NYT: Defying Conventional Wisdom to Sell Glasses Online

[Meibomian SxN]

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The scary part is, most ODs will not survive these types of changes...
http://www.nytimes.com/2011/01/17/technology/17glasses.html?_r=1

 

[thecgrblue]

The scary part is, most ODs will not survive these types of changes...
http://www.nytimes.com/2011/01/17/technology/17glasses.html?_r=1

Natural selection, baby. Time to evolve.

 

[Oogilily]

Haha, my friend and I just wrote a business plan that included exactly this type of online sales. Looks like somebody beat us to the bunch.

 

[KHE]

The scary part is, most ODs will not survive these types of changes...
http://www.nytimes.com/2011/01/17/technology/17glasses.html?_r=1

There's nothing special or threatening about that.

In our office, for the budget conscious we offer a $99 complete frame and lens package which can usually be produced while the person waits.

That's only $4 more expensive than the online thing there, (probably we're still LESS expensive because we don't charge to ship) and you can get them immediately in most cases. And you don't have to go home and waste time surfing around online, entering your Rx etc. etc.

 

[blackhole2]

There's nothing special or threatening about that.

In our office, for the budget conscious we offer a $99 complete frame and lens package which can usually be produced while the person waits.

That's only $4 more expensive than the online thing there, (probably we're still LESS expensive because we don't charge to ship) and you can get them immediately in most cases. And you don't have to go home and waste time surfing around online, entering your Rx etc. etc.

Is this kind of like the "Does the Ritz Carlton worry when the Motel 6 opens down the street?" type of thing?

 

[optsuker]

Is this kind of like the "Does the Ritz Carlton worry when the Motel 6 opens down the street?" type of thing?

No.

This is like buying a Pepsi @ 7-11 acrossed the street for .99 instead of ddriving across town to buy it for .95 @ QuickTrip. Not worth the effort.

 

[thecgrblue]

Is this kind of like the "Does the Ritz Carlton worry when the Motel 6 opens down the street?" type of thing?

That applies a lot more to where you get your exam at. Both places may have a 'continental breakfast', but the Motel 6 version is a frozen ego and the Ritz has a full-blown buffet.

 

[Optogal]

Is this kind of like the "Does the Ritz Carlton worry when the Motel 6 opens down the street?" type of thing?

I have to disagree with this analogy. I think it depends on an assumption that does not always hold - which is that the "patient experience" a client receives at the private practice is better than what he/she experiences at a chain optical. I don't believe this is the case because there is a greater confounding variable involved, which is the quality of the practitioner.

A top-notch grad working out of a Sears optical has the ability to provide a satisfactory eye exam experience in the same way that a 1980s grad working out of his private practice can give an unsatisfactory eye exam experience, at twice the cost. The top notch grad can even "educate" his/her patients that there really is no reason to go the pricey exam center down the street because he/she's giving as good an exam as they would get paying twice as much.

The error in the analogy above is that it isn't the PRACTICE that is either the Ritz or the Motel 6, but the PRACTITIONER that is the Ritz or Motel 6. I agree that a Ritz-quality PRACTITIONER has nothing to fear if a Motel 6-quality PRACTITIONER opens across the street, but a Motel 6-quality PRACTITIONER in a high-end private practice does have to worry about the Ritz-quality PRACTITIONER working in the Sears across the street at half the cost.

 

[ABaverage]

My family wants me to start a private practice whenever I can, so to check out the competition my bro was asking about purchasing glasses online. He was like "they're just 8 bucks, I wanna see what kinda quality they are". He was gunna actually buy them to see why the heck they're only 8 bucks. When it was time to check out, it was in the $1XX's.

Why buy from an online store that is so deceiving anyway!?

 

[KHE]

I have to disagree with this analogy. I think it depends on an assumption that does not always hold - which is that the "patient experience" a client receives at the private practice is better than what he/she experiences at a chain optical. I don't believe this is the case because there is a greater confounding variable involved, which is the quality of the practitioner.

A top-notch grad working out of a Sears optical has the ability to provide a satisfactory eye exam experience in the same way that a 1980s grad working out of his private practice can give an unsatisfactory eye exam experience, at twice the cost. The top notch grad can even "educate" his/her patients that there really is no reason to go the pricey exam center down the street because he/she's giving as good an exam as they would get paying twice as much.

