When you know your cost of goods (invoice and related costs for goods you�re selling) and revenue generated, you can determine the profitability of any retail business segment. If the cost is a high percentage, look into how your CL manager is buying lenses and managing your returns, credits and pricing.

Then reduce your buying costs and more tightly manage returns and credits. Assure that every exchanged lens is returned and keep a record of returns and credits. Balance this record quarterly. Also look at your prices to be certain you have the correct profit margin built in while remaining competitive in your geographical area.

A CL manager should be able to tell you the retail price of any commonly used lens, as well as the current buying price, return policies associated with that lens company and the resale cost of that lens to the patient.

If your CL manager can give you this information about any lens, he or she knows how to manage your department and keep it profitable.