Back to: 7: Finishing: The Optician’s Edge
Lenses are generally marked up to whatever the local market will bear. Basic, single vision, uncut lenses receive the single highest mark-up of any product sold in the industry.
Proper pricing of lenses (AND FRAMES TOO) should match the business location, customers’ expectations of prices and expectations of quality. All of these will determine if the business is successful or not.
If in doubt, call your competitors and price shop! In fact, it is an excellent idea to call around or pop in at other stores near yours and check them out from time to time.
You may not be familiar with the terms “wholesale” and “retail.”
When you are an optician, you need to know them.
Wholesale is the cost your business pays for the products (frames, lenses, parts).
Retail is what you charge your customers for those products.
Retail – Wholesale = Profit. It is all about profit!
Profit – All Business Operating Costs = Net Income for Owner.
DON’T MISS THAT STEP: Profit – All Business Operating Costs = Net Income for Owner.
Also keep in mind that the higher the wholesale cost of an item, the higher the return on mark-up is.
A $3.00 lens marked up 2X has a profit of $3.00.
A $30.00 frame marked up 2X has a profit of $30.00.
A $300.00 frame marked up 2X has a profit of $300.00.
Note: The insurance plans that you participate with may have some rules on your lens and frame pricing. Not really the place to get into it but you cannot price things one way for cash and another for insurance.
For surfaced or lab work 2X wholesale is a bare minimum to expect a return.
After careful comparison shopping for the local market and common sense mark-up to wholesale cost, consider:
- Uniqueness of product being offered. If no other store in town has it then you may be able to charge more for it!
- “BUZZ” of latest and greatest thing. If a particular frame is getting a ton of social media attention you may be able to charge more for it.
- Is it the thinnest, lightest, sharpest, highest, lowest. People with very high powers are used to paying premiums for the best that they can get. If you can honestly claim that what you are offering is the “________est” then you can charge a premium for that product.