The document discusses trends in the vision care industry in the United States. It provides breakdowns of total retail sales and independent optical retail sales in millions from 2011 to 2016, showing declines in total retail but growth in independent optical retail. It also identifies challenges and opportunities for independent eye care professionals, such as changing demographics, increased automation, and evolving marketing strategies.

1. Thriving in the New “Norm” Michael Karlsrud, M.Ed, ABOC EyeWerx

2. Vision Care Products & Services – Total U.S. Market Breakout—In Millions Inflation not taken into consideration * All retail includes dollars spent at all retail types at any retail location on the sale of either spectacle lenses (including Rx sun), frames, contact lenses, sunglasses (plano), OTC readers, or revenue earned from refractive surgery (LASIK only) or eye examinations. This number does not include sunglass clips and reflects the dollars spent only by those U.S. residents 18 and older. Does not include retail dollars spent by/for contact lenses and exams for those 17 years of age and younger. All Retail * -5.8% +5.0% -4.4% -0.7% +6.5% -35.9% In Millions VisionWatch: A Collaboration of The Vision Council & Jobson Annual Sample Size: 100,000 -14.9% Creative Property of The Vision Council

3. VisionCare Products & Services – Total U.S. Independent Market Breakout In Millions Inflation not taken into consideration * All Independent Optical Retail includes dollars spent at independent optical locations on either spectacle lenses (including Rx sun), frames, contact lenses, sunglasses (plano), OTC readers, or revenue earned from refractive surgery (LASIK only) or eye examinations. This number does not include sunglass clips and reflects the dollars spent only by those U.S. residents 18 and older. Does not include retail dollars spent by/for contact lenses and exams for those 17 years of age and younger. An independent optical location is a locations with 3 doors or less that has either a MD, OD, Optician or Optical Retailer on site. All Independent Optical Retail * -1.8% +0.6% +3.3% -16.5% +5.5% VisionWatch: A Collaboration of The Vision Council & Jobson Annual Sample Size: 100,000 +7.5% Creative Property of The Vision Council

4. Key Points: Independent ECP Retailers Outperforming Other Optical Outlets As the Recession Continues Have a Better Standing With Consumers Have Been Able to More Successfully Streamline Their Operations MVC Usage Has Helped Their Sales and Traffic Changing Trends Professional Age Gap Starting to Emerge Will Impact Practice “Culture” and Operations For the Next 10-15 Years Increased Automation / Adoption of Office Technology Evolving Inventory Management / Merchandizing Strategies Creative Property of The Vision Council

5. 1. Model 4. Talent 3. Costs 2. Strategy

6. Contact Lenses Marketing Frame Inventory Facilities Vision Plans Staff Eye Care Lab Misc Internet Sales Training Retail 1. Model

7. Did you use the Internet when last purchasing Rx eyeglasses? * Custom Research: December 2009 Internet Influence Study Among Consumers that Bought Eyeglasses Within the Last 6 Months Creative Property of The Vision Council

8. How did you use the Internet for your last eyeglass purchase? Custom Research: December 2009 Internet Influence Study Creative Property of The Vision Council

9. Don’t Be Average Current National Averages 24% AR Sales 22% Photochromic Sales 6% Polarized Rx Sales 20% Plano sun wear for contact lens wearers 1 pair per day digitally surfaced lenses Opportunity 85% AR Sales 40% Photochromic Sales 30% Polarized Rx Sales 80% Plano sun wear for contact lens wearers Multiple pairs of digitally surfaced lenses per day! Nutriceuticals

10. “ ECP Recommend; Patients Purchase ” Consumer Reason for Lens Choice Source: VCA Don’t be afraid to recommend, patients expect it ECP Recommended Got Darker Lighter Material Lens wore Previously ECP said Best Regardless of Price Came with Frame Good Price Looked Best Had seen it advertised 100,000 Consumers Surveyed

11. Whose Advice is Respected the Most? Gallup Poll, 100K Respondents

12. What changes are you making in your model or strategy for <2010?

13. 2. Strategy

15. This… Contact Lenses Marketing Frame Inventory Facilities Vision Plans Staff Eye Care Lab Misc Internet Sales Training Retail SWOT This!!

17. What Can We DO Strategically Different in <2010?

18. 3. Costs

20. Call Backs Outsourcing: $365/ mo for 200 calls Internally, 13.5 Hours per month. $12/Hr+Taxes+Bene’s = $14.00 $14 X 13.5 Hrs = $186 Which is the better deal? Did you add in cost of space, telephone, training, hiring, re-hiring, management, more salary, taxes & benefits AND time away from patient care and disrupting office flow?

21. What is the bottom line cost per hour of operation of your practice? Space, furniture, phone, fax, internet, heat, cooling, electric, taxes, insurance, rent, wages, taxes, benefits, lawyers, accounting, collections, depreciation, interest, etc.

22. 4. Talent My Team

23. Enable Inspire Coach Remove obstacles Take risks Develop Take action Take ownership Encourage Lead by example Focus on customer Celebrate Empower Vision

25. It’s Your goals, Your business, Your dreams, Your vision… but, You can’t do it alone. So, have you the right team surrounding you to make it all happen?

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