MONEY TALK

Survival Tactics

Smart Sales Strategies

By Amy Spiezio

The question of pricing is always pressing, but it can take particular prominence when the economy is less-than-ideal. Temporary cuts, product changes, and holding fast are just a few of the options for dispensing pros.

PRICE JUSTIFICATION

For the top-tier of optical, high-price goes hand-in-hand with high quality.

Although many retailers are reporting a decrease in purchasing dollars, they are holding tight on their position and they are focused on a bigger picture that helps maintain a healthy bottom line.

"We are not attracting customers by price, but exclusivity," says retailer and designer Ed Beiner.

"We have never positioned ourselves based on price alone, although it is an important consideration. We have always presented products that we consider to have true value," says Robert Marc, eyewear designer, distributor, and dispensary owner.

Promoting luxury products of the highest quality makes sense. As a result, many pricing policies have gone largely unchanged. "The prices reflect the quality and that ratio of price to quality is reasonable for us. If we sold cheap, generic products at our average prices, then that would make this ratio overpriced. We don't have that problem," says Galina Rabkin, owner of Vizio Optic in Brookline, Mass.

"We don't offer luxury or extravagance. We focus on great products for the price that matches the quality of these products and of our service. Our patrons are very satisfied with what they get," Rabkin adds.

And while the eyewear market has taken its hits this year, in the scheme of the wealthy world, some retailers note, eyewear is still a bargain.

"The high-end customers have been affected by the crises, but the high-end eyewear is one of the small ticket items on their ‘luxury list.’ So instead of going skiing in Telluride, having a private beach in Saint Bart, etc., they buy eyewear. And not 10 pair a year anymore, but 4, which is better than nothing," says Valerie Vittu, owner of Margot and Camille Optique in Philadelphia.

Add Marc, "Even high-income consumers are becoming more careful about what they spend their money on these days, but they will still continue to spend on finely constructed luxury products as they are smart investment pieces. When stocks are down, why not invest in valuable luxury products instead?"

Other Options While many upper-tier dispensaries don't want to touch their frame pricing policies, they are finding new pricing avenues. LENSES "So many opticians are offering better lenses for the price of the regular ones. Digital and free-form lenses are coming on the market at the perfect time. You can lower your mark up on the lenses and still make the cash," says Camille and Margot Optique's Valerie Vittu. MARKETING Getting the word out in a grassroots manner can help keep the high-end market moving. "We did an enormous number of trunk shows of products that are new to the market or that we haven't used in a very long time," Ed Beiner says. PRODUCT EXPANSION Beiner has also made a point of expanding his product offerings to touch on slightly lower pricepoints and a wider range to enhance the potential customer base. "It's not a question of giving it away, but letting clients know that they don't have to feel bad buying a product for $1,000, but they can buy $650 eyewear."

SALES REALITIES

In the current financial reality, pricing might stay stable, but holding a periodical sale might appeal to clients in a savings frame of mind. "People are not looking for it for free, they are looking for the deal," says Vittu.

The topic of sales can be a sensitive, but necessary issue. "It is hard for high-end to do some sales, because it is not in the concept of the high-end. But to stay in business, you need the cash flow. I don't know any landlord who will negotiate the rent against pairs of eyewear, no matter how wonderful it can be. So yes, high end retailers are doing it," Vittu says.

New sales promotions are becoming a reality as dispensaries deal with the real need to keep inventory moving and rents paid. "Sales is the big word now. Even high-end brands have to enter in the dance. Nobody wants to sit on an already paid stock, the way to bring cash in and introduce your product to a broader clientèle, is to put "SALES" in your window," says Sophie Raubiet, vice president of retail at Alain Mikli.

Keeping a handle on sales policies is key. While it's important to keep things moving, maintaining that top-tier look involves skillful blending of sales promotion with protection of the basic price point. "We have gone out of our way to not have any sales except the ones we do every year. I told my employees to keep their heads up because if we give deep discounts we will come out of this without respect," says Ed Beiner.

Succeeding in today's environment necessitates avoiding panic. Rather, good businesses that do smart business will survive. Notes Rabkin, "People are dramatizing and overanalyzing today's economy and its purported effect on high-end eyeglass market. We've always had economic cycles and great brands and companies always outlast downturns.