PROGRESSIVES
PAL Pricing Packages
GIVING PATIENTS TWO OR THREE PRICE OPTIONS FOR PALS CAN MAKE BOTH THE PRESENTATION AND THE SALE A MUCH MORE EFFICIENT AND PROFITABLE PROPOSITION
By Erinn Morgan

Many dispensers tier progressive lenses, yet a number of independents and chains report that purchases tend to fall into one price category. Most "tiering" dispensaries offer three price options: "Good," "better," and "best." Generally, these optical shops report that the lion's share of their sales typically fall into one of these categories, with a small percentage trickling into one of the others.

"Far and away, we sell mostly from the 'best' price tier," says Cindy Elkin, owner of Point of View in Falls Church, Va. "Ninety-five percent of what we sell is the 'best' and five percent is 'better.' Honestly, I cannot remember the last time we sold the 'good' option."

Yet many dispensers agree it's important to offer two or three options in order to make the decision easier for the patient and the presentation clearer for the dispenser. Some companies are already employing this tactic. "For all our [store] brands, we tier our PALs," says Lauren Arnold, spectacle lens product manager with Cole National (handling the Pearle Vision and Sears Optical brands). "In Pearle, we offer two price tiers-one for a standard polycarbonate and one for an aspheric premium poly progressive."

When assessing your progressives business, your customers and your percentage of sales being done in each price tier can help determine if changing the number of PAL options is a good move for you. Here, we present the experiences of some optical shops across the country in the progressives pricing game.

At Point of View, Elkin says, when a customer comes in to purchase eyewear, her staff makes the assumption that they want the best. Thus, the "best" price category is presented as the first option.

"For example, if the Rx looks like they should be in a high-index lens, we say, 'The best way to do this is with a high-index lens with AR coating.' If they say, 'Wow, I can't afford that,' we tell them about the range of options available to them," Elkin notes.

Point of View offers three pricing options: "Good," "better," and "best." The "best" is a progressive lens with AR coating priced at $378 for CR 39 and $450 for high index. The "better" category includes CR 39 for $258 with AR and high index with AR for $357. The "good" option is priced at $219 for CR 39 with AR coating, and $268 for high index with AR coating. With all these options, Point of View still makes most of its sales in the "best" option. "If you go to the trouble to explain to somebody the differences, they usually go to the 'best' category," says Elkin. Northeastern Eye Institute, which has 21 locations in Pennsylvania, also offers three price tiers. "The least expensive is more of a first-generation design," says Patricia Galko, director of retail operations. "Then we have a good in-line choice [the middle tier] which is a newer design. Finally, we offer a premium lens at a premium price."

Galko observes that most of the chain's progressive lens sales, about 80 percent, are in the middle category. "We can do them here, in-house. Out-of-house progressives [such as the highest price tier] we have available and do them, but it will definitely cost more and take more time," she says. The upper and lower price tiers each account for 10 percent of sales.

At Carmel Mountain Vision Care in San Diego, Brian Chou, O.D., simplifies matters even further by promoting one price for progressives. "Our main progressive is a more premium product," he says of the option, which is base priced at $249. "This is pretty much our standard. Our practice is unique in that regard."

If patients express price concerns, Chou suggests skipping options, such as scratch resistance and AR coating, as opposed to going to a lower-priced lens. "I recommend cutting options off the lens to cut the price, instead of changing from this level lens to something that may not provide as good visual quality," he says. Despite this philosophy, Carmel Mountain Vision Care does offer lower-priced progressive lens options. These lenses are not priced much lower, though, and range from $200 to $229.

HOW MANY CHOICES ARE ENOUGH

Dispensers agree that progressive lens customers are more educated on the topic than ever before. They understand the pricing of the product, have probably seen ads about the features and benefits of progressives, and may well have conducted some research about the lenses on their own. A large portion of the consumers who walk into dispensaries are prepped to have a discussion about PALs.

"Most customers are pretty savvy about how much a lens is that's advertised in this market," says Galko. "A lot of people advertise progressive brands, so a lot of customers call and ask how much a particular brand is. No doubt about it, patients will price shop progressive lenses.

"These well-informed consumers no longer require a bevy of price options. They know what they want and a clear and concise presentation is what they are looking for, these dispensers say. Is two- or three-tier pricing right for your business? A look into where your PAL sales fall and an analysis of whether there's currently a price point at which you lose sales will help reveal how many choices are enough.