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Thread: Here is just an idea that could work to compete with online opticals ...............

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    Redhot Jumper Here is just an idea that could work to compete with online opticals ...............



    Here is just an idea that could work to compete with online opticals pricing.


    Chains have a much larger purchasing power, while the *Dispensing Opticians* have a relatively higher overhead, because of the service they provide at a convenient local location.

    *On Line opticals* have the purchasing power and a relatively smaller overhead, because they provide no personalized service, and provide waylower selling prices.

    The consumer does not realize that, but is computer savvy and flips his cell phone sitting on a bus, or the toilette, to access information.

    If the local **Dispensing Opticians* * could decide to change their charging system into separate items :(example, taylor details to your own needs )

    1) charge for the glasses sold = cost plus 30% markup

    2) charge for the service = 30 %

    3) charge for warranty = 15 %

    4) charge for various = 15 %
    ____________________________________________

    Total 100% of present selling price at no change to customers

    That way the consumer could understand the way of the price calculation, and choose the items, with the professionals selling price, is very close to the online businesses and compete on the same level, but offer the option of getting personalized and itemized service.

    There is even the possibility to give service to online purchased glasses.




    ...........................now open for discussion





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    I shall sum it up as briefly as possible...in a nutshell...

    1. Internet consumers (IC) do not acknowledge or recognize the 'above and beyond' services that are provided by an ECP.
    2. IC do not care about the extras...they are driven by convenience and savings.
    3. IC are not interested in paying more for a loyal and long lasting relationship with an ECP.
    4. IC purchase traits are triggered by impulse, not necessity.
    5. IC will forgo quality and endure some risk to save on their purchase.
    6. Internet business model is based on low margins and high volume.

    On the flip side...

    1. Brick & mortar consumers (BC) do recognize the 'above and beyond' services that are provided by an ECP.
    2. BC do care and value the extras associated with their eye care health, are more patient and wait longer to receive their purchase to ensure its high quality and accuracy.
    3. BC will pay alot more to build a long lasting relationship and hold hands with their ECP.
    4. BC purchase traits are triggered by necessity and eligible insurance dates. They have to use it or lose it.
    5. BC put quality, accuracy and personal craftsmanship on the forefront of their purchase.
    6. BC business model is based on higher margins and enough volume that covers their overhead.

    Certainly the ECP's lunch is getting partially eaten, but why would an ECP want to change their business model and compete with the internet sellers?

    My advice to ECP's is to work smarter, work harder, do not gouge in your pricing structure, stay up to date on your product offering, offer specialized lenses that will improve the patient's vision and are not available online, educate the patient and provide exceptional professional service.

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    Redhot Jumper My advice to ECP's is to work smarter, work harder, .........................

    Quote Originally Posted by Lab Insight View Post

    My advice to ECP's is to work smarter, work harder, do not gouge in your pricing structure, stay up to date on your product offering, offer specialized lenses that will improve the patient's vision and are not available online, educate the patient and provide exceptional professional service.

    Thank you Lab Insight for responding so fast with your valuable opinion.

    Question:

    How do you explain the still used historic markup of finished eyeglasses, by the optical retailers, in today's age, and compared to the online selling prices, by the world's largest optical manufacturers online companies ?

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    Quote Originally Posted by Chris Ryser View Post
    Thank you Lab Insight for responding so fast with your valuable opinion.

    Question:

    How do you explain the still used historic markup of finished eyeglasses, by the optical retailers, in today's age, and compared to the online selling prices, by the world's largest optical manufacturers online companies ?
    It's real simple. A BM markup will vary from time to time based on brand, geographical location, local competition and state of the economy etc. Many use the traditional (markup removed) cost formula across the board, but this is cookie cutter and is not recommended.

    There are many variables in setting selling price, but IMHO some branded products you can sell for more, and some will be less. My recommendation to ECP's is to distinguish your practice, carry all the recognized brands, but when it comes to lenses, develop a strategic plan with your lab and offer your own branded products.