The error in the analogy above is that it isn't the PRACTICE that is either the Ritz or the Motel 6, but the PRACTITIONER that is the Ritz or Motel 6. I agree that a Ritz-quality PRACTITIONER has nothing to fear if a Motel 6-quality PRACTITIONER opens across the street, but a Motel 6-quality PRACTITIONER in a high-end private practice does have to worry about the Ritz-quality PRACTITIONER working in the Sears across the street at half the cost.

I don't agree with that at all.

You can do the best job in the world at Sears and be the best residency trained doctor around and find a brain tumor or whatever and the perception is still going to be "doc in a box at Sears" by the vast majority of the general public. It's just a fact of life. Believe me, I've lived it.

Consider this story which I posted on here a few years back....

A while ago, Joshua Bell, the violin virtuoso took part in an experiment. He performed a very difficult piece at, I think, the Kennedy Center. Every ticket was sold out and the cheapest seats in the house were well over $100 a ticket. His instrument, a Stradivarius cost well over four million dollars. Of course, he gave a brilliant performance and was given a standing ovation. For this, he was paid $60000, or about a thousand dollars a minute.

3 days later, he performed the exact same symphony on the exact same instrument in a Washington DC subway station. Few people stopped to notice this world class musician playing some of the greatest music ever written on one of the most incredible violins ever made. At the end of the hour, he had collected just over $32.

What does that story mean to you? What SHOLD it mean to you?

What it SHOULD mean to you is that context matters.

 

[Optogal]

I don't agree with that at all.

You can do the best job in the world at Sears and be the best residency trained doctor around and find a brain tumor or whatever and the perception is still going to be "doc in a box at Sears" by the vast majority of the general public. It's just a fact of life. Believe me, I've lived it.

Consider this story which I posted on here a few years back....

A while ago, Joshua Bell, the violin virtuoso took part in an experiment. He performed a very difficult piece at, I think, the Kennedy Center. Every ticket was sold out and the cheapest seats in the house were well over $100 a ticket. His instrument, a Stradivarius cost well over four million dollars. Of course, he gave a brilliant performance and was given a standing ovation. For this, he was paid $60000, or about a thousand dollars a minute.

3 days later, he performed the exact same symphony on the exact same instrument in a Washington DC subway station. Few people stopped to notice this world class musician playing some of the greatest music ever written on one of the most incredible violins ever made. At the end of the hour, he had collected just over $32.

What does that story mean to you? What SHOLD it mean to you?

What it SHOULD mean to you is that context matters.

How do you explain that ANY high end practice is struggling? Or are there no high-end practices struggling? The way to guarantee success is to build a multi-million dollar practice? Have you never lost a single patient to a chain-store OD? Not one?

One of the best clinicians in our class (she eventually opened her own PP) started in a retail setting. Patients were thrilled with her. They even asked what the difference was between what she did and what the other PPs did charging twice as much. She said those PPs were just charging for bells and whistles. So the patients that saw her were "educated" that you don't necessarily gain much by paying twice as much for the guy down the street. Would you like to guess if those folks referred their friends and family to see her? They sure did. Everyone likes to get a good DEAL, not just good QUALITY.

And you also state it was the world's best violinist playing the world's best violin. What is it about the quality of the PRACTITIONER that you disagree with? Would those folks buy Kennedy Center tickets for the local talent show winner, just cause it's at the Kennedy Center? Isn't that your position?

People buying a ticket to the Kennedy Center are there because they want to buy a ticket to see the world's best violinist. Those folks in the subway are on their way to work or on their way home. Most of them couldn't care less about classical music. You don't always get to hear the world's best violinist, but you do always have to listen to the guy rattling his instrument while you wait for the subway. Context matters.

 

[PBEA]

How do you explain that ANY high end practice is struggling? Or are there no high-end practices struggling? The way to guarantee success is to build a multi-million dollar practice? Have you never lost a single patient to a chain-store OD? Not one?

One of the best clinicians in our class (she eventually opened her own PP) started in a retail setting. Patients were thrilled with her. They even asked what the difference was between what she did and what the other PPs did charging twice as much. She said those PPs were just charging for bells and whistles. So the patients that saw her were "educated" that you don't necessarily gain much by paying twice as much for the guy down the street. Would you like to guess if those folks referred their friends and family to see her? They sure did. Everyone likes to get a good DEAL, not just good QUALITY.

