Value Frames
The Value Blend
Mixing up the just-right assortment of low-priced frames is no easy feat. Here, some of the pros share their recipes
By Erinn Morgan
Photography by Peter Baker

With the economy taking a dip, many optical retailers are reporting an increasing interest on the part of the consumer in lower-priced goods. Thus, the value-priced area-which has experienced substantial growth in the past several years due to managed care-is growing once again.

This trend is widespread, surfacing at both chains and independents, as well as high- and low-end stores. "To be candid," says Ira Haber, owner of the high-end Europtics stores in Denver, "I want to stay in business, and I will do what I have to do to stay in business. If my clientele wants $99 frames, then that's what I'll give them."

Haber has, in fact, recently added in an assortment of $99 value-priced frames into his more upscale mix. "My first obligation is self-preservation. The truth is that people are not that anxious to spend a lot of money on their eyeglasses right now. They are deciding if they want to do alternative things like laser surgery, so some are not as willing to invest a lot of money in eyewear."

The good news is that the market is much more prepared this time around to handle a surge in value eyewear sales. Manufacturers are offering better quality products at lower prices to fill this need. Additionally, more desirable features and benefits have surfaced in this price range, such as stainless steel frames, brand names, and spring hinges. Retailers observe that today it is easier than ever to create a strong value mix.

"We have better quality, better prices, and more options," says Patti Galko, director of retail operations at the Pennsylvania-based, 21-location Northeastern Eye Institute. "I don't know if we really appreciate it, but the scope of ophthalmic product in general is very good right now."

That said, the challenge is to sort through all the optical products out there and establish the right budget mix for your customers in the appropriate price range. The first step is to define what value means to your dispensary.

Defining Value

Many optical retailers define the value category as frames retailing for less than $100. But this definition is being stretched. For example, at Sterling Optical's, 200-plus locations in 27 states, value frames typically fall in the $79 to $99 range. But the stores also stock a lot of "value-branded" product. "Guess?, Geoffrey Beene, Nine West," says Phyllis Sweeney, Sterling's frame buyer. "They all fall in the $179 pricepoint range. We are really going for value-branded product in our mix."

The moral of this story? It may make sense to stock lower-priced (less than $100) goods for certain customers, while also appealing to that brand-conscious person who may be willing to spend a bit more for a name. Conversely, other retailers go even lower on the pricepoint scale to suit their value customers. "A frame that retails for $39 can be very respectable in terms of quality, durability, and look," says Galko, whose total frame assortment's price range is $29 to $1,300, with an average price of about $139. Though value pricing has become a strong part of her assortment, she notes that this was not always the case.

"We used to carry only mid- to high-end product," she says. "And then price advertising came through. We didn't want people leaving us for other places because of this, so we put in value packages just to compete in the market. We needed to go there because our patient base and locations were expanding." Today, her assortment of value-priced merchandise accounts for about 15 to 20 percent of the total frame mix, depending on the store.

For some, adding value-priced eyewear was simply not enough. Due to competition and consumer expectations, a large number of value-conscious dispensers have instituted value packages, which often include frames, lenses, and eye exams.

Value Packages

At Eyesavers, a seven-location division of the Florida-based company The Hour Glass, value packages start out at $69 for an eye exam and a complete pair of glasses. The packages move up to $89 and $119 from that point and range, depending on the quality level of the frame. "About one-half to two-thirds of our total assortment, depending on the store and its clientele, is in value-priced eyewear," says Alice Stephens, an Hour Glass frame buyer.

Even at the higher-end Europtics, Haber says he is now running a special for free single-vision lenses with any frame purchase, including his new $99 range. Additional charges do apply, however, for standard add-ons such as scratch coatings or progressive lenses. "This is a savings of $70 to $100," says Haber. "I feel this is necessary because business is down."

Once you have defined what value means to your dispensary-from price ranges to special value packages-it's time to create the right assortment.

There is much more on the value market today from which to choose, and frame buyers looking to increase their value business will be pleased to find there is better fashion, quality, and options available to them. "The value area has grown and now there is a lot of competition there," notes Sweeney.

