After equipment and furnishings, frame inventory typically represents the largest capital expense of an optical practice. It is also an area that is frequently not managed well. There are two things that you need to consistently control, quantity and styles.
Quantity: We recommend inventory turns of two to four per year. This simply means that your number of frames in inventory should be no more than half the number of frames that your practice sells in a year. This way, you are “turning” your inventory at least twice a year. For example, if your practice sells 1,400 frames per year, you should have no more than 700 frames in inventory.
There is also a base number that you don't want to go below to ensure that you have products to meet most patients’ needs. This number is typically in the area of 400 to 500 frames. If you go below this number, it’s possible that you will lose patients who don't feel that you have styles, sizes, or colors that fit their needs.
Styles: It is important to have a good selection of men’s, women’s, teens’, and kids’ frames with great colors and brands. Avoid the “vanilla effect” of having a lot of similar styles and colors from different manufacturers’ top twenty sellers. It is important to have a diversity of colors and styles to create interest in your practice and a buzz in your community. Keep a good handle on the sales proportion of each of these areas, and match up the inventory of each area with the proportion selling in your practice.
In the industry since 1984, Eric Rollins has been National Sales Manager for Aden Ophthalmic Products, V.P. of Sales & Marketing for Optical Supply Inc. (a lab purchased by Essilor in 1998), and Strategic Accounts Manager for Essilor Laboratories before beginning Rollins Consulting LLC. Contact feedback@visioncareventure.com with comments and/or suggestions for future topics.
area that is frequently not managed well. There are two things that you need to consistently control, quantity and styles.