People buying a ticket to the Kennedy Center are there because they want to buy a ticket to see the world's best violinist. Those folks in the subway are on their way to work or on their way home. Most of them couldn't care less about classical music, and couldn't tell the difference between it, and what they hear on the radio through their Ipods that are earbudded as they walk by the violinist. Context matters.

I like to think I'm a pretty good clinician, and I've worked numerous corporate/optician owned opticals, community health centers, hospital setting, and private practice, and the while there can be bad docs in any setting the universal difference was that the corporate/optician owned optical always had one prerogative (selling), and unfortunately that prerogative will negatively influence any OD associated with it. An informal observation I made was that in the mallmart type setting somewhere between 90%-100% of people were told they needed new glasses, whereas in the private settings, health centers etc somewhere between 90%-100% were told that they did NOT need new glasses.

 

[KHE]

How do you explain that ANY high end practice is struggling? Or are there no high-end practices struggling? The way to guarantee success is to build a multi-million dollar practice? Have you never lost a single patient to a chain-store OD? Not one?

Are there high end practices struggling? Probably.

Have I lost patients to commercial joints? Of course! Like the old saying goes, sometimes you just don't make a love connection. Not as many as when I worked in motel 6 type places though.

One of the best clinicians in our class (she eventually opened her own PP) started in a retail setting. Patients were thrilled with her. They even asked what the difference was between what she did and what the other PPs did charging twice as much. She said those PPs were just charging for bells and whistles.

So the patients that saw her were "educated" that you don't necessarily gain much by paying twice as much for the guy down the street. Would you like to guess if those folks referred their friends and family to see her? They sure did. Everyone likes to get a good DEAL, not just good QUALITY.

Huh? Why would she open a private practice of her own if all she's doing there is overcharging people for bells and whistles? Did any of her former patients follow her? I bet not because she "educated them" that the only thing private practice docs do is charge more for unneeded bells and whistles.

And you also state it was the world's best violinist playing the world's best violin. What is it about the quality of the PRACTITIONER that you disagree with? Would those folks buy Kennedy Center tickets for the local talent show winner, just cause it's at the Kennedy Center? Isn't that your position?

No, that's the whole point. The point is that the practitioner can be the best practitioner in the world and if they're working at Sears, the perception by MOST PEOPLE is going to be that they're the doc at Sears who fixes up my glasses, not a highly trained expert on ocular health.

Now yes, you or your friend or any good doc can "educate people" all they want about how wonderful the docs at Sears are and how they are just the same as those private practice docs so no need to spend any extra money over there at that private practice. I get that. I used to do it! I used to be a Sears doc! But the point is that now, I don't have to educate my patients at all. The facility, the atmosphere, the equipment, the exam all speak for themselves. I don't spend a single minute trying to convince patients that I'm better than the doc at Walmart or Sears because I don't have to. It's just obvious.

People buying a ticket to the Kennedy Center are there because they want to buy a ticket to see the world's best violinist. Those folks in the subway are on their way to work or on their way home. Most of them couldn't care less about classical music. You don't always get to hear the world's best violinist, but you do always have to listen to the guy rattling his instrument while you wait for the subway. Context matters.

Ok...Joshua Bell may not be a recongnizable face to most people since only two people walking by him actually recognized him. One of them actually attended the performace three days prior.

But the point I'm trying to make here is not about Joshua Bell. The point is that in order for something beautiful to be perceived as beautiful, it has to be surrounded by beautiful things more often than not. If you took a luxury bed and mattress and put it in a motel 6, how many people would notice or care? If you took a motel 6 bed and put it at the Ritz Carlton, everyone would notice AND care.

 

[Optogal]

Well anyways, there is a market for high end just as there is a market for low end. High end can't exist without low end because it (high end) is defined by it (low end). Some people are willing to spend more on what they perceive is a quality product, whereas others just want to get the service at the minimum cost.

I'm not too sure that aiming for high end will guarantee an optometrist a better future than aiming for low end. Pick your niche and work at it.

As for Joshua Bell, I have no doubt some folks would pay 4 digits to hear him play, but I'm equally sure some folks in the subway wouldn't even take the tickets to the concert even if they were free.

 

[Optogal]

But the point is that now, I don't have to educate my patients at all. The facility, the atmosphere, the equipment, the exam all speak for themselves. I don't spend a single minute trying to convince patients that I'm better than the doc at Walmart or Sears because I don't have to. It's just obvious.

