Products & ideas for the laboratory professional.
Issue link: https://opticallabproducts.epubxp.com/i/538327
july 2015 9 opticallabproducts.com BUSINESS FEATURE science: they own their own chain of optical shops that sell their own frames, and have their own labs (some of which are located in Mexi- co and China) process the jobs, beneftting from each step. The independent lab, on the other hand, is really suffering. They're used to boxing the heavyweights with one hand tied behind their backs; they've been relatively successful doing this for decades. But man- aged vision care has effectively tied back the other arm, too. So how can an independent lab compete if they literally can't compete? The solution is to not play managed vision care's game, but for labs to fnd a new way to grow their bottom lines. The question is how? Fortunately, there are several alternative revenue streams and strategies for labs to tap into. BUYING GROUPS One strategy to fght back against the slow strangulation of the managed vision care business model is to join a buying group, which uses strength in numbers to push back. Optical Synergies, for instance, leverages the buying power of its network of labs to provide its members with supplier discounts. In fact, Optical Syner- gies recently put into place an arrangement for its members to order all of their lenses from one warehouse without the cost of buying shares. This beneft not only saves labs money, but it also increases effciency. "One lab had a person opening boxes and flling trays all day," Misco recalls, but since that lab began using this new beneft, "He's done with that task in one hour. They now have the ability to take on 40 more jobs a day without hiring another person." Another beneft of buying groups, according to Misco, is that they are "coalitions of independent labs that give the small players a voice to speak to the industry." Optical Synergies supports litiga- tion and legislation on the state and federal levels on behalf of its members, and the tide against managed vision care's constrictive policies is beginning to turn: Many states are fghting back, the latest of which is Texas, where a law was recently passed declaring that managed vision care providers can no longer dictate the vendors ECPs may use (see "A Victory for Labs in Texas," p. 18). Buying groups offer additional benefts, as well, such as network- ing events and marketing help. Optical Synergies holds an annual conference to discuss industry issues and promote camaraderie, tips and hints, and the exchange of ideas. The company also provides web development ser- vices, help with social media and promotions, and even has member discounts on offce supplies from Staples, computer products from Dell, commercial LED lighting fxtures from USave LED (and don't forget the state and govern- ment subsidies offsetting the cost of switching to LED lighting, not to mention the utility savings from these effcient bulbs), and Trans- First Credit Card processing. In short, buying groups support the independent lab through strength in numbers. HOUSE BRANDS "The lab business isn't getting any easier," says Kurt Gardner, Business Development Executive for Indizen Optical Technologies of America (IOTA), a free-form lens design company. "From our perspective, for independent labs, the key to success is differentiation. Labs have to provide the added value of something greater than the branded lenses consumers can buy anywhere." Part of that solution, of course, is proprietary lenses. Having a private-label lens sets an optical lab apart by enabling it to sell premium products that are connected not to another brand, but to the lab itself. "The most impor- tant brand every laboratory has is its own," Gardner says. "The lab is there to help solve the ECP's problems, whether it's struggling with a diffcult patient who needs a specialized product or selling a lens that that is just as good as any other lens on the market, but with the fexibility to make a patient's request a reality." This is where the "Buying groups give independent labs a voice to speak to the industry." –Jim Misco, Optical Synergies IOTA's Specialty Driving Lens Design.