CLINICAL

  optical

Maximize Optical Success

These three metrics can provide a clear picture of your optical’s health

DAVE ZIEGLER, O.D.

Your optical can account for roughly half of your revenue, so keeping a close eye on this portion of your business is critical to success. Tracking the following metrics will provide a good picture of the health of your optical.

1. Productivity

A key metric to track is revenue per patient. Though it only speaks to gross charges and not profit, it is a good indicator of how your optical is performing. The Essilor Management & Business Academy’s average revenue per patient is about $300, which is calculated by dividing your total revenues received (not charged) by the number of “routine eye exams,” or the encounters that are annual checkups with refractions.

2. Product sales

It is critical to evaluate the products you sell to look for opportunities. Track the following:

▸ Percentage of AR. Although this number has grown to around 30% of lenses sold, many practices approach 100% AR by simply adding AR to their lens packages.

▸ Percentage of bifocal conversions. Statistics show that about half of all presbyopic patients still wear bifocals. This means many patients can be upgraded to progressive lenses.

▸ Frame pricing. Many practices use a sliding scale to price their products with a higher markup for less expensive frames and a lower markup for higher-priced frames. Evaluate your position in the marketplace, and have frames that represent your target audience. Don’t be afraid to offer lines that are twice the price of your most expensive frame. Some patients will be attracted to it, and the high cost will make your other frame lines look more affordable in comparison.

▸ Second-pair sales. Not only do these specialized products, such as computer glasses, offer your patients improved vision, they give the practice a great source of incremental income.

3. Efficiency

It’s important your processes run smoothly so that patients get the right glasses in a timely manner. To measure efficiency, look at the following:

▸ Cycle time. This is the time it takes to get glasses back from the lab after they are ordered by the patient. To compete with online and optical chains, you must provide a quick cycle time, such as three to five working days. If you don’t have an in-office lab to control turnaround, you can accomplish this by adding a remote tracer, which allows the lab to prepare for your order even before the frame arrives.

▸ Remakes. Remakes cost time and money, and lead to dissatisfied patients. Track your remake rate each month, and identify the sources of error — incorrect measurements, scratched lenses, optician or doctor error, etc. Once identified, implement changes to reduce these costly mistakes.

▸ Frame inventory. Always have your bestselling frames on display. When a bestseller sells, don’t replace it with a less popular style from your backstock. Instead reorder each frame you sold during the week each Friday so that you always keep the best frames on the board. This is called “just-in-time” inventory.

A closer look

Once you begin to analyze how your optical performs, you’ll be able to identify your strengths and weaknesses, and take steps toward improving the overall health of your business. OM

DR. ZIEGLER IS A SENIOR PARTNER IN A GROUP PRIVATE PRACTICE IN MILWAUKEE, WISC., AND A FELLOW OF THE AMERICAN ACADEMY OF OPTOMETRY. E-MAIL HIM AT DAVEAZIEGLER@GMAIL.COM, OR SEND COMMENTS TO OPTOMETRICMANAGEMENT@GMAIL.COM.