I wanted to ask you.

1. What if the guy across the street from you is also high-end? It's now no longer obvious that you're better. Don't you have to start talking-up your services to your patients?

2. What if some new guy opens across the street from you and builds an office that is even MORE high-end than you? You have OCT and HRT, but he has OCT-plus and HRT-plus. "High end" doesn't exist in a vacuum, there's varying levels of it. So what if his high end is higher than your high end? You can't keep replacing your equipment. It's now no longer obvious that you're better. Don't you have to start talking-up your services to your patients?

 

[KHE]

I wanted to ask you.

1. What if the guy across the street from you is also high-end? It's now no longer obvious that you're better. Don't you have to start talking-up your services to your patients?

2. What if some new guy opens across the street from you and builds an office that is even MORE high-end than you? You have OCT and HRT, but he has OCT-plus and HRT-plus. "High end" doesn't exist in a vacuum, there's varying levels of it. So what if his high end is higher than your high end? You can't keep replacing your equipment. It's now no longer obvious that you're better. Don't you have to start talking-up your services to your patients?

It's not just about equipment. It's about the whole experience. Trusting the doctor. Liking the doctor. Friendly, courteous, smiling staff. A clean environment. Exceeding expectations.

If someone like that opened up accross the street? I don't know. It's never happened. I wouldn't anticipate losing a significant number of patients because I don't believe that a significant number of our patients are desirous of looking elsewhere because they've already got everything they need right here.

Now....would a few maybe try out the new guy? Perhaps. Would some stay? Perhaps. But Ritz Carlton and Four Seasons can exist side by side.

I never have to "talk up" my services because I just provide them.

 

[Optogal]

What if the guy across the street starts talking-up his patients?

My point is, optometry isn't enough of a monopoly (unless you actually practice in a remote monopoly) that you can just select a mode of practice (e.g. high end) and expect to succeed. High end won't guarantee success over low end just because it's higher end. Not everyone cares to pay for it, and besides, if all ODs decide to go high-end, the one rogue OD who decides to corner the low-end market will dominate.

 

[KHE]

What if the guy across the street starts talking-up his patients?

My point is, optometry isn't enough of a monopoly (unless you actually practice in a remote monopoly) that you can just select a mode of practice (e.g. high end) and expect to succeed. High end won't guarantee success over low end just because it's higher end. Not everyone cares to pay for it, and besides, if all ODs decide to go high-end, the one rogue OD who decides to corner the low-end market will dominate.

Well obviously you have to know your market. You can't open up a "high end" practice in the middle of some decaying factory town in rural Ohio.

But "high end" doesn't automatically mean Cartier frames.

The problem with going "low end" is that Walmart and Target and Pearle et al have cornered the market on low end. Why would you want to get involved in something like that?

 

[Optogal]

The problem with going "low end" is that Walmart and Target and Pearle et al have cornered the market on low end.

Well, that's exactly the point isn't it?

Why would you want to get involved in something like that?

Well given your first statement, maybe it's because despite a desire to practice to one's full potential, there's the practical consideration of actually paying the bills?

Because the low end market has been cornered, some ODs can't exactly be choosey anymore.

 

[KHE]

Well, that's exactly the point isn't it?



Well given your first statement, maybe it's because despite a desire to practice to one's full potential, there's the practical consideration of actually paying the bills?

Because the low end market has been cornered, some ODs can't exactly be choosey anymore.

I don't understand. I almost wonder if we're talking about two different things here.

You're suggesting that practicing low end can be good, perhaps even necessary because not everyone can be high end but then you're admitting that the low end market is cornered by Walmart and Target.

Are you suggesting that it's "good" to work for Walmart or Target?

What I'm saying is that if you're going to pursue private practice, your chances of success are much better going towards the high end because then you're NOT competing against Walmart.

 

[Optogal]

What I'm saying is that if you're going to pursue private practice, your chances of success are much better going towards the high end because then you're NOT competing against Walmart.

I see. We had a misunderstanding.

I thought your position was working in (high end) private practice was a better option for every OD. Period. My position was that such a premise was pretty illogical, and ignored market variables. All of us obviously can't all exist in private practice and succeed. More precisely, no one can unequivocally say that private practice will lead to more success (we'll say monetary in specific) than commercial practice.

I agree about low-end private practice. I can't see how that would work.