Technology and innovation have transformed the supply chain of almost every product in the U.S., yet traveling salespeople are still critical to most frame and lab accounts.
Relationships are valuable. We don’t contend that, but the reality is that technology exists to form and maintain strong relationships without the costs of:
- Added salaries & benefits.
- Significant travel expenses.
- Performance-based commissions.
Doctors often don’t realize how much these “conveniences” drive up the cost of the supply chain. Did you know a good frame or lab rep makes $100,000 – $150,000 per year? Imagine how much that’s eating into your profit margins. That’s not even the all-in cost!
You also have to account for HR expenses such as training and turnover, the rep’s high-salaried managers, and the expenses of wining-and-dining prospects across their sales territory. You subsidize all of those costs with your final purchase price, too.
Regardless of what your feelings towards Amazon are, the company has made it more convenient and affordable than ever to order practically anything online and get it delivered straight to your doorstep. If you’re not satisfied, you can ship it right back (often at their expense)!
Why aren’t frame suppliers and optical labs learning from these optimized supply chains and passing the savings on to the doctor? It would allow ODs to compete better than ever before.
The answer is: some of us are. Pivotal Group only sells frames and lab services virtually (with 100% free returns) with a Support Liaison or Member Advocate available to service our members when helpful.
This is how companies, like Pivotal Group, are innovating the optical supply chain and dramatically dropping clients’ costs. Independent ODs are beginning to realize the largest profits this industry has seen in years and are able to compete and serve patients at a significantly higher level.
Would you consider a new way of buying frames and lenses if simple supply chain optimizations cut your costs by 50% – 70% (or possibly more)?