SUCCESS IN CORPORATE OPTOMETRY. Kim Raharja, O.D. Atlanta, Georgia

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1 SUCCESS IN CORPORATE OPTOMETRY Kim Raharja, O.D. Atlanta, Georgia

2 U.S. PRACTICING O.D.s 37,000 2

3 U.S. PRACTICING O.D.s 37,000 Part-time corporate affiliated Full-time corporate affiliated 3,500 (9%) 9,000 (24%) 33% of }practicing O.D.s 3

4 DRIVERS OF OPTICAL CHAIN GROWTH More convenient eye care delivery Lower costs Expansion of opticals in mass merchandisers Advertising and promotion 4

5 RETAIL OPTICAL CHAIN SHARE OF U.S. OPTICAL MARKET Chain market share 5

6 Optical locations U.S. EYE CARE LOCATIONS Private Practice and Other -1% Annual decrease Corporate +4% Annual Increase 6

7 MOST CORPORATE O.D.S ARE THEIR OWN BOSS

8 MODES OF CORPORATE PRACTICE Number of positions Trend Source of income Franchisee 1,000 Fee and product revenue Leaseholder 1,200 Fee and contact lens revenue Independent contractor 4,600 Fee revenue Employee 1,200 Salary/benefits Associate 4,500 Hourly wage

9 NET INCOME POTENTIAL Median Top 20% Franchisee $160,000 $250,000+ Leaseholder $150,000 $225,000+ Independent contractor $120,000 $210,000+ Employee $85,000 $110,000 Associate, full-time $80,000 $95,000

10 MAJOR OPTICAL RETAILERS Luxottica LensCrafters $2.7 billion Pearle Sears Optical Target BJ s DOC Walmart Walmart $1.4 billion Sam s Club Highmark Vision 15 different brands $600 million Costco Costco $500 million NVI Walmart Fred Meyer America s Best $400 million

11 ONE DOOR VS. TWO DOOR STATE One Door Corporate Partner can collect the fees Corporate partner can market on your behalf Dr s office and optical share the entrance Utilities can be shared Two Door You must collect your own fees Corporate partner can not market for you Truly a separate office Utilities are separate

12 CORPORATE OPTOMETRY Myths and Realities

13 MYTH: Retail chain locations are exam factories.

14 REALITY: Corporate O.D.s spend as much time with each patient as private practice O.D.s Exams per O.D. Hour Private Practice Corporate O.D.s O.D.s

15 MYTH: Optical retailers dictate what affiliated O.D.s must prescribe and how exams are performed.

16 REALITY: With few exceptions, corporate O.D.s are free to recommend or prescribe any products judged best for patients. Corporate O.D.s establish their own exam process.

17 MYTH: No opportunity to practice medical eye care exists in corporate practice.

18 REALITY: Optical retailers place no restrictions on medical eye care services offered by affiliated O.D.s. A corporate setting is not suitable for a practice specializing in medical eye care.

19 MYTH: There is a ceiling on the income potential of a corporate practice.

20 REALITY: Space is the only constraint on practice size. Many optical retailers allow affiliates to manage multiple locations. As longevity at a location grows, income continues to grow.

21 CORPORATE PRACTICE Cons: Saturday and evening hours may be required Less latitude in fee setting Less control over total patient experience Restrictions on practice sale

22 CORPORATE PRACTICE Pros: Most time spent on patient care Freedom from product purchasing, merchandising and facilities management duties. Location traffic assures income No investment to enter

23 WHAT I LIKE ABOUT CORPORATE PRACTICE

24 THINGS TO CONSIDER Location, location, location! Competition Demographic mix Insurance Panels Length of stay Optical staff Busy times

25 KEYS TO SUCCESS Take ownership Market the practice Focus on the patient experience Pay attention to recall Staff leadership/teamwork

26 TAKE OWNERSHIP

27 KEYS TO SUCCESS Take ownership Market the practice Focus on the patient experience Pay attention to recall Staff leadership/teamwork

28 Website

29 Signage

30 Signage

31 Magazine

32 Other Marketing Tools Health Fairs / Vision Screenings Team up with Daycares and Schools

33 KEYS TO SUCCESS Take ownership Market the practice Focus on the patient experience Pay attention to recall Staff leadership/teamwork

34 Tips When Negotiating a Contract Make yourself look like a desirable candidate Hours and Days Rent

35 Common Questions Asked What do I need to do after I get my license? Do I need a DEA number? What is credentialing?

36 Conclusion Corporate Optometry can be financially and professionally rewarding