CLINICAL

  OPTICAL

IMPLEMENT THE HALO EFFECT

USE HIGH-END FRAMES TO CHANGE THE VALUE PERCEPTION OF OTHER FRAMES

DAVE ZIEGLER, O.D.

IN 1986, Steve Fendrich opened a small mattress store in Houston to offer an unmatched level of service. From his start delivering mattresses on the top of his car, his business grew into Mattress Firm, which now has 2,400 locations and $2.4 billion in annual revenue.

To achieve this, he introduced $2,000 mattresses, significantly more than his customers were used to paying. “We learned that to sell of lot of $1,000 beds, we had to have $2,000 beds in the store, so people could tell what better beds felt like,” Mr. Fendrich said in a December 2015 article in Fortune.

This psychological phenomenon is called the “Halo Effect,” which means the presence of one thing can impact your perception of something else nearby. A $1,000 mattress may seem extravagant in a store where most of the other mattresses cost $500. But that same $1,000 mattress may seem like a bargain in a store where most of them cost $2,000. In other words, the cost of products nearby affect how people value other items.

YOUR OPTICAL

The Halo Effect can happen in your optical area too. If you bring in a new line of frames that cost significantly more than the rest of your inventory, they make your higher-priced frames seem like a better deal. You can use the Halo Effect to increase your revenue and profits, while upgrading your frame inventory. Here’s how to do it:

1. Choose the new frame lines. Bring in one or two new lines of frames that cost 50% more than the most expensive frame you offer now. Make sure the lines have their own unique style and brand. (Tip: Attend trade shows, such as Vision Expo East, to view a large selection in one place.)

2. Set the stage. Use the manufacturer’s and other interesting point-of-purchase merchandising to showcase the new product. Use unique lighting to draw consumers’ attention to the new line. Also, ask the frame representative for complimentary frames so that doctors and optical staff can wear the new eyewear.

3. Get training. Arrange a meeting between your optical staff and the new frame representative to go over the unique selling features for the new product.

MONITOR THE NUMBERS

Don’t be surprised if you don’t start selling many of these more expensive frames right away. They will never be your best seller — and they don’t need to be. Instead, monitor the rise of your average-priced frames as the Halo Effect starts to increase the perceived value of your other higher-end frames. OM

DR. ZIEGLER is a senior partner at Ziegler & Leffingwell Eyecare in Milwaukee, Wisc., and a fellow of the American Academy of Optometry. Email him at daveaziegler@gmail.com, or visit tinyurl.com/OMcomment to comment.