Optical Turn Rate: What It Is, How It’s Calculated And Why It Matters

Turn rate is a key performance indicator (KPI) for opticals that shows how often your frames sell through in your practice. Ideally, a healthy optical should turn its inventory at least three times within a 12-month period, which is considered the benchmark for most frames. This number can shift depending on several factors:

• Your business model
• How much inventory you keep on hand
• The price points in your optical
• Whether your practice relies heavily on managed vision care

Higher-end products like luxury frames typically move slower than budget-friendly ones. On the other hand, products that offer patients zero out of pocket expense may turn at a quicker rate.

How To Calculate

To find your turn rate, divide the number of frames sold over the past 12 months by the number of frames you currently have in stock.

Example:

1,954 (Frames sold over the past 12 months) / 750 (current stock) = 2.6 turn rate

This means the practice is selling through its frame inventory about 2.6 times per year.

There are two ways to improve this important indicator:

1. Increase sales
2. Reduce inventory

If you want to hit a 3x turn rate by reducing inventory, the formula looks like this:

Formula: Frames sold (12 months) / 3 (turn rate goal)
Example: 1,954 / 3 = 651 frames

Instead of carrying 750 frames, this office should only stock 651 frames to reach its 3x goal if it is not realistic to achieve a higher number of frames sold.

Increasing sales is the more desirable way of achieving your turn rate goal, in which case the higher frame count still makes sense. Using this same example, it would be necessary to increase sales by 296 frames per year to achieve a 3x turn rate. (750 current inventory x 3 turn rate = 2,250 frames)

Why Turn Rate Matters

Tracking turn rate gives you a clear picture of how your board is performing and answers questions such as:

• Is your inventory bloated?
• How much product should you realistically carry?
• Which frame lines are worth keeping and which ones are tying up capital?
• Where can you lower cost of goods (COGS) without hurting sales?

When you have this clarity, you can reduce excess spending, improve efficiency and free up cash flow that can be reinvested into your practice.

Example: Brand Breakdown

Looking at this table, Nike is turning at a strong 4x rate. This office could comfortably stock more Nike frames knowing they will move. Using this allocation formula:

Formula: Frames Sold (12 months) / 3 (turn goal)
Example: 171 / 3 = 57 frames

So, instead of just 42, this office could carry up to 57 Nike frames without the risk of overstocking.  

Bebe, on the other hand, is turning at 2.8, which is closer to the goal. That line does not need an increase in stock.

Managing frame boards is one of the toughest challenges in an optical. By setting turn rate goals and tracking performance, you can simplify your buying process, avoid overstock, lower COGS and keep your office running lean and profitable. Remember: Less inventory, if managed well, often means stronger cash flow, higher capture rates, and fewer headaches.

We’re here to make sure you succeed. If you are unsure of your practice’s turn rate or want help setting the right goals, connect with an optical advisor today — a complimentary benefit with your PECAA Max membership! Not a PECAA Member? Contact us to learn how PECAA can help your practice thrive.