Step-by-Step: How to Bring in a New Lens
Easier and more effective lens launches can be achieved by following this detailed plan
by Karlen McLean, ABOC, NCLC
Another new lens on the market and the rep says it's the best. But is it the best lens for your practice? And if you decide to bring in this new lens, what's in it for you, in both negative and positive terms?
Being able to definitively answer these questions can help your practice realistically assess each step of the launch process, including profitability, and make lens introductions easier and more effective.
BRINGING IN A NEW LENS WITH AN EXISTING VENDOR
The scenario: Your practice has worked with Acme Lens Company for years. On the table is an opportunity to launch the new Acme Action progressive lens.
Answer these questions: 1. Why does your practice want to launch this new lens?
2. Does the lens fit your practice's demographic and psychographic profile?
3. If the lens offers an approach to a new market, how will that help the practice?
4. Is the technology solid?
5. Is the lens backed by a company that has a good relationship and proven performance with your practice?
6. Does the product have a good story to tell for your business, to your ECPs, and to your patients?
7. To whom does the practice expect to sell the product? How broad or targeted is the product reach?
8. What are the actual and perceived benefits to the practice, prescribing doctor, staff members, and the customer?
9. What is the competition doing?
10. What is the market doing?
Be ready to ask questions before buying. Image courtesy of Augen
PROS AND CONS
Consider all pros and cons of the lens and log the possible negative and positive effects if you take it on.
1. How will bringing in the lens help the practice short-term and how will it help in the long-term?
2. What does the practice have to do to accomplish the launch and maintain momentum?
3. Does this lens replace something that the practice already carries or is it entirely new?
4. What product does the lens compete with?
5. What operations will the practice have to change either temporarily or permanently?
6. What is the actual or estimated cost in time and money?
| Action Plan |
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| OK, you're launching the Acme Action lens. Your next steps, in order, are: 1. Hold a staff meeting to describe the launch, including a management message. 2. Hold a training seminar on the lens technology (vendor) and on sales and dispensing (management). 3. Launch promotions and merchandising, both internally (incentives and contests) and externally (ad buys and signage). 4. Measure the results weekly or even more often at the beginning. 5. Budget for success: If the product is more expensive or your promotion costs are higher than normal, make sure the practice has a plan to handle these costs. 6. Ask, "If we're successful, can we deal with that?" Look beyond the obvious resounding knee-jerk "yes" that statement may trigger and consider backgrounders. For example, if your lab statement is currently $10,000 a month and it goes to $20,000 a month after bringing in the new lens technology, are your profits adequate and can your business handle the cash flow? |
| COMPANY PROFILE |
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| What lens technology is your practice really known for? If it's super-thin or branded lenses, does the product under consideration fit into that bedrock message? If not, approach the new product in two ways: ■ Don't bring the new lens in right now since it doesn't match with your message, but ask about future launches which will broaden the product reach to cover your needs. ■ Bring in the new product now if it solves a problem. For example, you may choose to bring in a new super-hydrophobic/oleophobic AR lens because: a) AR is becoming more popular with U.S. consumers now b) Current AR technology solves past technology problems and can be sold with confidence c) Turnaround time with the vendor is faster with the same or better quality product than you have now d) All of the above |
EXPECTATIONS AND REALITY
Identifying expectations helps your practice and the vendor work within guidelines to ensure a successful launch and ongoing support.
1. What are the practice expectations regarding the product? What's expected from the vendor?
2. What are the vendor expectations and their requirements of the practice?
3. How is the product supported by the vendor?
4. How will the practice support the product? What will marketing efforts include? Detail practice initiatives and vendor initiatives, both internal and external.
5. Are you already working with a similar product? If so, will this lens be a replacement, and why?
6. Are there similar lens products available from other vendors? Talk to these companies as well.
7. Will both your practice and the vendor be collectively better off for this launch and be able to maintain a positive cash flow and relationship?
POSITIONING
Positioning the new lens appropriately can make or break the launch and long-term success.
