Eye Care in Egypt
Essay by Anurag Sharma • September 3, 2019 • Coursework • 2,959 Words (12 Pages) • 2,983 Views
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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