There are as many ways to approach pricing as there are possible prices for your products. Some systems can make it very quick, but end up leaving money on the table, or you can end up spending a huge amount of time working on pricing without making a significant impact on your bottom line. Fortunately, there are a few strategies you can use to leverage research that has already been done for you to find the pricing sweet spot that gives your patients confidence that they are getting a great deal, without undercutting yourself in the process.
Step One: Research
It’s an easy assumption that the ‘big guys’ around you are charging far less than you are able to, but in fact they make their money based on that assumption without it necessarily being true. Take a day and check out your local Lenscrafters, Wal-Mart, Costco, and any other large retailer. They’ve poured a huge amount of money into researching what your market will be able to bear, and that can give you insight into what the patients in your neck of the woods are willing to spend.
Don’t be afraid to shop online as well. Many online retailers will present an outrageously low price on the front end, but add on charges on the back end. Do the research so you can speak confidently about these issues to your patients, and demonstrate that you are interested in not only providing them excellent care, but also great value out of respect for them as your patient.
Step Two: Implementation
Price your products not just based on a simple rule (i.e. Wholesale price x 2), instead use your research to tell you what patients are willing to pay. You can guarantee that they will price comparing with their smartphones while they are in your optique, so clearly label prices to show that you are confidently offering them a fair deal.
We have created an interactive PDF that you can download and use to demonstrate to your patient’s competitors pricing versus your own, and how you can save them money with $15 complete eyewear from VCD Labs.
Step Three: Ongoing Analysis
Have your staff track your best selling frames and lens options, and note price points and styles. Be willing to keep up with the market and try new fashions and new strategies. You can compete with the big boxes, but you have to be what you are telling your patients you are: a professional who has taken the time to understand their eyes, and can guide them to making the best decisions for both their vision and their wallets.
Pricing doesn’t have to overwhelm you, but you can’t ignore it, either. Just like your continuing education courses, it keeps you in touch with the world your patients live in, and the optometry industry. In a world of fingertip-information access, your practice can’t live in isolation. But with a little smart work, you can increase your profits and provide the best possible care for your patients’ vision.