like I said I am a one man show, I have great margins. I don't putz around with all of VCP either. And yea...in most cases.Originally Posted by drk
like I said I am a one man show, I have great margins. I don't putz around with all of VCP either. And yea...in most cases.
"DEFINITION of 'Profit Margin' A ratio of profitability calculated as net income divided by revenues, or net profits divided by sales. It measures how much out of every dollar of sales a company actually keeps in earnings. Profit margin is very useful when comparing companies in similar industries."
As owner, you have to take out a salary for someone that would do your job(s) (accounting, managing, optician, cleaning service) in order to correctly calculate your margin. I hope you're doing well, but most self-employed people have taken on much risk and paid significant capital to make the same that they could working elsewhere without such an investment.
I am glad I don't fit into that category. I have been self employed for almost 25 years. I wouldn't want your headaches! I was actually referring to gross profit margins.
Whenever I hear about "services" menus I think about this place my husband was getting $30 haircuts. He kept telling me how no one else could cut his hair right , and he's hardly a fashion conscious person. When I went with him I had time to view their haircut packages, which included things like hot towels to open pores, neck massages,aftershave treatments...all delivered by beautiful young ladies in short shorts and referee shirts while big screen TVs played sports games. My teenage boys soon decided they also need to go to this establishment.
Maybe they are on to something ...
Who do think prefers to sell to on-line opticals over the B&M stores ?
I would bet all the tea in China that frame manufacturers prefer and love to sell to on-liners who can give them an order for a one or two thousand frames instead of 10 to 20.
This is business at its best or worst, depending on the way you look at it, but times are changing fast if you like it or not.
You the conventional retailers can and, or should survive by simply changing the way of charging service rendered fees, instead of a selling a full package of it paid out front, if you use it or not.
There are more people that love personal service if the pricing would be closer to what on-line opticals have proven to work for them.
This new system of selling finished glasses is here to stay, and not like many posts on OptiBoard said in the recent past, that they were going to disappear.
Was your decision based on the fact he's a web consumer or was being a pompous pain while other customers were present?
Exactly, Doc. Your way works wonderfully well. But how well do the famous "millenials" handle your wanting to keep everything in-house (as much as the laws allow)?
I could be totally wrong on this but Craig, didn't you say not too long ago that you have an internet sight for selling as well? If so what would have the result been if said glasses were purchased through your internet sight?
If everyone of your next 100 clients where like the person discussed; good or bad?
That is a great question and I was about to write about this after reading all the posts.
It appears to me that most have a very inconsistent pricing model and it might be time to figure out how to approach situations before they occur. We have the same price-list for everyone and we don't discount anything on a frame or lens sale. (If they ask we tell them 10% once they spend $5,000+ in a day)
I maintain anyone who has a non fixed discount program essentially takes advantage of the nice folks and the jerks actually pay less!!
Think about it. How do you deal with that ethically?
If a client buys a frame from us in the past or brings in their own- we charge a $35 appointment fee to edge lenses while they wait. They need to have more than one pair and it is more work for my staff so it is worth a fee. Good clients already have many pairs and this is not an issue.
We also charge a $15+ donation to my charity box for repairs or adjustments if they bought from us or not; we charge everyone the same for everything. We adjust for a year or 2 but nosepads are not free and require a donation.
The client who we dismissed was always pompous and if the next 100 where like him we would not be happy so he had to go. If we don't want 100 we don't want one of those types; they are never happy and always suck the energy out of you.
We charge everyone the same and give a level of service the demand's mutual respect or we choose to not deal with that client at all.
This is why we run our own business and do what we do.
No problem we charged the same price.
I'm not a big fan of "dismissing" patients. Yes....sometimes you want to shoot yourself, or them, but unless criminality is involved, we've got to learn to deal with it.
I, nor my staff need to tolerate anybody that gets verbally abusive. The offender is the one that needs to "learn to deal with" their actions.
I would put abuse in the same realm as criminality.
But I have seen uncaring staff act-out on patients and provoke incidents as well.
I like your reasoning, which sounds good for non-insurance situation, maybe even some insurance plans. However, with VSP and EyeMed, 20% discount for non covered items and 2nd pairs is pretty standard. And adjustments, screws and nosepads are included by agreement at least for the life of the Rx, at least on VSP. My office is so heavy into insured plans that my fees have been structured to allow for this 20% discount and by habit it spills over into cash only patients. I'm not sure about that $5k threshold. Seems a bit high and if I were spending $2500 at your place and were denied your 10%, I might be put off enough to take a hike.That is a great question and I was about to write about this after reading all the posts.
