While optical dispensing is a strong aspect of our professions heritage, it seems that its status is declining as our profession concentrates on ocular disease management.

Dispensing has long been a double-edged sword in our profession. On one hand, its an important part of providing functional vision correction, but on the other, it has a retail sales connotation that makes many optometrists uncomfortable.

In this article, part one of a two-part series, I will provide an overview of what makes an optometric practice capable of producing huge optical sales figures. It can help you design a business plan that will spur the vast majority of your patients to fill their Rx in-house, select high-end frame and lens options, return to buy multiple pairs of glasses, and even attract the public to bring in outside spectacle Rxs.

Think BIGAnd Other Useful Business Axioms You cannot cut your way to prosperity. I love this business axiom, and I have built my practice around it. There is a natural tendency for an optometrist to be fiscally conservative in an effort to be a good business person. There is an important balance between not over-extending yourself and not spending enough. Business ownership always involves a certain amount of investment risk, which is why it can also produce great financial reward. Engage the services of a CPA or other financial professional to guide you, but have a vision that can foster the ultimate in optical dispensing. This includes a large enough space to accommodate multiple patients at once, an outstanding frame selection, beautiful displays with professional decorating, a great staff (technically and interpersonally), and an in-office lab to provide product support. It will take time to achieve all this, and you can get there in small steps, but make it your vision. Two more business axioms: You must spend money to make money. If you build it, they will come.

Business Principles Trump Clever Tools

When we visualize the successful dispensary, we tend to conjure up an image that includes the newest bells and whistles that are not yet commonplace in the average practice. High-tech devices, such as virtual dispensing mirror/camera systems, computer-animated video displays and PC-based lifestyle dispensing questionnaires, are often purported to be the answer to increasing optical sales. While these are all potentially excellent tools (and I use them in my own practice), they are no substitute for a well-designed and managed business foundation. There are no shortcuts to success.

The business philosophy that has proven to build success may represent a change in thinking for many O.D.s who own and operate dispensaries. Its based on seeing the optical department from the patients (customers) point of view in every aspect. Dont be lulled into thinking that youre already doing this; the concept is so well known, that its easily taken for granted, but very few businesses really do it. This is the place to start. Re-invent your whole optical operation from the customers point of view.

Customer service goes hand-in-hand with the customer-centric philosophy, and its vital to success. Excellent customer service requires close monitoring by management on an ongoing basis. The owner/business leader must be passionate about it to the point that it becomes part of the office culture. Customer service goes well beyond effectively resolving patient complaintsalthough thats a good start. It includes the physical environment, staff training, frame and lens inventory, lab processing, quality control, operating procedures, communication methods and policies of all kinds.

What Image Do You Project?

Why Bother With Optical? There are three very good reasons why optometrists should embrace optical dispensing: Our profession has the best training in this field. Ophthalmologists generally have little interest in optical dispensing, other than delegating it completely to others. And while most opticians have excellent practical knowledge and skills, our superb training in optics and refraction allows optometry to provide a vital bridge from eye to vision to spectacle lens. Knowledge of optical dispensing differentiates optometric eye care in a way that builds real value to the patient. We should continue to build strong alliances with opticians by welcoming them into our practices to provide the actual dispensing services to patients, as we provide a supervisory and leadership role. Patients like single-source vision care. The issues that trouble optometrists are just that troubling to optometrists. The public doesnt really see any problem when their eye doctor recommends and sells optical products to themin fact they prefer it. The things that get O.D.s worked up are barely noticed by the public; they really dont care. I think we are overly sensitive about anything to do with sales, and we should get over it. Eyeglasses are an important part of eye care for most patients and they like receiving all these services from a professional whom they know and trust. We are fortunate to have a retail product associated with our profession. It diversifies our practices, which is a good thing in any business. We have the best of all worlds: health care, retail saleseven light manufacturing, if we wish. Optical dispensing provides excellent revenue production. Income from optical dispensing can always run concurrently with clinical services and does not require direct participation by an optometrist. There is nothing inherently unethical about analyzing the business aspects of a professional practice and working toward improving profitability. Optical goods and services are market-driven, which means the public decides where they will buy and how much they will spend. There are plenty of vendors available in every part of the United States. Optometrists are in a good position to compete and succeed in optical sales, and we neednt feel guilty or apologetic about it.

