Vision Council Reports Independents Are Taking Share From Corporate Eyecare

Things I Learned From The ClearVision Optical Sales Meeting

I recently attended the annual meeting for ClearVision Optical to serve as an industry panelist for their national sales force.

I was very impressed with the energy of the meeting and would like to offer my sincere thanks to CVO president David Friedfeld for the invitation.

A top ten frame company, ClearVision has

a very sharp group of sales reps who are focused on serving independent optometrists.

I encourage you to spend some time with your CVO rep if you are not currently using them. Qualified Red Tray members receive the full 20% discount on all CVO frame purchases. Visit www.redtraysaves.com for more details.

3 Reasons Independents Are Taking Share From Corporate Eyecare

One of the keynote speakers for the CVO meeting was Steve Kody, Director of Optical Industry Research with the Vision Council. www.thevisioncouncil.org

According to Vision Council research, independent eyecare practitioners (ECPs) currently hold the following share of the total optical market:

• 44.2% for eyeglasses, contact lenses, sunglasses, readers, and exams. That is $13.5 Billion in sales revenue for independents versus the total market of $30.6 Billion. (Note: That figure excludes the refractive surgery and LASIK market.)

• The independent share of the frame market ($ sales, not units) is 46.7%.

• The independent share of spectacle lens sales in $ is 49.7%.

• Independents’ share of all contact lens sales in $ is 38.1%.

Note: the Vision Council does not break out data between independent MD and independent OD sales figures.

Market Share For Independents Is Up Slightly

Market share for independents is up by 1% from the 12 month period ending June 2008.

Granted that is not much. But, at least the trend is encouraging as market share for independents was down by 2.4% for the 12 month period ending June 2005.

3 Reasons Independents Are Gaining Share

Vision Council research sites three main reasons independents are taking share from chains during the recession:

1. Trust: Consumers concerned about eye health tend to place a higher level of trust in independents than in chains.

2. Third party acceptance: Independents tend to accept a broader range of third party payment programs. This is especially important during tough economic times.

3. Adaptability: Because independents have smaller practices with fewer locations, we are better positioned to adapt quickly to changes in the marketplace and the economy.

Large chains are more bureaucratic and have to deal with many locations spread across a region or the entire country.

What’s The Lesson For Independents?

Yes, times are tough and consumers have cut back on their retail spending. But, your corporate competition is suffering more than you are.

Offer value. But, don’t try to grow your practice through excessive discounting.

The key to maintaining your patient base is to work on building personal relationships one visit at a time and continue to provide a high level of customer service.

Regards,
Jerry Hayes, OD

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Disclaimer: The information and opinions contained on this site are for discussion purposes only and are NOT intended to serve as legal, accounting or investment advice. ©2009 Jerry Hayes, OD. Not to be reproduced without written permission of the author.