    Most of the cost in a pair of Rx eyewear is in the lenses, so why not reduce your cost drastically and create your own brand? You can always offer the brand lens names to those that are brand driven, but you can also offer a cost effective alternative to the consumer that will perform the same. Let the consumer decide.

    This allows you to capture the sale and keep retention rates as high as possible. People buy from people and love options. Just don't offer too many that will cause confusion. Once confusion sets in, procrastination will take over and may delay closing the transaction.
    Last edited by Steve Machol; 10-22-2018 at 11:34 AM. Reason: Markup removed

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    Ghost in the OptiMachine Quince's Avatar
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    Quote Originally Posted by Lab Insight View Post
    My advice to ECP's is to work smarter, work harder, do not gouge in your pricing structure, stay up to date on your product offering, offer specialized lenses that will improve the patient's vision and are not available online, educate the patient and provide exceptional professional service.
    Offering specialized options for lenses as well as high quality unique frames is why a local business with no advertising can make it in an internet age. Word of mouth due to the things that set that business apart are far more influential.

    Quote Originally Posted by Lab Insight View Post
    It's real simple. A BM markup will vary from time to time based on brand, geographical location, local competition and state of the economy etc. Many use the traditional XXXX cost formula across the board, but this is cookie cutter and is not recommended.

    There are many variables in setting selling price, but IMHO some branded products you can sell for more, and some will be less. My recommendation to ECP's is to distinguish your practice, carry all the recognized brands, but when it comes to lenses, develop a strategic plan with your lab and offer your own branded products.
    Anyone who has the typical Lenscrafters or even Eyemart competition has run into the question of why your RayBan or Coach frames are more expensive. Because they aren't discontinued? Because they were hand-picked instead of being mindlessly boxed and shipped out in mass? Because we can order models/ colors/ sizes that aren't on the board? Doesn't really matter in the long run.

    In my experience, it is best to carry high quality frames that are as exclusive as possible (and internet free as possible). If you can be the only dealer for miles around (or states in my case) but offer a well known and trusted lens, people feel confident in their lenses and their frames.

    And you don't have to worry about price matching frames when no one else carries it.
    Last edited by Quince; 10-20-2018 at 12:25 PM. Reason: removed mark-up from quote
    Have I told you today how much I hate poly?

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    Redhot Jumper How about the next generation ? ...............................

    Quote Originally Posted by Lab Insight View Post

    This allows you to capture the sale and keep retention rates as high as possible. People buy from people and love options. Just don't offer too many that will cause confusion. Once confusion sets in, procrastination will take over and may delay closing the transaction.

    How about the next generation ? They are the ones that favour purchasing on the web. Both of my two young neighbours in brand new homes, get parcels delivered every week, by UPS or Fedex.

    They also drive a brand new BMW each. So I assume that there is a decent cash flow.

    Will they ever purchase glasses from a BM store in the future?

    Should we not look forward into the near future, and watch our optical manufacturers, next to the ones, that operate already the biggest block of online competition, I see them getting itchy.

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    Redhot Jumper Word of mouth due to the things that set that business apart ........................

    Quote Originally Posted by Quince View Post

    Offering specialized options for lenses as well as high quality unique frames is why a local business with no advertising can make it in an internet age. Word of mouth due to the things that set that business apart are far more influential.

    And you don't have to worry about price matching frames when no one else carries it.

    Word of mouth has always worked in the optical retail trade that is clear, and is one of the best recommendations.

    Essilor has stated in their last year end report that the widening of online business is one of their main intentions, so they will not be only be your suppliers, but also your competition at the same time.

    Do you have any plans to react to that future, because there will be a new age in the optical retail market.

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    Quote Originally Posted by Chris Ryser View Post
    Word of mouth has always worked in the optical retail trade that is clear, and is one of the best recommendations.

    Essilor has stated in their last year end report that the widening of online business is one of their main intentions, so they will not be only be your suppliers, but also your competition at the same time.

    Do you have any plans to react to that future, because there will be a new age in the optical retail market.
    They are not my supplier- for frames or lenses. My lab is 90% supplied by Younger and Vision Ease. My frame market is 95% independent. Comparing a business like the one I am at to online is dragonfruit to apples.

