VARILUX customer rebates

[PAkev]

My VARILUX rep was in today and informed me that a new program is going to take effect on Oct. 15th through Jan 2001.

This will offer the consumer a direct $25.00 rebate certificate on their "Performance" (Panamic, Airwear, Crizal) lens packages. However this culmination of products causes the package to be a substantial investment in eyewear. I am hoping to capture some of the action on this program and considering if I should discount the package add ons to make the offer a little more attractive.

I've never been fond of discounting but I believe this may be necessary to maintain higher avg sales during the holiday season when our cash flow is usually lower than other times of the year.

PAkev

[LENNY]

One question
How will they know what lens was put in the patients glasses?
By the way i would like the rebate for myself since we are paing a fortune for those lenses!

[PAkev]

The performance lenses (Panamic, Crizal, Airwear) are distributed through their Essilor authorized labs who provides the rebate certificate with the patients name on it. The patient then mails the certificate along with your register invoice to Essilor for their rebate.

I am in agreement these lenses certainly carry a large cost. However, they also carry one of the highest profit margins. A patient given the opportunity to get a little break on the price from Essilor and/or the retailer may be more inclined to go for the gusto.

As far as keeping the rebate goes. I would anticipate that after mailing in 3 or 4 certificates (which of course you ordered from the lab with your name) it would be quite evident to Essilor whats going on which will probably cause them to deny your payment. I believe your $25 check could come back to haunt you if any of these folks should come back with a Dr recheck or for some other warranty replacement reason. Then you may end up eating the whole cost of these pricy lenses. If you want the $25 then just jack your price $8 or $9 on each component of the product.

Kevin

[Texas Ranger]

Kevin, This is a nice little package of top down selling. we have sold lots of this combination, without an essilor patient rebate. that's what i personally wear. it has many benefits to your patient and is profitable, a win-win deal.

[Ryan]

I think this is a great idea, we sell numerous pairs of these lenses, and now the customer gets a little more incentive to try the premium products. Hopefully, if they like the lens, which they should, then they will be buying premium lenses from your store for years to come. Great idea Essilor!!

[Tom Bowman]

PAkev;
Just because Essilor is giving a rebate to your customers, doesn't necessarily mean that your customers are going to purchase eyewear for themselves during the slow holiday season... which was your original question to begin with. They need more of an incentive.

A great idea to boost holiday sales is to promote what we call a 'Share The Sight' program. Advertise in the newspaper and/or radio that during the months of November and December, if they will come in to your office and donate their existing eyewear, they will be distributed to the needy in your community AND they will also get $25.00 (or whatever amount you want to give) off a new complete pair of eyewear. This really hits them in the heart and they are very responsive to this during the holiday season. Ask any office who has done this in the past and they will tell you that it is VERY sucessful.

Good Luck!

[EyeManFla]

Tom, what a great idea. I have always had a Lion's Club box, but I never considered donations as part of a holiday ad.
Good job.

[Judy Canty]

Perhaps I am becoming a bit paranoid, but I am not letting Varilux, or anyone else for that matter, have access to my database. Suppose that some large retailer, or the parent company of a large retailer, were to decide to purchase Essilor to complete their vertical integration model. Then my customers become their customers.

[RichardS]

Morning all,

One thing that pops into my mind is, what is Essilor going to do with the information that they get when the patient sends in the form?

This is where the real concern is.

[PAkev]

"Brand Recognition" is one of my greatest challenges in selling PAL's. as I believe it is the case for other folks also. How many people come in informing you they have VARILUX lenses and by identifying the markings you discover their lenses are a clone.

I see the overall benefit leaning toward the clone PAL companies as they are riding the shirt tails of VARILUX advertising and reputation while optical retailers utilize or "substitute" other lower priced products.
The result is a bad reflection on VARILUX if the consumer has a negative experience and a proven success for a substitute product if the consumer has a positive experience. Perhaps this is why we don't see clone advertisements on TV and in magazines.

Consumers are coming to us first as a professional to consult on culminating their eyewear products. It is our responsibility to inform the consumer of other products. However, if it is the difference of a person feeling comfortable with a brand name and paying a few extra sheckles, so be it.

I am all for understanding patients specific eyecare demands to develop and promote new optical technology and hope this is what Essilor does with their information. I have not seen any of the rebate certificates yet to fairly coment on the info to speculate other possibilities. If the day shall come when VARILUX becomes a conflict of interest, I will sell just as many VARILUX lenses as I do Lens Crafters OOp's I mean Luxottica frames; NONE.

PAkev

[karen]

Judy, good point. I have had personal experience with Essilor sharing information that they have with people when it serves their purpose, even if it is unprofessional to do so. Here is something to ponder... Let's say in the next 5-7 years it gets to the point where ONLY Essilor labs carry their product and you use a lab that used to provide the product now does not and you are on record as being a big Varilux seller. Essilor labs and the people who use them now have access to a large data base of people that they can go after to keep in their lens (the patient -the data that they got from this new rebate program). Like a direct mailing to the patient about their lens and where to go to get them-which you now can't do because your lab no longer carries it. They also can let their labs know that you used to sell a bunch of it. Will they share that info-how much you sell, where you get it, etc. YES THEY WILL. THEY HAVE BEFORE. Will they directly approach the patient to encourage them to go to offices that get their lenses from their labs? I would guess that they would. Will they share that info with other people who use them when you don't? I would guess that the thought would at least cross their minds. I imagine they will use that info to directly approach the patient to do some marketing-they are good at marketing and have been very successful with "branding" their product and will get more successful as time goes by. They spend too much time and money on it not to be. This reminds me a little of the email things you see circulated that promise to pay you if you send it to a certain amount of people that are really just ways to compile email address lists.

[This message has been edited by karen (edited 10-14-2000).]

[Jim G]

For what it's worth...

If put to a vote, most (all?) of the folks in the Varilux lens division would support a fire sale to rid themselves of the lab division. That, however, won't happen as this is how Essilor "goes to market" worldwide. In the U.S., about 2/3's of Varilux business is from us, the independents. I would argue that it would not be a good business decision to go around us as some of you are suggesting. Further, in other countries where they have lab systems, they still rely on independents as well.

We, as independent Varilux authorized labs, are required to provide Varilux with sales figures monthly to allow them to better assess the productiveness of their detail people as well as measure the effectiveness of promotions. Further, we send out warranty cards with jobs; if you choose to pass those on to the customer, two things occur. 1). The customer is assured that the product is Vx and, 2). Their registry of the lenses puts their personal info into the Vx system anyway. I registered just to see what might happen...think I've received one mailing in 6 or 7 years. In other words, they're already getting the information.

Given the above, why don't we just accept the fact that manufacturers have difficulty influencing retailers; that coupons typically only affect behavior for short periods and are a pain in the neck to administer; and, that Varilux is simply trying something different to build sales on a product that they, we and you can make some money on while giving your patients an exceptional product not available thru chains?

[blueyes]

Sounds like to me, most of you are after the "mighty dollar", and not looking after your patients best interest. What is wrong with these products you are offering: varilux panamic lenses, lightweight lenses, and crizal anti-glare? What more could you offer your patients.These happen to be some of the best products available today. Then, let them know that they will be getting a $25.00 rebate check back. Don't use it as an incentive, and please don't think of discounting your products!!! Let the patient decide what they want, and can afford!

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Deborah