This document discusses strategies for improving inventory profitability with third-party vision insurance plans like VSP. It notes that frames make up 28% of dispensary revenue and VSP covers 19% of eye wear purchases. Using iProfit apps, optometrists can rapidly compare mark-up strategies and margins for covered vs. non-covered frames from different manufacturers. The document recommends that acquiring frames at a 30% or higher discount can yield higher margins than being a VSP premier provider with certain manufacturers. Budget eyewear brands are also noted to sometimes yield higher margins than premium brands even with premier status.

1. Inventory Profitability with Third
Party
iProfit Group
Frame pricing comparisons:

2. Focus of this Portion: VSP

State the intended goal

3. Considerations
 Frames = 28% of all dispensary revenue*
 VSP = 19% of all eye wear customer purchases
 at 77 million lives covered.**
 63% of all frame purchases were with an MVC***
 *2015 Vision Council 2nd
quarter analysis. **2014 AOA Study of Independent Practices. ***2015 Vision
Council Study 2nd quarter analysis

4. Math-work, not quess-work
With iProfit Apps

Rapidly compare Frame mark-up strategies

Rapidly compare Marchon/Altair Frames to non-
Marchon, Altair Frames in inventory

Compare the Margin on Covered and non covered
Frames

Compare Patient out of Pocket expense

Compare Capitol held in inventory vs. ROI

5. Covered Frames
Profit is Flat Below VSP allowance

6. An acquisition discount of 30% on any
product or more, yields greater Margins
than being a Premier provider with
Marchon Frames.

7. 
Budget Eyewear often yields a higher
margin than a Marchon/Altair Frame
even with the added Premier status.

8. The P's of Higher Margins

Purchasing the right Price points

Pricing Merchandise Properly

Positioning it to be sold in the
Dispensary as a Priority

Programming the Practice
Management Software

9. insurance,
inventory,
i trust…iProfit.

10. insurance,
inventory,
i trust…iProfit.