BUSINESS MGMT.
Buyer's Beefs
Five frame buyers discuss their business challenges and brainstorm ideas on how to solve them
By Marcy Bruch
Illustrations by Dan McGeehan

Buying, returning, negotiating, displaying, promoting, managing inventory. It's all in a day's work for the frame buyer. And needless to say, back orders, the wrong stock, and slow moving product are some of the obstacles they face in the process. Here, five buyers discuss their biggest beefs and suggest ways their suppliers can work with them so everyone wins in their quest for profitability. Participants include: Nancy DiCosmo, president of Au Courant Opticians Inc., which has four locations in Michigan, New Jersey, and Florida; Alyce Skinner, owner of Adair Optical with three locations in Ft. Worth, Texas; Dennis Chaiken, owner of a 5,000-square-foot superstore, Direct Optical, in Farmington Hills, Mich.; Beth Schaeffer, co-owner of Schaeffer Eye Center, which has nine locations in Birmingham, Ala., and one location in Charleston, S.C.; and Sandy Likes, vice president of Eye Shop, based in Hamilton, Ohio.

Eyecare Business: What are the pros and cons to working with big and small vendors?

Nancy DiCosmo: You can count on large suppliers to have merchandise readily available. If you need a frame, they always have it in stock. With smaller vendors, you sometimes run into a several-week wait. Large suppliers can learn from the smaller vendors by being more service oriented. A follow-up phone call goes a long way. The smaller vendors could learn from the big guys by striving to keep a larger back-up of inventory.

Dennis Chaiken: With a big supplier you know you're dealing with a healthy company that will be able to supply you with plenty of product, marketing materials, and co-op advertising. Because they have lots of brands, you can deal with one sales rep rather than a host of different sales people. They offer one-stop shopping. You're also just a number when you call the big suppliers and only as good as your current order. With smaller vendors, you're on a first-name basis and that personal relationship allows you to bring something to the bargaining table. Nothing is set in stone. You can negotiate price based on how much you buy and how loyal you've been to them.

Sandy Likes: Small vendors are generally specialists that will help you round out your frame assortment with items like magnetic clips or polarized sunwear. You can always depend on them to fill a particular niche. Big suppliers offer value-added services such as training and marketing support.

EB: What is your biggest beef when it comes to customer service?

DiCosmo: I hate back orders and incomplete orders. I don't like it when I order a whole collection and only get half the assortment I ordered. We plan ahead for a collection by making room for it on our frame boards. If we're expecting 40 pieces and only 12 come in, our inventory gets lopsided. If pieces come to us in dribs and drabs, it can snowball into a nightmare. But it doesn't have to be that way. All the vendor needs to do is pick up the phone and let us know they can't deliver the entire order. That way I have the option to hold the order until they can send me a complete collection.

Alyce Skinner: I don't like it when vendors say I have to carry a high minimum, which forces me to keep back room inventory. What gets me is when I call for more inventory and they aren't even stocking back inventory themselves. I'm keeping my end of the deal by carrying their requested minimums. They should do what they tell me to do and carry enough inventory on their end. The ball is in their court on this one.

Chaiken: My beef is lack of follow through, particularly when it comes to the bigger suppliers. All the vendor has to do is call to clarify the order during each step of the process.

Beth Schaeffer: Incorrect orders are always a problem. I believe if the industry standardized order forms, invoices, and even standardized hinge screws, it would help us all out tremendously, and these problems would not be such big issues. As it stands now, everybody's forms and statements are different, and that lack of consistency leaves greater room for error.

Likes: No one likes back orders, but you can be proactive with your vendors by simply calling ahead of time and checking the status of an order. If you know a particular company is having delivery problems, simply take their product off the boards until the situation gets resolved. I'm not going to put out goods that take 90 days to deliver.

EB: Are you OK with the current return, exchange, and minimum piece policies of your vendors? Why or why not? What can be done?

DiCosmo: As far as minimums go, I can put together a healthy representation of a collection with 36 pieces. I don't need someone telling me that I need 53 pieces. I've been doing this for more than 20 years, so give me credit for being a pro. The vendor needs to remember that we do know what we're doing. I should order 100 pieces because I want to. I think vendors are off base here and shouldn't take such a hard line approach. I suggest they offer minimums as a recommendation, not as a demand.

