I am wondering where we should be shooting for in terms of profit margin and markup on a prescription job. We are a newer shop and looking to start tracking this number but we are not even sure where we should be looking to hit. Thanks for the help.
I am wondering where we should be shooting for in terms of profit margin and markup on a prescription job. We are a newer shop and looking to start tracking this number but we are not even sure where we should be looking to hit. Thanks for the help.
Join the pro forum here and you can get an answer to that question.
I have to pay to participate?
Wholesale pricing, mark-ups, ect are something not allowed on the public forum. The pro forum anything can be talked about. It also helps support this site so that we all can learn from it.
Not a topic for a public forum go to the private forum
If you want the information you have to pay; just like anyone would want it to be! Your question tells me that you are new to this because there is not going to be a consistent answer. Every job type will have its own margin and they vary greatly.Originally Posted by optical-rep
Looking at your former posts, you opened up in 2011? You could always pay a consultant to come into your business and give you a better business plan.
More specifically, there are consultants in the optical industry that offer services to help you improve your profitability. They look at details like what brands do you carry, price points, selection, display, merchandising, inventory turnover. Because every business is different, these services would address your specific issues. They would look at your customer base, geographic information, online presence, and many other things.
From my experience, there is no cookie cutter answer to your questions. Getting tips from pro optiboarders would be worth paying for also.
Last edited by smallworld; 01-27-2016 at 04:50 PM. Reason: being more detailed
What is reality but a concept unique to each of us? Can anything be classed as real when our perceptions differ greatly on so many things? Just because we see something a particular way does not make it so.
Or you could go with the old standard...As much as the market is willing to pay.
Buy low sell high. How high? That you will have to play with. It is easier to start high and work down. If too may people complain or walk, drop your mark up by 0.5%. If nobody complains and you have a high capture rate, raise it 0.5% until about 10% complain.
That is my rough rule of thumb. If you have a unique product or service you can get away with a higher mark up.
The pro-forum here has been as invaluable to me as the rest of the public forums.
I can't recommend it enough for specific questions. I may only go in there 5 times a year but it is well, well worth it.
Not to mention that it also helps pay for the web hosting of OptiCampus.
http://www.opticampus.com
Science is a way of trying not to fool yourself. - Richard P. Feynman
Experience is the hardest teacher. She gives the test before the lesson.
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