Looks like I'm in this conversation kind of late and it's doubtful that anyone is going to read this... But here goes anyway... 😉
Don't take this personally Ben because my comments aren't directed towards you. I'd just like to use your comments as a starting point to speak to the rest of the readership... Thanks!
No offense taken Keith. In fact I agree with a lot of what you said. I think however, you missed the point a little. The point I was trying to make was not that successful OD's don't think about corporate optometry, insurance reimbursements, etc. Successful OD's don't go onto forums like this and ODWire and complain about the evils of corporate optometry and how we would all be better off if Wal-Mart went away. For the record:
- I do believe we have an oversupply issue
- I do not believe adding more schools is the answer
- A large percentage of new grads have no choice but to enter the corporate world because that is where the immediate opportunities are
- There are plenty of private practice optometrists praciting the corporate optometry model (exams drive optical sales)
- There are plenty of Ritz Carlton practices out there
- You do not have to charge Ritz Carlton fees to have a RItz Calrton practice
- Successful OD's are concerned that private practice is diminishing
- Successful OD's know that less successful OD's will be affected by this which will open up opportunities for them
I have a Ritz Carlton practice in an area that is not the most affluent. I practice in a Navy town which means a lot of military spouses, shipyard workers, and retired Navy. Quite different from across the water where I could have Microsoft and Boeing employees. What makes my office a Ritz Carlton practice is not the fees I charge, nor is it the amount of high end frames I sell. It is the service I provide, and the way my staff treats patients.
I think a better analogy would be Wal-Mart, Toys R Us, and Target. In my area, Wal-Mart was killing the competition. For Toys R Us it was the holiday toy market. For Target it was the housewares market. The difference between how Toys R Us and Target handled the situation is very similar to what I see in optometry. Toys R Us chose to dramatically lower prices around Christmas and made some other changes to try and beat Wal-Mart at their own game. What happened? Toys R Us stores began losing money, so they could not afford enough staff. The quality of the service went down and the stores looked horrible. It almost destroyed the company. Target decided that there are plenty of people that will pay for good service, clean stores, and great selections. What happened? Target did not lower prices drastically, made sure the stores were spotless, and offered better selection at higher but still affordable prices. Target has since began to take away market share from the big box.
I see the same thing in optometry. Some practices choose to lower prices to compete on that level. What happens? They cannot afford to hire enough staff, upgrade equipment, or maintain their office. It results in those OD's becomming very bitter because they aren't successful so they spend their days on sites like this telling us all how bad coporate optometry is. Some practices realize that we can never compete in that market and their are plenty of patients that will pay for better service. Now, we have the advantage that insurance helps with that decision, and I agree that we are at the mercy of the insurance companies. Successful OD's use that to our advantage and provide more services that are covered by insurance as well as offer services that are of benefit to the patient but are not covered. The result is that successful OD's realize there is no way to get rid of corporate optometry, and in fact it plays a vital role in our system. Those patients that have no insurance and cannot afford to pay what an eye exam is really worth will not come to our offices. They just won't get eye exams if they are not available at a price they can afford. That is why you don't see us complaining about corporate optometry or corporate optometrists. They serve patients they we would never have the opportunity to serve. We do however, complain about insurance, but that is a whole different topic.
On final point. While there are plenty of Ritz Carlton practices in the US that have both the service and the price as the hotel, there are many more Target practices that produce 1 million or more in areas that may not be the most affluent in the country. My advice to everyone, is to strive for the Ritz Carlton practice, because even if you fall short you could still end up with that Target practice which has shown to be just as successful at beating Wal-Mart.
Take notes. This is how successful OD's compete with discount chains.
