It’s clear that advancing the medical model has been critical to the success of private practice optometry over the past decade. Yet this is not the only opportunity before the profession. There’s another trend, which, in my opinion, is of equal importance and presents equal opportunity. That trend might best be described as “The Commoditization of Eyewear”
Eyewear is commoditized when the focus is on price vs. features and benefits combined with the overall optical “experience.” The fact that every patient is exposed to deep discounting in the form of second-pair discounting, BOGO, etc. only exacerbates the problem. Consumers simply aren’t valuing eyewear as they rightfully should, given the wonderful technologies that exist to enhance our life experience. That's largely because our industry has failed to effectively communicate all of the wonderful technologies available to patients. In the absence of anything else, price prevails.
So what's the solution?
Over the past twenty years, I have witnessed a dramatic decline in optometry’s employment and development of skilled opticians. Perhaps this has been caused by a move to fashion. Perhaps this has been caused by a desire to reduce costs. Whatever the reason, organizations like Wal-Mart and Costco are gaining an upper hand in the fight for the eyewear market. The mass merchant’s market share continues to grow at the expense of the independent professional in spite of all the wonderful technologies promulgated through the private practice channel.
Why is this market share eroding? Perhaps it’s because we’ve allowed the art and science of opticianry to give way to a focus on eyewear as a commodity. For many private practice optometrists:
Ø Whether an optician is licensed and ABO certified is of little importance.
Ø Whether your optician really knows how to properly fit an advanced design progressive lens; or communicate the importance of an occupational lens; has been left largely to chance.
Ø The focus has been on what takes place in your exam room and not on the total patient experience.
Now, don’t get me wrong, there are many, many highly skilled and career-minded opticians. But it is my belief that, just as optometry is winning the battle with consumers for eyecare by increasing the scope of practice, so too can private practice optometry retain and recapture the eyewear market by investing in the skills and professionalism of the opticians who call optometry their home. And with 45% of revenue currently coming from eyewear (down from 52% in 2000); with lens capture rates declining in the current economy; with retail chains moving into the medical model; that’s turf that private practice optometry shouldn’t simply surrender.
We know from experience that increasing the skills of opticians and positioning them as professionals in their own right will help to communicate increased value to your patients. It’s my opinion that if we help to bring professionalism to a new level for opticians, under optometry’s umbrella, we will help to ensure that the patient experience is far superior to that delivered by the mass merchants. And it is only through this value differentiation; the result of advanced technical skills; superior communications and education; improved merchandising; increased time invested with patients; and better facilities; that we can ensure that our patients understand the importance of properly selected and appropriately fitlenses…combined with the very best in eyewear fashion. If not already done, you and your opticians have to do for the optical experience what you’ve done so very well for the medical experience.
In a nutshell…it’s your people that make the difference. And it’s up to you, as the practice leader, to raise the bar and keep it high. To do otherwise is to simply give up…and there’s lots of proof that to do so isn’t necessary or appropriate.
So, invest in your opticians. Look at your optical experience with a critical eye. If not already done, bring the art and science of opticianry to the same levels as that of your optometry services. The result will be a patient experience that clearly demonstrates the difference between eyewear as a commodity and eyewear as a technology.
The market opportunity is yours…. for the action.
Al, I always enjoy checking into your blog for your insightful (no pun intended) analysis.
Re your 5/28 entry, I took note of the 7% decline in revenue figure you referenced, i.e. "...45% of revenue currently coming from eyewear (down from 52% in 2000)..." There may be a couple of inferences drawn from this ratio; one, the percentage may be a reflection of higher average exam/professional fees charged by ECPs relative to their total revenue, or two, the ECP is losing market share on the materials component to the commercial sector.
According to our data, if the decline is due to loss of market share, this 7% represents approximately $1.5 Billion of lost revenue or $50,000/optometrist. Again, according to our data, this loss averages approximately 2 sales per workday (4 per workday if you remove the number of OD's working in a commercial setting from the total number of licensed OD's).
Posted by: Paul J. Disser | May 29, 2009 at 10:49 AM
I agree 100%. Invest in your staff and train, train, train.
Send them to a Cleinman weekend and it will pay for itself in a week. ( I have no financial interest :) )
We just provided a frame rep with a new pair of eyewear and she stated during the process that other places didn't seem as knowledgeable. This is a lady that sees lots of opticals. What a sad statement for OD's. (Good for us but we still have lots to learn!) I think overall we as OD's are a bunch of cheap SOB's. We don't want to invest money in our staff. That and our egos tell us the reason why patients come in to see us is because of ourselves when 50% of the reason or more is the staff. Maybe we just want good enough and not excellence. I pledge to set the bar higher.
Posted by: Tory Moore, OD | May 28, 2009 at 11:22 AM