Thriving in the New “Norm”

Michael Karlsrud, M.Ed, ABOC EyeWerx

$8,279

$9,381

$3,569 $3,424

$639

$4,897

$1,918

Frames Lenses Contact Lenses Sunglasses* OTC Readers Examinations** Refractive Surgery

12ME Dec07

12ME Dec08

12ME Dec09Inflation not taken into consideration

Vision Care Products & Services – Total U.S. Market Breakout—In Millions

*All retail includes dollars spent at all retail types at any retail location on the sale of either spectacle lenses (including Rx sun), frames, contact lenses, sunglasses (plano), OTC readers, or revenue earned from refractive surgery (LASIK only) or eye examinations. This number does not include sunglass clips and reflects the dollars spent only by those U.S. residents 18 and older. Does not include retail dollars spent by/for contact lenses and exams for those 17 years of age and younger.

All Retail*-5.8%

+5.0%

-4.4%

-0.7%

+6.5%

-35.9%

In Millions

VisionWatch: A Collaboration of The Vision Council & Jobson Annual Sample Size: 100,000

-14.9%

Creative Property of The Vision Council

VisionCare Products & Services – Total U.S. Independent Market Breakout

$3,891 $4,756

$1,392 $181 $33

$3,250

Frames Lenses Contact Lenses Sunglasses* OTC Readers Examinations**

12ME Dec0712ME Dec0812ME Dec09

In Millions

Inflation not taken into consideration

*All Independent Optical Retail includes dollars spent at independent optical locations on either spectacle lenses (including Rx sun), frames, contact lenses, sunglasses (plano), OTC readers, or revenue earned from refractive surgery (LASIK only) or eye examinations. This number does not include sunglass clips and reflects the dollars spent only by those U.S. residents 18 and older. Does not include retail dollars spent by/for contact lenses and exams for those 17 years of age and younger. An independent optical location is a locations with 3 doors or less that has either a MD, OD, Optician or Optical Retailer on site.

All Independent Optical Retail*

-1.8%+0.6%

+3.3%

-16.5% +5.5%

VisionWatch: A Collaboration of The Vision Council & Jobson Annual Sample Size: 100,000

+7.5%

Creative Property of The Vision Council

Key Points: Independent ECP Retailers

• Outperforming Other Optical Outlets As the Recession Continues– Have a Better Standing With Consumers– Have Been Able to More Successfully Streamline Their

Operations – MVC Usage Has Helped Their Sales and Traffic

• Changing Trends– Professional Age Gap Starting to Emerge

• Will Impact Practice “Culture” and Operations For the Next 10-15 Years

– Increased Automation / Adoption of Office Technology– Evolving Inventory Management / Merchandizing Strategies

Creative Property of The Vision Council

1. Model

4. Talent

3. Costs

2. Strategy

Contact Lenses

Marketing

Frame Inventory

Facilities

Vision Plans Staff

Eye Care

Lab

Misc

Internet Sales

Training

Retail

1. Model

*

Did you use the Internet when last purchasing Rx eyeglasses?

Custom Research: December 2009 Internet Influence Study

Among Consumers that Bought Eyeglasses Within the Last 6 Months

Creative Property of The Vision Council

How did you use the Internet for your last eyeglass purchase?

Custom Research: December 2009 Internet Influence Study Creative Property of The Vision Council

Don’t Be Average

Current National Averages 24% AR Sales

22% Photochromic Sales

6% Polarized Rx Sales

20% Plano sun wear for contact lens wearers

1 pair per day digitally surfaced lenses

Opportunity

85% AR Sales

40% Photochromic Sales

30% Polarized Rx Sales

80% Plano sun wear for contact lens wearers

Multiple pairs of digitally surfaced lenses per day!

Nutriceuticals

“ECP Recommend; Patients Purchase”Consumer Reason for Lens Choice

ECP Recommended

Got Darker Lighter

Material Lens wore Previously

ECP said Best Regardless of

Price

Came with Frame

Good Price

Looked BestHad seen it advertised

100,000 Consumers Surveyed

Source: VCA

Don’t be afraid to recommend, patients expect it

Whose Advice is Respected the Most?

Gallup Poll, 100K Respondents

What changes are you making in your model or strategy for <2010?

2. Strategy

This…

Contact Lenses

Marketing

Frame Inventory

Facilities

Vision Plans Staff

Eye Care

Lab

Misc

Internet Sales

Training

Retail

SWOT This!!

What Can We DO Strategically Different in <2010?

3. Costs

Call Backs

Outsourcing: $365/ mo for 200 callsInternally, 13.5 Hours per month.

$12/Hr+Taxes+Bene’s = $14.00$14 X 13.5 Hrs = $186

Which is the better deal?

Did you add in cost of space, telephone, training, hiring, re-hiring, management, more salary, taxes & benefits AND time away from patient care and disrupting office flow?

What is the bottom line cost per hour of operation of your

practice?

Space, furniture, phone, fax, internet, heat, cooling, electric, taxes, insurance, rent, wages, taxes, benefits, lawyers, accounting, collections, depreciation, interest, etc.

4. Talent

My

Team

Enable

Inspire Coach

Remove obstacles

Take risks

Develop

Take action

Take ownership

Encourage

Lead by example

Focus on customer

Celebrate

Empower

Vision

It’s Your goals, Your business, Your dreams, Your vision… but,

You can’t do it alone. So, have you the right team surrounding you to make it all happen?

www. .org

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