PARTNERING
WITH YOUR LAB
This OLA-sponsored roundtable addresses the importance of partnership between labs and eyecare professionals
By Alex Yoho, ABOM
The OLA is made up of labs that find themselves in many different situations. Most are quite large wholesale labs, some are independent and family owned, some are a part of worldwide organizations, and some are smaller labs that may serve a chain of stores or even one retail point. All of these labs have one thing in common: They have a close partnership with their customers in the retail world.
Perhaps you haven't considered your lab as a partner, but they have "ownership" in your business just like any other partner would. When business is good, it's good for both of you; and when it's bad, it hurts both partners.
Labs make an investment just like a business partner would. You might think that you could make more without a partner sometimes, and that may be true if you are willing to take on the extra work and contribute the cost of doing business that your partner now bears with you. A partnership is designed to make things easier, but this can only happen when each partner holds the other in high esteem and does everything possible to nurture the other.
The Optical Laboratories Association (OLA) has long been committed to helping member labs develop partnerships with their customers that will benefit both OLA members and those that use their services.
Since understanding through communication is key to the healthy, happy marriage of two businesses, we checked in with a few OLA members to see how this interrelationship of companies is working out today. They are: Steve Sutherlin, president of Sutherlin Optical in Kansas City; Art Waite, sales manager with Winchester Optical in East Rochester, N.Y.; Debra Kidd, president of Armada Optical Services in Evansville, Ind.; and Jeanette Frieler, manager of ophthalmology retail services at the Mayo Clinic in Rochester, Minn. Here are the answers to EB's questions about the lab/customer relationship.
Q What are your accounts asking for most in a lab?
A "We are finding that what they want more and more is a lab that can take them by the hand and help them through this complex business, and deliver great work day in and day out," Steve Sutherlin says.
"Assistance in developing premium package programs and staff training are the main requests, at Winchester," explains Art Waite.
Things like "customer service, safety prescription eyewear advice, and contracts" set a lab apart, Debra Kidd adds.
Q Do your customers look to you for staff training?
A All say yes, and report they've added more training for their accounts. Every other year Winchester has an evaluation program for customers where attendance usually averages between 350 and 600, Waite says.
And Sutherlin adds, "We offer Sutherlin University, which allows customers to send anyone from basic new hire through ABO training."
Q What are you doing to meet your customers' changing needs?
A "One of the more recent things we have done to address our customers' needs," relates Sutherlin, "is the creation of a specialty lab within a lab for drilled rimless. As this segment exploded, we found it difficult to maintain our high standards within the traditional finish department setting. To accomplish this, we created a separate department for drilled Rx's with its own dedicated equipment and personnel."
Q Are there services offered that are not being utilized as well as you'd like?
A "Yes, our package programs are not utilized as well as I would like. Our customers feel comfortable with their current frames, so it is not easy to encourage them to make changes," Kidd responds.
"We are very pleased with the response to our on-line order entry program, but the benefits are so outstanding that we'd like everyone to get on board," Sutherlin says.
Q Despite partnering with your customers, are re-dos a concern?
A "Today, re-dos are the single greatest concern I have," says Sutherlin. "Our lab averages over 10 percent, and I know for a fact that most labs are even higher. The warranties being forced upon us by the manufacturers, mostly at our expense, are a real problem. I know of no other industry that invites these problems the way ours does."
Waite puts it in perspective: "The real problem with account re-dos or lab errors is it erodes quality and timely service to patients. If both sides took more time, created a learning environment both internally and with patients, I believe re-dos and errors would be resolved proportionately."
Q How do re-dos affect the profit-ability of you and your customers?
A "I don't think many offices understand what re-dos do to your margins. People tend to look at the re-do as that one job, not what it does to the overall picture. It is similar to stolen products. To recover from one item stolen, they often have to make 10 sales. To recover from one re-do, we have to have 20 successful productions to keep our margins," Kidd observes.
Sutherlin adds, "This is a gigantic strain on profitability and on labor resources."
Q What can be done to decrease dispenser errors?
A "The 30-year-old non-adapt warranties should be brought to an end," Sutherlin responds.
For Waite, the answer to the problem of dispenser errors is "education, education, and more education."
Q How do you improve your partnership with an account? Do you have any success stories?
A "A customer has to be able to feel confident in our ability to take care of any problems that may arise, whether it be their problem or ours. We must be able to react promptly and efficiently," Kidd says.
Sutherlin adds, "Our best success story gets repeated every day when customers call to thank us for all of the things that our staff does for them. One of them sent a note that said, 'If you all were a movie, you'd be five stars.'"
Q What are some challenges in partnering with customers, and how have you resolved them?
A Frieler says, "The stress that comes with providing the quality product at the pace that our accounts need is at times overwhelming."
"It's abuse on warranties and policies, and our answer is helping them understand that these are established to aide both sides, so that abuse only hurts us all," Kidd says.
"Other than re-dos, we are thrilled with our relationship with our partners," Sutherlin notes.
Q What does the future hold for lab/customer relations?
A "Labs and retailers are realizing we need to work as a team to be successful," says Frieler.
And, looking ahead, Kidd concludes, "Our goals are anticipation, efficiency, teamwork, and quality. Our employees have made us what we are today, and we are proud to serve our customers."
Labs are ready and willing to be a valuable partner to help your business thrive. Why not give your OLA lab a call today and find out what you can accomplish together?