Dr. Hayes Blog

Jerry Hayes, OD presents a variety of tips and tactics designed to
bring more dollars to your bottom line. You are invited to
comment on the topics we cover.

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Article Archives

Is Chair Cost Relevant In An Era Of Managed Care?

By Jerry Hayes OD | 3/31/2009 - 10:09 am

I still get the occasional email from an OD asking me how to calculate so called ‘chair costs’. You know, that pesky dollar figure an optometrist must produce on a per-hour or per-patient basis to support his or her practice overhead.

The usual rationale for calculating chair costs is to make sure you

Does Advertising Pay In Eyecare? Here’s How To Track Your ROI

By Jerry Hayes OD | 3/27/2009 - 8:18 am

In my last blog, I talked about the importance of tracking response rates when you advertise and gave you three techniques to use:

1. Put a source code in all your ads such as ‘Free LASIK Screening, just ask for offer #YP09.’ The source code can then be

Does Advertising Pay? You Won’t Know Unless You Track Your Results

By Jerry Hayes OD | 3/24/2009 - 9:33 am

Many optometrists spend thousands of dollars every year on radio, newspaper and yellow page advertising with no clear idea if they are getting their money’s worth.

In fact, I find that few ODs can tell me how profitable any of their advertising is because they aren’t doing two important things:

Optician Is Netting 33% On Dispensary Sales

By Jerry Hayes OD | 3/19/2009 - 10:22 am

Dear Jerry,

I am an optician who owns the optical side of our practice in a 50/50 relationship with an MD.

We do about $400,000 in gross optical receipts with a single doctor working three clinic days a week. We employ two full-time opticians who work only in the optical area of our practice.

Our practice strictly divides out professional fees from our retail optical receipts.

When you speak of $400,000 in gross revenues, I assume that number also includes professional fees along with optical receipts?

We are maintaining around a 33% net profit margin, with all optical salaries and overhead coming from these receipts. Does this seem healthy?

In my small world, it seems to be a good working ratio. What are your thoughts?

David Bressette, LDO

Dear David,

This is an interesting scenario because

Employing Family Members: Can A Ten Year Old Put Their Earnings In A Roth IRA?

By Jerry Hayes OD | 3/17/2009 - 9:15 am

Dear Dr. Hayes,

You recently stated in a blog on employing family members that: "The level of compensation must be ‘reasonable’ to the child or spouse and good recordkeeping is an absolute must.

Also, the tasks that your child or spouse are charged with must be consistent with their age and skill level. You can’t reasonably put your ten year old daughter on the payroll for the purpose of maintaining your payables. But, she certainly may be a great sweeper or duster!"

All good advice, but my question is, can the 10 year old put their earnings into a Roth IRA?

How Much Should An OD Practice Grow Each Year?

By Jerry Hayes OD | 3/13/2009 - 7:56 am

Dear Jerry,

We have used your bonus model for many years. We have a large practice and have no trouble with the cost of goods or overhead expenses.

But, we consistently fall short on the growth side. You used to recommend 10% growth before receiving the bonus. Are you now recommending 4%?

Thanks,
David Miller, OD

Dear David,

Good question. I am sure

How To Bonus When You Don’t Make Your Goals

By Jerry Hayes OD | 3/12/2009 - 7:33 am

Dear Jerry,

Your blog on bonuses contains very good information. I have a couple of questions:

What if you reach just one or two of the three goals? Would you award no bonus? What about a partial bonus?

In terms of timing, why do you think a quarterly bonus is more effective than a monthly bonus?

Thank you!
J Kirkeide, OD

Dear Dr. Kirkeide,

I get both of those questions a lot. Here is my thinking.

Congratulations To Dr. Martha Greenberg, OD Of The South!

By Jerry Hayes OD | 3/11/2009 - 10:26 am

Hats off to my good friend and fellow SCO grad Martha Greenberg of Russellville, Alabama! She was named

Why Bonus Programs Get Stale And What To Do About It

By Jerry Hayes OD | 3/10/2009 - 9:27 am

Dear Jerry,

We have been using a bonus program like you suggested for a number of years. It seems to work pretty well and the mechanism is now an integral part of our day-to-day operations.

As a result, our practice has grown consistently 8 to 12% every year. However,

Creating A Bonus Program For Your Entire Staff

By Jerry Hayes OD | 3/4/2009 - 10:13 am

Based on the feedback, the subject of staff bonuses is still a hot topic for OD practice owners.

Let’s say you have now decided that you want to get away from spiffing activities, but you still want to do something to incentivize your whole staff. What can you do?

My advice is to build your employee incentive plan around