    Obviously not everyone is in the same position. I'm glad I'm not in a struggle to convert online shoppers. They are not clientele we are catering towards. A business like mine will never satisfy them so I'd rather not have them at all. I would much rather have ten $1,000 sales than one hundred $100 sales. That being said- if I can help someone in need with a value pair of glasses, I will gladly do so. Those people tend to be appreciative.

    As for the future, we have quite a large millennial client base. Thankfully, a big part of the hipster trend is to spend money. It's all about finding the value behind the product. If I explain to you that a certain frame is German made by a family business and that we have had multiple people run them over with their cars and all that had to be done was warranty the lenses would you pay more for them? How about the ability to come in when the rep for that line you really like will be in in two weeks and you can pick through the whole line? Experience and value seem to be a driving force for the younger generation.

    I dare say I have a harder time with the Boomers in this respect. They don't seem to want value- just something to get them by. A good example- I have yet to have a young person grab a frame off the shelf and say 'This one.' without even trying it on. I have had a multitude of mature gentlemen do this. It always makes me cringe.
    Have I told you today how much I hate poly?

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    Ghost in the OptiMachine Quince's Avatar
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    All things being said- I think you are on the right track with making people re-think their business model- if they are feeling an impact. If online sales are taking out your business than there certainly needs to be some change.

    The model you have set-up in the original post could certainly work for the right business, but most of us independents seem to be taking the Maui Jim route- proving value and being unapologetic about pricing. You get what you pay for- I think we hear this phrase more and more as online flourishes. They are growing because people are buying more glasses than ever. I don't know the numbers, maybe you have them, but I have to assume that the average amount of glasses that people own has to have gone up with so many options and the increase in popularity of glasses.

    This gives businesses a chance to make a choice. Do I want to invest and be a destination? Or do I want to compete with the masses? Those who choose to compete are going to have the rougher go of it but might just be the people who could utilize your model.
    Have I told you today how much I hate poly?

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    Redhot Jumper Thanks for your comments Quince................................

    Quote Originally Posted by Quince View Post

    They are not my supplier- for frames or lenses. My lab is 90% supplied by Younger and Vision Ease. My frame market is 95% independent. Comparing a business like the one I am at to online is dragonfruit to apples.

    Obviously not everyone is in the same position. I'm glad I'm not in a struggle to convert online shoppers. .


    Thanks for your comments Quince................................

    Looks like your setup is stormproof and you can relax, and still keep your eyes open as the situation develops.

    I am just wondering how long it will take for the other few large manufacturers to go into retail competition.

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    Quote Originally Posted by Quince View Post
    They are not my supplier- for frames or lenses. My lab is 90% supplied by Younger and Vision Ease. My frame market is 95% independent. Comparing a business like the one I am at to online is dragonfruit to apples.

    Obviously not everyone is in the same position. I'm glad I'm not in a struggle to convert online shoppers. They are not clientele we are catering towards. A business like mine will never satisfy them so I'd rather not have them at all. I would much rather have ten $1,000 sales than one hundred $100 sales. That being said- if I can help someone in need with a value pair of glasses, I will gladly do so. Those people tend to be appreciative.

    As for the future, we have quite a large millennial client base. Thankfully, a big part of the hipster trend is to spend money. It's all about finding the value behind the product. If I explain to you that a certain frame is German made by a family business and that we have had multiple people run them over with their cars and all that had to be done was warranty the lenses would you pay more for them? How about the ability to come in when the rep for that line you really like will be in in two weeks and you can pick through the whole line? Experience and value seem to be a driving force for the younger generation.

    I dare say I have a harder time with the Boomers in this respect. They don't seem to want value- just something to get them by. A good example- I have yet to have a young person grab a frame off the shelf and say 'This one.' without even trying it on. I have had a multitude of mature gentlemen do this. It always makes me cringe.
    TOOT TOOT, Anyone looking for value priced quality semi finished lenses from an independent let me know. I have them. don@superoptical.com

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    Redhot Jumper

    Quote Originally Posted by Lab Insight View Post

    I shall sum it up as briefly as possible...in a nutshell...

