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There are a few management weaknesses that are quite common among most eye care practices. One of the
lesser known, but still widespread, deficiencies is a frame inventory that does not offer enough at the
Presuming too much
Most practice leaders know it is a big mistake for staff members to prejudge a patient's wants and needs
or financial ability. We all try to remind staff not to do that when presenting eye care services or
products. Yet, many doctors/owners are really guilty of the same thing when they allow their frame
inventory to be concentrated in the common middle and low price range, with very few offerings in the
really pricey category. The actual frame buying may be delegated to staff, but the owner is ultimately
responsible for the vision behind the inventory.
You may cite various reasons for how you arrived at the frames and price points that are currently in your
optical, but unless you've explored the high end with more than a few models, how can you know? Whose
standards are you using when you decide which frame companies to do business with, or which price points
to offer? Frequently, doctors will say they know their market and their local economy. That could be a
mistake - like prejudging a patient's pocketbook.
There is a segment of all markets, even those of average income levels, that places a high value on
personal items. I'm referring to average people who live in any community and work hard for a living.
Many folks do not live in fancy, expensive homes, but they still like to drive nice cars, enjoy expensive
clothes or use premium eye wear. And why not? Those are personal decisions that every individual is
entitled to make for himself. For some, personal appearance and the impression made on others are
extremely important factors. As we know, eyeglasses have a huge impact on appearance, since they are
worn on the face! If you don't supply the premium eye wear for this market, someone else will.
Where is the high end?
One thing's for sure, the "high end" keeps changing. Be sure that your practice changes with it. If a
$300 (retail) frame was high end a few years ago; it could be $500 today. Many practices not only have
too small a selection of frames at the high end, they also have not really found their true high end.
Perhaps you have never even pursued an account with an exclusive frame line and high end frame companies
rarely come knocking at your door. That's what makes them exclusive.
Different sales policies
You may be shocked at the terms expected by some high end frame lines. They may offer a much smaller
discount than you're used to - or no discount at all. There may be a minimum purchase requirement. They
may not exchange frames that don't sell; or if they do, it may be at a 3:1 ratio. They may not allow you
to advertise their products and they may require you to sell frames at the manufacturer's suggested list
price with no discounting. You may not even be allowed to open an account, or to do so may require extra
effort to prove your office is worthy.
It is often tempting to reject such extreme terms because there are plenty of other frame companies out
there to buy from, but be sure you make a smart business decision. Even if the terms are tougher, and
even if you bear more risk, the profitability may still be much greater than you are currently earning with
a typical frame line.
How to proceed
My advice is to test the waters in your practice. Explore upper end price points and see what will sell.
Some of the large frame suppliers that you already work with may offer an exclusive designer line. Try one
of these to start. Browse the high end optical shops in your area or in the nearest large city and note the
brand names and prices. Research these brands online, call the distributor and inquire about opening an
account. Attend Vision Expo East in New York City and visit the exclusive frame boutique section. It's
an investment, and there is always some risk, but you have a ready-made market in your office every day.
Get your staff excited about showing the new line and encourage them to dismiss any bias they may have about
how much frames should cost. Let the public decide. Show the best lines first.
Gradually, you can move your average retail frame price up, by stocking a few more frames in the high price
range, a few less in the middle, and finding your new high end. The usual effect of this is that patients
buy better frames at a higher price, and your net profit increases. A bonus is that the patient will probably
get more compliments and will love the look and quality; which increases loyalty and referrals. One more
bonus: showing a $600 frame makes a $300 frame appear reasonably priced!
Best wishes for continued success,
Neil B. Gailmard, OD, MBA, FAAO
Editor, Optometric Management Tip of the Week
A Proud Supporter of
Send questions and comments to firstname.lastname@example.org.
Dr. Gailmard offers consulting services to eye care professionals through Prima Eye Group; information is available at www.primaeyegroup.com.
Please Note: The views expressed in Management Tip of the Week do not necessarily reflect those of the sponsor.
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