The New Golden Rule

On the path to a value optical experience, patients seek lower prices, but that doesn't mean they're ready to give up style—or quality—in the process

By Amy Spiezio
Photography by Peter Baker

during financially challenging times, there are a few unwritten rules about survival: limit growth plans, cap budget allotments, slash extras. But the golden rule that should hang in every dispensary with an eye on survival is: Thou Shalt Provide Value. In previous years, value eyewear has been relegated to the cheap seats of the industry. But these days, affordable eyewear is moving to front row center.

WHEN A BARGAIN'S NOT A BARGAIN

Here's a riddle for every eyecare practitioner to answer: When is a bargain not a bargain? When it comes to eyewear, the answer is a blend of answers:

When it doesn't make you a profit. Purchasing a closeout or a shipment of nonbranded eyewear directly from a factory may seem like smart ways to make some money in tough times. And if everything goes perfectly, it certainly is a fine profit pumper. But in the case of the unexpected—and in business that's pretty much every day—these bargains could come back to haunt you.

"Lots of times with closeouts, we are closing it because it's not selling," says Mark Afram, president and CEO of Best Image Optical. Without the option of returns, these closeouts may tie up your frame-buying budget as unsold styles collect dust on the shelf.

A collection purchased directly from the factory requires large buy-ins of single models. If you are buying for a chain, that might be a viable option. But for smaller operations, 1,000 of a particular style can be a dispensary-crushing misstep.

"We have had to experiment with these people, and not all of them develop product properly. Couple that with the fact that you have to buy large quantities and you add up to a lot of risk. It can wipe out a retailer or all of the savings they are trying to make," Afram adds.

When it doesn't please your patients. Right now, frame selection is being driven by a different sort of market than two years ago.

"It's become very clear that the ECP business is being driven by managed care and by the fact that people want to purchase what is included in managed care," says Arthur Jankolovits, president/CEO of New York Eye/Hart Specialties.

It's also important to remember that they want a bargain, but they don't want to look cheap. "No one wants to buy a second-class product," he says.

PRODUCT MIX: BRANDNAMES

According to InterBrand's recent report, "The Most Valuable U.S. Retail Brands 2009," brands are more important on the retail level than ever. People today seek assurance from brands that the goods they buy will deliver in terms of quality and performance as well as style.

"Brands with genuine character, definitive core values, and concern for community will most likely be able to bring their assets to bear under changing circumstances," the InterBrand report notes.

PRODUCT MIX: PRIVATE LABEL

In its release of the paper, "Private Label 2009: Game-Changing Economy Taking Private Label to New Heights" by research firm IRI, three major factors were cited as helping to boost business for non-licensed labels.

1. Worth: The products "offer a very strong value proposition based on quality as well as price."

2. Timeline: The report predicts that "shoppers will continue their frugal shopping patterns long after the current recession ends."

3. Diversification: Increasingly, value is not just for the managed care market. Higher-end practices are seeking unbranded eyewear made of finer materials for increased profits and lower price tags. The report notes that: "Finally, retailers' increasingly sophisticated private brand strategies will attract a larger and more diverse shopper base." EB