Service Snitch: Service Snitch: Optometrists / Eye Doctors

Site Information

Affiliates

Optometrists / Eye Doctors: Seeing Profit

No part of the human body is more frequently taken for granted than the eyes. Vision is the first sense we rely upon to interpret our surroundings, but because our eyes are so essential to even the most mundane of our activities, we often forget how important they are, and don't always think to seek the best care for them. Even though eye care is arguably the most prevalent specialty of the medical industry, somehow we often forget that, too. After all, almost everyone will have to visit an optometrist at some point in their life, something that can't be said of orthopedists or podiatrists.

As the bodies of the baby boom generation continue to age, one of the many beneficiaries is the eye care industry, which is doing some booming of its own. The more lucrative the industry, the more intense the competition, and while the resulting advantage for the consumer is obvious—more selection of product and prices—the disadvantage is more subtle. The more competitive an industry is, the more desperate the individual outlets are to make a profit. With the field as crowded as it is, if their operation comes in at the bottom of the stack, they won't stand a chance at survival. Since this phenomenon applies to the whole industry, the prices for goods and services can skyrocket en masse. Unfortunately, this makes it far more difficult to tell if you're getting ripped off, since almost everyone in the business will be ripping you off.

The eye care industry is divided into two subgroups: optometrists (eye doctors) and opticians (eyewear vendors). As with any booming industry, however, you'll find many enterprising operations that cater to all your eye care needs under one roof. Most eyewear outlets stable in-house optometrists for customers who need new or updated prescriptions, and most optometrists have "dispensary" units to sell you the frames and lenses the doctor insists you'll need. As convenient as this might seem for you, this is even more convenient for eye care outfit to bundle costs and rip you off from multiple angles. So how do you see through the industry's carefully disguised tricks and scams to get the right pair of glasses and the right care for your eyes at the right price?

What It Costs:

According to industry magazine 20/20, the average cost for eyeglasses in the United States is a staggering $244.59. While this expense may be covered in whole or in part by your health insurance, most plans do not cover it, and you will probably end up having to foot the entire bill yourself.

The two components of this cost are the frame and the lenses. The consumer has plenty of latitude in selecting a frame; name-brand designer models can cost as much as $500, while no-name, no-frills models run for less than $50. The cheaper the frame is, of course, the less durable it will be, and the ensuing repair and replacement costs can spiral far beyond the initial investment. You won't have as much leeway in choosing lenses, but you will be asked whether or not you want any optional add-on coatings. Every industry fattens its pockets by foisting "extras" on the unsuspecting consumer, and in the eye care business, those extras are lens coatings. Tints, ultraviolet filters, and scratch protectors are the most popular choices, and together these will run you anywhere from $30 to $100. While add-ons are only a fraction of the total cost of the eyeglasses, often they are where the vendors net the most profit.

This already absurd cost for eyeglasses does not include any fees for the optometrist, from whom you have to get the prescription in the first place. As with all medical practitioners, the price will vary wildly depending on the doctor and the service. The most popular service is the "comprehensive eye exam", though the definition of "comprehensive" changes from practice to practice, as does the cost, which is usually $50 – $100 per patient. Unlike eyeglasses, however, optometrist consultations are covered by many health insurance plans.

The Eye Care Specialists Say:

“As an optician, I sell eyewear at a fair, competitive price. I stock both designer and bargain frames and both traditional and advanced lenses, and I can tell you all about the fantastic lens upgrades I have available. I offer numerous promotions and discounts every year for my valued customers. Working together, you and I will find the pair of glasses that best fit your style, your vision needs, and your budget.”

“As an optometrist, I give all my patients the care and respect they deserve. I offer reasonable rates for all of my services, and I will help you determine which service is most appropriate for your needs. If I find you need a prescription, I can assist in selecting your frames and lenses from my dispensary, so you can make the decision with a doctor you trust and not have to put something as precious as your eyesight in the hands of an outsider.”

The Snitch Says:

“Your eyes may be the windows to your soul, but to eye care specialists, they're the windows to your wallet. Mark-up practices among opticians are much more drastic than they are among other industries. Bargain-basement import frames cost opticians as little as $5, but, a few ticks of the magic marker later, the frames sell for as much as $100. This is doubly deceptive: not only are you paying an extortionate mark-up, but, thanks to that high pricetag, you're also convinced you're getting durable, high-quality frames.

