How do you eat an elephant? One bite at a time.
Although the preceding saying is frequently used to discuss financial strategies or business principles, I find it annoying. I prefer analogies that are real. So let me say to eat a really big pizza you must do it bite by bite.
This is absolutely the case when working to increase your practice net. The little expenses that accumulate through your office do add up by the end of the month.
Shipping is an expense that if not monitored can become very expensive for an office trying to maximize every dollar. As business owners we cannot afford to manage by chance, we must be intentional.
Here are three tips to decrease your shipping costs.
- Get reimbursed for backordered frames – The best frames are usually the frames that all optical retailers want. Therefore, the demand creates backorders which not only create an inconvenience for your office and patients, but also can lead to unplanned shipping expenses. Make a copy of all your backordered frame invoices and give them to your sales rep asking to be reimbursed in some form. This is an expense the frame companies are responsible for. You should not have to pay for their inability to produce the frame. Shipping charges can range from $2 to $20 per invoice.
- Batch order contact lenses – Verify that your contact lens orders are batched and sent at the end of the day. If this already occurs, then have your staff only order contacts on certain days of the week. If you utilize a company that has contact lenses and uncut ophthalmic lens, you can batch all orders into one and pay one shipping charge.
- Sell what is in stock – Have a policy that encourages staff to first show what you already have on hand before offering to order frames. If the optical does not have a policy on frame ordering then you probably have an optician that loves to order three different styles of frames in several sizes and all available colors for patients to try. Obviously, special orders are necessary sometimes, but successful optical retailers sell what is in stock. Staff education and a policy guideline will save you shipping while not compromising patient care.
When you are limited by vision plans on reimbursements in the dispensary, every dollar makes a difference. Many practices are struggling to find answers in today’s practice management environment. Start with shipping and make a list of all the expenses that if left unmonitored will lead to decreasing profits.