It appears to me that most have a very inconsistent pricing model and it might be time to figure out how to approach situations before they occur. We have the same price-list for everyone and we don't discount anything on a frame or lens sale. (If they ask we tell them 10% once they spend $5,000+ in a day)
I maintain anyone who has a non fixed discount program essentially takes advantage of the nice folks and the jerks actually pay less!!
Think about it. How do you deal with that ethically?
If a client buys a frame from us in the past or brings in their own- we charge a $35 appointment fee to edge lenses while they wait. They need to have more than one pair and it is more work for my staff so it is worth a fee. Good clients already have many pairs and this is not an issue.
We also charge a $15+ donation to my charity box for repairs or adjustments if they bought from us or not; we charge everyone the same for everything. We adjust for a year or 2 but nosepads are not free and require a donation.
The client who we dismissed was always pompous and if the next 100 where like him we would not be happy so he had to go. If we don't want 100 we don't want one of those types; they are never happy and always suck the energy out of you.
We charge everyone the same and give a level of service the demand's mutual respect or we choose to not deal with that client at all.
This is why we run our own business and do what we do.
On the abuse front, I have had to physically eject a few people, and in one case called the sheriff to remove a lawyer who got out of hand.
Last edited by Dr. Bill Stacy; 10-14-2015 at 09:09 AM.
Millenials are goofy.
They'll grow up.
Otherwise I'll open an optical shop in a Chipotle or Starbucks.
I just LOL'd. Thanks for the smile!!
The problem is rent and electricity.....B&M has mega overhead. Just how close to online prices must a dispensary be? Keep in mind that you usually only see non insurance clients once every two years at the most sometimes longer in between purchases. Gotta keep the doors open with cash flow in between...don'tcha know..
What I was meaning is (and I think you answered it in the question above mine) it isn't the price that was the issue but the "attitude" of the client? Or I think a combination of both? I would think if you sold an internet frame (for the same price as in your store) the service would be the same if the buyer brought the frame in and was not a difficult person to deal with.
B&M has mega overhead.
On-line opticals charge for frame and lenses very often prices, or close to it, that optical retailers pay to the frame wholesalers and labs .
So the consumer buys on-line at near wholesale prices without any service included.
There are now over 25 million pairs of Rx glasses sold iper year n the USA and Canada. that get no service. No adjustments, trouble shooting etc, and personal contact when something is not totally right.
If opticians would have a pricing structure that details the charge for services rendered on glasses purchased elsewhere. they could gain part of the 25 million yearly owners of on-line glasses.
Example: How about selling these people a business card with 3 or 5 marked spaces for let’s say $ 30 or $ 50 which would give them access to small services at $ 10.00 each. You just punch a hole into each space when they come in to use your help.
If existing retailers will not do something along these lines , there will soon be a new profession coming up, that will service and repair on-line purchased glasses.
Good post/bad post.
Good: accurate.
Bad: bad advice, except for the hole-punch thing, which is cool.
I'm considering doing some niche on line optical, and will probably include a $25 coupon with each order that will allow any licensed professional to adjust/align my product. If the provider returns that coupon to me, I'll send them a check. Feedback on this idea is welcome. (and if 25 is too little, let me know what's appropriate for your area).
I'd accept that.
on the flip side, what happens if the frame they bought somewhere else breaks while you are putting lenses in it...i believe there was a post way back where someone said we are responsible for breakages on a frame we decide to adjust... do you take the chance? Are we liable by law to guarantee It? Just curious
I do not think that you niche website will be successful if you can afford to hand out $ 25.00 to another for adjustments. The idea is good but will affect your pricing.
You would have to add that $ 25 or whatever, to your selling price on the web, if your pricing would be on the same level as all other big optical on-liners.
Do not forget that the strength of online sales is based on price, and not on hands on service.
I learned the flip side a long time ago, when the old celluloid frames were still standard.
They dried out in a hurry, like 2-3 years and became very brittle and could easily crack. So by heating a temple and finding if when hot it would not become soft, we refused to do the job.
Today the acetate frames, where the base material has been properly aged before machining it into frames, can stay like new for long time.
I still own a load of top class brand new frames, properly stored for 20-30 years that are as flexible as when i got them.
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