Nathan Hayes

Nathan Hayes is the Manager of Business Development for Red Tray and Editor of sellingtoecps.com.

Reps are welcome to contact him at 404.934.3535 or to send him an e-mail if you have questions about how Red Tray can benefit your accounts or with general comments about selling to ECPs.

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Why Contact Lens Sales Matter to ECPs

Posted on October 1, 2010
Filed Under Articles |

From a purely financial standpoint, which product’s sales will deliver higher profits to an independent optometric practice: spectacles or contact lenses?

The answer is, BOTH.

If your accounts view spectacles as more profitable for their practices than contact lenses, you may want to share the following data presented at Vision Expo East by Dwight Ackerman, OD, Director of Professional Programs for CibaVision.

First off, when comparing contact lenses to spectacles, there is no argument. Practice owners generally realize higher gross margins on frames and spectacle lenses than they do on disposable contact lenses.

CibaVision’s data show the average gross profit margin on spectacles is 62%.

By comparison, their surveys puts the gross profit margin for contact lenses at 46%.

Don’t Overlook Long-Term Value

However, an ECP’s gross margin on one product sale does not accurately paint the whole profit picture when it comes to contact lenses.

The more important question for independent OD’s is: What is the long-term value of that patient to the practice? According to Dr. Ackerman, that’s where contact lenses give your accounts a higher financial return.

Based on CibaVision’s research, contact lens patients, on average, generate 91% greater revenue for the typical OD practice over a six year period.

Why Are Contact Lenses Are More Profitable On A Long-Term Basis?

– Contact lens patients return to the practice more frequently for BOTH eyecare and eyewear.

Those patients also require medical services more often for red eye, dry eye and allergies.

– And the key finding: Patients who purchase both contact lenses and spectacles are ultimately the most profitable to your practice.

What does this mean to you?  Whether you carry a frame line, lab services or contact lenses, helping your accounts grow their overall profitability will always increase your value as a sales consultant.

What do you tell your accounts about using contact lens sales to grow their practices? Post a comment below or send me an email.

Disclaimer: The information and opinions contained on this site are for discussion purposes only and are NOT intended to serve as legal, accounting or investment advice. ©2010 Red Tray. All rights reserved. Not to be reproduced without written permission of the author.

Comments

One Response to “Why Contact Lens Sales Matter to ECPs”

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