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Thread: VSP tariff charge part of Wholesale "Book" Cost?

  1. #1
    Compulsive Truthteller OptiBoard Gold Supporter Uncle Fester's Avatar
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    VSP tariff charge part of Wholesale "Book" Cost?

    Watch your costs! Auto price cost fill in by VSP is not keeping up.

    Example- Charmant Ell 13419 is filling in as $8 less than actual Frames Data list price.

    This can have a big effect on whether a a patient pays cost applies or not. Beware!

    Also- If the tariff charge is separate- can we bundle that into the wholesale cost?

    I would say yes.
    Last edited by Uncle Fester; 12-11-2019 at 11:47 AM.

  2. #2
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    Glad you mentioned this. We do not par with VSP but had a tariff discussion here at the office. We noticed that a lot of manufacturers have added the charge right into the cost of the frame. When that is done, we have just changed the wholesale cost and adjusted our pricing as usual. Then I got an order from Safilo where they listed the tariff separately for each line. For example 4 Kate Spade at $x for a total of $xx. 4 Fossil at $x for a total of $xx. We have decided to just add that onto the wholesale cost and adjust our retail prices. The weird thing is that it is listed on the end of the last page, so you really have to look your invoices over carefully to catch it.

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    OptiBoard Apprentice IIxIPariahIxII's Avatar
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    Really glad you mentioned this. We don't get a lot of the automated wholesale listings through Eyefinity but we're double checking any of them against what we have listed and against Frame Data. Would love to hear more thoughts on the tariff situation. It's a discussion among our team as well. I know Marchon and Luxottica brands are doing it as are Kenmark. Europa has said they are not currently passing those tariffs on to us though. It'll be interesting to see what all we can come up with to tackle this.

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    What's up? drk's Avatar
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    Can I have you break this down, Fes?

    Presumptions:
    1. You have the Frame Facts subscription that is updated often enough that your inventory system has a more "real-time" wholesale pricing than VSP's data?

    2. When submitting a claim to VSP via Eyefinity, when entering the frame type, the "auto-populate" VSP feature enters VSP's frame wholesale price data which is lower than your actual cost.

    3. And what makes it worse is that, if VSP says the wholesale (that VSP believes it is) is less than or equal to the members "wholesale frame allowance", then VSP is not expecting you to charge the patient any frame overages, so that could cause a disconnect if a patient were to complain (somehow, someway) or heaven-forbid an audit?

    4. So I assume that your historical standard operating procedure has been to edit the "autofill" portion of the Eyefinity lab order to reflect the "true per Frame Facts" wholesale price? And in doing so, you've noticed a larger discrepancy than normal? And it's primarily due to the tariff surcharge?





    *ssshhh, that's a secret feature, BTW)
    Last edited by drk; 12-17-2019 at 02:02 PM.

  5. #5
    Compulsive Truthteller OptiBoard Gold Supporter Uncle Fester's Avatar
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    We have an obsessive compulsive gal friday who checks all frames ordered by board management against the latest invoice and adjusts whenever a change occurs. I can tell our wholesale cost very easily by subtracting our mark-up formula from the retail price and that tells me if they are fitting within VSP's authorization allowance.

    The example Elle frame above is in the latest Frames Data more expensive than VSP's auto price which still lists Octobers Frame Data cost. In this case it's created a covered frame when the patient actually has a legitimate frame overage charge. Apparently VSP and Frames Data are not synced up.

    I do override their cost- although we will still only get maximum allowance from VSP.

    So an audit with this frame a year from now will open a can-o-worms.

    This doesn't happen much but everyone should watch out for it.

    Tariff wise I say it should apply to our wholesale cost and will price accordingly- and charge a patient the frame overage- until I'm told otherwise.

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