Contact Lens 1-2: SCL Profitability 2014 Flashcards
1
Q
- % of gross practice revenue?
a. From what 2 things/
A
- 25%
a. CL Sales and CL professional fees
2
Q
Soft Lens Market Trends
- What 5 Segments are Growing in Share?
A
- Soft Torics
- Soft Multi-focals
- Daily Disposables
- Monthly Replacement Lenses
- Silicone Hydrogels
3
Q
Soft Lens Market Trends
- 5 Segments Declining in Share
A
- Clear Spheres
- Private Label
- 2 Week Lenses
- Quarterly Replacement Lenses
- HEMA Based Lenses
4
Q
Profitability of CLs
- What lenses have Reduced Profit Margins?
a. Why is this? - What can Maximize Revenue?
A
- Multi-packaged lenses
a. Due to increased retail competition - Effective CL management strategies
5
Q
Resources
- 4 Major resources for info about CLs sales etc..?
A
- Rep from CL distributor/Lab (ABB Concise)
- Rep from CL Manufacturer (Alcon, B+L, Coopervision, and Vistakon)
- Consultants
- Seminars
6
Q
Deficient Approaches Identified by Optometric Consultants
- 5 major things
A
- Prescribing based on Lowest cost to patient
- Recommending what’s most popular
- Presenting a menu of options at tiered price points and allowing patients to choose
- Not adopting new technology
- Failure to track product mix
7
Q
Revenue Building Strategies
- You should RECOMMEND LENS MODALITIES that have what?
- What other 3 things?
A
- That have HIGHER COMPLIANCE
- a. Encourage Annual Supply Purchases
b. Make Recommendations for your patient
c. Pre-Appoint Patients
8
Q
Compliance
- Frequency of Lens replacement is DIRECTLY RELATED to what?
- Non-Compliant patient will not have what?
- What else.
A
- to Eye Exam FREQUENCY
- the Impetus to return for their annual eye exam
- CHIEF COMPLAINT. LISTEN!!
9
Q
Non-Compliance
- Which type of CL has the highest Non-compliance rate?
- Major reasons for Non-Compliance?
A
- 2 weeks > Monthly > Daily Disposables (Lowest non-compliance)
- Forget Day to Replace them! > Save Money > Lack of Time > No Harm > ECP said OK
10
Q
Tools
- What tools are out there to help patients be more compliant? (4)
A
- Lens ALERT; SIRI; Acuminder; Apps
11
Q
Annual Supplies
- What should we quote to the patient?
- What other 4 things should we tell them?
A
- QUOTE ANNUAL SUPPLIES TO ALL PATIENTS!!
2. Discounts, Rebates, Commit to Memory # of Boxes (annual supply) and Direct Ship
12
Q
Box Size
- Daily Disposables?
- 2-week or 1 month replacement?
A
- 30 pack; 90 pack
2. 6 PACK (some brands have 12 packs and some have 24 packs)
13
Q
CL Transaction Costs
- Least Profitable?
- most Profitable?
A
- Individual Rx to Supplier, Dispensed in-office < Dispensed in-office from inventory < Individual Rx to Supplier and dispensed in office < dispensed in
- Patient Internet Order
14
Q
Goals for % of Direct Shipment
- Median?
- 95th percentile?
A
- 15%
2. 80%
15
Q
Reducing Transaction Costs: Things to DO!
- Stock in-office Inventory with what?
- Encourage purchase of what supply of CLs?
- Use distributor or individual manufacturer when ordering CLs?
- When should CLs be ordered: End of the day or after each patient order?
- Ship lenses where?
- Enable what on the website?
A
- of Frequently Prescribed Clear Spheres
- Annual Supply
- Distributor
- At the end of the day
- to Patient’s home/office
- Lens re-order on the practice website
16
Q
DONTS
- Dont recommend that patients return to do what?
- What else?
A
- to buy lenses as they need them
- Dont fail to demonstrate savings of an annual supply (% discount; Manufacturer’s rebates)
- Don’t ask patients how many boxes they would like to buy
17
Q
Sample SCL Inventory
- Tend to keep a good supply of what powers?
A
- Mild myopes
18
Q
Make Recommendations
- 4 things
A
- Refitting into newer technology
- Soft Torics to Low Cyl Patients (> or equal to 0.75 DC)
- Multifocals before monovision
- Daily Disposables
19
Q
Interval b/w CL Exams
- % of Eye care practitioners recommend that CL patients return how many months for an eye exam?
- National avg b/w CL exams?
- Reducing Interval b/w CL exams?
A
- 98%: return every 12 months
- 18 months
- if reduced to 16 months –> 12.5% increase in # of exams performed/year
20
Q
Closing the Gap
- How can we best increase frequency of CL Exams?
A
- Reduce interval b/w CL Exams by PREAPPOINTING
- Phone call in 11 months to confirm
- Quantity of Lenses in the annual supply aligns w/the recommended exam interval –> Compliance
21
Q
Recommending Contacts to Everyone
- 5 Keys to Success
A
- Keep up on Latest CLs (stay educated)
- Think GLASSES AND CLs, not glasses or contacts
- Ask about interest in alternatives to glasses on pre-exam lifestyle history questionnaire
- Have discussion w/every patient about his or her lifestyle and CLs
- Put CLs on patients selecting Glasses
22
Q
Getting yourself out of the WAY!
- 5 Keys to Success!
A
- Don’t settle for “fine.”
- Don’t offer pt a solution until they realize they have a problem
- Don’t offer your pt options. Make a strong recommendation
- Remember, pts come to you for your professional opinion, not a bargain
- Practice Role-Playing, making recommendations and answering fee objections