TSO Network Update - July 2018

20 z July 2018 According to a few too many of my professional acquaintances on Facebook, “Optical Retail is Dead.” It might surprise you, but this comment is not new to me. Having been in the optical business for over 40 years, I’ve heard the demise of the industry many times before, yet 42 years later, optical retail is still thriving for those who understand and adapt to the constantly changing dynamics of retail. The key word —“Adapt.” In the 1980’s it was CONTACT LENSES that would kill the frame business and, by extension - retail opticians. In a fit of brilliance frame manufacturers (many of them American) decided to accessorize the optical frame by adding fashion designer names to them - Gloria Vanderbilt Givenchy, Bill Class, Elizabeth Arden and so many others — it made my head explode but, I dutifully sold all of them to my retail accounts. In the end - optical retail survived and opticians, previously used to selling the Universal Corsair, Art Craft Leading Lady or Martin Copland 1017 had to adapt and add “Eyewear Fashion Consultant” to their list of professional talents. Eyewear morphed from a medical corrective device to a fashion accessory. In the 1990’s consumer attention turned to LASIK SURGERY as the quintessential replacement for all things vision related. No more need for contacts and the expensive cleaning solutions and no more need for eyewear with the over-priced, undervalued designer labels stamped on their left temples. Once again - fears of the demise of optical retail were unfounded and smart opticians and optometrists adapted to the changing dynamics of optical technology and — survived — even flourished. Ok — you get my drift. But, the common complaint in 2018 is not focused on technological advancements but completely on PRICE. One of my followers lamented that “there’s a race to the bottom,”while another noted that “Warby Parker is killing us,” or “Zenni is my biggest competition,” and of course numerous comments noting “the end of optical retail.” Every one of them blaming price as the reason for their doom and gloom attitude. What’s an optical retailer to do? For starters — STOP competing on PRICE!!! You will lose every time. Do you like a good, juicy steak -- maybe a rib eye? Ruth’s Chris or Rustler Steak house? Both can serve up the same cut of beef but at vastly different prices. What’s the driving factor behind the success of each of those restaurants? I contend that it’s the perfect combination of the retail experience, product and engagement. Many optical retail stores offer the same or similar products as you do. And, chances are - those same products are also available online for less. If the only thing your customers can hope for is a product, then you’re in direct competition with every other retailer online or down the street. This puts you in a bidding war with Target, Costco and Lens Crafters. You can’t win! Any business plan that relies solely on discounts or low prices to set themselves apart, ultimately leads to low margins and eventually insolvency. Short term, you might see a sales bump but long term you’ll see disaster. The Experience For some the retail shopping experience is directly tied to the process of consumer engagement. Maybe so - but “The Experience” involves, not only your employees but your environment. So -- how do you approach and keep customers who are looking for a particular product while avoiding the price game? You make the product secondary to their overall shopping experience. Of course you want your customers or patients to leave your shop or office with products, but you don’t want the merchandise (or the price) to be the only driving motivation that brought them to you in the first place. Why? Because many of those products are available elsewhere and online. That point bears repeating. Consumers are armed with iPhones and they’ll price-shop you while you’re showing them those boring, designer branded frames that they can just as easily buy elsewhere -- at your competition. Think of those beautiful fashion eyeglasses as a souvenir of an outstanding shopping experience, an experience they want to remember and repeat. You want them to tell a friend about one of your employee’s because he/she was exceptional. Creating that experience isn’t difficult, but it does require training and planning. That exceptional experience begins at the front door and continues throughout your office or retail space. If it looks old, outdated R.I.P. Optical Retail is Dead