Optometric Management Tip # 130 - Wednesday, July 14, 2004
In-office optical labs offer more benefits than you think
It seems that the popularity of in-office optical labs for edging and finishing lenses is dropping in popularity.
More and more doctors who own practices feel like operating a lab is just too much hassle, especially more recent
graduates who had little or no training in ophthalmic optics in optometry school. The ever-expanding curriculum is
squeezing out some of the traditional gems of our profession, like optical lab work, dispensing and practice
management. This is understandable, and I would never advocate stifling our growing scope of practice, which
deserves a great deal of our attention. But, I guess Iím not willing to say I canít do it all.
I think optometrists who elect to send out all their optical lab work are overlooking a huge secret to practice
building. Even if you think you arenít interested in operating an in-office lab, you owe it to yourself to take a
The obvious and most-cited benefits of doing your own lab work are speed of delivery and increased profitability.
These are significant points, and I find them to be true, but there is really more to it than that. The biggest
benefit is maintaining control over more of the services you provide.
Letís first recognize the major importance of optical dispensing to most optometric practices. Even if the practice
has a great emphasis on ocular disease, many patients still need refraction and optical services. Dispensing can
always run concurrently with clinical services, without a doctor, so any practice can offer both. And the financial
return of the dispensary is so big, even compared to the primary care work of the doctor, that it deserves our
Once youíve decided to have an optical in your practice, achieving excellence in that area is extremely important
to practice growth and success. Optical dispensing canít appear to be a sideline. And many doctors actually try
to de-emphasize their optical in order to make their professional services look like the strong point. That is a
big mistake. Patients understand eyeglasses and retail far better than they do medical care, and they generalize
one department to the whole practice. If they receive poor service in the optical, they believe the primary care
aspect also suffers. The service that patients experience in your optical department, and the resultant eyewear
they will use for years to come, are major factors in the reputation of your practice.
Getting back around to the benefits if in-office labs -- the improved control over the product allows your practice
to have a better optical. Better control means fewer disappointments and better flexibility to fix problems when
they do occur. Depending on other suppliers, which will invariably let you down, hurts your level of service.
Here are few other points to consider:
- Patients donít complain about slow speed Ė but they love it when itís fast. Donít be lulled into thinking that
your patients donít mind glasses that take two weeks. And if something goes wrong it can become 4 weeks!
- Most offices get paid when materials are dispensed, and if you can speed up the delivery for a large number of
optical orders, practice cash flow is greatly improved.
- ODs should never do lab work in my opinion Ė and I know many do. Itís a false economy. Itís not recognizing the
true value of the practitioner. Even if you donít have patients to see, or if youíre edging after hours, there are
much more valuable things you could do.
- Optometrists arenít trained in business administration, but we must run our opticals as a successful business
model. Customer service is the biggest factor to consider.
- The only example I can think of where it is not smart to own an in-office lab is a practice that is heavily
dependent on vision plans that require the use of approved wholesale labs. Obviously, these practices have very
little lab work that can be done.
- Lab equipment and staffing are basically free for most practices. How? Look at your lab bills (lenses Ė not
frames) and add them up for one month. Iíll bet itís over $5,000 per month Ė maybe well over. That monthly expense
represents what you have available to spend on leasing new lab equipment, buying uncut blanks and paying a technician
to cut and edge lenses. Most practices can break even immediately, and enjoy increased profits when the equipment
is paid off in about three years.
- A pair of uncut single vision CR-39 lenses costs about $4.00, and a technician can edge and insert them into a
frame in about 10 minutes. What are you paying?
- The lab technician may be able to serve multiple duties, depending on your lab volume. Many opticians can add
lens fabrication to their present skills, and many lab techs can also dispense and do frame selection. Some offices
do lab work only a couple days per week, on slower days when the doctor is not seeing patients.
- Increase profit by reducing costs. The average cost of goods sold in optometry is about 30% of gross revenue.
If you could save 5% of that number and put it in your pocket Ė would that be good? $500,000 X .05 = $25,000/year.
Technology has made lens edging easier than ever, so it requires less training to produce perfect lenses. Tasks such
as lens blocking, frame patterns, safety beveling, edge polishing and edge grooving are all automated. You can offer
many lens designs through your lab Ė such as single vision lenses with antireflective coating already applied to the
blank, poly, high-index and photochromics. While you canít stock finished uncut is multifocal, you can buy surfaced
uncuts and edge them. Getting started is easy; you already have a lensometer and maybe a tinting unit and some
optical lab space.
We were taught in school that surfacing was really not practical for a doctorís office. Baloney! Think big and if
you are already successful with edging, and have a strong volume of lab work, take the next step and acquire
surfacing equipment, such as a computerized layout blocking system, generator, polishing machines and back surface
hard coating machines. Itís expensive, but it brings you to a whole new level of cost savings, and it will pay for
itself in larger practices. Surfacing allows you to move into bifocal and progressive lens manufacturing, in all
your favorite brands, and since you only stock base curves rather than individual lens powers, your lens inventory
is not that large.
There are other new technologies that allow doctorís offices to fabricate the actual prescription lens, such as lens
casting. A good place to start your education into all this is at a major eye care convention.
Best wishes for continued success,
Neil B. Gailmard, OD, MBA, FAAO
Chief Optometric Editor, Optometric Management