Optimizing the number of frame vendors for ECPs is key to boosting efficiency and profits. By narrowing down vendors, ECPs save time, avoid overstocking, and gain stronger negotiation leverage. This approach not only simplifies ordering but also sharpens the focus on patient care. Building closer relationships with vendors enhances quality control, leading to a more satisfying experience for patients, who benefit from a thoughtfully curated selection.
The ideal vendor count typically ranges from six to 12, with top-performing practices often managing fewer brands. To delve into industry trends, we examined vendor counts for premium frames—those in the top quartile of list prices—across a broad sample of ECP locations in the United States.
Our analysis covered more than 3.6 million frame transactions in 2023 from more than 2,200 ECP locations across nine U.S. census divisions. We focused on premium frames, calculating average vendor counts and frame list prices for each ECP location and aggregating data by census division.
On average, premium frames in the top quartile were priced at $366, with ECP practices typically carrying frames from around 13 manufacturers. The Pacific region boasted the highest average frame price at $406, while the lowest average price of $304 was found in the East South Central division. Interestingly, the Pacific region also had the lowest average vendor count (11), while the East South Central, West South Central, and West North Central divisions had the highest average vendor count (14).
Our findings revealed a pattern where higher list prices correlated with fewer vendors, suggesting an inverse relationship between unit sales and price. By strategically controlling the number of frame suppliers, ECPs can maintain a well-balanced assortment that meets patient expectations, optimizes inventory management, and drives profitability.
These insights serve as a valuable benchmark for ECPs looking to fine-tune their frame assortment strategies and enhance overall practice performance. Click here to learn more. —Ron Krefman, O.D.
Practice Resources
The GPN Visions business solutions channel (visions.gatewaypn.com) offers timely webinars and resources to ECPs. The open-forum webinars feature some of the industry’s most successful O.D.s, practice management consultants, and business owners. GPN Visions members are invited to attend live webinars, view recorded presentations, download useful tools, and participate in live Q&A sessions with industry pros.
• All industry data provided by GPN: gatewaypn.com
