BUSINESS

  BY THE NUMBERS

OPTIMIZE FRAME INVENTORY

HOW TO INVEST YOUR TIME AND MONEY IN THE RIGHT SELECTION

JAY BINKOWITZ

ONE OF the great value propositions we provide for the right patient experience is on-hand selection. Folks too often feel they still need to shop because due to lack of a selection, hence a low turnover and conversion rate.

Here, I discuss retail strategies to show less is more when it comes to your frame inventory.

HOW MANY?

Every practice should have a minimum of 1,000 frames. These are broken into categories: adults, kids, tweens and suns. For example, my practice’s frames are allocated as such: 800 adults, 400 plano sunglasses, 100 kids, 100 tweens and 100 express-buy bundles (or $79 frame and lens packages).

OPTICAL SPACE

The most important factors for the number of frames you carry is the layout and presentation of your optical. This directly impacts your patient’s perception of value and the confidence he or she has in making a decision without buyer’s remorse.

In general, 25% to 40% of a practice’s area should be allocated to the optical. The bigger the better! At my own 1,800-square-foot practice, 900 square feet is utilized by the optical; it contributes 75% of our revenue.

WHICH ONES?

Now that you know how many frames. Which frames?

1. Ask your reps. We spend hours with frame representatives to decide what we like or think will sell. Narrow this down. Ask the rep for the top 10 best-selling styles in the two or three best colors, and choose from those.

2. Build collections. Consumers see confidence when you present a full collection of frames. I define this as having more than 30 units per collection.

3. Offer options. Provide a collection presence by purchasing 10 styles in three colors, or get one or two of the 10 styles in three of the same color (it may be a best seller).

4. Represent multiple price points. Track at which price points your consumers are purchasing from. Do so at original list price and final patient out-of-pocket cost. From there, compare your sell through at each price point, and either increase or decrease your inventory based upon results.

5. Calculate turnover rate. Choose those frames you already know sell. (For more on turnover rate, check out April’s “By the Numbers” column.)

RIDE THE FLUCTUATIONS

Consumers still want to touch, feel and try their frames on. It is why they have chosen you vs. an online experience. This sensory experience requires a robust inventory that clearly differentiates you from the Internet. Maintain robust collections and inventory levels to attract and “wow” your patients.

Trends in sales will always fluctuate. Listen to what your patients really want and what the frame representatives teach us. Manage your inventory with facts, figures, instinct and feedback to reflect the demands of your customers. OM

MR. BINKOWITZ is president of GPN, a leading businesss management company based in Farmingdale, N.Y. He has had extensive experience in retail operations, merchandising and marketing. Email him at jay@GatewayPN.com, or to comment on this article, visit tinyurl.com/OMcomment.