RETAIL OPS

Don’t Buy Blind

How do you pick product and why? Here, ECPs from different disciplines share what works best for them

it’s difficult to point to one universally successful optical product management method because business models for ECPs are so diversified. From independent retailers with a single store and optometry groups with multiple regional locations to optical chains, each brings something different to the game.

Here, ECPs from different disciplines share what works best for them. Their approach may synch with or veer from yours, but learning their ways may help you tweak your product management program, or blaze a whole new trail.

BUYING STRATEGIES

Buying product can be simple, but the nuances are what help you gain a foothold. “Our main form of inventory management is built into how we buy frames,” says Nate Ogura, owner of Eyes on Fremont in Seattle, WA.

$ ONE-BY-ONE. “We only buy one of each frame and if it sells quickly, we reorder it,” says Ogura. “There are three factors that are a must for every frame we buy: great quality, style, and value,” he adds. “Judging quality comes with time; you get to know the feel of a really well-made frame. Style-wise, we look closely at what’s happening at the New York and Paris shows.”

$ KNOWING VALUE. Ogura adds: “Value is trickier; most frame looks have options from $20 to $160. With most of the low-end stuff the quality won’t be there, but on the flip side, is that $160 frame really made that much better than the $100 frame? The answer comes from knowing your customer. You have to look at your target retail level and work from there.”

ASK BEFORE YOU BUY

Andrea Reis, clinical manager, optical and regional eye network of David, Duehr, Dean, Regent Optical in Wisconsin, notes: “Before purchasing product, we get answers to fundamental questions.”

? Will our customer demographic purchase this product?

? Is it viable; is the price point within the range of our business model?

? Is it filling a need that we have?

? What are the minimum order requirements and are they reasonable?

? What are the exchange and warranty policies?

? Is the vendor reliable and do they have a good rep to work with?

? What are their backorder stats?

? How is their customer service phone line?

? What type of shipping program do they have?

? And do they have a website for viewing and ordering product?”

QUESTIONS TO ASK

“Which of our 19 locations could benefit from this product?” is a key question asked by Andrea Reis, clinical manager, optical and regional eye network, of David, Duehr Dean, Regent Optical in Wisconsin. “The demographics of our customers vary, from university town to farming community.”

Personalized buying even under big box rules is possible when handled with a purpose. “In corporate practice, the company dictates what product is carried, but there are exceptions,” notes Larry Christopher, LDO, manager of Sam’s Club Vision Center in Memphis, TN. “For example, if a customer wants a certain frame brand and style, I make note of it, along with their contact information, keeping a list. I contact corporate and they locate the frame and ship it to me. I tell the customer, who’s thrilled we’re able to get what they wanted. They appreciate this attention to their wants and needs, often becoming lifetime customers because of this personalized level of service. So in this sense, we opticians are in control of the buy.”

SOFTWARE AND REPORTING

There are a variety of inventory management software programs that help users organize and proactively handle product.

$ TURN. “We recently converted to a new retail software program that has an inventory module which allows us to keep track of how long frames have been in the stores,” notes Reis. “We can review sales reports that tell us what’s sold and how often a style is selling, so we can reorder good sellers right away. It’s important to keep product fresh, plus make sure we’re getting turns from the inventory to ensure the profitability of the lines.”

$ BUDGETING. Set a budget, stick with it, be accountable for it, and realize the benefits. “Each store has a definitive budget for frame inventory, and each month they report on how much they spent,” Reis says. “Since we’ve instituted monthly reporting, we’ve seen a more stabilized cost of goods. It’s also made a dramatic impact on the amount of back stock in each location. Managing opticians have discovered that, by using their budget and reporting software tool, having a lot of back stock is unnecessary. This in turn has freed up inventory dollars for new product exploration or improvement to the bottom line.”

BOARD MANAGEMENT

$ GOOD, BETTER, BEST. Tighten your frame board style with an eye for profits and sales appeal. “It’s tough to carry and keep up on everything,” Christopher observes. “It tends to create a lack of knowledge simply because of the difficulty in keeping up with it all; it makes it hard to train newcomers into the industry. The Sam’s model limits frame and lens product carried and segments it into a good, better, best format.”

$ STRUCTURE. “We’ve been gravitating toward a more structured board management style,” says Reis. “By utilizing space with key vendors, we can negotiate better pricing. This also has made our frame boards more focused and organized. Instead of looking like we have 1,000 miscellaneous frames, we’re now building stories within each location.”

$ MODULES. Consider loading frame boards as modules not only for inventory organization, but for selling simplicity. “Sam’s stocks frame boards by modules: rows one through 12 are one brand, for example,” Christopher says. “Frame boards are also stocked seasonally. In the summer, sunwear is placed in the board’s center. Corporate sends stores product lists with recommendations. Managers are prepared for spot fills; corporate communicates with us, telling us what’s coming up and when,” Christopher adds. “The best way to describe Sam’s product management is to ‘mix with consistency.’”

— Karlen McLean