How do opticians survive?
Options
Comments
-
Actually, most online companies struggle to make a profit as well, but that's another conversation.
I agree with your point but how do we get there? In some areas 60-70% of sight tests are NHS funded so fixed at about £21. The going rate for a private sight test is pretty similar.
If, say, Vision Express decided to suddenly raise their sight test fee to £50, and not renew their NHS contract, how long would they last? Most people would just go elsewhere and the company wouldn't last 6 months.
Well that would need the profession as a whole to opt out of NHS work. If you are only getting £21 and even somehow do three an hour that is only £63. You would struggle to find a solicitor for less then £200 an hour and they need far less expensive equipment!
So, taking your suggested (presumably economic) £50 figure, what you are saying is that the extra £29, at least, is hidden in the price of the glasses. In fact it must need to be more given that some patients will exercise their right to take the prescription and go to an out of town spectacle maker or online?
Can't help feeling the bubble is going to burst before long!
The dentists on here have similar tales of woe regarding NHS fees and they can't, on the whole, subsidise it by selling heavily marked up product.0 -
Undervalued wrote: »I suspect many are struggling.
This has been discussed on here before but I feel it is a consequence of the "lost leader" business model they have adopted.
You make a valuable point, but I would say that the business model has been forced upon the profession by the government and the fact that other large commercial companies devalueing what the profession does in the eyes of the public by giving services away for free on assumption that folks going there will be filling their trollies with groceries at the same time.
The NHS won't take the profession seriously whilst some providers are still offering free eye tests to tempt extra business.
Ideally the profession as a whole needs to stand together and drop the NHS contract, but unfortunately, there will always be companies that will break rank to further their own means. Looking at the bigger picture, unless something changes, quality and choice of services will ultimately deminish.
Thankfully, there are plenty of patients who value quality of eye care and service. And there are plenty of Independent practices that are thriving by offering a different experience to multiples and supermarkets.Beware the character seeking personal gain masquerading as a moral crusader.
:beer:0 -
Dispensing is cheap and relatively low skill for most people that need correction.
Frames are cheap choice of lenses is the key expense.
The places that are offering cheap testing are finding people that will accept the wages on offer the services.
The industry has lost transparency to the public of where the costs are.
I can get titanium frame rimless progressive photochromic delivered for around $200
Anyone in the UK dispensing at that price.0 -
Specsavers are franchises. This means that the franchisee has a vested interest in running a good, professional business.
The branch in my town is excellent. And yes, OH and I are known.Member #14 of SKI-ers club
Words, words, they're all we have to go by!.
(Pity they are mangled by this autocorrect!)1 -
pollypenny wrote: »Specsavers are franchises. This means that the franchisee has a vested interest in running a good, professional business.
The branch in my town is excellent. And yes, OH and I are known.
I once got glasses from them, and the prescription was all wrong. It turned out that my cornea was swelling due to splinters. They sent me to the hospital for treatment the same day, then redid the eye test and glasses and no extra charge. Excellent. The local branch did contacts for me. I didn’t get on with disposables. But they seemed to push them. I can see disposable contacts being a nice earner.
My new glasses on order are Lindberg, and I know the profit margin is high. But I like the design. I had titanium rimless before and after four years they still look like new, and no lost screws, or bent temples.
I suspect a reason people will pay to go to an indie is the range of designs. SpecSavers are excellent value but limited styles. 4 years ago they had no round rimless designs.
Incidentally the going rate here for an eye test is about £40. SpecSavers sometimes do them free if you buy glasses or contacts from them.
Interesting about online glasses. Online is killing so much of the high street.0 -
getmore4less wrote: »Dispensing is cheap and relatively low skill for most people that need correction.
Frames are cheap choice of lenses is the key expense.
The places that are offering cheap testing are finding people that will accept the wages on offer the services.
The industry has lost transparency to the public of where the costs are.
I can get titanium frame rimless progressive photochromic delivered for around $200
Anyone in the UK dispensing at that price.
Yup, SpecSavers. Elsewhere the frame will cost maybe £200 plus at least £100 for the lenses. Online will do them for half that.
In the US many shops and most brands are owned by Luxottica, an Italian company that owns Ray Ban and many others. They seem to have a near monopoly.0 -
Specsavers are franchises.
They are not they are Joint Venture Partnerships.
They maintain the majority holding in each practice and each practices pays to headoffice on turnover. They have total control of each practice
It is a wonderful business model for specsavers.1 -
27-01-2019 7:45 PM
pollypenny
Some Specsavers are franchises and/or Joint Venture Partners0 -
-
In the case of MacD an owner in the US does not make much money at all, in part due to the franchise terms. However, many if not most owners in the US have multiple branches. I assume it is the same here too. There are four indie opticians nearby, all four belong to chains, 3 chains in total each with 4 or more shops, so it looks like a similar business model and the overall profits per shop are probably not high.
One local chain has sold several shops to another chain that is expanding so I assume the owner is planning to retire, or maybe just pocket some money. Interestingly one chain goes by a common name - Mathesons - but the other uses individual names for each shop, with no indication they are a chain, and no obvious contact details for the owners. Shame because I need to complain as they are flouting the law not having given me the prescription for an eye test I had 5 weeks ago, despite repeated requests.0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards