Now that you have the perfect optical store, we want to share some ways to make it a profitable one. We have put together a simple guide to optimize your optical business.
Make a Plan
You must have a clear plan set in place. Do you know what your KPIs are? Your key performance indicators (KPIs) should be discussed and discussed to make sure you are hitting your marks monthly.
What are your monthly expenses? They need to be written down and saved so that you can return to them and update them as necessary.
- Employees Wages
- Health insurance
- Workers compensation
- Inventory – frames and lenses
- Supplies for the office
Who is your target market? Who is more likely to come into your store? Are you located in a convenient area for them?
A study conducted by the Vision Council of America revealed that almost 75% of adults require vision correction of some kind. 64% of those polled prefer glasses over contacts. These individuals will comprise a large portion of your client base. Children and teenagers in need of corrective lenses will also come to you for assistance. Additionally, many eyewear stores serve the consumer with 20/20 vision shopping for glasses to complement their wardrobe or complete the look they’re striving for.
Number of Vendors
Too many vendors are an all-too-common revenue buster.
A single location needs only seven or eight vendors. Some experts recommend as few as three to five if you serve a market with lots of seniors who are likely to choose similar, conservative styles, so you need to know your target market.
If you limit the number of vendors you work with, your optical manager has the availability to negotiate good terms with each and to draw up written partnership agreements that protect your practice, just as you do insurance contracts. You also set yourself up to negotiate volume discounts, and you simplify your bill-paying.
Don’t forget the small, independent eyewear manufacturers when considering your frame selections. Many times smaller, independent vendors have high-quality and fashionable designs at much lower prices.
Number of Frames
Frames typically are 43 percent of a practice’s expense and 30 percent of revenue, so you need to be sure you are keeping an eye on your inventory.
By limiting the number of frames, you carry you’ll have sufficient inventory to roll through your location, but not so many that you’re tying up revenue unnecessarily. Larger locations can handle 1000 frames, and smaller locations should carry around 750. Some opticals in particular markets with lots of seniors can profit very well with as few as 600.
Create an incentive system that encourages your optical staff to sell as a team and to suggest the products that truly benefit your clients.
The most profitable optical businesses have found a way to engage their staff in developing the business. Each employee knows what’s at stake, understands and supports the company’s mission, shares the team’s vision for the future, and finds personal satisfaction in their role in the business.