Premier Profit
Boosting your bottom line by stocking the top of the line
By Joanne F. Schell

For many high-end customers a luxury experience is as important as the product. Shown here: Lindberg style 2064. Small details, such as jewels and stones, can add to the luxury feel of a frame. Inset: Hana style 611 from Hana Collection

Luxury is becoming universal, and even if your dispensary is not in the richest of neighborhoods, there is still money to be made with high-end inventory.

"Today's luxury market represents every marketer's and retailer's sweet spot," says Pam Danziger, president of Unity Marketing, a luxury marketing consultancy. "The top 25 percent of U.S. households (with incomes of $75,000 or higher) have incomes two and one-half times larger than the national average, and they spend about two times more than the average," she says.

But even demographics way outside of this economic range are heading toward luxury brands.

"We have Medicaid patients buying high-end," says Kristina Slattery, vice president of operations at Schaeffer Eye Center in Birmingham, Ala. "Instead of focusing on the economics of a frame, people are looking for a unique way to express themselves and stand out. They want something they are going to be proud to wear."

The high-end customer could be anyone. So Beth Beckham, manager/optician for Visionfirst in Louisville, Ky., doesn't pre-judge. She says showing high-end frames to everyone is the key to a successful premier frame business. "You can't tell who is going to be a high-end shopper when they walk in the store," says Beckham. "You have to treat everyone equally."

From top to bottom Having the right brand names can drive luxury traffic to your door. Shown here: Missoni style MI35DD for Allison USA. Many opticians carry both classic high-end designs and edgier boutique-inspired styles in their premier collections. Shown here: Ooh la la de Paris style Etzel. Personalization is the key to making eyewear exclusive. Shown here: Style POSH for Miyagi Eyewear

Slattery has had so much success with high-end merchandise that she now carries high-end frames in all of her 16 locations, regardless of the dispensary's economic surroundings.

SETTING UP

A wealthier demographic is the target at Manhattan-based Leonard Opticians. Optician Bernice Olivetti considers her high-end frames to be more than $500, while many other opticians consider $300 to be a threshold. About 40 percent of her inventory is above the industry standard premier price. "I buy based on what the trends are and what my clients are asking for," she says.

Blue Bell Optique, a dispensary in the Philadelphia suburbs where over 60 percent of the inventory is above the $300 mark, is tailored to an exclusive group of high-end consumers. "We don't charge for repairs, and we sit down and consult with our clients. Every one of them is a repeat customer," says Bob Porter, manager of the Blue Bell, Pa.-based store.

Others in the industry are starting to embrace this trend in hopes of expanding their sales base.

Premier inventory is on the rise at Elander Eye Care in Santa Monica, Calif., notes optician Doree Keith Wilklow. The practice recently stopped accepting managed care patients in hopes of opening up an opportunity to carry more luxury brands.

Rome Optical, a dispensary in rural Georgia, keeps its high-end inventory at a slightly lower 30 percent, but this number is based on knowing the area and the patients.

"We are in Rome and most of our clientele are baby boomers and older," says Candice Reeves, the dispensary's secretary/treasurer.

Regardless of how many premier frames you have, just working with a high-end customer can be beneficial to the staff. "It's nice to work with clients where price isn't the biggest issue and you can get them into a really nice pair of frames," Porter says.

Thanks to working with proficient clients and premier reps as well as seeing so many unique and finely made frames, the knowledge base of her sales staff has greatly improved, Slattery says.

PICKING PIECES

Even though there is an ever-growing market for high-end frames, finding the right premier brands to carry can be a challenge. Return policies, minimum buy-ins, and exchange stipulations can make it cost prohibitive to carry the top of the line. "The fact that we can order one or two frames at a time is extremely important," says Reeves."

Slattery describes the qualities in her high-end reps that make buying premier frames less of a challenge: "Our reps are extremely helpful," she says. "They work with our buyers to fine tune our inventory needs on a bimonthly basis."

Education and selling points for each brand--such as what celebrities are wearing--motivate the sales staff. Reps also provide much needed background information on each style, and that's helpful, too, she says.

	You never know who might buy premium product, so treat everyone as if he or she can afford it. Shown here: Tag Heuer style Curve for Premier Vision
	Materials such as horn, wood, and metal play a large role in the luxury eyewear market. Shown here: Kio Yamato style KP-029

STOCK SELECTION

Deciding whether or not to carry a high-end inventory is a dilemma for many offices. It can be expensive to keep lots of costly frames in the back, especially if you aren't sure how they are going to sell.

"We usually keep only one or two of an item in stock, and then re-order things as needed," says Blue Bell Optique's Porter. Beckham also restocks as she sells each frame.

Some say you've got to take a chance to make the sale. "You have to have stock," counters Olivetti. "If people don't see it in person, they won't buy it. It's important to show an entire collection of frames." Slattery also keeps a large number of a few high-selling luxury frames in her inventory. "If we move a lot of a particular product, we will keep it in stock," she says.

SOMETHING SPECIAL

When it comes to boutique-style designer frames, however, it's important to keep a unique frame unique. "Price isn't the only factor that make something high-end," explains Slattery. "Exclusivity is important. We want to carry things that the patient can't get just anywhere."

To that end, many opticians will only re-order a specific frame a couple times before moving on to another style. "Sometimes we will re-order a certain high-end frame four times, but not five," says Reeves. "We don't want a client to see someone else in their glasses."

Wilklow uses a different approach. "If I get a style that's a winner, I'll keep buying it," she says. "There is a lot of customization you can do with the lenses so the frame doesn't look ubiquitous."

Getting frames noticed is the key to a successful dispensary.

"Word of mouth is so important," says Beckham. "When someone is wearing a pair of premier frames and they get noticed, that person will give referrals."

"I love for patients to have a specific look," adds Wilklow. "If people stop and ask them about their glasses, you will get a referral--and that's as good as it gets."

The luxury consumer wants to be up on the latest trend--he or she will be a repeat customer as fads change. Shown here: Style Kiss and Tell from Sama Eyewear	Show the comfort benefits of a premier frame by having your patients simply try on a pair. The frame will often sell itself. Shown here: Vera Wang Love Knots style V76 for Kenmark Group