Why You Shouldn't Compete on Contact Lens Pricing with Online Giants (2024)

Learn why our advice to clients is to not try and compete with the online giants on price.

Key Takeaways

• You're a premium service, they are not
• Lean on manufacturer rebates to do the heavy lifting
• Timely refill reminders and frictionless reorders discourages price shopping
• Otto helps you track online competitor pricing and provides recommendations for your own pricing
• Don't undercut the competition, but try to be within about 10%
• Stop throwing money away with multi-box discounts

In the modern landscape of eye care, clinics often find themselves questioning how they can compete with online giants likeClearly.caand 1800contacts. The allure of matching or undercutting their prices can be tempting. However, this approach is neither necessary nor advisable. Hundreds of clinics successfully sell contact lenses at a premium, leveraging unique advantages that online competitors simply can't match. Here’s why you shouldn't try to beat these online giants on price:

1. Comprehensive, Holistic Eye Care Services

As an eye care provider, you offer much more than a simple transaction. Your services encompass comprehensive eye examinations, personalized fittings, ongoing care, and expert advice that ensures the health and comfort of your patients' eyes. This holistic approach provides a level of service and care that online retailers cannot offer. When patients purchase contact lenses from your practice, they’re not just buying a product; they’re investing in their eye health, receiving expert guidance, and ensuring optimal vision and comfort.

2. Manufacturer Rebates: A Unique Advantage

Eye care practices have access to manufacturer rebates that are not available through online competitors. These rebates provide a direct and often substantial net savings on purchases, allowing your clinic to price lenses higher while still being the most economical option in the long run. Patients may initially see a higher sticker price, but once rebates are factored in, the overall cost can be significantly lower than that of online retailers.

3. Reduced Price Shopping with Proactive Patient Engagement

One of the biggest challenges for clinics is ensuring patients return for their refills. When patients are left to their own devices, they often resort to price shopping, visiting multiple sites to find the cheapest option. This is where a service like Otto becomes invaluable. Otto proactively engages with patients in advance of their refill dates, offering a frictionless reorder experience. This proactive approach keeps patients within your ecosystem, significantly reducing the likelihood of them shopping around and ultimately boosting your retention rates.

One of the standout features of Otto is its competitive price tracking capability. Otto scrapes competitor sites daily, capturing updated prices for all their products and conveniently displaying it in your dashboard next to your own pricing. This feature ensures you always have the latest pricing information at your fingertips. Otto takes it a step further by analyzing this data and highlighting when it thinks your prices might be too high or too low compared to the competition. This proactive approach allows you to make informed pricing decisions, ensuring your clinic remains competitive without compromising on the premium service you offer. With Otto's competitive price tracking, you can confidently navigate the market, adjusting your prices strategically to maximize both profitability and patient satisfaction.

Instead of trying to undercut online competitors, aim to price your lenses within a reasonable range—say, 10% of the online prices. This strategy positions your practice competitively without undermining your value proposition. Additionally, there's no need to push annual supplies or offer 6-month or annual supply discounts. The manufacturer rebates naturally promote larger purchases, so you don’t need to double down on volume discounts.

It's safe to say that volume discounts are motivated by the fear that patients won’t return for their refills. However, with a service like Otto ensuring regular patient engagement and reminders, you can confidently sell three-month supplies at full price, spares patients from a large upfront cash burden, while knowing that the patient will be back for the refill down the line.

In conclusion, your eye care practice holds numerous advantages over online competitors that go beyond mere pricing. By emphasizing the comprehensive care, leveraging manufacturer rebates, and utilizing proactive patient engagement services, you can successfully sell contact lenses at a premium. Focus on the value you provide—superior service, expert care, and long-term patient relationships. This approach not only differentiates your practice but also builds a loyal patient base that appreciates the holistic care you offer.

By positioning your practice as a provider of exceptional eye care rather than just a retailer of contact lenses, you ensure sustained success and growth in a competitive market. Embrace your strengths, leverage your unique advantages, and watch your practice thrive without the need to compete on price alone.