We’ve all had that moment in the dispensary where a patient, after eyeing a frame or two, says, “I just want what’s covered by my insurance.” It’s a common scenario, but one that often signals missed opportunities for your practice. Patients may say they only want what’s covered, but in reality, they’re often balancing a mix of financial concerns, perceived value, and the desire to make a smart choice.
As an eye care professional, you know that there’s more to eyewear than simply matching it with insurance coverage. Every frame in your dispensary represents a chance to not only meet a patient’s needs but also to boost your practice’s profitability. Yet, when a frame sale results in zero out-of-pocket costs for the patient, it can leave you wondering how to navigate this delicate balance.
In this article, we’ll explore how you can turn these “zero-dollar” encounters into profitable opportunities. We’ll look at strategies to adjust your sales approach and optimize your frame inventory, ensuring that even when patients choose what’s covered, your practice still comes out ahead. Whether it’s through better training for your team or smarter product positioning, there are ways to reduce zero-dollar frame sales and enhance your bottom line. Let’s dive in and uncover the potential that lies in every patient interaction.
Understanding Zero Dollar Frame Sales
Zero Dollar Frame Sales refer to patient encounters where a frame is entirely covered by a managed vision care plan (MVCP), resulting in “zero dollars out of patient pocket.” These situations often occur with specific types of plans, such as Medicaid and government-funded plans, which do not allow for out-of-pocket expenses. In other instances, managed care plans that permit out-of-pocket costs on frames might still see zero-dollar sales, revealing insights about the health of your frame inventory and overall sales strategy.
While Zero Dollar Frame Sales don’t necessarily point directly to a lack of profit or a specific problem, they can be a strong indicator of missed revenue opportunities that could otherwise enhance your practice’s profitability.
When a patient says “I just want what is covered by my insurance,” what are they actually saying? The reality is that no one truly ‘wants’ only what their insurance covers. This sentiment usually stems from one of the following reasons:
- The patient has evaluated their budget and faces current financial constraints.
- They don’t perceive the value of eyewear relative to other expenses in their life.
- They feel they’ve already invested in their insurance and need reassurance that they’re making a sound financial decision.
In this article, we will explore methods to reduce Zero Dollar Frame Sales and strategies to increase profit when these sales do occur.
Sales Training: A Strategic Shift
One of the key reasons for the persistence of Zero Dollar Frame Sales is a breakdown in sales training. Untrained sales staff will often “sell from their own pocketbook,” taking pricing considerations into account before they even begin selling. If your team is beginning the sales process with questions like, “Do you want to look at what is covered?” it inadvertently shifts the focus from the patient’s desires to the financial aspect of the purchase. Instead, train your team to start with open-ended, value-oriented questions such as, “What type of frame have you been wanting?” This approach encourages patients to think about their preferences first, rather than immediately considering cost.
We’ll help you uncover metrics to identify gaps in sales training in Chapter 5 of this series.
When patients do bring up finances early in the conversation, teach your team to gently redirect. For instance, if a patient asks about what’s covered by insurance, a team member might respond with, “We have similar styles in many price points. Let’s first find what type you’re looking for, and then I can show you options that fit different budgets.” This strategy allows the patient to explore their preferences without feeling boxed into the financial constraints of their insurance plan from the outset.
Beyond guiding the conversation, your team should be equipped to communicate the value of higher-quality frames and give patients the “permission to purchase.” This is crucial because purchasing decisions are often driven by unconscious motivators that provide mental permission to buy.
Examples of these motivators include:
- Perceived Value: The patient believes they are getting good value for the price.
- Emotional Well-being: The purchase makes the patient feel good or improves their self-image.
- Rational Sensibility: The purchase seems like a smart, sensible decision.
Product Positioning: Enhancing Visibility and Profitability
Product positioning within your dispensary plays a significant role in managing Zero Dollar Frame Sales. Most MVCP contracts require a defined percentage of covered frames to be displayed. To make these frames profitable, I recommend two key tactics:
Partner with Value Vendors: Purchase covered frames from value vendors who offer significant discounts, sometimes up to 90% off the list price. This strategy can turn Zero Dollar Frames into a surprisingly profitable part of your inventory. For instance, consider the following comparison:
| Frame Type | List Price | Discount | Out-of-Pocket | Gross Profit |
|---|---|---|---|---|
| Value Frame | $49 | 90% | $0 | $40 |
| Basic Frame | $51 | 20% | $8 | $19 |
In this example, a Zero Dollar Frame from a value vendor yields a higher profit ($40) than a basic frame with a small out-of-pocket expense ($19). This insight highlights a common but often overlooked profit opportunity.
Strategic Placement: Covered frames should not be prominently positioned in your dispensary. Instead, observe where patients naturally gravitate when they enter. This prime spot should feature the frames you aim to sell the most. By positioning covered frames less prominently, you subtly guide patients towards frames that are more profitable for your practice.
Manage the Metric
Once you’ve identified the number of Zero Dollar Frame Sales within a given period, analyze this metric by plan type to understand its impact on your practice. Specifically, determine whether the plans with the highest concentration of Zero Dollar Frame Sales allow out-of-pocket expenses. If they do, and you still see a high rate of zero-dollar sales, it’s a sign that your current sales approach may need refinement.
Zero Dollar Frame Sales
| Week Ending | Plan A | Plan B | Plan C | |||
|---|---|---|---|---|---|---|
| Frames Sold | $0 Frames | Frames Sold | $0 Frames | Frames Sold | $0 Frames | |
| 12/14/2023 | 21 | 6 | 35 | 12 | 14 | 9 |
Use the tactics we’ve discussed—enhanced sales training and strategic product positioning—to address these scenarios. Additionally, carefully monitor the profit on frames that result in low out-of-pocket expenses. A practical exercise involves collecting insurance remittances from your most common plans and comparing the frame reimbursement totals with the corresponding vendor invoices. This comparison will give you a clearer picture of your profitability and help you adjust your inventory and sales tactics accordingly.
Conclusion
By implementing these tactics, your team will be better equipped to reduce the occurrence of Zero Dollar Frame Sales while ensuring maximum profitability from the sales that do occur. Over time, this approach will lead to a healthier, more profitable dispensary that better serves both your patients’ needs and your practice’s financial goals.
As we wrap up our exploration of optimizing frame sales, from implementing a solid pricing strategy to maximizing managed vision care opportunities and encouraging patients to choose new frames over re-using their old ones, it’s time to shift our focus. In the next chapter, we will dive into tracking and improving profitability factors for lenses. Just as we’ve dissected the metrics that drive frame sales, we’ll now apply that same level of analysis to lenses, ensuring every step—whether it’s the lens selection, add-ons, or patient communication—contributes to growing your bottom line.