But what type of product will work the best in this price range? How much does fashion play a part here? What is the value-oriented customer looking for?

Making a Mix

"It is absolutely easier to create a value assortment today," says Galko. "If you really look, you can find some nicely styled, well-made, low-priced frames. Sometimes I look at something and say, 'Wow, this is a great deal.' The increase in the business has pushed manufacturers to really take a look at their product offerings."

	Destiny style D106 for Kenmark Optical

Still, everyone's definition of a strong value mix will be different. "I would define it as, 'The best frame I can get for as cheap as I can get it,'" says Galko. According to Haber, his definition is: "It should be a little bit fashionable-not really cutting edge but not generic either. For me, it's not just the standard optical shop stuff. We offer something a little cooler even in the value area-such as interesting shapes, but with more conservative colors."

Fashion is an interesting concept in the value arena, because while some say it is now more readily available, most agree that the value customer is not particularly fashion-conscious. "This end of the business is totally price driven," says Sweeney. "They are interested in style and fashion, but the mentality is more about 'I have 100 bucks, what can you give me?'"

Optical retailers committed to the value category say they try to stock a few fashionable offerings but focus primarily on less experimental consumers. "In our $29 to $89 range," says Galko, "we have some funky styles, but most of it is for the salt-of-the-earth, conservative customer."

The Hour Glass's Stephens agrees. "Our assortment of value eyewear is pretty basic," she says. "In the lower price range it is all basic plastics. In the second tier packages it goes into fashion more. You just have to know which manufacturer to use for which package. And when you find a good one, stick with it." She adss that, while it is important to stock both men's and women's styles, it is the unisex frames that sell.

Thus, manufacturers mainly rely on tried-and-true styles, colors, and shapes for this area. "The sales reps who sell this product are quick to tell you that this is an 'XYZ' designer copy," says Galko. "If you can find a good price on a decent quality frame that is a good replica, it can really work for you. We are doing a lot of rectangles and other new styles that are out right now."

Designer and name brands are also important at this level, if you can find good ones to fit in with the rest of your dispensary's assortment. "There are a lot of brands in this area," says Galko, "and that goes back to the whole idea that manufacturers have really concentrated on offering better options. There are now some wonderful products in lesser-known or lower-priced name brand categories."

Materials and Details

Many also report finding a decent amount of quality stainless steel frames to bring into the value areas of their dispensaries. "You can find it pretty cheap," says Stephens. "Especially in Florida, people like the stainless steel. They are clued in to its benefits because of sports and being near the water."

However, Sweeney says she veers away from stainless steel in the value products because she can trade that customer up to a higher-priced branded stainless steel product. "I could buy stainless steel, but I'm staying away from it because that's where I can turn my value customer into brands," she says. "We just show them Geoffrey Beene stainless product for a slightly higher price. I don't want that on my value boards when I can sell it in designer collections."

Petite style 20 for ClearVision Optical

Details such as spring hinges and rimless eyewear are also a hit with customers in the value area and are readily available in this price range. Sweeney says she looks for quality frames with spring hinges and temples. One of the main points dispensers make about assembling a value mix is: Be sure to maintain a good quality level, even at the lower-priced area.

"I don't want to go down in price range and just use junk," says Haber. "I am not about the $4.95 and $2.95 cost frames. That just bothers me. Everyone can make mistakes, but I don't want to go out and do that deliberately."

The main question right now is whether the value business will continue to see strong growth, or if it will stabilize due to saturation in the marketplace. "It has grown," says Galko. "I'm looking at 600 frames on display and there are easily 100 frames in the value range. I don't see me growing that much more because I'm not the price guy. But we have talked about possibly opening up a budget eyewear store and giving it a different name. But, for right now, it's a business I would like to see stay static."

Yet some believe the value area will continue to grow due to the economy and other market factors. "I think it will increase because of managed care," says Sweeney. "And also because of the Target Optical expansion. I think that's going to be very scary for a lot of independents and chains. It will create even more competition. The people shopping at Target don't care if they have brands, because they know Target just has good stuff."