Chaiken: I don't have a problem with minimums. In fact, I like a minimums because then you get adequate representation of a new collection. As far as returns go, this industry could learn from the clothing business by simply marking a frame down until it sells. You should buy with the idea of selling, not returning. As many return rules stand now, you have to buy more if you want to return a lot, which just adds extra freight to your inventory. It's better to buy better and if you're wrong, pay the price for your mistake and sell it off.

Skinner: I have a problem with some of the exchange policies. Some companies require you to buy three pieces in order to exchange one piece. I think it makes better business sense to simply allow me to make an even exchange. The current rule forces me to tie up cash on three pieces that I'm not sure will move. If they allowed me an even exchange, I could invest in a cash-cow piece that I know will move.

EB: How do you make room for a collection with limited space?

Chaiken: There's always room for a new collection. I look for the weakest link, and when I find it, we'll mark it down and get rid of it to make room for a fresh, new collection. I realize this is probably more difficult for a chain, but since I only have one big store, I always know what is and isn't selling. I sometimes sell product for less than my cost to make room for fresh merchandise.

Schaeffer: Before I go to a show, I evaluate what's moving and what's not. My philosophy is, if you're going to bring something new in, then something else has to go out the door. You just can't keep adding collections. And since I'm generally happy with the collections I have, a new collection has to really knock my socks off. I only added one new line at this last show.

Likes: Planning ahead goes a long way. If a vendor tells me he's launching something in June, and I won't have room on my frame boards until August, I ask them to hold the delivery and send the order during a 30-day window of time. If they tell me they only have eight to 12 styles initially, I'll make room on my board, to do a launch preview, so to speak. It's also helpful to mark the dates of launches throughout the year. That way you can plan which collections you will or will not participate in.

EB: How do you work with your suppliers to promote a new launch effectively?

DiCosmo: I call on the reps quite frequently to do trunk shows. It has a two-fold purpose. It creates lots of excitement. And since we can't take everyone to the shows, it gives our managers a chance to preview a collection and really get excited about it. In terms of advertising, I think the smaller vendors should be more aggressive about print advertising.

It would help if they gave us more support by giving us ad slicks and co-op dollars. I would rather see the small vendors take the money they spend on hotel suites and parties during the shows and put it toward building brand awareness. If I want to go to an upscale presidential suite and drink champagne, I'll go on vacation. When I'm buying, I simply want to see the product. And I'd rather see their product at a booth on the trade show floor without the fancy trappings.

Skinner: I get frustrated when I call the smaller vendors for marketing materials or promotional pictures and they have nothing. When my vendors advertise in a consumer magazine, it really works because my customers come in here with the ad in hand. Bottom line? If they advertise more, I sell more.

Likes: The only thing I need from companies to help sell a new collection is proper training, a good representation of the collection, and a name plaque.

A strong presentation and informed sales associates will make the launch take off.

EB: How do you differentiate a new collection from your existing brands?

Chaiken: There are some companies that really do their homework and launch a brand that's focused on its target audience. There's no frame duplication that crosses over from one brand to the other among all their lines. The brand is geared to the needs of a particular customer, and it's not trying to be all things to all people.

Likes: Every collection has to look special. And the key to differentiating each collection is through the buying process. If you buy well, the collection's differentiating features will shine through. It's also a good idea to display whatever's new at the front of the store.

EB: If you could wave a magic wand and change one thing in this industry, what would it be?

DiCosmo: No back orders, and complete shipments.

Skinner: More promotional materials and more advertising.

Chaiken: More follow through and better customer service. Too many sales reps come around trying to make an appointment to sell me another collection, and they have no idea how the last line they sold me is doing. I advise them to do their homework.

Schaeffer: Vendors listening to our feedback about what frame styles are missing on our frame boards and what niches need to be filled. We're on the front lines and have a sense of what the market needs. So it behooves them to heed our observations. That will help balance both our assortments and theirs.

Likes: All that's needed between us and the vendors is constant, clear communication. But the rest is dependent on how well we buy and how well we merchandise. We ourselves have a lot of power to change things.