Selecting The Ideal Frame Lines For Your Optical

The Key Is Aligning Price Points To Your Audience!

Selecting the right assortment of frame lines with price points that appeal to your target patients can be tedious and challenging, but the time investment in getting it right will pay dividends through increased revenue, capture rate and patient satisfaction. Important factors to consider include demographics, brand identity and profit margins. The steps below will help you determine which price points will maximize your optical profit, as well as how to bridge the gap between where you are now and where you want to be. 

Determine Your Demographics

The first step in identifying the appropriate price points for your practice is to determine your target audience. Are you catering primarily to patients with managed vision care, a budget-friendly market, high-end consumers, or a mix? Understanding your patient base is crucial to determining which price points you should offer. For instance, if your practice is in an affluent area, offering high-end frame lines will be more beneficial than lines that cater to young families and students.

Define Your Brand Identity

Your brand identity is essential, but ensure it matches your patient demographics. Many practices offer brands that don't fit their demographics, which can contribute to overstocking, decreased revenue and unsatisfied shoppers. For example, are you positioning yourself as a luxury provider with premium products, or are you trying to offer various options to fit your patient's budget? Your optical should have price points matching both your patient demographics and brand identity.

Analyze Your Current Price Points

By examining your practice’s existing price points, you can identify gaps in your collections and determine if your price points need to be raised or lowered. In the example below, you will notice that this practice mostly inventories luxury products. However, revenue is down due to most purchases coming from the lower tier options — many patients walk with their prescriptions. This example practice may want to consider downsizing their luxury lines and expanding their inventory of more affordable options.

Consider Your Profit Margins

Your markup strategy should be considered when selecting collection price points. The average markup can vary significantly depending on several factors, such as cost, list price, how readily the product is available online, and how in-demand it is. For example, your markup formula may be higher on specific frames that move well than those that take longer. Determine the appropriate markup strategy for each frame line to obtain the practice's desired profit margin.

Test, Monitor And Adjust

Finally, be prepared to test out different frame lines and price points. Monitor each frame line to determine how well it is selling. This will be your guide to determining which lines to increase or decrease board space allocation, and possibly which to remove altogether. Additionally, actively listen to your patients about why they do or do not purchase from your practice — feedback is critical when determining your price points. If shoppers are complaining about your price points and taking their prescriptions elsewhere, consider adjusting your current assortment to meet patient demand.

Your practice's perfect frame line price points can vary greatly depending on demographics, brand identity and desired profit margins. By establishing these critical components, analyzing your current price points and monitoring your frame lines, you can determine the price points most suitable for your practice. To get started, contact Kayla Irwin or Joel Daniel, PECAA's Optical Business Advisors — at no additional cost for PECAA Max Members.