BLUEPRINT FOR HIGHER OPTICAL PROFITS1 Increase Your Rx Capture Rate

©2015 Higher Optical Profits

1 Increase Your Rx Capture Rate BLUEPRINT FOR HIGHER OPTICAL PROFITS

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Finding Lost Profits

Can the act of capturing just one more Rx per day really make a meaningful difference to your bottom line?

Simple formulas reveal the answer to this question as a definite ‘yes.’ Still, there remains a phenomenon of lost profits in many practices due to potential but unrealized Rx eyewear sales.

The amount of Rx sales you do realize make up your ‘capture rate.’ But, do you know what your own opti-cal’s capture rate is?

Yearly Lost Retail = $2.2 Billion

Your ‘capture rate’ can make a huge difference in your optical revenue and subsequent profitability.

According to the American Optometric Association, independent ODs capture just 73% of the eyewear purchases of their patients. Every year, the remain-ing 27% of un-captured sales equates to a walkout rate of 9.8 million pairs of eyeglasses with a retail value of $2.2 billion. And, if you’re a dispensing MD, your walkout rate is probably even higher.

How Does This Walkout Rate Equate To Your Own Practice?

Let’s say you are writing 10 eyewear prescriptions per day and 3 of those Rxs are walking out the door. If your eyewear sale per patient averages $250, then $750 in revenue leaves your office every business day of the year.

How Does This Lost Revenue Sift Down To Pure Profits?

If your cost of goods is 35%, then you are losing more than $480 in profit — every day. When you do the math considering 250 business days in the year, this lost profit becomes a substantial $121,750 each year.

Your Lost Profits

$750 per day – 35% cost of goods = $487 profit $487 x 250 business days per year =

TOTAL $121,750 Per Year In Lost Profit

Capture Rate Case Study

10 Rxs written per day 3 Rxs walk out per day 3 Rxs lost x $250 average eyewear retail

TOTAL Lost Revenues = $750 Per Day

One Additional Capture Per Day = Pure Profit

What can one more Rx capture per day mean for your bottom line?

Turning the lens on the positive, capturing just one additional Rx eyewear sale per day can net you an impressive $40,500 per year in additional profit.

Breaking it down further, this equates to a huge monthly profit increase of $3,375.

Sure, you’re not going to capture all of them, but capture just one more Rx a day and you’ve increased your profits over $40,000 in one year. Think about it.

What Is Your Plan For Increasing Optical Profits In 2015?

In today’s highly competitive marketplace where margins are squeezed and independents are work-ing harder to win patients and sales, eyecare profes-sionals can benefit from every additional Rx they realize.

Formulating a strategy to capture just one more Rx per day can give your practice a leg up — and net you more profits.

3 Simple Ways To Capture One More Rx Per Day

How can you gain that one additional Rx eyewear sale per day — and keep that patient from walking out the door?

Here are three simple strategies for making that ad-ditional sale. At three specific points of contact with the patient:

• When Confirming The Appointment • During The Case History • Just After The Exam

You don’t have to be pushy or twist arms to sell more eyewear. The key — you just have to ask the right questions.

Doctors and their staff routinely do a poor job of finding out what the patient’s true visual needs are and then offering reasonable options to help meet those needs. Learn to ask open-ended questions that allow patients to tell you what they are thinking.

Do that and you don’t have to twist arms or oversell. Many of your patients will buy new glasses and mul-tiple pairs if you just explain the advantages and give them the chance to say ‘yes’.

©2015 Higher Optical Profits

1 Increase Your Rx Capture Rate BLUEPRINT FOR HIGHER OPTICAL PROFITS

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Gaining Back Lost Profits

One more Rx capture per day = $250 Rx eyewear average – 35% cost of goods = $162 $162 profit per day x 250 business days per year =

TOTAL $40,500 Per Year In Additional Profit

Scripts | The Answer Is Always ‘No’ If You Don’t Ask

Always with the goal of meeting your patients’ visual needs, here are three questions guaranteed to increase your optical sales.

1. When Confirming The Appointment

Who Says It: The Receptionist or Office Manager making confirmation calls for your office

The Script: “Hi Mrs. Smith, this is Mary from Dr. Seewell’s of-fice. I’m calling to confirm your eye appointment for 10 am on Tuesday. Please be sure to bring all the eyewear you currently use, including any non-prescription sunglasses and reading glasses.”

The Reason: There are two important purposes for this request:

1. To find out what eyewear the patient is using.

2. To plant the seed in their mind for how they might obtain high-quality, multiple pairs of Rx eyewear when they visit your office.

2. During The Case History

Who Says It: The Office Technician

The Script: When taking the case history prior to a patient’s exam, technicians should ask this simple question: “Are you planning to get new glasses today?”

The Reason: If the patient says, “Yes, I plan to get new glasses,” then you don’t have to give them a sales pitch when they have a marginal change in prescription. An affirmative answer is an invitation for you and your staff to offer the patient their latest prescription in sunglasses, computer glasses, golf glasses, or whatever they want.

However, when a patient says, “No, I don’t want new glasses today,” the information makes it easy for you to avoid sounding pushy.

3. Just After The Exam

Who Says It: The Doctor

The Script: At the close of the exam, the doctor should ask, “Do you like the frame and lenses you have now or do you want to see some different styles today?”

The Reason: This gives the patient an opportunity to tell you what they want to do. The last thing you want to happen is for someone who wanted new glasses to leave your office empty handed because you told them they didn’t need a change in Rx. Don’t miss the opportunity to grow your practice by filling both wants and needs.

Be sure to watch your email for more tips and strate-gies from the Higher Optical Profits Blueprint and Video Series.

©2015 Higher Optical Profits

1 Increase Your Rx Capture Rate BLUEPRINT FOR HIGHER OPTICAL PROFITS

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Worksheet | What Does My Rx Capture Rate Look Like?

Take just a minute now to see how much additional profit these simple tips could help you add to your bottom line in 2015. Quickly calculate your own Rx capture rate using the worksheet below.

1. My Rx Capture Rate

My total eyewear prescriptions per day = A

My number of patients purchasing Rx eyewear per day = B

Walk Outs Per Day = A – B = C

Capture Rate = B ÷ A x 100 = %

2. My Lost Profits

My average Rx eyewear sale per patient = $D

Lost Revenue Per Day = C x D = $

My average cost per Rx eyewear sale = $E

Profit Per Rx Eyewear Sale = D – E = $F

Lost Profit Per Day = C x F = $G

Lost Profit Per Year = G x 250 business days per year = $

3. My Additional Profit On Just One More Rx Per Day

Addtional Profit Per Year = F x 250 business days per year = $H

Addtional Profit Per Month = H ÷ 12 months = $

4. Three Things I Could Do With That Additional Income

1 Increase Your Rx Capture Rate BLUEPRINT FOR HIGHER OPTICAL PROFITS

p. 4Disclaimer: The information and opinions contained on this document are for discussion purposes only and are NOT intended to serve as legal, accounting or investment advice. ©2015 Higher Optical Profits. Not to be reproduced without written permission of the author.