feature
Making sense of package pricing
Pointing the way to properly package lens feature and benefit pricing
By Karlen McLean, ABOC, NCLC

Package pricing helps fight price shock and resistance, while efficiently presenting lens features and benefits, such as thinness. It also helps staff stay consistent and efficient when discussing lens options.

To help you get a handle on lens packaging, the following is a rundown of how lenses are often packaged, with pricing examples.

BASIC PACKAGING OVERVIEW

Typically, it's premium lenses that are packaged. For example, a standard plastic CR 39 lens normally doesn't offer the features and benefits inherent in other lens materials.

In order to boost CR 39 sales beyond adding ultraviolet (UV) protection, some ECPs advocate a "tint package." This offering is priced according to tint density: The darker the tint, the higher the price; or tint difficulty: Solid, gradient, multi-gradient, multicolor.

Polycarbonate is UV protective, lightweight, thinner, and impact-resistant. High index is ultra-thin and lightweight. Progressive addition lenses (PALs) offer visual clarity in several zones. Polarized lenses offer glare protection, while photochromic lenses feature overall tint adaptability, as well as other perks like UV protection.

Anti-reflection, a premium lens benefit that works on virtually all lens materials and designs, is often a key focus for package pricing. But conversely, AR can be left on the price list sidelines and regulated to add-on status without careful attention.

BASIC PACKAGE PRICING

This pricing structure packages lens materials and designs while still adding on AR. Pricing increases as the lens power increases.

Prices can vary according to manufacturer and laboratory pricing to ECPs and within regions.

CR 39 SV:                            $69.00
Polycarbonate SV:                $109.00
High index SV:                     $129.00
Polarized (basic):                 $139.00
Polarized (polycarbonate):     $199.00
AR (basic):                           $79.00
AR (super-hydrophobic)         $109.00
PALs (basic)                         $225.00
PALs (name brand)                $299.00

ADVANCED PACKAGING OVERVIEW

Optical chains and other big retailers like the fast food industry, warehouse clubs, and hardware stores, have embraced and continue to embrace large-scale package pricing. In fact, they've built their businesses around it because it works so well.

Some optical chains have lens package prices posted on the wall, frame pricing on displays, and frame and lens package pricing prominently displayed. This helps customers pre-sell themselves, usually on the mid-to-highest package, and lets customers know plainly and simply what they get or don't get with each choice. 

Staying away from intimidating-looking price books with multiple pages, the chains have a simple price chart, usually the dispensing mat at each dispensing table.

In addition to displaying package prices, the price sheet or dispensing mat also shows visuals of each benefit in each category, like pictures of the lens thinness achieved with each upgrade.

Consider making your own one page single- or double-sided package pricing sheet. Or, better yet, find a marketing firm in your area who can make custom package pricing and features and benefits dispensing mats for you.

ADVANCED PACKAGE PRICING

This chain-based package pricing puts heavy emphasis on the features and benefits of each lens choice. There are also frame and lens packages available. The tangible, visible benefit of thinner lenses is emphasized: Spherical poly is 20 percent thinner, aspheric poly is 41 percent thinner, and high index is 55 percent thinner than ordinary plastic lenses. The emphasis, too, is on brand name. With the aspheric poly and high index packages and photochromic option, brand name is specified.

Spherical polycarbonate PAL:    $210.00
Aspheric polycarbonate PAL:     $265.00
Polarized polycarbonate:            $178.00
High index PAL:                        $275.00
Photochromic:                           $65.00
AR:                                           Included with each package

Rimless frame and lens packages: House brand frames and lenses from $238.00; mid-level brand frames and lenses from $265.00; high-end brand frames and lenses from $275.00.

checklist: 12 questions for your lab and practice:

1.    Are the package frames current, discontinued, or soon-to-be discontinued?
2.   If a package frame is broken, how is it replaced and how soon is it replaced?
3.   What are the package warranties? What are the costs out of warranty?
4.   Are the package frames and lenses name brand product or off brand product?
5.   Are the package frames and lenses products that you already work with on a regular basis? If not, would the products meld well with your product philosophy
6.   Does the lab have any history of previous package programs? If so, how did those programs go? If not, why are they offering this package program now?
7.   What's the longevity of this program? Does it have an expiration date?
8.   What happens to the frames if you choose to discontinue the program? What happens to the frames if the lab discontinues the program?
9.   Is this something that the lab's truly excited about? Will your staff be excited about it, too, or will the display be in a back room within six months?
10.   If a patient likes a frame that's part of the package but requires lenses that aren't on the package program, is that an option and how much would it run? (Typically, if out-of-program lenses or lens treatments are selected, they're invoiced at regular cost).
11.   What's included in the package, and what's not? There should be price/promotional sheet.
12.   Will the program be updated (e.g., new frames, added lens styles and/or lens treatments)? If so, how often? If not, why not?

Lab outlook

ECPs are linking with lab partners to utilize lab package pricing programs. Typically, labs offer a complete frame and lens package featuring selected frames and lens styles. The lab should send you a cost sheet for each package.

Level 1: Frame with name brand single-vision
photochromic lenses

Level 2: Frame with name brand photochromic lenses and anti reflective lens benefit

Level 3: Frame with name brand SV photochromic lenses, AR, and drilled rimless with polished edges

Your lab should break down all lenses available with the package and give you your cost so you can set the retail price. Retail pricing is usually set at least double your cost, sometimes a little less, sometimes a little more.

The lab can supply the package frames or you may be required to purchase the frames from the lab. Be sure to check frame quality. Keep track of lab package sales to make sure the program stays active and profitable.

Here's a sample of lab-ECP frame and lens package program pricing:

*Includes frame, lenses, and edging for metal or plastic frame, with three different categories of frames to choose from. All drill-mount rimless must use a poly package.