Don’t Get Swindled by Supplier Specials
Or that frame special could be your next big regret.
REIMBURSEMENTS HAVEN’T INCREASED in years and the cost of running an optometric business seems to increase daily. This leaves ECPs vulnerable when it comes to frame buying savings.
We’re taught to care for patients—not the science of retail—which leaves buyers vulnerable to sales tactics. Vendors create “specials” to get opticals to purchase more. Spontaneous decisions on specials cost opticals thousands. I’ve been able to track how these specials can be a great move for our Spexy member opticals, but sometimes there is a massive cost that can be traced back to these momentary deals.
Let’s highlight three of the most common sales specials:
1. Purchase Quantity for a Free Frame.
Ex: ABC Brand is offering a special — when you buy 15 frames you get one for free. Each frame is about $75.
Saving You: $75 or about 6.5%.
Costing You: More than just the $1,125 for the order. Many opticals find themselves inflating board space for that brand just to get the free frame, giving real estate to a brand that has not earned it.
Red Flag: If you have nearly 15 open spaces for the brand because you stopped reordering knowing the rep was coming … shame on you! That is terrible board management and we need to talk.
Conclusion: Great option if you were already planning on increasing the inventory for that brand. Terrible if you’re adding more frames on a whim.
2. Frame Buy Back.
A rep offers to replace other frames in your inventory— even brands you are discontinuing.
Saving You: The hassle of removing underperforming frames. No money exchanged — just old frames for the new brand — seemingly a no-brainer.
Costing You: Most ECPs swap spots that had mediocre frames that wouldn’t sell for … mediocre frames by a different name. A lateral move.
Conclusion: Great option if the brand is one you have been eager to try! Terrible if your main appeal is that you already know and like the rep so, “What harm could it do?” Though it seems easy, it will cost you.
3. Manufacturer Brand Commitments.
When an optical has one or two brands from a large manufacturer, if they commit to bringing on X more brands, they’ll get a percentage discount on every order.
Saving You: This offer will come after you paid a large bill from this manufacturer, so the total discount seems large. Then multiply those totals by the X more brands you might be adding … and the savings seems exponential.
Costing You: A lot! Every space occupied in your optical by brands that are not moving costs you thousands. Do the math! Look at what you have spent this last year with the existing brands and calculate that percentage into a dollar amount. Is it beneficial to give up all those extra spaces to save that amount?
Conclusion: This could be a good option if the brands offered are some you have been wanting. Every time I have seen this offer implemented though, it results in a massive step backwards that is regretted by the optical a year later.
Scan the QR code for a video deep dive into these specials and real ECP examples.
Having a pulse on our optical’s performance allows you to eagerly snag a savings when beneficial and guard you from regretting an impulse decision.