Comments on: The Optician http://www.spring.org.uk/2006/08/optician.php Understand your mind with the science of psychology - Mon, 04 May 2009 10:30:58 +0100 http://wordpress.org/?v=2.9.2 hourly 1 By: Jeremy (PsyBlog author) http://www.spring.org.uk/2006/08/optician.php/comment-page-1#comment-19616 Jeremy (PsyBlog author) Sun, 01 Oct 2006 11:14:00 +0000 http://spring.org.uk/2006/08/the-optician.php#comment-19616 Thanks for your answer and your comment Robin. Much appreciated. Thanks for your answer and your comment Robin. Much appreciated.

]]> By: Robin Kennedy http://www.spring.org.uk/2006/08/optician.php/comment-page-1#comment-19615 Robin Kennedy Fri, 29 Sep 2006 09:36:00 +0000 http://spring.org.uk/2006/08/the-optician.php#comment-19615 Hi there - formerly anonymous. Wasn't expecting dialogue but pleased to engage. Contact Lenses can be extremely high margin but also need the greatest offset against extensive professional time for wearers who do not adapt easily. That said, a significant majority of currently worn lenses are mass manufactured at extremely low unit cost and prices tightly controlled at the distibution level. When the "true" cost of product (lenses, solutions, etc) is seperated from professional fees (testing, fitting, aftercare) they offer relatively low margins compared with spectacles.<br />I agree that discounts can work but feel they should be confined to "product" (specs, frames, lenses). It makes simple sense to help an independent local optician compete with price led promotions by major Optical Chain Stores without devalueing professional (sight test) services which in the UK vary little in price in the High Street.<br />You are very kind in your "bad day" approach. To me, it is a lack of professionalism and completely myopic from a business point of view (Please forgive the optics metaphore - that pun couldn't be cornea!). Hi there - formerly anonymous. Wasn't expecting dialogue but pleased to engage. Contact Lenses can be extremely high margin but also need the greatest offset against extensive professional time for wearers who do not adapt easily. That said, a significant majority of currently worn lenses are mass manufactured at extremely low unit cost and prices tightly controlled at the distibution level. When the "true" cost of product (lenses, solutions, etc) is seperated from professional fees (testing, fitting, aftercare) they offer relatively low margins compared with spectacles.
I agree that discounts can work but feel they should be confined to "product" (specs, frames, lenses). It makes simple sense to help an independent local optician compete with price led promotions by major Optical Chain Stores without devalueing professional (sight test) services which in the UK vary little in price in the High Street.
You are very kind in your "bad day" approach. To me, it is a lack of professionalism and completely myopic from a business point of view (Please forgive the optics metaphore - that pun couldn't be cornea!).

]]> By: Jeremy (PsyBlog author) http://www.spring.org.uk/2006/08/optician.php/comment-page-1#comment-19614 Jeremy (PsyBlog author) Thu, 28 Sep 2006 10:37:00 +0000 http://spring.org.uk/2006/08/the-optician.php#comment-19614 Thanks for your comment, it's very enlightening to read an analysis from someone who understands the business. By the way, are contact lenses also high-margin products?<br /><br />One thing that occurred to me on re-reading this piece is that discounts can work if followed through properly. The optician in question was annoyed when I chose not to buy from him. But, if he had acted politely, I might well have returned at a later date and/or recommended his services to someone else. <br /><br />Perhaps the strategy is sound but the execution lacking. For his sake, I hope he was just having a bad day. Thanks for your comment, it's very enlightening to read an analysis from someone who understands the business. By the way, are contact lenses also high-margin products?

One thing that occurred to me on re-reading this piece is that discounts can work if followed through properly. The optician in question was annoyed when I chose not to buy from him. But, if he had acted politely, I might well have returned at a later date and/or recommended his services to someone else.

Perhaps the strategy is sound but the execution lacking. For his sake, I hope he was just having a bad day.

]]> By: Anonymous http://www.spring.org.uk/2006/08/optician.php/comment-page-1#comment-19613 Anonymous Thu, 28 Sep 2006 10:15:00 +0000 http://spring.org.uk/2006/08/the-optician.php#comment-19613 An interesting post - a path that I have personally walked down looking at the issue as a customer, practitioner, and provider of marketing services. There is often a significant gulf between the skill sets required to be a competent and professional clinician (tester) and a highly skilled retailer (necessary to stay in business). The marketing skills to attract new footfall into small opticians (without debasing the value proposition through discounting) is sorely lacking and not something most are prepared to invest in - even to combat the big ad spend budgets of multiple retailers. The other major problem is (as in your case) abrogating the importance of high calibre staff at the retail edge. All optical retailers in the UK rely on sales of extremely high margin products to offset the burden costs of a high street location, practice equipment, and the underpricing of professional services - this is the bit they have to get right to gain and retain optical consumers. It is important to note that an optical consumer has one of the highest lifetime values of any comparable type - every single consumer in the UK has a need for their services at one stage in their life! An interesting post - a path that I have personally walked down looking at the issue as a customer, practitioner, and provider of marketing services. There is often a significant gulf between the skill sets required to be a competent and professional clinician (tester) and a highly skilled retailer (necessary to stay in business). The marketing skills to attract new footfall into small opticians (without debasing the value proposition through discounting) is sorely lacking and not something most are prepared to invest in - even to combat the big ad spend budgets of multiple retailers. The other major problem is (as in your case) abrogating the importance of high calibre staff at the retail edge. All optical retailers in the UK rely on sales of extremely high margin products to offset the burden costs of a high street location, practice equipment, and the underpricing of professional services - this is the bit they have to get right to gain and retain optical consumers. It is important to note that an optical consumer has one of the highest lifetime values of any comparable type - every single consumer in the UK has a need for their services at one stage in their life!

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