Results 1 to 10 of 10

Thread: Negotiating Lab Prices

  1. #1
    Rising Star
    Join Date
    Sep 2014
    Location
    Grand Rapids
    Occupation
    Dispensing Optician
    Posts
    57

    Negotiating Lab Prices

    How does everybody else do it? We're a brand new office so I don't have a lot of volume to use as leverage but I want to get the most bang for my bucks. Should I just be comparison shopping at this point or pushing more with the labs I want to use? Please any help will be most appreciated.

  2. #2
    Bad address email on file
    Join Date
    Dec 2006
    Location
    Florida
    Occupation
    Dispensing Optician
    Posts
    2,175
    Find a lab that mirrors your business niche; Are you a bargain shop or a luxury dealer? Cheap is cheap and quality always costs more. What are you trying to offer to your clients?

  3. #3
    Rochester Optical WFruit's Avatar
    Join Date
    Nov 2007
    Location
    Rochester, NY
    Occupation
    Optical Wholesale Lab (other positions)
    Posts
    1,273
    You get what you pay for, but you shouldn't over pay for what you're getting. How many labs are you currently using? Can you consolidate business down to fewer labs? If so, then negotiating with them will be easier, since you'll be able to say that you'll be doing more business with them. If you have a good relationship with a lab, talk to them first and see what they can do for you. If you're still not happy with what you're getting, then start comparison shopping. Find out what labs other shops are using and see what they can offer you.
    There are rules. Knowing those are easy. There are exceptions to the rules. Knowing those are easy. Knowing when to use them is slightly less easy. There are exceptions to the exceptions. Knowing those is a little more tricky, and know when to use those is even more so. Our industry is FULL of all of the above.

  4. #4
    Master OptiBoarder OptiBoard Gold Supporter Judy Canty's Avatar
    Join Date
    May 2000
    Location
    Virginia Beach, VA
    Occupation
    Dispensing Optician
    Posts
    7,482
    1. Use an independent lab.
    2. Use an independent lab.
    3. Use an independent lab.

  5. #5
    Master OptiBoarder OptiBoard Silver Supporter Jubilee's Avatar
    Join Date
    May 2001
    Location
    United States
    Occupation
    Dispensing Optician
    Posts
    3,197
    Each lab is a bit different. I know some that "wheel and deal." Including giving an office "stock lens pricing" and then charging them ridiculous edge down fees, etc to the point they were paying as much or more than list! Others have a pretty standard approach of our price is X, and others have rebates, discounts, etc to factor in.

    I used to be a consolidate and use one lab gal. However as the insurance scene changes, and as labs partner up, I have changed. For me its all about what gives me the best bang for my buck. Medicaid margins are slim, so I will send it to the place that does it cheap, and generally speaking does a decent job. Just nothing to write home on...

    If I have a digital lens with AR, I send it to my lab that has the great package deals and the digital lenses, and offers me the flexibility to upgrade to branded lenses, AR, etc and still get a deal in the package context.

    Another lab has great packages on Sun and Sports products. No discount needed. Its X for a polarized lens, backside AR, and front side mirror or ultra tough scratch coat.

    To be honest I don't worry too much about volume discounts because I like the net pricing of the package. Its typically on par with list and a "max discount" anyway...

    Be open to a variety of options. All things considered I would say the "best" lab I deal with is the one I have to ship my frames to. Turn time of 1 week with AR, and very few remakes.
    "Some believe in destiny, and some believe in fate. But I believe that happiness is something we create."-Something More by Sugarland

  6. #6
    OptiWizard
    Join Date
    Sep 2000
    Location
    plymouth, MA, USA
    Occupation
    Optometrist
    Posts
    1,036
    when i started out 20 years ago, a lab offered me the max discount as a start up, not volume dependant.

    Then other labs tried to poach. But discount was volume specific, I'd try them and only get 5%. Not pleased.

    Still with that lab that gave the max discount that treated me like a big account when I was starting out.

    We complain about clients that want cheap no matter what. Some of us do the same to labs. You get what you pay for.

    I treat the lab the way I want my customers to treat me.

    Harry

  7. #7
    Rising Star
    Join Date
    Sep 2014
    Location
    Grand Rapids
    Occupation
    Dispensing Optician
    Posts
    57
    Thanks for the input everyone. Right now I have narrowed it down to either Luzerne or Soderberg.

  8. #8
    Banned
    Join Date
    Jul 2010
    Location
    St. Cloud, Minnesota
    Occupation
    Ophthalmic Technician
    Posts
    3,089
    There comes a point of diminishing returns. The larger the lab, the higher the overhead costs. The smaller the lab, maybe it will take a day or two longer to get what you need.

    The lens manufacturers price their products on volume for the lenses. Some of the supply manufacturers do discount higher volumes of consumables, but not always. Labor is never discounted, unless the lab is paying technicians minimum wage with no benefits, is that something you want to be responsible for?

    My company doesn't discount our price list at all. Our price is our price. If you want to use my lab, we'd love to have you as a customer, if you don't, then I'm sure there is always someone else who'd be happy to work with you.

    Personally, I think the "who will give me the biggest discount" is what has lead to the consolidation of the laboratory business. By forcing prices down through discounts, labs are cutting their own throats and bleeding their checkbooks dry. "We will make it up in volume" is the biggest lie ever told if you lose money on every job you sell.

  9. #9
    Independent Owner kcount's Avatar
    Join Date
    Feb 2009
    Location
    Chicago, Illinois, United States
    Occupation
    Dispensing Optician
    Posts
    1,718
    Optical Giant, Call Prentice Optical Lab (847) 729-1700 ask for Steve. Best pricing I've seen in years and great people to work with.
    • Optician
    • Frame Maker/Designer
    • Teacher of the art of crafting handmade eyewear.

  10. #10
    Master OptiBoarder
    Join Date
    Jun 2008
    Location
    Seattle WA
    Occupation
    Optical Wholesale Lab (other positions)
    Posts
    3,137
    +1 I have never discounted my prices, it essentially means that they are too high to begin with. I offer every product as low as I can, to every customer right up front. Volume discounts are silly to me, and make knowing what your paying difficult. If you go cheapest, it will hurt your quality, and in the end you will never grow your volume to earn their deepest discounts.

    Quote Originally Posted by MikeAurelius View Post
    There comes a point of diminishing returns. The larger the lab, the higher the overhead costs. The smaller the lab, maybe it will take a day or two longer to get what you need.

    The lens manufacturers price their products on volume for the lenses. Some of the supply manufacturers do discount higher volumes of consumables, but not always. Labor is never discounted, unless the lab is paying technicians minimum wage with no benefits, is that something you want to be responsible for?

    My company doesn't discount our price list at all. Our price is our price. If you want to use my lab, we'd love to have you as a customer, if you don't, then I'm sure there is always someone else who'd be happy to work with you.

    Personally, I think the "who will give me the biggest discount" is what has lead to the consolidation of the laboratory business. By forcing prices down through discounts, labs are cutting their own throats and bleeding their checkbooks dry. "We will make it up in volume" is the biggest lie ever told if you lose money on every job you sell.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Gas Prices
    By Jacqui in forum Just Conversation
    Replies: 201
    Last Post: 02-28-2011, 12:14 PM
  2. Essilor negotiating Shamir purchase...............................
    By Chris Ryser in forum General Optics and Eyecare Discussion Forum
    Replies: 12
    Last Post: 06-29-2010, 09:32 AM
  3. Lab prices
    By Hathy2 in forum Optical Marketplace
    Replies: 1
    Last Post: 10-24-2002, 09:20 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •