One of the great untapped areas of the optical industry remains anti-reflective coatings. But with a bevy of new stronger, more consistent AR products on the market, the times could be changing. Are you ready to ride the wave?

Citing the success of anti-reflective coatings in European and Asian countries has become common rhetoric for making the point of the U.S. optical industry's untapped potential with AR.

Still, the numbers--ringing in at heights of 50 to 95 percent for our overseas neighbors--drive home the truth. Years of enduring suspect coatings prone to cracking and hazing have marred the image of AR for many consumers in this country.

The past is what all industry professionals are working against--trying to dispel the belief that the quality of AR coatings is poor.

"As an industry, we are far behind the curve when it comes to AR sales," says Bob Colucci, senior vice president, sales and marketing, Essilor Labs of America (ELOA), a network that consists of 75 locations across the country. "In the past, some AR products had cracking, peeling, and hazing. In response, the consumer and the dispenser said, 'No thanks.'"

The good news in this situation is that the AR products of today have a much higher quality that dispensers and their customers can count on.

"The quality of AR is increasing," says John Art, president of Interstate Optical, located in Mansfield, Ohio, "so it is more accepted now. Some doctors had apprehension promoting it and thus simply did not mention it as an option to their patients. That attitude is slowly going away."

The figures for AR are growing slowly as well. The U.S. numbers for AR lingers in the teens. Current estimates mark AR usage at 19 percent for 2000, according to the AR Council.

Still, other sources, from lens companies to wholesale lab networks, say the number of eyewear customers receiving AR coating on their lenses is still only about 15 or 16 percent. Regardless, the bottom line is that AR has a huge profit potential in this country.

Today the industry is armed with new anti-reflective products that have better quality and--even more important for a consumer wary of AR's dubious past--excellent consistency. As a result, many dispensers and wholesale labs say their AR business is steadily growing.

A compact lens center from Interstate Optical

"It has definitely been increasing for us," says Art. "We are currently running about 17 percent in AR sales. We've seen growth, especially since we put in our AR equipment about five years ago."

In the first five years, Interstate Optical had about eight percent AR, but that figure has grown consistently over time. And in the past two years, Art says, "the growth, has increased two to three percent per year over the last two years."

In some cases, the increases are even more notable. "Our AR sales have increased dramatically over the past year or two," says Barney Dougher, vice president of HOYA Corporation, Midwest Regions, and president of Berea, Ohio-based Advance Lens Lab, part of the HOYA Optical Labs network. "It used to be at 18 percent, and in the past year it has grown to 30 percent." He attributes this growth primarily to improved product and an increased consumer awareness of AR coatings.

On the dispensing level, a number of independents who have put an onus on AR have also realized growing profits.

"About 40 percent of our eyewear customers receive AR coating," says Chris Ossmo, manager of Oxboro Eye Clinic's three-store optometric chain in the Minneapolis area. "That number has grown over the past couple years."

DRIVING GROWTH

What is pushing AR into the next level here in the U.S.? The new-and-improved products are the crux of this trend, which is also bolstered by increasing consumer awareness of the tenets of AR. This is a result of marketing and advertising efforts on the part of lens companies as well an increase in optical dispensers educating their customers.

The new AR coatings are stronger and more durable than those of the past, so the previous problems are not an issue. Many come with extra insurance against wear and tear--hard coatings, scratch-resistance coatings, and hydrophobic coats that are resistant to dust and dirt for easy cleaning.

"The independent end is growing because of the increased quality and consistency in AR products," says Dougher. "The bottom line is that the independent feels more comfortable selling AR due to its increased consistency."

The other factor driving growth is an increasing consumer awareness of the benefits of anti-reflective coatings. "I think AR sales are growing because of consumer awareness," says Dougher.

The industry will also receive an additional boost from increased consumer advertising and a bigger push on AR promotion from large chains like Wal-Mart (estimated to sell 30 percent of all lenses with AR) and Costco.

Working on the theory that many lens companies have stepped up advertising and marketing programs to complement new coating releases, an educated consumer is one who is much more prone to purchase an AR add-on. This equates to a win-win situation for everyone involved. The consumer has better vision through technology, the dispenser and optical lab realize increased profits, and the idea of quality anti-reflective coatings is perpetuated throughout the marketplace.

Information from the AR Council	The ARx display center from Interstate Optical is a selling tool

THE PATH TO PROFITS

There are many available tools that dispensers can take advantage of to boost AR sales. For example, the AR Council provides an array of excellent educational tools and point-of-purchase materials that dispensers can obtain through their optical lab or directly by calling the Council at 877-254-4477.

Today, labs are working harder than ever to help educate optical professionals about the new AR products and how to present them. That's true for both manufacturer-owned lab networks and independent labs, many of whom have partnered with other lens manufacturers to promote and educate dispensers about the category.

"Our biggest thing has been working with the doctors and their staffs providing education," says Colucci. "We are doing a Boot Camp, teaching eyecare professionals everything from A to Z on how to sell AR to their customers."

	One meticulous step in the AR coating process at Hoya

In fact, many labs are getting into the training groove, with some supplying both in-house seminars and educational house calls. At Interstate Optical, says Art, "Our reps use a program on their laptops to assist with the seminar. We also offer an in-office AR display and patient brochures."

At Sacramento-based Vision Service Plan (VSP), which currently coats 20 percent of its orders with AR, educating customers about AR is high on the list of priorities. "We are out there promoting it because we have our own AR lab," says Jack Banville, managing director in charge of the optical lab at VSP. "We have our own AR facility and we built a classroom to train our customers right there. We can fit as many as 70 people in there at a time."

In addition to taking advantage of lab and lens company training, many dispensers recommend using supplied point-of-purchase materials and demonstrators. "Our biggest selling feature for AR is demonstration glasses," says Krishan Patel, owner of Med Optics in Towson, Md., where 80 to 85 percent of all lenses are sold with anti-reflective coating.

"We have three pairs--one plano, one hi minus, and one hi plus. All have one regular non-coated lens and the other is the same lens with the AR coating on it. That's what works the best. It's a visual thing. I think when customers can actually physically see the product and what it enables them to see better, it is easier for them to understand why they should get it.

One other boon to AR sales, according to dispensers and labs, is price packaging. "After attending a seminar on AR, we decided to promote package selling in the dispensary--especially with premium lens selections like a 1.67, 1.60, or a [plastic photochromic] with AR," says Oxboro Eye Clinic's Ossmo. Each package includes the lens plus AR, an edge/polish, and a two-year warranty. Since packaging is brand new at Oxboro, they will be utilizing dispenser guides and P-O-P received from their lab will assist in the transition. "Our hope in the future is to do more with the packages," she says. "We did our own regular price minus a 15 percent discount on each package."

Educational videos from the AR Council can be utilized to help teach dispensary staffers about the benefits of AR

THE FUTURE OF AR

Just how much AR will grow is anyone's guess, but with all the new products and educational support, some are predicting the usage numbers to jump dramatically. "The market will hit the 20s within two years," predicts Essilor's Colucci. "In five years, it should be about 30 percent. Once dispensers become accustomed to selling it, the improvement in sales will be unbelievable."

If dispensers focus on quality AR products, improved selling techniques, and in-store point-of-purchase items and demonstration materials, anti-reflective coating sales will be sure to spike. "AR sales have been increasing and its growth will absolutely continue," says VSP's Banville.