There must be substance beneath the veneer, but first impressions are important in retail. When a patient sees your optical department, he must feel like hes in the right place to buy glasses. It must feel like the best place, or there will be a tendency to think about visiting other local optical vendors. Your patient is about to spend at least $200, and possibly $500 or more, on an item they will live with daily for a long time. That kind of purchase is not taken lightly by anyone.

The first step to improving your optical image is to examine your frame displays. How will you know when your displays need to be replaced? You wont. They wont fall off the wallever. They will continue to hold frames forever.

Frame displays are one of those things that are hard to evaluate if youre too close to them. Seeing them daily makes it hard to be objective; but try. If display furnishings provide clues that they are outdated, they must go because it implies that the frames are also outdated. Have you ever seen an upscale department store being remodeled with new marble flooring and new showcases? Chances are the old tile and old merchandise displays still looked OK, but smart management knew that sales would increase with the new look.

Beyond the frame displays are the tables, chairs, countertops, storage cabinets, open shelf units, window treatments, lighting, ceiling, wall covering and color, floor covering, and much more. Optical display companies do a fantastic job and often provide the adjunct design and decorating service when you purchase their products. You can opt for traditional wood displays that look like fine furniture or ultra-modern glass and metal. The choice is yours, but be prepared to invest in the look. Its expensive but it pays big dividends. If you dont have decorating talent, consider hiring an interior designer for assistance.

Space

As you plan your interior design, consider the amount of floor space available to your optical, and the possibility of expanding or moving to provide more space. As optometrists redesign their offices, there is always limited space. In this give and take situation, optical often ends up getting whatever is left over after the exam rooms, reception area and offices are laid out. Remember that from a business standpoint, the optical generally produces about 50% of the gross revenue in a traditional optometric practice. You may not need to devote half of your office space to optical, but try to provide about a third, with a minimum of 1,000 square feet for dispensing, and at least 200 square feet more for an optical lab.

Does that seem big? Recall that were looking at everything from the customers point of view, and 1,000 square feet is not big.
All optometrists release the spectacle Rx at the end of an exam, because its the law and its the right thing to do, but that doesnt mean that patients will buy their glasses elsewhere. Patients will choose to remain in your office to buy eyeglasses because they want to, not because they have to. You have to get your patients in the right mood to buy.

Pricing

There are many pricing models that can be successful in the business world, and the marketplace for optical is big enough to allow several to co-exist. Some patients want low price, but not all. Some value other characteristics, such as brand name, higher than price.

My advice to independent practitioners and small professional chains is to not compete on price. There are other companies that are much better positioned for that market segment. Success in the low price arena requires very high buying power and high customer volume that is supported by a large advertising budgetand even then, the customer is easily pulled away by the next lowest price.

Middle-of-the-road pricing is the most common model, but why would a practice choose to be nothing special?

So be the high-end, high-quality provider in the community. This may mean that your current price lists are too low.

As you raise prices on frames and lenses, work towards changing your mix of frames, bringing in more designer brands and even some exclusive names. Keep a good basic frame line for the budget conscious, but feature the best. Also, review the lens options that are available and retrain your staff to ask life-style questions of the patient, which leads to specific lens products. Make sure the staff has time to educate patients about lens options, but high-pressure sales tactics should be taboo.

The economics of your community are certainly a factor to consider when developing a pricing strategy, but be careful to not make assumptions. Breaking the existing mold and offering something that is not the norm can be one of the fastest routes to success. Upper income areas are an easy market for high-end optical, but middle and lower income areas also respond to brand names, high quality service and an excellent local reputation. Its not unusual to see people of lower income levels drive nice cars and wear fashion designer labels (including on their eyeglasses).

Coming next month: The impact of vision plans on pricing models, as well as other specific dispensary management issues.

Dr. Gailmard is in private practice in Munster, Indiana.