As for those ubiquitous '50% Off Sales Events', which seem to run 365 days a year at every eyewear vendor in the country, those are little more than shiny lures for a bait-and-switch. Look out for the asterisk, because, inevitably, the promotion applies to "select models only", that is, outdated frames their manufacturers no longer make replacement parts for. One loose screw later, you'll have to slink on back to the eyewear store and splurge on a whole new pair of glasses, while those half-off frames you got not too long ago will turn out to be worth far less than what you paid, even after the discount.

Sometimes, the frame discount is not only limited to certain frames, but to certain lenses as well. If you want to get those frames at half-off, you'll be told, you have to spring for the "deluxe" lenses, in other words, the most overpriced and marked-up lenses they have in their inventory. Didn't see that asterisk in the advertisement? Well, all the more reason you need the deluxe lenses! In the end, you're ripped off on the lenses much more than you save on the frames.

Even if the eyewear vendor claims there's no asterisk, no catch, no restriction on frames or lenses, every '50% Off Sales Event' warrants suspicion. Remember, standard industry practice is to mark up the frames hideously—usually up to 3 or 3.5 times the purchase price, sometimes even more—and then apply the 50% "discount". So even after "sale" price, you'll still pay perhaps twice as much as what the frames are actually worth.

A similar ruse is the ever-popular 'Buy One Frame, Get One Free!' ploy. As enticing as this sounds, the promotion will only apply to certain frames—the most expensive ones on the rack—and the free frame you get won't be the one you shelled out for, but a flimsy import job that isn't worth any more than $5.

Like all retail employees, eyewear vendors depend on sales commissions, but many of them only get a commission from the add-ons you choose, such as tints, UV protection, and scratch coating. Accordingly, these extras are sold for many times their actual value. Moreover, some newer lenses, such as hi-index and polycarbonate models, already have UV and scratch protection coatings from the manufacturer, but the sales clerk, fishing for a few extra dollars, will knowingly offer them to you as an "option", hoping you'll spend another $100 or so on something you've already paid for.

Optometrists are not above exploitation for the sake of profit in an increasingly competitive industry, either. Keep in mind that unlike ophthalmologists, who are medical doctors with all of the education and formal training to go with it, optometrists get a 4-year graduate degree from a college of optometry and then go to work – having earned a D.O. (doctorate of optometry.) The optometrist’s job is to diagnose vision problems and then sell you glasses or contacts. If you need surgery or if you have any kind of eye disease or disorder, you will require the services of an ophthalmologist.

Now optometrists know that most people unflinchingly trust the man in the white robe, and they'll capitalize on that trust. The meal ticket of the optometrist is to persuade his patients to submit to a "comprehensive" eye exam. Again, exactly what constitutes a "comprehensive" eye exam may vary, but any comprehensive eye exam will include some procedures that are not necessary for every patient at every visit. Of course, no matter how unnecessary you think it is, many optometrists will desperately try to convince you otherwise, since they make more money that way.

Nowadays, most doctors are businessmen, after all, and many operate on strict budget plans counting on an annual per-patient intake. If they don't meet that intake, their budget falls apart, and their practice along with it, so don't think the optometrist will sit back and let you choose the most economical exam available without urging you to reconsider.

Since most optometrists double as opticians, many of them will further abuse the doctor-patient relationship to pressure you into spending hundreds of extra dollars at their dispensary. Remember, you can't always trust your local optometrist more than your local eyewear chainstore just because he has a few more degrees on his wall. Doctors are suave, calculating types; they know most people won't even hesitate to lay down twice or three times as much money as they had planned, simply because their doctor told them it was in their 'best interest'."

Protecting Yourself:

If you're in the market for a new pair of eyeglasses, you're probably going to have to spend at least a hundred dollars, which is too much money for anyone to spend hastily. As always, you must shop around. You're sure to find high prices in many places, but, given the intense competitiveness of the industry, you have a strong chance of finding a reasonable bargain somewhere in your area.

