What to Do with that Box of Stale Frames

During my years visiting clients as an optical consultant, it has been common to find boxes of stale frames hidden in cabinets and drawers. So naturally, your patients don't want the stale frames, nor do the optical shops in which the frames reside. The answer to your problem is board management. Board management is the best way to keep your stock current and costs low.

What is board management?

Board Management is basing your frame buying on how much room or display space you have. For example, an optical shop has 700 spaces available for frames. Therefore, there should be 700 frames ordered to display, plus 25 to 50 understock frames ordered. No more. When frame reps visit your locations, their main goal is to sell you as many frames as possible. The belief is that the more frames an office purchases, the more frames their patients will buy. Unfortunately, that's not always the case, and very short-sighted.

When an optical dispensary overbuys, many of the frames end up being understock.

Understock frames are placed in cabinets or boxes until there is room on the board to display them. More times than not, the understock frames don't even see the light of day until the next rep visit. The disregarded frames can equal thousands of dollars in inventory. This ignored stock is highly costly to a practice. Depending on the time between visits, the frames may become stale, irrelevant, or even discontinued. Frame companies may be able to exchange them or return them, but if the frames are discontinued, you're most likely stuck with them. What happens to the frames you do have on the board? If you're not replenishing them as you sell them, you're selling off your best sellers. Again, you're quickly stuck with irrelevant or stale frames.

The answer is keeping a static board.

Every frame your practice owns has a space on the board, except for 25 to 50 understock frames to fill in where needed. I suggest using a brand that is available on consignment or the older frames you have boxed for your understock. Using a tagging method to differentiate the frames is helpful. As you sell a frame, you can either order a new frame and have it drop-shipped to your finishing lab or use the frame on the board and order a replacement frame the next day. That's where the understock frames come in. There have been many supply-chain issues of late. Using the frame on the board and reordering the next day is suggested. Using FramesData makes this process easy. The UPC in your inventory will be the same as the vendor UPC. You can automatically automate the process by having your point of sale (POS) system order. Or, if your POS system does not have this option, designate an employee to place the orders daily. Another fantastic program available for inventory management tracking and data is WaveRFID. Which will count your inventory within minutes and give you the reporting needed to make inventory choices. Unfortunately, if your office does not have an inventory tracking system, the suggestions are irrelevant.

What are the benefits of frame management and a sound reporting system?

There are many benefits to using a board management system. Your bestsellers will always be stock; there's little need for understock, which keeps your inventory costs low and steady. Another huge benefit is you will have accurate data. You can now treat your rep visits as business meetings. If your inventory system is kept up to date, a list of frames that have been sold will be easily accessible and organized by the vendor UPCs. If a frame has sold five times, you keep the frame on the board, anticipating sell-through again. If a frame has not sold over a given amount of time, exchange it for something that may do better. You can use the data for turn rates of particular brands and board allotments. A turn rate is how many times a brand or vendor has sold through, based on the designated board allotment. For example, if a frame line is allocated 25 spaces on the board and 50 frames are sold in a year, the turn rate is two. If a frame brand has a four or five-turn rate, you may need a more significant percentage of a frame collection for your board. The data you now have will tell you. Data in any aspect of an optical business is an accurate roadmap. After a few short months, the data will tell you your practice's trends based on your specific demographic.

The data you will be collecting will help you negotiate with your vendors. You'll have the numbers at your fingertips. The key is speaking to your Reps. Let them know you are prepared to designate a set percentage of your board space to their brand in exchange for a more significant discount or rebate. They understand that board management will elevate the frame sell-through and most likely will be willing to help you.

What to do with those old frames?

The real question was what to do with those obsolete frames. Most, if not every practice, has them, and we all hate them. So, again, the first thing I would suggest is to speak to your Reps. Earlier, we discussed negotiating prices for board space. You can also negotiate frame buybacks for board space. You may not get the total FramesData wholesale price for the frame back, but they may offer you a percentage of the cost. For example, if you discuss bringing in a new line of forty pieces, you can ask for a buyback of forty pieces. Some vendors will offer you 40% of the frame's wholesale price; some will provide the total wholesale price. Either way, forty frames that were not selling are now replaced with brand new product. The obsolete, returned frames will be donated, and in exchange, you will be supplied a receipt for your taxes.

Discounting the frames or offering 'Buy One, Get One' sales is also a way to sell the stale product. Every patient needs a spare pair of glasses. Don't forget to let your patients know the frames will not have a warranty. We've all had that frantic call if you've worked in the industry for a few months or thirty years. "I need new glasses now!" We know it's never fun. The irrelevant frames can also be used for parts. A good Optician knows how to fix a frame, and spare parts are always helpful.

The third option is to donate them yourself. There are so many people out there that could use them. Again, you can get a receipt for your taxes and help someone in need. We've all seen a person's eyes light up when they can see for the first time. It never hurts to give someone the gift of sight.

Conclusion

If you're looking to start an optical business or you've had a dispensary for years, having a plan and data to back you up is essential. I get it. Selling glasses seems fun, but it can be very costly if you don't know your demographics or patients' needs. Board management is one piece of the puzzle that can help lead you to a more profitable business.