    Certainly the ECP's lunch is getting partially eaten, but why would an ECP want to change their business model and compete with the internet sellers?

    My advice to ECP's is to work smarter, work harder,
    do not gouge in your pricing structure, stay up to date on your product offering, offer specialized lenses that will improve the patient's vision and are not available online, educate the patient and provide exceptional professional service....

    A the moment of posting this message there have been 364 views of this thread, over a 2 day period since its start, but only 2 actual posters responding to the theme, plus one, totally not relating to the theme.

    The major news, beginning this week, that should make everybody reflect seriously what is happening to our business world we have been used to, for the last many years, is that Sears + Kmart belonging to them, are now fully into bankruptcy proceedings.

    Essilor now finally married to Luxottica has stated in their last years year end report, that one of their major goals will be the further development of online retail sales.

    Online optical retail sales, according to industry reports where up a few points to 17% of total sales.

    The other optical giants left, Zeiss, Hoya and Rodenstock, are getting itchy, and I would not be surprised if Zeiss would add another arm to their organization and enter the online optical retail market, as it is no competition to B&M retail business.

    Online opticals operated by world renowned optical manufacturers, and specially the majority of which belong to the Essilor/Luxottica combo will not compromise on quality, in their online optical sales, and produce their standard products.

    Being on my computer many hours per day and looking at posts from all over the world I see lots of online optical retail advertising on a worldwide basis, from Ireland to India. Specially on news reports.
    Which means they do reach further than you think.

    I see all these people including school kids do nothing else than looking at their cell phone day in day out.

    All this should make an owner as well as employees of an optical BM store think what the future in this profession could be if some adjustments to the style of present operations are not made.

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    Quote Originally Posted by Chris Ryser View Post
    A the moment of posting this message there have been 364 views of this thread, over a 2 day period since its start, but only 2 actual posters responding to the theme, plus one, totally not relating to the theme.

    The major news, beginning this week, that should make everybody reflect seriously what is happening to our business world we have been used to, for the last many years, is that Sears + Kmart belonging to them, are now fully into bankruptcy proceedings.

    Essilor now finally married to Luxottica has stated in their last years year end report, that one of their major goals will be the further development of online retail sales.

    Online optical retail sales, according to industry reports where up a few points to 17% of total sales.

    The other optical giants left, Zeiss, Hoya and Rodenstock, are getting itchy, and I would not be surprised if Zeiss would add another arm to their organization and enter the online optical retail market, as it is no competition to B&M retail business.

    Online opticals operated by world renowned optical manufacturers, and specially the majority of which belong to the Essilor/Luxottica combo will not compromise on quality, in their online optical sales, and produce their standard products.

    Being on my computer many hours per day and looking at posts from all over the world I see lots of online optical retail advertising on a worldwide basis, from Ireland to India. Specially on news reports.
    Which means they do reach further than you think.

    I see all these people including school kids do nothing else than looking at their cell phone day in day out.

    All this should make an owner as well as employees of an optical BM store think what the future in this profession could be if some adjustments to the style of present operations are not made.
    Hoya has already entered the retail market with their own chain of stores in Japan. It could easily find its way to North America. I'm certain all of the large companies are considering the leap retail or online platforms as the global pie is shrinking.

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    Redhot Jumper The next to jump into the “quality onliner bandwagon”................................

    Quote Originally Posted by Lab Insight View Post

    Hoya has already entered the retail market with their own chain of stores in Japan. It could easily find its way to North America. I'm certain all of the large companies are considering the leap retail or online platforms as the global pie is shrinking.


    The next to jump into the “quality onliner bandwagon” could be Zeiss, it looks like they are itching.





    • However they have stayed away from retail operations, which could now change, as their largest and most visible quality competitor is heavily expanding into optical online retail sales.



    • Zeiss also has a fully set up worldwide sales organization to serve the optical industry, and just has to add the online retail sales and their organization that these days can be centralized.



    • I believe that they do not have much of a choice, and we could see some developments in the near future.

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