorsement and government recommendation
7) how would a non ECP rewrite regulations to legalize themselves
8) how would the startup do the same simultaneously on three continents
9) how would financing be secured institutionally

Joe this is the non imaginary marketing challenge in front of this discussion group today. If you decide to put your mind to this and accept this mission , let's discuss the marketing tools all businesses could choose today to accomplish this seemingly impossible task.

When we understand how to employ these techniques then we understand business. Then we have options to use in part or whole.

Idispense, Your question is regarding building an online business sounds simple, but many things have to be in place before you market. Assuming the prospective online client knows their cost structure, pricing structure and have identified the styles, defined their branding, etc. I am also assuming they have ironed out the production/lab related issues, the logistics issues, and the technology issues related to building an IT platform to support an online business. There are several unique issues facing an online optical that requires customization. The generic web platforms I have seen will not work for online eyewear. You need a site that allows for inputs of lens options, PDs, cyl, etc. You also need to build in flexibility to run coupon codes, special promos, etc. You need to be able to do photography. It all sounds easy. Believe me, it is not.

I would want to know how much the online client has to invest in marketing during the period where they will lose money as they grow their business. I would build a business model around the volumes they need to produce to cover their fixed costs. I would study the costs and potential effectiveness of each of the advertising avenues available online. Because the costs of keywords has been driven up, I would probably not focus on adwords, but would instead use a social media strategy that reaches out to bloggers, online publications and other social media that targets my prospective customer base. I would make sure the business is differentiated from the other onlines and emphasize this differentiation. I would look into promotions that do not lose money (like a second pair discount, sunglass giveaway, etc.). The long term strategy would be to create a web presence that eventually creates a website that will appear in the search engines. I would make sure they have an implementation plan with milestones. I would advise the client to be prepared for mid course direction.

Regarding your other items, I would not get bogged down taking insurance. Consumers are generally not going online to use insurance. In the US, government regulations do not appear to be an issue.

Financing is the tough one. If you are a novice in this area who cannot self fund at least a portion of this business, you will probably not be able to attract funding.

Those are my thoughts as I write this. When you help someone in a project such as this, you share ideas and it is an iterative process. It is not as easy as they make it look on Shark Tank.

[idispense]

Idispense, Your question is regarding building an online business sounds simple, but many things have to be in place before you market. Assuming the prospective online client knows their cost structure, pricing structure and have identified the styles, defined their branding, etc. I am also assuming they have ironed out the production/lab related issues, the logistics issues, and the technology issues related to building an IT platform to support an online business. There are several unique issues facing an online optical that requires customization. The generic web platforms I have seen will not work for online eyewear. You need a site that allows for inputs of lens options, PDs, cyl, etc. You also need to build in flexibility to run coupon codes, special promos, etc. You need to be able to do photography. It all sounds easy. Believe me, it is not.

I would want to know how much the online client has to invest in marketing during the period where they will lose money as they grow their business. I would build a business model around the volumes they need to produce to cover their fixed costs. I would study the costs and potential effectiveness of each of the advertising avenues available online. Because the costs of keywords has been driven up, I would probably not focus on adwords, but would instead use a social media strategy that reaches out to bloggers, online publications and other social media that targets my prospective customer base. I would make sure the business is differentiated from the other onlines and emphasize this differentiation. I would look into promotions that do not lose money (like a second pair discount, sunglass giveaway, etc.). The long term strategy would be to create a web presence that eventually creates a website that will appear in the search engines. I would make sure they have an implementation plan with milestones. I would advise the client to be prepared for mid course direction.

Regarding your other items, I would not get bogged down taking insurance. Consumers are generally not going online to use insurance. In the US, government regulations do not appear to be an issue.

Financing is the tough one. If you are a novice in this area who cannot self fund at least a portion of this business, you will probably not be able to attract funding.

Those are my thoughts as I write this. When you help someone in a project such as this, you share ideas and it is an iterative process. It is not as easy as they make it look on Shark Tank.

Joe:
It is possible , as you can see, it exists.

In spite of all the roadblocks, let's start removing those obstacles and think out of the confines of present wisdoms and think in terms of :" Yes, it can be done, we have the technology ! "

Joe, the entire purpose of marketing, and using the tools of marketing, is to make all the women in the world insist on a diamond ring before accepting a wedding proposal. DeBeer's did just that.

I am only asking for explanation and knowledge of the tools and techniques required to sell eyewear and contact lenses on 3 continents, after it's already been done.

Joe "Diamonds are Forever" but obstacles are not.

[tx11]

joe:
It is possible , as you can see, it exists.

In spite of all the roadblocks, let's start removing those obstacles and think out of the confines of present wisdoms and think in terms of :" yes, it can be done, we have the technology ! "

joe, the entire purpose of marketing, and using the tools of marketing, is to make all the women in the world insist on a diamond ring before accepting a wedding proposal. Debeer's did just that.

I am only asking for explanation and knowledge of the tools and techniques required to sell eyewear and contact lenses on 3 continents, after it's already been done.

Joe "diamonds are forever" but obstacles are not.

almost any roadblock can be overcome if you through enough cash at it. Thats the issue ...how to stay in business

[HindSight2020]

So you are saying they always did intend to make a profit . The profit came from the last sale.

Where did they find the equity financers ?

Absolutely, it was built to sell. We all know that giving away free products for months or years at a time costs a company huge in COGS and lost profits and is 100% not sustainable over a long period of time.

Private equity financiers are all over the place. And I'm talking legitimate individuals, not Uncle Vinny and the cement shoes types.

[idispense]

Absolutely, it was built to sell. We all know that giving away free products for months or years at a time costs a company huge in COGS and lost profits and is 100% not sustainable over a long period of time.

Private equity financiers are all over the place. And I'm talking legitimate individuals, not Uncle Vinny and the cement shoes types.

can you be more specific, on the financing

[HindSight2020]

can you be more specific, on the financing

Talk to a local Investors group office.

[idispense]

[QUOTE=HindSight2020;491014]Talk to a local Investors group office.[/

Who owns Investors Group ?

[Golfnorth]

[QUOTE=idispense;491015]

Talk to a local Investors group office.[/

Who owns Investors Group ?

Manulife Financial