Management in partial fulfillment of the requirements for the degree of Bachelor of Business Administration. This proposal writing assignment was guided by our course instructor Mr.. Parka’s C. Battier and….
Market of boutique
There are a lot of misconceptions in the practice of private optometry and optical dispensary. When surveyed, many of the patients have perceived that the private optical dispensary lacks of inventory or selection and many of the patients perceive their prices to be high. Most of the market surveys illustrates neither of the perceptions is correct. Satisfactory inventory is significant today in the merchandise of frame inventory (Icon Group Ltd 2003).
The rule of 80/20 definitely applies to the optical dispensaries, but sufficient merchandise is vital in the market nowadays. There are proven simple guiding principles to follow which will be of help for the improvement of perception of optics (Wilson 1989). First, is that a practice that one must have an approximate of 100-125 frames which is $100,000 per volume. This means that an optical store which is annually grossing $800,000 must have 800-925 numbers of frames out on display. Next, the price of distribution indicates the frame inventory is significant (Parker 2006).
As a general rule, it is a must to have 65% of the total frame inventory distributed in the normal range of retail. In the optical market of today, the average of frame wholesale cost is an approximate of $60. It depends on the scheme of mark-up; those frames will be put to retail for a price of $170 to $180. An approximate percentage of 65% of the frames must fall within the range. The 35% of additional frames will be distributed evenly on the low end and the high end which is dependent on the eyewear market (Icon Group Ltd 2003).
Display in the optical store. A further mistake typically made in optometry in a private setup is to tilt the inventory to the range’s lower end instead on the higher end. There are several forces which are demographic in nature that must be regarded in the determination of low-end and high-end distribution of frames. In general, in most of the practices, tilting the points of price towards the higher end and not on the lower end can then achieve a result of a 2-3% additional net (Caloroso 1993).
The optical dispensary boutique is an additional idea which will works well under the right conditions of the market. As a separated center of profit within the typical optical dispensary, a section on a boutique is very helpful. Eyewear displayed on boutiques will be frames with a usual trade in excess of $400 cost per unit. These boutique or high-end frames have very great profit margins and serve up a specific segment of the market of the patient’s base.
Apparently, not all patients are within the market of boutique or high-end eyewear, however several of the practices tend to lose this particular segment of their patient base to their competitors in retail. If the demographics will shore up the idea of “optical within an optical,” then it would be easy to follow the guidelines (Parker 2006). Initially, there is a need for 3 to 5 exclusive lines of high-end to have an optical boutique. If probable, they must be in exclusivity of lines wherein which there is no other competitor in the market that carries it (Icon Group Ltd 2003).
Next, it is significant to possess a particular area within the optical where the frames are put to merchandise and have been put on display in distinct technique. Basically adding up the high-end kind of frames into the existing boards of frame is unacceptable in the context of market viewpoint. The merchandising is essential in boutique and high-end fashion eyewear. Lastly, it is significant for the staff to be effectively trained in order to present and be able to sell high-end and exclusive eyewear (Icon Group Ltd 2000).