Optometry practices are known to be lucrative businesses, especially if they are able to survive their first year and solidify themselves as an organization. In fact, optometric practices have the potential to earn between 30-40% net profit. These numbers sound promising in theory, but what is the best way to actually practice growth and scale profits in your eye care practice? Here are a few of the best ways to grow your practice and improve optometry practice management.
Take a look at your customer service
It’s no secret that customer service is one of the most important and impactful components of running a successful optometry practice. No matter which customer walks through your door, be sure that your eye doctors and other staff members are fully equipped to customize their approach to patient care for each individual.
In addition to face-to-face interactions, consider offering convenient return policies or adjustment policies. It may also be worthwhile to establish who your most frequently returning patients are and target them with special promotions or services, such as free contact lens home delivery.
Medical vision plan acceptance rates
Analyze the amount of medical vision plans that your practice accepts, and consider only accepting the most profitable claim payers. For some practices though, this might not necessarily be a viable option due to your client base. If this is the case, a revenue cycle management service may be helpful in maintaining your current volume and creating a future growth plan.
Location, location, location
The size of your rented office space doesn’t necessarily correlate with your practice’s profitability, but the location of your practice could. Even if you have to pay a higher rent price, renting a space in an area with a higher average household income could be a smart choice if you’re looking to optimize your profit margins.
Patients with higher average incomes are more likely to buy advanced contact lenses or prescription sunglasses and are easier to target for your higher-end product lines. When it comes to renting a space for your practice, you’re better off sacrificing a bit of storage space for a better location.
Broaden your hiring scope
Make sure that you aren’t exclusively focusing on hiring individuals with a background in the optical services industry. Hiring employees that have experience in other aspects of business, like customer service or sales, is crucial to grow your optometry practice. Consider using social media platforms like LinkedIn to connect with members of these business spaces.
In addition to your employment practices, be sure to routinely run revenue reports as a part of your basic practice management. This allows you to stay updated on the strengths and weaknesses of your business practices and gives you a better understanding of how to further increase cash flow long term.
Participate in the A&A Buyback Program
Another opportunity to increase your practice’s profit margins is to participate in the A&A Optical Buyback Program. This is a great way to make a profit on your frames even if they aren’t performing so well. If your organization is a part of our buyback, you can receive a $50 credit per frame on dead inventory. The program is a one-year commitment and requires a minimum of 36 board spaces.
A&A also offers a referral program, where you can receive a $100 credit for inviting your fellow opticians to join.
Regardless of whether or not your business is already thriving, there is always room for improvement, especially when it comes to profits and optometry practice growth. By following the advice listed above, you’re well on your way to making your practice the best it can be.