HOT TOPIC A new look at old problems

giving away your profits?

Free is good…for consumers, perhaps, but not for business. Stop giving your services away and start charging and profiting now using these practical solutions

By Karlen McLean, ABOC, NCLC Illustration by Jon Krause

Optical has a long-standing reputation for freebies, gimmies, and deals. Eyecare practitioners seldom charge appropriately for their time and expertise and for "just-a's:" just a nosepad, just a light tint, just a slight adjustment. Not only does this shrink product value, it diminishes customer perception and profits. It may be easier—and more accepted by clients—than you think to charge for services.

WHO, ME? CHARGE?

Traditionally, the industry has handled charging for services in a case-by-case fashion, rarely posting fees or charging patients or non-patients for services beyond eye exams and doctor visits. However, the employer is still paying for the optician's time. When the optician is doing a free frame repair rather than selling eyewear, profits suffer. Charging for repairs helps pay for used skills and time.

"My opticianry services aren't cheap to the doctors; my 10 or 15 minutes spent repairing eyewear costs them," Tom Hyde, optician at Lossman Optical in Lake Zurich, Ill., points out. "Rimless repair can be a major time investment."

Lossman Optical doesn't regularly charge for services, but may charge on a case-by-case basis, such as when a person shops frames and gets measurements to go elsewhere. They also do safety work for a local company and charge a $20 dispensing fee for fitting, measuring, and filling out safety eyewear paperwork.

A new practice, Logan Eye Care in Lake Mary, Fla., doesn't charge for minor parts and repairs. While building business in a small community, free service is helping them cement the practice tagline: "For the sincere visual experience."

"I call charging for things like nosepads and minor repairs nickel and diming the patient," says Carol Logan, OD. "We just had a girl in whose dog chewed one temple off her glasses that we replaced at no charge. This helps us maintain a reputation for compassion in an area where word-of-mouth referrals really matter."

CHARGING INTO CHARGING

Parts such as nosepads, hard cases, and troubleshooting eyewear made elsewhere, as well as doctor's Rx changes, are billable at Lesco Optical in Phoenix, Ariz. Patients are informed of any charges up front.

"This fee is usually 50 percent of the original retail price and all tints and coatings are no charge," Paul Benedetti, LDO, explains. "Patients seem to be very understanding and aware that it's no fault of the optician. One may ask, 'doesn't this hurt your referrals?' To be honest, it does not."

If it doesn't hurt to charge, why is optical still handing out free services and merchandise? Lossman Optical's Hyde notes, "Our industry should and could do better at charging for ancillary products and services, but we're afraid to."

In the dispensary, start small by charging for simple services.

■ Basic. Charge for parts like nosepads and services like soldering.

■ Advanced. The next step is charging for services such as troubleshooting eyewear made elsewhere.

■ In the lanes. Increase charges for contact lens evaluation and fitting. Then charge for technician time in contact lens training sessions.

■ In the business office. Charge for canceled and no-show appointments when appropriate. One way to handle appointments canceled with less than 24 hours' notice or no-shows is to charge patients part of the appointment fee.

"When we call to confirm the appointment, we should mention if the person can't make their appointment to please call within 24 hours' notice. If they no-show, they'll be charged 50 percent of the visit," Hyde says.

Every office should have a written policy and protocol for all service-based charges and inform patients verbally and in writing on their appointment cards and receipts.

Patients understand these techniques and accept them because they are standard operating procedure in other healthcare segments.

"Optometrists in the past sold themselves short, since $100 isn't unheard of today for doctor's fees, and patients are aware of higher fees," Logan says. Patients know there is a price for individualized medical care.

SEPARATE BUT EQUAL

Internet purchasing may be spurring the separation of pure product fees and professional fees. While Internet-based optical product suppliers have little overhead, your practice does: property lease, products, and payroll, to name a few. So that shopper who consults with you on frame fit and fashion, then purchases online, can pay a lesser online price because they're buying just the product. They have used you for free services like frame styling, lens measurements, and adjustments. Charging a fitting fee is applicable here, as is refusing service, say some.

"If someone wanted us to fit and measure them so they could get eyewear online, we wouldn't accommodate that request and would explain why," says Logan.

"If there's any problem with the eyewear, there are too many variables. If it's made incorrectly, we're still the ones to deal with the problem" she adds. "That person isn't a typical loyal patient; we like investment patients who are loyal and appreciate being handled in a compassionate way."

Online contact lens purchasing likely leeches more practice profit than online eyewear. "We're getting killed in contact lenses," Hyde says. "We now have to compete with big box and online product pricing."

If practices drop their pricing, they make no profit or even lose money on contact lens products. "We have to make that up in service and charge for those services," he adds.

Separate professional service charges from product charges. For example: if a frame costs $55 and you'd normally mark it up three times, the retail price would be $165. Instead, consider marking it up 3.5 times to $193 to cover your expertise as a medical, technical, and fashion advisor.

Also, consider the last time you raised costs even two to three percent. Patients often don't notice this slight increase, or, if they do, understand and readily accept it as your cost of doing business. EB