The slowing U.S. economy has been much in the news of late. What has so many economists and politicians excited these days is really not news to the optical industry. By most reports, the optical industry has been flat for more than a year.

Talk to 10 optical people, and you'll hear 10 different theories about the reason. Many of those theories revolve around the steadily rising cost for eyeglasses. Others point to a reported increase in time between eye exams.

The case for increased prices. If that's the case, it's important to point out that this increase in eyewear prices hasn't been the result of greed. Instead, most of it has come from the new premium lenses that require advanced technology to make them possible-technologies that include AR coatings, improved photochromics, sweeping improvements in progressive designs, and advanced polarized sun lenses.

Increased time between exams. There is another curious trend currently affecting the optical industry and the ophthalmic professions in a major way. Some economists believe that consumers are returning for eye examinations less frequently than in the past.

Sticker shock. This gradual slowdown is yet an additional factor that is prompting eyecare professionals to make greater efforts to upgrade patients to higher priced premium lenses.

One problem, however, is that dispensers, usually the ones responsible for explaining lens prices, are finding a certain amount of "sticker shock" when they explain the cost for all the add-ons.

Bundling...Answering The Problem

There is, however, an effective strategy to overcome price resistance, and it is one that can actually increase sales of premium lens products. It's a proven method that works well with top-of-the-line lens products.

Years ago automobile dealers used a standard sales routine of showing basic car models and quoting add-on costs. Eventually, they found that displaying cars with the most desirable add-on features already installed and simply listing the total price for the car, as is, greatly increased the sales of profitable add-ons.

A similar philosophy can be just as effective with modern eyewear-especially when it involves AR coating. Instead of quoting the price of the basic lens and quoting the add-on cost for various added features, the more effective way is to incorporate everything the patient needs in their eyewear and quoting a single fee for the package.

The most common term for this pricing system is "bundling." Such package pricing is so effective, it should be the routine in many specific situations. Here are examples of when unit pricing will be most appropriate.

HI/AR Package

All high index lenses, including polycarbonate, transmit less light than CR 39 or glass, a fact that is easy to overlook. As a result, light reflected off the surfaces of high index lenses is more noticeable than from conventional glass or CR 39 lenses. In addition, nighttime glare and reflections while driving are also greater.

Applying an AR coating to high index lenses, however, brings their light transmission to almost 100 percent, equal to AR-coated CR 39. For that reason, many practitioners routinely recommend AR coating for all high index lenses.

The easiest way to emphasize the importance of AR on high index lenses to the patient is to package the cost for the coating in the fee quoted for high index lenses. Here are some advantages gained through use of packaged pricing:

• Including the fee for AR coating in the cost for high index lenses emphasizes the doctor's recommendation that all high index lenses should be AR-coated.
• Quoting a single fee for lenses increases the likelihood the patient will accept the doctor's recommendation.
• Single-fee pricing is much more palatable to the patient.
• Single-fee pricing saves time and eliminates "haggling" over prices.

Packaged pricing only works if the patient fully understands the benefits of those add-on features included in the package. That's why before any fees are discussed, patients should be given a detailed demonstration of what comes with the package. Only then can they appreciate the value represented by the packaged fee.

When The Patient Says 'No'

If, after quoting the cost for the package, the patient says, "That's too expensive for my budget," the dispenser can reply: "If you prefer, we can eliminate the anti-reflection coating and that will bring your cost down to $X. Omitting AR, however, means that you won't enjoy the advantages it provides."

Here are other examples of effective lens packages.

Progressive Lens Package. Most consumers understand that progressive addition lenses represent top-of-the-line in multifocals. If you have demonstrated and explained AR coatings properly, patients will readily accept the concept that wearing progressives is more comfortable when the lenses have an AR coating. The dispenser simply states, "The doctor believes that progressives perform better when they have an anti-reflection coating, so we always include it." Again, you should demonstrate AR coatings in advance of quoting fees.

Aspheric Package. Aspheric lenses are always flatter than conventional lenses, and flatter back surfaces of aspheric lenses increase reflections from the backside of the lens into the eyes. Flatter lenses also create more noticeable reflections from the front surface of the lens. For this reason, many refractionists routinely recommend AR coatings for aspheric lenses. The procedure to follow would be much the same as that with PALS or high index lenses.

Prescription Sunwear Package. One of the most dramatic uses of AR coatings is on prescription sunwear. Dark lenses act like mirrors, and the backside of sun lenses bounce annoying reflections into the wearer's eyes. Most high-end plano sunglasses have an AR coating applied to the backside of the lenses. Consumers trying on plano sunglasses that have this treatment inevitably comment on how comfortable the view is. They seldom understand the reason, but they certainly do notice it.

For this reason, smart practitioners routinely recommend backside AR for all prescription sunwear. The easiest way to do this is to simply bundle the AR cost into the fee established for the lenses. This is a smart move but only pays off if the patients fully understands everything they are getting.

The Philosophy

Several things are important to make package pricing effective and worth the investment for the patient. First, the packaged price must represent a genuine saving to the patient. If the normal fee for high index lenses is $120 and the normal fee for AR coating is $60, for example, the package price should be something less than $180. The second important issue is that patients must fully understand the added benefits of what they get with the "package."

The Procedure

One effective way to make sure they understand the value is to have a small printed card explaining each fee package. It lists the features and benefits included with the package and itemizes the savings represented by the fee.

When patients come into the dispensary with a new prescription, the dispenser states, "The doctor has recommended that your new lenses be made in high index and has also recommended an anti-reflection coating. Let me show you what these items are and how they will affect your new glasses." Following the demonstration, the dispenser hands over the card and shows the patient how ordering the package saves them money.

A lens package can include other features such as UV and scratch coating. If UV protection is part of your package and the lens material doesn't include it, simply have the lab UV dye the lenses. Since many high index materials include UV protection and scratch coating, these benefits that patients appreciate add nothing extra to the doctor's cost.

The final touch is to tell the patient, "For your prescription and lifestyle, you are getting the finest eyewear possible." For that patient, it will definitely be the frosting on the cake.  EB