Dispensing Frontiers
Finding the Right Level of Service
Your optical should be in sync with the rest of your practice.

BY LEONA MEDITZ

Most practices function at different levels over the years. At first, simply filling the appointment book may be the goal. Then, as patient load increases, scheduling more efficiently becomes key. At some point, the doctor(s) may limit the practice to specific areas.

Dispensaries can also function at different levels. But to be truly effective, the level of service your dispensary provides must be congruent with the level of service your ophthalmic practice provides.

FINDING THE RIGHT LEVEL

Today's dispensaries operate at one of four basic levels:

Level one. These dispensaries deliver basic eyewear at low prices. They depend heavily on HMO and PPO insurance, and patients often select their own eyewear. To increase profitability, as many patients as possible are seen in as little time as possible. Complicated prescriptions (greater than 2D) may be referred out.

This level works well for a clinic's dispensary.

Level two. High production still describes a level-two dispensary, but lens and frame upgrades are available. The average pair of eyewear takes 15 minutes to select and patients pay about $150 per pair. Patients select their own frames, but trained personnel educate them about lens options and frame selection.

A dispensary at this level tries to offer a little of everything, so inventory costs are high. Multiple pair sales are low, so "loading up" frames and lenses with upgrades is a common way to increase profits. Patients expect fast service and want one pair of glasses to service all their vision needs, causing frequent remakes. They expect frames to last 3 to 5 years, so lenses-only sales are high.

This type of practice tries to serve a broad market, so profitability is the lowest of the four levels. Most chain stores operate at this level.

	ILLUSTRATION: AMY WUMMER

Level three. Here, patients are seated at a dispensing table and the optician chooses frames based on patient/optician co-diagnosis of needs, emphasizing that one pair of glasses won't fill every need. Staff allow 20 to 30 minutes for patients to select glasses.

Multiple pairs and patient satisfaction are high; buyer's remorse is rare. Fast turnaround is less important than quality, and makeovers are low. Insurance isn't as much of a factor in final selections, although benefits are used. Inventories are controlled so frames are rarely ordered out of "the frames book." Frame shape is often used to reduce lens thickness, so less expensive lenses are frequently used instead of loading up on special lens materials. Complicated prescriptions are handled with ease. Referrals are high and service is consistent.

This type of dispensary is well suited for private practices.

Level four. Dispensaries at this level specialize in product, market niches or service types. Profits are highest here because patients pay more for hard-to-find products and services. Expert opticians are the highest paid and often attract their own following. It's not unusual for opticians to exit and go into business as competitors.

High-end boutique dispensaries fall in this category. Children's-only practices or practices specializing in contact lenses are also level four.

FINDING YOUR LEVEL

If you aren't happy with your dispensary, it may be because the level of care it offers isn't congruent with your ophthalmic practice. Or, your dispensary may be trying to be "all things to all people." Getting your dispensary to a level appropriate for your practice could make a big difference.

Not sure where your dispensary falls on the scale? Take my complimentary self-test at http//www.3ps4profit.com to find out.

Leona Meditz has 25 years experience opening, owning and operating optical dispensaries If you have questions regarding this article, or you'd like help moving to the next level, please e-mail leona@3Ps4Profit.com.