Before you BUY
Things to consider before purchasing edging equipment
By Susan P. Tarrant
A majority of dispensers will tell you that buying edging equipment was one of the smartest things they've done with their business. The payback is big when considered in terms of reduced lab bills as well as increased customer satisfaction due to quality control, high-level service, and quicker turnaround.
Before deciding on a particular edging system, however, there are some questions you need to ask yourself, your financial planner, and the equipment company representatives.
Here's a quick rundown to help you get to that final decision.
CALCULATE YOUR ROI
Lab equipment should pay for itself. The amount of money it saves in lab bills and the added business it brings in due to quicker service are the two leading bottom line boosters. Exactly how much money you'll save by bringing edging in-house will vary depending on the equipment you buy and the volume/types of lens jobs you do.
However, a general rule of thumb is that edging in-house will save you approximately one-third of your current lab bills. If you're spending an average of $3,000 a month in lab costs, you can expect to reduce that by $1,000 once you're up and edging.
Assuming your edger lease or loan payment is less than that, you're immediately making money and a return on your investment (ROI). If you bought your equipment outright, use the same one-third model to figure out how many months it will be before you reach your ROI.
Return on investment makes edging in house worthwhile. Image by Santinelli International
Plan for the present and future edging work. Image courtesy of Briot
If you don't do enough lens jobs to make these numbers work, the ROI may not be there and an edger might be a future investment.
FITTING YOUR BUSINESS
Think about how edging will fit into your current situation and future business plan. Edging is a fantastic way to grow a business, but you should make sure your dispensary is ready for it.
■ WHAT TYPE OF EDGER? There are a variety of edgers:
Fully automated: For ease of use, there are systems that work automatically with little operator input.
Manual models: With an experienced lab staff, a unit requiring a good deal of manual figuring and finesse may suffice.
Consider all angles. Image from Gerber Coburn
| Buy or LEASE? |
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| Once you've made the decision to buy edging equipment, another decision still awaits you—whether to pay for that equipment outright, take out a loan for it, or lease it for a period of time. Here are some guidelines: Buying Outright This may be an attractive option for those with the cash on hand to spend on capital purchases. The advantage is simply that you own it all and don't have any debt to worry about or interest to pay; plus you get a rather large, one-time tax credit. The disadvantage is the immediate depreciation in value. Installment Lease This is very similar to a traditional bank loan. This option also gives you one-time tax deduction, since you will own the equipment at the end of the term. Many offer lower interest rates than a bank loan, and little to no down payment. The disadvantage is you can't write off the monthly payments, and once you've paid it off, you have a piece of equipment that is quite depreciated in value. Lease The biggest advantage of leasing is that every month's payment can be written off as a tax deduction. A lease often has no down payment, and the monthly payments are offset by the increase in profits due to in-house edging. Plus, there are a variety of leasing options, such as ones that allow an upgrade of technology even before the lease is up or those that give dispensers an option to buy at the end of the term. |
Adjusted volume: If you're processing lots of lenses or just a few, take this into account when choosing equipment. Some are designed to process very heavy workloads, while others handle fewer jobs.
Measuring footprint: If you're tight on space, a system with a small footprint will fit.
Other considerations: Don't forget about the noise, odor, and waste disposal issues when planning your purchase.
Here are some other specifics of a potential edger to consider:
■ Functions—tracing, blocking, grooving, beveling, etc.
■ Capabilities—custom lens shapes, small B measurements, high wraps.
■ Special features—rimless drilling, automatic lensometer.
■ Service terms/warranties.
■ STAFFING QUESTION As user-friendly as most new systems are, they still can't run themselves. Determine who can be trained on the equipment or if you'll have to hire someone. Then figure in the personnel costs. A new full-time or part-time employee or an existing employee's time away from the sales floor, customer service desk, or exam room should figure into your potential savings on lab costs.
| Company LOYALTY |
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| When you buy an edging system, you enter into a relationship with the equipment's manufacturer or distributor. It's no small endeavor and this is a very important intangible that should figure heavily in your decision. Ask yourself the following questions: Will they help you develop a plan for integrating a system into your office? What is the company's tech support and training program like? What is their policy for maintenance or emergency calls? When you weigh your answers to these questions, your decision on which company to go with gets a little bit easier. Many companies consider themselves partners in growing their customer's business and are willing to work with a dispenser to make sure the equipment they choose is the absolute right one for their needs—now and in the future. Do you really want anything less? |
The future is a strong purchasing consideration. Image courtesy of Topcon
Today's systems process quickly and easily so staff time usually is not a huge problem, and if you're replacing old equipment, you'll most likely see savings.
■ FUTURE NEEDS. The final factor in selection is the future:
Can it handle all lens materials and sizes for business growth?
What products don't you edge now that you'd like to in the future? Can its software be easily upgraded?
Determine your plans for your dispensary and industry trends to make sure your equipment purchase will still be sufficient down the road. EB
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