1. TOWNE xc h an ge s
Re d u c in g HALL
November 16, 2012
2.
3. • What are the 2 things that you have
complete control over during your
selling day?
4. • Who you call on
• What you authorize as an “exchange”
5. THIS CLASS IS DESIGNED
TO DO 2 THINGS:
• Explain why you should lower your exchange
rate.
• Tell you how you can go about accomplishing
this.
6. EFFECTIVE EXCHANGE
MANAGEMENT
The dictionary defines the word
“RETURN”
as a verb:
“To give or send back to the owner
without obligation”.
7. EFFECTIVE EXCHANGE
MANAGEMENT
The dictionary defines the word
“EXCHANGE”
as a verb:
“To give back in return
for something received”.
8. EFFECTIVE EXCHANGE
MANAGEMENT
Can you think of one change you could
make in your selling process, that when
done correctly, would provide you with
about 19 additional days of sales revenue
in 2013?
9. EFFECTIVE EXCHANGE
MANAGEMENT
We’ll revisit that “wild notion”
in about an hour…
10. EFFECTIVE EXCHANGE
MANAGEMENT
What 3 policies has Viva adopted to make
us a “more comfortable” company for our
buyers?
11. EFFECTIVE EXCHANGE
MANAGEMENT
• #1-THREE YEAR WARRANTY
POLICY
• All Viva frames are guaranteed against defective
material and/or workmanship for three (3) years
from date of invoice.
• SPECIAL ONE TIME PURCHASE” frames
are not covered by this policy.
12. EFFECTIVE EXHANGE
MANAGEMENT
• #2-THREE YEAR EXCHANGE POLICY
• Viva provides its customers with the privilege of
exchanging current frames, within three (3) years
of the date of invoice.
• Exchanged merchandise must be returned in
a clean, resalable condition, free of any
permanent markings.
• “SPECIAL PURCHASE” frames are
not eligible for exchange.
13. EFFECTIVE EXCHANGE
MANAGEMENT
• #3-FRAME & LENS REPLACEMENT POLICY
• If the same frame is not available, Viva will
replace with another Viva frame at no charge.
• In addition, Viva will cover “reasonable costs”
to replace prescription lenses.
• After written proof of the actual lens cost is
provided, Viva will issue a credit amount of
that value to the customer’s account.
14. What is the one word that a Customer
Service agent might use on the phone that
tends to throw your buyers into a panic?
15. “That frame is DISCONTINUED
& no longer available”
TOWN HALL
November 16, 2012
17. “That frame is currently UNAVAILABLE so I’ll send an
email to your rep and their manager advising them to contact
you directly regarding your request”.
TOWN HALL
November 16, 2012
18. EFFECTIVE IMMEDIATELY
• This email will contain the account and frame
information noting that this particular frame is
discontinued and out of stock.
• You are responsible to contact the customer
within 24 hours with a resolution.
• Customer Service will not push these
customer calls to your voicemail box
19. TENT CARDS
• Color coded by brand with your personal
exchange statistics, for 2012.
• Your percentages are not necessarily a
reflection of your sales ability as much as they
speak to the state of your business, i.e., tenure
with accounts, territory condition, etc.
Green - less than 16%
Yellow - 16%-20%
Red - 20%-24%
Black - more than 24%
20. REAL LIFE SCENARIOS
We will now have a brief demonstration of 3
different scenarios each of you encounter every
day.
24. • How many industries provide an exchange
policy like ours?
• What does the term “non revenue generating
activity” mean to a practicing OD?
• What is the overall “hard” cost to returning a
single frame?
• According to ABO Course SJP 245-1, released
in Nov. 2004, it’s $8.76. Does that seem high
to you?
39. 2012 VIVA TEAM
AVERAGES
• AVG GROSS SALES $453,800
• AVG EXCHANGE RATE 22%
• AVG NET SALES $354,000
(PAY BAND B, 4.5%COM)
• AVG $ OF NET FRAME $35.00
• AVG WEEKLY STOCK ORDERS 15
• AVG WEEKS WORKED/YR. 49
40. EXCHANGING ONE LESS
FRAME PER ORDER
3 orders per day
= 3 Exchange Authorizations per day, likely
= 3 “EXTRA” frames a day.
@ $35.00 per frame
= $25,250 in Net Sales (15 frames a week X 50 weeks X $35 frame)
@ 4.5% commission
