Dr. Gordon's Optometric Practice

Optometrists are primary healthcare providers who examine the eyes and visual system, diagnosis problems and impairments, and then -- if required -- prescribe or provide treatment. Licensed in all states and trained in professional programs requiring four years of post-graduate study, there are about 24,500 practicing doctors of optometry (O.D.s) in the U.S.

Optometrists derive their income from patient examinations and the sale of eyewear. Although only one patient at a time can be seen, eyewear revenues may vary considerably depending on the product sold. For example, a frame with a $20 wholesale cost may retail for $50 while a $40 frame may be marked up to $100. Thus there is a premium for selling more expensive goods such as designer-name frames. At the same time, higher-priced goods tend to be better made and more stylish, important factors for an item with both health-care and vanity-centered values.

Contact lenses are another profit center. Although considerable expertise is required to properly fit hard lenses, the lenses themselves cost practitioners from $12 to $19 apiece for single-vision lenses. Basic soft lenses have a wholesale price of $8 to $25 each while extended-wear soft lenses are priced in the $10 to $35 range.

Dr. Gordon's Problem

Healthcare is very much a business and optometrists have traditionally competed for patients with opticians and ophthalmologists (M.D.s who specialize in caring for the visual system). Traditional patterns of competition broke up in the 1970s, however, when optometrists were allowed to advertise and large corporations built nationwide eye-care chains. Worse still, at least for independent practitioners, has been the growth of one-stop fitting centers, huge retail stores where patients can walk in, be examined and then pick up glasses made on the premises within an hour. Not only are such outlets fast, but with high volume and on-site lens production, they also offer low prices.

Dr. Gordon lives and works in a neighborhood just outside the central core of a major city. While his neighborhood has a residential flavor with townhouses and high-rise apartment buildings, it's just a few blocks from downtown office towers. An optical supermarket is located in an urban mall several blocks from his office. He also competes with several opticians and ophthalmologists in the area. The ophthalmologists, however, rarely fit glasses or contact lenses except for cataract patients and others with special needs. They often refer patients to Dr. Gordon and in turn, when Dr. Gordon finds patients who need surgical services, he refers them to neighboring ophthalmologists.

For Dr. Gordon, like other optometrists, new trends in eyecare raise serious business issues. Patients don't buy eyeglasses or contact lenses everyday, and each sale made by supermarket-style competitors means one less treatment opportunity for independent practitioners. The question for the Dr. Gordons of the world is this: Are they the mom-and-pop grocery stores of the eyecare profession?

Peter G. Miller is an image, marketing, and public relations consultant whose clients include selected national corporations, associations, and web sites. Mr. Miller can be reached at peter@boardroomarts.com