Does your dispensary do the job?

Issue: March 1998

LIVERPOOL, Ohio - As managed care bites into your profits, you want to sell premium frames to savvy customers. Is your dispensary up to the task?

Most optometrists can do more to maximize the attractiveness, efficiency and, thus, profitability of their dispensaries. Ronald L. Detwiler, OD, in private practice here, said, "My colleagues need to put more emphasis on their dispensaries and expand the services they can give to their patients."

Joseph Bruneni, director of education for the Optical Laboratories Association, said the dispensary is particularly important today, generating "between 60% and 70% of the average optometrist's income." Paula Newsome, OD, in group practice in Charlotte, N.C., said materials dispensing makes up more than 60% of her practice.

Cy Furman, president and director of design at Magic Design, said that in the past, most of the one-on-one was between patient and doctor. "Today it's person-to-person with stylist, dispenser and staff," he said. "Today, a much larger part of the income is coming out of a retail environment."

Dr. Detwiler said, "having an optician or optical dispensary increases the benefits you can offer patients." Ken Nist, ABO, FNAO, HFOAA, the Ohio-licensed optician who works with Dr. Detwiler, said they maintain their patients because he believes "the care patients get in the front of the office is as important as the eye examination for vision problems and eye health."

Competition from chains intense

Competition from optical chains is "heating up," Mr. Bruneni said. "The competition today is coming from multi-million dollar corporations that set up state-of-the-art, attractive dispensing operations," he said.

According to Mr. Bruneni, if a patient sees a slick mall display and then an old display in the OD's office, "The OD pales in comparison. Optometrists used to compete with ophthalmologists and dispensing opticians. It's not on equal footing anymore," he said.

Dr. Newsome agrees that chains have bitten into her profits in her 14 years of practice. "It's incumbent upon you not to be just a good practitioner but a good businessperson," she said.

Savvy consumers

As a result of stiffer competition and advertising, consumers are more savvy. "Patients have a lot more options today," Dr. Newsome said. "So they're not obliged to purchase from us."

However, Mr. Bruneni said neighborhood optometrists have a big advantage because of the personal relationships they develop with patients. "But they can only keep their patient base if they can convince patients that they offer everything the glittery chains do," he said.

Mr. Bruneni said the money outlaid for an improved dispensary, even a total redesign, is often recouped quickly. He once observed a design company where practitioners would pay up to $100,000 to redesign a dispensary. He said it amazed him that a practice could get the money back in 2 years. "Patients were more amenable to ordering expensive frames and lenses," he said. "It has a psychological effect, and it has such an immediate and direct effect on sales."

Lori Estrada, a designer at Fashion Optical Displays, agreed. "Rarely do you see less than a 15% increase," she said. This is not always because of extra walk-in traffic, she said, but because current patients "are more apt to spend more money by buying multiple frames or upgrading."

New technology

The emergence of so much new technology has increased the dispensary's importance, particularly in lenses, which now generate more revenue for practitioners than frames. He recommends dedicating a significant portion of the display for lenses. "Most lenses are difficult to explain unless you demonstrate them," Mr. Bruneni said. "It's made the need for visual displays of lenses vital. How can you sell high-tech lenses in a primitive dispensary?"

Mr. Furman agreed, saying, "Often, doctors don't realize that, and if they upgrade their inventory, they've got to upgrade other things as well."

Oklahoma's Dan Bintz, OD, tries to discuss lens materials and options before showing frames.

Improving appearance

The look of a dispensary must be striking. "You have to make a visual impact on people when they walk in," Mr. Bruneni said.

Ms. Estrada added, "People don't realize how quickly a new patient gets an impression of their office. The patients pretty much make up their mind right away before even seeing the doctor."

The look of a dispensary must reflect its clientele. Dr. Bintz has practiced for 12 years in Elk City, Okla., a rural town of 12,000 with no stand-alone optical shops. Most people get glasses from him, so he gives plenty of options, keeping 1,000 frames in stock. "We don't have a lot of people who feel they have only one choice," he said.

Dr. Detwiler and Mr. Nist have worked together for 10 years in East Liverpool, Ohio, where, Mr. Nist says, the people "aren't caught up in being overly showy. It's a nice-looking dispensary, but it's a conservative approach to dispensing, and people seem to appreciate that."

Mr. Furman said that when redesigning your dispensary, you should be objective and look at your dispensary from the point of view of your patient. "Look at the total picture and ask yourself: `How does my patient see me? What does my office say about my level of professionalism?' Be honest with yourself. Make sure you don't see one thing and your patients another," he said.

Ms. Estrada said you should strive for a "clean, professional" look without relying heavily on point-of-purchase materials, which "make it very confusing for the patient."

