Pulling the life-support plug on optical retail

I’m compelled to write a followup to an article I posted in 2018 titled: “Optical Retail is Dead” (link below). Those who read it (over 32,608 of you) realized that I was suggesting the opposite, provided independent ECPs do a few things to bring their practices or retail stores (for the opticians) into the 21st century. A year and a half later and social media blogs continue to be filled with more doom & gloom comments. My followup article titled: Optical Retail is Alive (link below) garnered a mere 467 views. Gosh — we're a morbid group, aren’t we? 

So, let me put this out up front - the industry is NOT dead as long as you understand the changing dynamics and how to deal with them effectively. Consider this, Warby Parker continues to open brick & mortar stores across the country. Why? Because they generate sales, profits and interest in their brand.

As we enter 2020 (appropriate year for ECPs to get a clearer vision on their future), I thought I’d speak to some comments that are being posted and then offer thoughts, not solutions. . . . just some thoughts. Fair warning -- if you cannot or will not address these issues, your practice or retail store will be on life-support and no one can predict how long it will be before someone (most likely your competition) pulls the plug. 

One need look no further than the internet to see the growing number of apps being developed that allow your patients to generate their own Rx. Add to those, the bevy of online retailers selling frames and lenses direct to the consumer and one can easily understand why some in the industry worry about their future. I get it. Technology is your friend — it can also be your enemy, but the choice is yours — ignore it at your peril or embrace it and achieve some victories. To be honest -- your future could be bright if you fix a few things that are causing you to be less competitive in today's dynamic marketplace. Stop with the doom and gloom and give your practice a tune up for the new year (just like your car or your body). Yes -- it's time for that annual exam -- YOURS!

To address these new open source technologies and online retailers, it’s time to more thoroughly concentrate on the three most critical areas needed to keep that life-support system functioning and your patients to continue buying their glasses from you. 

Marketing/Merchandising, frames and web sites

Marketing/Merchandising

Think of marketing as happening outside of your practice and merchandising as happening within it. Don’t fear those words “marketing” and “merchandising” just because you wear a white coat and have several capital letters after your name. Embrace them and remember this — You walk a fine line between medical and retail. Staying completely “medical” in your practice will result in the life support system’s plug being pulled earlier than it should. On the other hand, staying completely retail will make you nothing more than a Warby Parker without their deep funding. Think balance — retail/medical - yes, in that order. 

You walk a fine line between medical and retail. Embrace both!

When that human being is in the exam room, they are a patient. When they walk over to the dispensary, they are a customer, a consumer — someone who buys things. Your doctor’s office is now a retail store. While I won’t speak to the medical end of your balancing act, I can tell you one simple and obvious suggestion for the retail end.

Make sure you have the right “things” to sell and, just as important, the right people to sell them. Hire smart. Buy smart. Train well.

Seems obvious but too many practices miss on one or both key components to success. Telling the world you have thousands of frames to choose from is not something to be proud of. It’s messy. Merchandising thousands of frames is near impossible and creates confusion for the consumer. Don’t do it. Don’t promote it.

Stop by any Warby Parker brick and mortar store and marvel at how beautifully they merchandise their (key word - THEIR) frames. It’s a thing of beauty. Don’t mock them — LEARN from them. There are tons of ways to merchandise and several good industry sources to guide you through this important task. But remember — less is more. Digital is even better.

Be consisted with your merchandising — haphaserdly mixing and matching rarely works. Actually - it never works

Placing posters and counter cards from dozens of brands and then scattering small displays and rotating racks that have seen better days (and look more appropriate for a CVS store) all crammed into one space is not merchandising — it’s clustered desperation. Many do this in a futile effort to support the frame brands they carry. As an aside —many ECPs carry too many brands and this is why effective merchandising seems so difficult. Check out OMG’s Contentling system. That’s what I mean by being consistent. Cool stuff - well worth considering. https://www.omghome.net

Frames

It continues to amaze me how many ECPs still buy the bulk of their frame inventory from the very same companies who are their direct competitor. You know who they are, so I won’t mention them here. It’s what I call, “feeding the beast.” And just as ignoring effective marketing and merchandising will result in your life support plug being pulled, so too will feeding the beast. SO STOP IT!

The most effective inventory strategy is to have 1/3 national brands (less is better), 1/3 industry brands (more is better) — those premium, independent frame suppliers who can be found in the Galleria at Vision Expo and, for the most part, cannot be found online for less with a simple Google search. The final and most important component to the perfect inventory mix is to have 1/3 of it as your own private brand. Yes — you can, and should have your own private label frames. https://yourbrandeyewear.com Those outrageous minimum order quantities (MOQ) are a thing of the past and lead-times are almost as quick as ordering from your favorite wholesaler.

Full transparency — I am the founder and Chief Creative Office (fancy title for CAD frame designer) of Your Brand Eyewear, one of the industry’s most respected private branding frame manufacturers. No matter who you choose to manufacturer and brand your frames — JUST DO IT. (Sorry Nike). 

The benefits derived from private branding your own frames are many, but here’s a few of to consider.

1. Much higher profit margins: Remember — you’re cutting out the middleman so prices will be substantially lower
2. Builds practice loyalty by marketing your name long after the patient leaves your office. When a patient leaves your office with a designer frame that can be Googled and found at thousands of other ECPs (and online) - how is that helping to promote your practice? It isn’t! Minimize those brands wherever possible.
3. Can’t be Googled and found for sale online at lower prices as most designer frames can. Why? Because it’s exclusively yours. 
4. Creates exclusivity within your practice. It’s your brand and only your brand. 
5. Faster product turnover. Most ECPs who have smartly made private-label a part of their inventory mix report product turns that are twice what their other brands turn. Translation -- they're increasing dispensing margins.

Web Sites

While searching through a wide variety of ECP web sites I am perplexed at the large number of them who don’t promote frames or even their dispensary. And, those who do, often give passing notice to that part of the business. If you’re lucky enough to find the frames they carry, it’s often noted as just a list of brands with no pictures, no fashion — NO FRAMES! 

Adding the brand's logo is a nice touch but won’t attract attention as effectively as images of actual frames and real people wearing them. Ask your patients if they'd like to be used as a model while wearing their new glasses. Promoting your patients (with their permission) is a great way to promote your business. Side note: I'm not sure the average consumer cares much about face shapes. In fact - they probably don't know what theirs is, so why take up valuable web space talking about round, oval, heart and triangle. Lets's call that stuff passé.

Minimize the images of bloody eyeballs and cool exam equipment. Maximize eye-catching images of frames, fashion, and your employees. Yes -- your employees. Your patients/clients would love to see who will be helping them choose their fashion frames and lenses. Dentists do a great job at this and the best dental sites always show their hygienists. In fact, dental sites rock!

I've noticed that ECPs tend to have pictures of the OD and MD but rarely do I see pictures of the optician. Remember - they're the ones who generate lots of (perhaps the most) profits for your practice. Show them. It shows you care about them and their contribution to your practice.

Social Media

I’d be remise if I didn’t mention the importance of social media in your overall marketing mix. Yes -- it's critically important, but I mention this last because, failing to fix these other issues, marketing/merchandising, frames, and your web site and then shouting to the masses through social media will be counterproductive. Fix first. Promote later!

Here's to a prosperous 2020 and to those plugs remaining plugged in.

Have a fabulously successful 2020 and may your eye care business prosper. 

For more information, email me at: [email protected]

https://yourbrandeyewear.com/buy-direct