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Eye Care in Egypt

Essay by   •  September 3, 2019  •  Coursework  •  2,959 Words (12 Pages)  •  79 Views

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Contact Lenses
What’s new?…How do we make contacts Profitable?


Comparative statistics
(% of Gross Income)LOW         AVERAGE     HIGH         MBA MEDIAN

Professional fees          <30%              35-40%        45%+              38%

Spectacles                 <35%           40-50%        60%+               44%

Contact lenses         <15%           15-20%        30%+           16%

Other sales                   0%              1-2%         5%+                 2%

        Source: MBA Key Metrics


What if your Contact lens sales < 15% of gross receipts?

Neglect mentioning contact lens option to patients

High lens retail prices; low capture rate

Heavy use of mature lens materials (heavily marketed)

Low use of specialty lenses



Contact lens patient % of total patient base

Lowest 20%            Next 20%              Median 20%               Next 20%            Highest 20%

18%                          25%                       30%                   35%                   50%


Soft contact lens gross profit margin in %

Low                 Average                 High

              <43%                         45%                       48%+

(Sales of soft contact lenses minus COGS of soft cls divide by the same sales)

Source: ABB Optical, MBA


Contact lens exam fees

New Spherical Contact Lens Patient:

Lowest 20%            Next 20%               Median 20%                    Next 20%   Highest 20%

$120              $153                    $181                                     $221                $274

Established Contact Lens Patient:

Lowest 20%             Next 20%                Median 20%                   Next 20%     Highest 20%

$95                         $112                  $139                             $167                 $215

Definition: This is the normal, undiscounted fee for a comprehensive eye exam and lens fitting for spherical new contact lens patients, or the normal, undiscounted fee for a comprehensive eye exam for existing contact lens patients not requiring refitting.

Source: MBA, 2007


The profitability of contact lenses for European eye care practitioners2

Conclusions

ECP’s perceive a contact lens patient to be less valuable than a spectacle patient

On average, a contact lens patient is 1.5 times more profitable than a spectacle patient 


Net revenue from  “spectacles only” patient

“Spectacles only” patients on average purchase a new pair every 2.4 years3

Less frequent examinations           Exam approximately every 2½ years4


Net revenue from “contact lens” patient

Contact lens patients provide ongoing revenue5

More frequent examinations

Approximately every 15 months6

Additional fee for CL XM year 2 on?

At least 60% of contact lens patients also buy their spectacles from the ECP7 

Conclusions

Most ECP’s do not judge the profitability of their patients over the lifetime of their relationship with them

Tendency to overestimate the impact of the initial cash flow & underestimate those of later periods8

Makes spectacles “appear” more profitable since the initial sale of spectacles almost always generates more profit than the initial sale of contact lenses

SunGlasses

Positive Correlation

Percentage of contact lens patients and annual gross revenue per active patient (exam in past 36 months)

Proactively present contact lens solution to glasses patients

(Dailies for frame styling)

Streamline

Same-day contact lens exam, fitting and dispense

Patient is already in chair

You have the data

Staff delegation/scribing/trial lenses

Instant gratification – potential referrer

Follow-ups

How many follow-up visits do you need after a fit – and how often do you need to see the patient for ongoing care in year 2 and beyond?

Don’t require more visits than you really need, and re-challenge your philosophy on what you do need


Don’t settle for fine

        How are you doing with your contact lenses?

        How are you doing with your contact lenses?

        “My patients will tell me if they are not happy”

Eyes dried out when wearing CL’s                                    81%                                   44%

Contact lenses felt uncomfortable at EOD                 73%                                   34%

Eyes felt irritated when wearing CL’s                        60%                          26%

Ability to see changed throughout the day                    52%                                   18%

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