1. How will this new lens impact sales and gross profit? Work numbers and run forecasts.
2. If the product costs more, can the practice sell it for more?
3. Should the launch be a full launch to start or an initial test launch?
4. Can the practice process the lens on-site or will it be sent to a wholesale lab? Work the numbers if processing in-house versus processing off-site.
5. How will the practice sell the product? By using spiffs, signage, mailers, ads, co-op vendor programs, a proprietary practice program, or a combination of these?
6. Set a sales goal and project both increased sales and costs.
| TORTOISE OR HARE |
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| Sometimes bringing in a new lens product can be done quickly; other times it requires study. Some research tips include: 1. Finding and researching comparable products with other vendors. 2. Asking colleagues about the product, and finding out from doctors and opticians you work with and who work for you if they feel bringing in this product will solve a problem for them. 3. Delving deeply to discover whether this product is complementary to your business. The key question is: "Does this product fit us?" |
| Sweetening Sour Milk |
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| If there are mega-management changes, a huge price increase, repeated product failures, if the product doesn't sell, or if there are other things that go wrong with a lens or a company you do business with, how do you recover? 1. Consider at least three other vendors as possible new partners. 2. Have room to adjust your pricing up and down: maintain some pricing flexibility. 3. Make sure your practice can return to the previous business model or product offering. 4. Evaluate your retail competence and product knowledge and retrain staff if necessary. |
Positioning a lens properly from the start is key to success. Image courtesy of Carl Zeiss
Adding a new lens from a new vendor means educating staff. Image by Essilor
If we do it, then what? 1. Evaluate costs including hidden costs which may include freight, outsourcing vs. inside production, and special equipment or instruments used to dispense and/or process the lens.
2. Establish retail pricing.
3. Select sourcing: stock or short order.
4. Fully understand vendor warranty policies, remake policies, and any other vendor policies that apply.
5. Assess retail discounting policies and the effects of discounting. Products with a certain percentage mark-up have more room for maneuvering on discounting. Consider establishing a policy floor price that one never goes below.
BRINGING IN A NEW LENS WITH A NEW VENDOR
The scenario: Your practice has heard of Freeland Free-Form Lens Company, but you've always worked with other lens companies. Now the rep is proposing you launch the Freeland Forever, a complete free-form lens line.
Answer these questions: Regarding quality: 1. What is the product quality?
2. What are the current product availability and the potential future product availability?
3. What is the product pricing?
Regarding policies and procedures: 1. What are vendor policies regarding warranties, redos, returns, discounts, quotas, and other requirements of the agreement?
2. What service and support does the company offer?
3. Where are the reps and how often will they call?
4. Are the vendor support people readily available?
5. What training is available? When? How?
6. Are new software, tracers, and other equipment and instruments required? Who fronts that cost?
7. What is the relationship or the perceived relationship from both your practice perspective and the vendor perspective?
| HIDDEN PERKS |
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Perks are part of the vendor-provided package and cost of the product. Make sure you utilize them.
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HOW TO GET IT IF YOU DON'T HAVE IT
If your practice has done the homework and determined that you need a brand new product, take these steps with current and new vendors.
1. Talk to your optical business network to find out who's got what, which companies are good to deal with, and who has the quality products your practice is looking for.
2. Know your deal breakers: Cost, warranty terms, or even personality conflicts.
3. Ask yourself/the team: "Can we trust this company enough to work with them?"
4. Also ask: "How will making these changes and agreements change our practice operations?"
The positive is that the lens generates extra dollars per pair sold, spiffs for employees, and customers are happy with their new lenses.
The negative could be increased internal costs that cause cash flow issues. Another negative impact scenario may include increased turnaround time and cost.
5. Newer isn't always better. Does the new lens plan sync with your business model? Does the new product fit your practice pricing?
6. If terms are clearly defined and met on both sides, with a little dash of luck, you've launched not only a new lens, but also enhanced or launched a true business partnership that will benefit your mutual businesses now and in the future. EB
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