 The dispensary is a critical component of any successful eyecare professional’s practice. Managed correctly, it can bring in large numbers of new patients, improve patient service and satisfaction, and provide substantial profit. However, managed incorrectly, the dispensary can be a source of dissatisfaction and patient complaints and will result in financial loss.
It is important to recognize that the dispensary does not stand alone but is rather a component of the larger entity. Therefore, there may be some decisions that may not be beneficial for the dispensary but serve the best interest of the practice overall. For example, a more forgiving return policy may result in an extra refund of $100 for a given patient, but if that patient leaves and receives their medical care elsewhere, it may result in thousands of dollars of lost revenue for the practice.
Still, there are a couple of primary keys to making your dispensary profitable—improving sales and controlling costs.
Improving Sales—Providing Excellent Service
Excellent service starts with the optician. The optician needs to be patient focused, knowledgeable, well trained, patient, and not rushed or overworked. In addition, the front desk personnel and technical staff need to support the dispensary and to not view efforts to assist the optician as an additional burden or chore. This includes answering the phone and directing patients in the office to the dispensary.
The dispensary needs to be open a sufficient number of hours, ideally including at least one late night and weekend day. Access to the dispensary must be convenient, including parking. Coverage must be available even when the optician is sick or on vacation as nothing upsets a patient more than taking time out of their schedule to pick up glasses or have adjustments made and find the dispensary closed. Your competitors do not close; you need to stay open also.
Finally, the dispensary needs a reasonable return policy and competitive prices. You do not have to compete with the deep discount clubs, but you do need to be competitive with dispensaries that provide similar levels of service.
To ensure a smooth-running dispensary, all of the following elements must be in place:
The Doc Must be Involved Many a dispensary has suffered from lack of doctor support. Do not be afraid to be clear that the dispensary is part of the practice, and that the doctor puts their full confidence behind it. Make sure the doctor introduces patients to the optician and communicates their needs.
Proper Product The practice must not be afraid to invest in sufficient inventory to satisfy the majority of its patients. This includes frames, accessories, displays, and merchandising.
Marketing This is very practice specific and is decided on a case-by-case basis. It is our experience that for the majority of eyecare practices, external marketing is less effective than internal marketing. This includes patient recalls, promotion of optical products to contact lens and LASIK patients, internal signage, and general office support.
Sales of Premium Products It is substandard care to not offer each patient the option of all premium products which may benefit them. This includes anti-reflective lens treatments, high index lenses, and advanced progressive addition lenses. To adequately determine whether these products are being offered and sold at an appropriate rate, their sales need to be measured and benchmarked against industry standards. Sales of premium products below target rates must result in optician education and perhaps the establishment of sales incentives.
Vision Plans Each vision plan is different, and the optician must have a comprehensive knowledge of how each plan works and how to maximize the benefit to the patient and the reimbursement to the practice. The practice must be willing to seek and evaluate the major vision plans and to not be afraid of avoiding poorly paying plans, which can be a drain on resources that are better used caring for more profitable patients.
Frame Purchases While it is important to provide a sufficient selection of frame brands, the number of vendors should be kept to the minimum possible. This will allow better discounts and terms from the remaining vendors, and it will also reduce shipping and administrative costs. Frame purchases by the optician must be supervised and reviewed. It is too easy and tempting for the optician to overbuy frames from friendly sales representatives. Inventory control must be in place to prevent shrinkage…it happens!
Lens Purchases Negotiate with your optical laboratory. For larger discounts, discuss the use of lab-preferred lenses, including progressives. Provide in-house edging only when the monthly volume is high enough. Use stock lenses when available.
Optician/Staff Payroll Ensure that salaries are appropriate to abilities and prevailing wages. Over time, yearly raises can result in salaries above market level, especially in the current tight labor market. Make sure that the staffing level is appropriate. It is easy for the staff to ask for additional personnel, periodically evaluate staffing levels to assure proper levels. Institute and carefully monitor sales-based bonuses. Human nature tends to cause employees to “game” such bonuses, and as such they can have unintended effects.
Miscellaneous Costs Periodically review and carefully analyze such costs as shipping, telephone and Internet, supplies, cleaning services, etc. A savings of $400 to $500 per month can result in a 10% increase in profit.
Properly managing a dispensary takes work and dedication, but the rewards are substantial. If your dispensary is not performing to its potential, there are a number of resources and consultants who can assist with implementing the required changes. The dispensary should be the brightest spot in your practice. Paying attention to these Keys will enable your practice to enjoy the rewards of a successful dispensary.
Judd Sky is the president of optical management company Partners In Vision. Contact feedback@visioncareventure.com with comments and/or suggestions for future topics.
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