You probably know that more than 60% of a practice’s revenue comes from its optical. That means a plan to maximize sales is imperative. A winning optical strategy includes frame variety, products that target your key demographic, and the right amount of turnover. To create this foundation for success, PECAA Optical Business Advisors Kayla Irwin, Ph.D. and Joel Daniel explore your business model, conduct a frame and lens analysis, and then work with you to create an action plan tailored to your practice. With a combined 37 years of eye care experience, Groves and Daniel have helped cold starts and established practices alike turn their opticals into successful profit centers.
Who Are You…As An Optical?
Are you cash pay or insurance based? Do you carry luxury, budget or independent frame brands? Or, have you found a sweet spot as a hybrid? Groves says, “Understanding key aspects of your business helps you know if you’re effectively moving toward your desired goal.”
After reviewing a practice’s business model, Groves and Daniel walk owners or key team members through a step-by-step analysis of various optical aspects: frames, capture rate, price point assortment, total frame allocation, mark-up strategy, frame board management and visual merchandising. A lens analysis is also conducted to evaluate mark-up and selling strategies. They also share industry benchmarks for comparison before establishing personalized key performance indicators, or KPIs, to help guide and align teams and drive success.
Overstocked And Overwhelmed
Based upon what these analyses reveal, it may be time to implement some adjustments. While some changes can be immediate, others may need to occur gradually. “Overstocking is the biggest issue I see in an Optical,” said Daniel. Particularly if frame changes are recommended, it can take time to work through a large inventory to make room for new brands. While it can be tempting to buy a few new frames here and there, Daniel says to wait until you sell existing stock before adding collections. “If you can’t sell your existing inventory through a sale or special discount, donating the frames can be a solution to free up space.”
The Work Pays Off
An optical is one of the most significant investments in a practice, and with the right strategy, it can become the perfect financial complement to your eye care services. Groves and Daniel can help identify the tactics you need to thrive.
“I worked with a cold start and, from day one, we implemented frame board management. Within six months, the practice was achieving a 70% capture rate,” said Groves. “At another practice, they had recently brought in a new line that wasn’t moving. After introducing visual merchandising, we moved the frame to a different location and now that luxury brand is a top seller.”
Pro Tip #1: Learn the art of storytelling! Boost sales and connect with your patients by sharing fun anecdotes, origin stories or the unique materials used in the frames and lenses you sell. Be sure to get your whole team on board!
Connect With Us
PECAA Max members are encouraged to engage with the PECAA business advisory team for comprehensive practice insights and to invest as little or as much time as your schedule allows. To learn more, schedule a call today. The team is ready to help you achieve your goals in 2024.
Enjoy immediate access to expertise in these areas, included with your PECAA Max membership:
- Business Operations
- Finance & Strategy
- Marketing
- Billing & Coding
- Optical Management
PECAA’s Member Business Advisory Team can help – schedule a call today!
