Practice Profits: The Case For Contact Lenses
By Jerry Hayes OD | in
|
8/19/2010 - 12:23 pm
From a purely financial standpoint, which modality can be expected to deliver higher profits to your practice; spectacles or contact lenses?
The answer is, BOTH.
If you are an OD who views spectacles as more profitable for your practice than contact lenses, you may want to consider the following data presented at Vision Expo East by Dwight Ackerman, OD, Director of Professional Programs for CibaVision.
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contact lens profitability
I think Dr. Ackerman has some valid points. Contact lens patients come in more frequently, each time creating the opportunity to purchase prescription eyewear or non Rx sunglasses. As for competing with the online suppliers and big box stores, price your lenses competitively and keep inventories in the office. The only thing more convenient than home delivery is to see your annual supply sitting on the table in front of you at the time of check out.
Contacts vs Spectacles Profitability
I would agree CL patients probably do require more care. But more profitable than spectacles? I don't think so.
Dr. Ackerman is a very bright leader in Optometry, however, he is not in the trenches anymore. The profitability in contacts is dwindling, and sometimes nonexistent. With Costco, Sam's and BJ's able to sell lenses for our cost, or pennies over cost, the profitability is nill.
Yes the patients still have to come in, but will they in the future? Canada has already made CL's nonprescription over the counter items. Online resalers are able to be competed with, and we can make a small profit. More often than not, patients come in willing to but not wanting to pay for fitting fees and follow ups, then want their Rx so they can buy at the Big box stores.
Rebates from the manufacturers help, but ultimately if you are not putting them in the newest products, the rebates are not enough, or you have to take a lower mark up so you can match the price with the rebate.
Not everyone is willing to pay the higher price of the new products, knowing that in the following year the rebate is likely to be lower, and the price of the contacts still higher than what they were previously wearing. It is a challenge.