Tips & Advice for Eye Care Professionals
Volume 1: Frame inventory
By Eric Rollins, Rollins Consulting LLC
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Most eye doctors didn't go to school to learn how to run a business, they went to learn how to provide health and improved sight to their patients. But when a doctor opens a practice, they become business leaders at the same time. This column will be a continuing collection of tips and advice on how to improve and streamline the business of the practice, while increasing profitability. The column is written by Eric Rollins, a 25 year veteran of the eye care industry and one of America's leading eye care consultants.
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Volume 1: Frame inventory
Making “blessing” out of online eyewear dispensing is a challenging process involving interaction with patients on the single eye care practice level, changing practices and involvement of the all eye care professional community with the regulatory procedures.
Frame inventory typically represents the largest capital expense of a practice, after equipment and furnishings. It is also an area that frequently is not managed well. Two things need to be consistently controlled: quantity and styles.
Quantity: We recommend inventory turns of two to four per year. This simply means that your number of frames in inventory should be no more than half the number of frames that your practice sells in a year, so your are "turning" your inventory at least twice a year. Example: if your practice sells 1400 frames per year, you should have no more than 700 frames in inventory.
There is also a base number that you don't want to go below, to insure you have products to meet most patients' needs. This number is typically in the area of 400-500 frames. If you go below this number its possible that you will lose patients who don't feel you have styles, sizes or colors that fit their needs.
Styles: It is important to have a good selection of mens, womens, teens and kids frames with great colors and brands. Avoid the "vanilla effect" of having a lot of similar styles and colors from different manufacturers' top twenty sellers. It is important to have a diversity of colors and styles to create interest in your practice and a buzz in your community. Keep a good handle on the sales proportion of each of these areas, and match up the inventory of each area with the proportion selling in your practice.
For more information, contact Eric Rollins at (231) 740-2929, or
ericrollins@comcast.net
Visit
www.rollinsconsultingllc.com