Let’s Get Competitive
in the New Year!
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I often hear complaints from independent
opticians, and some ODs who complain loudly that they just can’t make it in today’s optical environment. With the proliferation of mega-store corporate eye care organizations, how can the independent practitioner be expected to compete? In this article we will examine some methods independents can use to help them become more successful despite the growth and continuing development of corporate entities. What we will focus on is competitive advantage.
Competitive Advantage
Competitive advantage is the basis on which a practice can compete with anyone and maintain an advantage. Levoy
(2002) provides some specific suggestions to developing a competitive advantage for eye care practices. He indicates that providing specialty service sets one office apart from another. For the OD, he describes Advanced Orthokeratology, Low Vision and others as examples of specialty services that can provide a competitive advantage. Opticians can also provide some specialty service, like Low Vision, Sports Vision and other well-known strategies. Do you offer things others don’t? If you want to compete, find a niche and fill it.
Competitive advantage is generally accomplished through a thorough review of the marketplace and yourself and your organization. Important to the process is a SWOT analysis; a review of strengths and weaknesses (internal analysis), and opportunities and threats (external analysis). Through this process, you should be able to effectively develop strategies to make your organization more competitive by developing your strengths, and correcting or minimizing your weaknesses. Those independents that are successful in today’s eye care industry have a well-defined strategic plan for continuous improvement.
Office Appearance
Have you seen some of the large, corporate operations? Most are nicely decorated with huge inventories to meet the needs of the general population. They set the bar high. I have been in several independent offices that are not up-to-date in appearance, and are even dirty, and they wonder why they are not successful. What does your office look like? Are you up-to-date, or should you possibly remodel? Is your office free of barriers to those with special needs? Take an objective look at your peers and see what you can do to update your office to make it more appealing and/or patient friendly. Things like seasonal office decorations can provide a large boost. Levoy (2002) indicates that an office should be redecorated every seven years to maintain a fresh appearance in the eyes of patients.
Products and Services
Product mix is important. Many of the large corporations have huge inventories. Review your product mix and compare. How do you stack up with the big operators? Is it appropriately displayed? Is there enough, or too much? You want to turn over your merchandise approximately 4-8 times a year
(Appler, 1999; Moss, 2001) and the number of frames displayed need to meet the needs of your target market. Having 10 million frames will not make you sell more products, and may even be a source of confusion for patients. Make certain you have the products you carry displayed effectively and you will sell through at a much higher level.
Services are equally as important. What does your target market want in terms of products and services? Give your office the advantage by providing the services they demand. Should you provide laboratory services? Do you need to add more sunglasses?
Products and services offered must be selected carefully and allow you to position yourself in the market. Wal-Mart and others offers their products and services based on price. You may not be able to compete effectively in that market if they are next door. What you can do is to provide patients services they may not be able to provide. Special lens designs that they may not be able to supply will position you differently than the big-box supplier. If you fit contact lenses, doing specialty lenses will identify you as a specialist versus those who supply disposable only. Those who are most successful today select products and services that will differentiate themselves from others in the market.
Marketing
What is marketing? Griffith (2006, p. 585) defines marketing as “the deliberate effort to establish fruitful relationships with exchange stakeholders and partners.” The American Marketing Association defines marketing as “the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.”
(Zaher, 2002, p. 212)
Advertising is a major part of marketing strategy. Finding the correct media is important. By targeting your advertising to selected target markets you will maximize your resources and minimize costs. I encourage you to know who your market really is, and how to best reach them. Demographics, including age, gender, race, etc., are important and allow you to maximize your marketing efforts. For example, most patients come from a 5-mile radius from your office. Why spend thousands on the huge mega-channel that covers the surrounding three states if it is not necessary. Find a good local TV or radio station that reaches your patients far more economically and effectively.
Marketing is more than just advertising, however. It is how we present ourselves and our organization to the public. How we dress, how we answer the phone, and even our signage. It is imperative that all of these be selected to provide maximum results for the bottom line.
Information Technology
I still go to some offices that are not using their resources appropriately. It takes far more to bring in a new patient than to keep an older one. Make sure to constantly review your files to keep patients within the practice. Computer technology allows us to do remarkable things and knowing our patient base is one of the most important functions. Send them updates and use the “gold” in your database. Successful offices develop communication devices, such as newsletters, that keep patients abreast of new services or products and just let them know we are thinking of them.
Summary
Competition is getting tougher and to keep up to date, you must develop a proactive strategy that keeps you and your organization positioned appropriately in the marketplace. This article provides some information that may be helpful, but is not all that can be done. Most important to your success is to keep up with the market. Know yourself and know your competitors. Keep up-to-date with technology and make certain your office presents the image you want it to. You are in business, and despite the fact that you may be the very best, most knowledgeable provider in the world; you must manage the business side of the practice to find the success your professional training can provide you.
References:
Appler, T; Dennis, R; Muth, E; White. D. (1999). Management for Opticians, Butterworth-Heinemann, Woburn, Massachusetts
Barwise, P., (2006). Marketer’s Toolkit; The 10 Strategies You Need to Succeed.
Harvard Business School Press, Boston, Massachusetts.
Class’e, J; Thal, L; Kamen; Rounds, R., 2004. Business Aspect of Optometry, Butterworth-Heinemann, Woburn, Massachusetts.
Levoy, R, (2002). 201 Secrets of a High-Performance Optometric Practice,
Butterworth-Heinemann, Woburn, Massachusetts
Moss, G, and P. Shaw-McMinn, (2001). Eyecare Business Marketing and Strategy.
Butterworth-Heinemann, Woburn, Massachusetts.
Zaher, E., in Albert, D., (2002). A Physician’s Guide to Health Care Management.
Blackwell Publishing, Williston, Vermont
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