Inventory Management- Analyze What is Selling

Cole Haan by Clearvision

I don’t know how many offices I have asked, how many frames a month do you sell? How many eye exams did you have? The buyer doesn’t know. They should know- this is the budget and how you track how many patients have walked out the door without making a purchase.

  • If you sell 100 frames a month at an average of $60.00 a frame, the budget is $6,000 per month. More importantly, it keeps the buyer on track, eliminates holes in the board and provides a guideline for good inventory control.
  • If you gave an eye exam to 200 patients and only sold 100 pair of glasses- why?

But there’s more to just knowing how many frames a month are sold. You need to know what and to whom you sold to. As an example, an older man comes in and wants the same plastic double bridge frame he has been wearing for years. (this is my uncle!) You don’t have it- now you have to spend the time researching to find it, order samples (which costs) call the patient back (hopefully they come back)- take more time to fit , return the product you don’t want- all costing time and money plus the hassle!

One of the other keys to Excellent Inventory Management is to buy what is selling and knowing who your customer is. You may already have this available on your computer- if you don’t try this white paper version. If your software has the capability to do this- it will be easier, faster and more accurate if you input your data starting now.

A very simple and easy way to track is to keep a log, such as the example below. This log will assist you in buying by numbers rather than emotion. When you meet with a vendor, not only reorder product that has sold through (your cash cow, profit maker) but to look at product that your patient needs and wants.

What You Want to Know

  • How many frames per month sold
  • How many eye Exams/or patients seen
  • Why they did not make a purchase
  • Dollar amount of frames sold
  • Demographic information- Gender, Age
  • Product (vendor) sold
  • Insurance Used

An Example

Date

Frame Type

Material

Frame Cost

Insurance

Sex

Age

1/3

CK 1021 plastic

Plastic

150.00

Y

Male

47

1/3

WileyX (Sun)

Plastic

Plastic

90.00

N

F

35

1/3

Optylux

Plastic

Plastic

300.00

N

F

25

1/3

Gucci (Safilo)

Metal

175.00

Y

F

55

1/3

no purchase

said was going to look around

Y

M

28

1/4

contacts

didn’t like sunglass selection

N

M

18

1/4

Charmant

AristarĀ 

Metal

$90.00

N

F

63

1/4

Walk in looking for Kenneth Cole Frame

N/C

Saw on Internet

What you can learn:

Tracking frames per month will provide:

  • Difference between patients seen and product sold.- What can you do to prevent this from happening
  • How much inventory you should be carrying to maximize inventory turns.
  • Provides factual information on type of product to stock based upon your market .
  • Provide type of staff training (or Dr. training) to keep patients from walking out the door without a purchase.
  • Provides historical data on increasing sales.

What opportunities tracking dollar amount of frames will provide:

  • Average transaction sale.
  • Starting point of setting goals to increase average transaction.
  • Percentage of patients who given the opportunity will pay over insurance plans.
  • What product you will need to bring in to increase average transaction sale.
  • What training programs staff will need to increase sales.

What demographic information will tell you:

  • What percentage of boards would be devoted to various categories.
  • Provide you with better buying decisions on age and gender.

Establish Trends

  • What products are selling better than others.
  • Provide you with consumer awareness of fashion and performance requirements.
  • What product your patients are requesting

What tracking vendors will tell you:

  • Percentage of board space each vendor will have versus percentage sold.
  • What vendors are the most profitable.

Helpful Hints

Get this on a computer as soon as possible and track everyday for accuracy

If not tracking everyday- try doing this 3x per year.

Get all staff involved in the sell through goals.

Set a plan/goal to increase sales based upon the results of your tracking

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