Dr. Bintz said some colleagues use too many displays rather than doing something that "might be a little more expensive but a lot more practical."

Special displays

Signs are important, said Ms. Estrada, and there should be clearly marked categories. She also recommended children's displays and displays that will appeal to baby boomers. "You want to appear to have a large enough selection of frames so someone won't be tempted to go somewhere else," she said.

Dr. Newsome has discrete sections dedicated to sunglasses, sports vision glasses and occupational glasses, and has signs to guide people. Dr. Bintz keeps a few frames for "small niche" customers, such as very young children. It might take some time to sell them, he said, but that "lets people know that we have a broad inventory of products available and prevents them from going elsewhere."

Colors vary according to a practice, said Ms. Estrada. She said colors should be bright and appealing, but, "I don't think there are right or wrong colors."

Mr. Furman stressed every optometrist should have a marketing strategy. For example, you would not use downscale colors in an upscale practice.

Lighting is important, said Justine Krefft, a designer with Ennco Display Systems. "Lighting can make the same pair of frames look hideous or excellent," she said.

Simple tactics go a long way

While most agree it is a mistake to undergo a redesign alone, Ms. Krefft said there are several things an enterprising do-it-yourselfer can do. One is to get frames up off tables and onto the walls. She also said wallpaper and paint can easily improve a dispensary.

Dr. Bintz said basic decorations often go a long way. During the Olympics, he painted rings from a ring-toss game and bought some international flags for less than $15. He said he got many compliments. He tries simple things to give the dispensary a seasonal or holiday feel.

Staffing crucial

Not only must the dispensary appear better, but more advanced products demand skilled staff. "A fancy optical dispensary will bring people in," Mr. Nist said, "but what keeps them is the care and the experience they have once they get in there. One of the big differences in having a satisfied patient is that patient an extra 5 minutes of your time."

Mr. Bruneni added that it is important to "have staff people who are fully trained in new technology in lenses and frames. Once these things are explained, patients generally want them."

Dr. Newsome has a licensed optician and staff members who invite waiting patients in to look at frames, and she has a computer vision imaging machine so patients can see themselves in different frames.

Purchasing is also important. Mr. Nist purchases for his practice. "We make sure patients get what they want," he said.

Dr. Bintz said the person who sells the most frames in his office does the frame buying, "because he or she will know what most appeals to people." He tries to get lab personnel involved in purchasing to find out strengths and weaknesses of frames.

Dispensary location important

Designers and doctors agree the dispensary should be in the front of the office, ideally near the waiting room. "It should be the first thing you walk into," Ms. Krefft said. "It should combine with a waiting room because people shouldnot be reading a magazine, they should be picking out frames." Dr. Newsome has this set-up, so patients can try on frames while waiting.

Mr. Nist's dispensary is in the front of the office with the finishing lab to the side, and he works in "an open environment," where people can see him. He also said the dispensary has a neat, easy-access display, so people can "walk up and get their hands on the frames without feeling pressured." He keeps 400 to 500 frames on display, but tells people he can get anything for them.

The configuration of the room is important, too. "Make it easy for people to get to the frames," Ms. Estrada said. Dr. Bintz recommends separating the dispensing and adjusting area to avoid congestion.

For Your Information:

Paula Newsome, OD, can be reached at (704) 375-3935; fax: (704) 333-7238. Dr. Newsome has no direct financial interest in any of the products mentioned in this article, nor is she a paid consultant for any company mentioned.

Dan Bintz, OD, can be contacted at (800) 256-9465; fax: (580) 243-1145. Dr. Bintz has no direct financial interest in any of the products mentioned in this article, nor is he a paid consultant for any company mentioned.

Cy Furman is president and director of design at Magic Design, 155 Connecticut Street, San Francisco, CA 94107; (800) 862-6244; (415) 861-6467; fax: (415) 861-1018.

Lori Estrada can be contacted at (800) 824-4106; fax: (530) 877-2013. Ms. Estrada has no direct financial interest in any of the products mentioned in this article, nor is she a paid consultant for any company mentioned.

Joseph Bruneni can be reached at (800) 477-5652; fax: (310) 533-8165. Mr. Bruneni has no direct financial interest in the products mentioned in this article. He is a paid consultant for the Optical Laboratories Association.

Ronald L. Detwiler, OD, and Ken Nist, ABO, FNAO, HFOAA, can be contacted at (330) 385-3895; fax: (330) 385-5772. Neither has a direct financial interest in any of the products mentioned in this article, nor is either a paid consultant for any company mentioned.

Justine Krefft can be reached at (800) 833-6626; fax: (425) 867-9329. Ms. Krefft is a designer with Ennco Display Systems.