The first thing to consider is that any retail dealer in glasses makes money either by doing a tremendous volume of business at a low profit margin and offering little in the way of service, or by selling fewer pairs at a premium but offering superior service, more delicate frames (that will require more free repair service), a nicer store, etc. So know what you want and select your store accordingly. To buy solid, sturdy, old-fashioned glasses at a premium dealer would just be stupid since you don’t need the extra service.
Similarly, buying glasses at the mall seems like a poor idea because you would get the worst of both worlds. Their rent is huge so they have to sell lots of standard glasses for top prices to make a profit!

As with any service, do not be pressured into lavishing hundreds of dollars on "extras" you didn't anticipate buying before you walked through the door. On the other hand, if you are sure you want add-ons, be aware that they are often the only negotiable component of the eyewear purchase. Don't be afraid to ask if you can get a discount on multiple add-ons. Since salesmen depend on the commission, many will readily accept any reasonable offer you make, once they know you're too smart to cave into the list price.

One easy way to determine what sort of frames and lenses you'll need is to check your prescription or ask your doctor for your sphere. The sphere is a numeric index designating the degree of correction needed; each eye its own sphere. If the sphere for both of your eyes is small—between -2.50 and 2.50—any frame will work just fine, and you won't require any hi-index lenses, so don't let any commission-hungry clerk tell you otherwise.

Hi-index lenses are a new development, and, like all new developments, expensive, but for people with severely impaired vision, they can be essential. As their name suggests, hi-index lenses have higher indices of refraction than traditional lenses, which means they can correct vision to the same degree as a much thicker traditional lens. If you and your doctor decide a hi-index lens is the best alternative for you, be sure your optician gives you what you pay for. He might try to slip you hi-index lenses only slightly more powerful—but much more expensive—than traditional ones. Be sure to ask specifically for hi-index lenses with a 1.66 degree of refraction.

If you have the option, consider polycarbonates instead of hi-index lenses. Polycarbonate lenses are thinner and lighter than traditional ones, but they're also cheaper than hi-index models, which offer the same benefits. Many people are unaware of the difference, however, and some unscrupulous eyewear vendors exploit this by charging the same amount for hi-index lenses as for cheaper polycarbonates. Ask for the prices on all types of lenses available before you tell the optician just what you want.

When making an appointment with your local optometrist, do not consent to a comprehensive exam if you know you only need an intermediate one. Before you commit to anything, ask exactly what constitutes a comprehensive exam and what other options are available. If you wear contact lenses, know that many optometrists will bundle a "contact lens evaluation fee" into your bill even for a routine check-up, so always ask whether you will be assessed such a charge before you schedule an appointment.

Buying glasses online is fraught with dangers to the consumer and is not a good idea. Due to fraud or incompetence you might be sent the wrong lenses or frames, discontinued frames (or nothing at all), or broken glasses and then get hassled as you look for an optician to fit them for you when they arrive and to repair them when they break. If you do want to buy online you just have to get your prescription from the optometrist, fax it to the online dealer you’ve selected and then pick a frame you like from their online catalog and hope for the best.

Just Because You Were Curious:

Selling glasses is a profitable business. Your local optometrist / optician grosses at least $500,000 a year if he’s earning the average in this industry, and very well might make over $1,000,000. Only a portion of this, however, will go into his bank account. Usually around 60% - 70% of the proceeds go towards leasing an office, maintaining a staff, financing equipment, and stocking a dispensary.

The more an optometrist invests in these expenses—that is, the higher quality service he wants to provide—the more he'll have to gross if he wants to make the same profit as the optometrist in the run-down office with one bumbling receptionist on staff. The only way he can recoup that difference, however, is to charge his patients / customers more.

Optometrists who follow a "low gross/high net" approach will boast much lower fees than those who stick to a "high gross/high net" model, but their service will be drastically inferior. Not all optometrists are ripping you off just because they charge higher prices than their competitors. As with any other service, you have to balance concerns of both quality and cost when choosing an optometrist. Remember, however, that while better service necessitates higher prices, higher prices don't always necessitate better service.

Posted by admin on 07/22 at 09:52 AM

Sponsors

Search

Categories

Site Information

Affiliates

Archives

Meta

Saturday, July 22, 2006

Optometrists / Eye Doctors: Seeing Profit

Post a Comment