In most optometry practices, progressive lenses account for a highly significant share of revenue. This revenue is typically attributed to multiple lens designs, each with its own price point. Those price points are driven by several factors, including perceived value, cost of goods, reimbursement rates, and market conditions. Whatever strategic inputs you consider in creating your pricing model for progressives, this article will guide you as we evaluate your regional market progressive lens pricing.

PROGRESSIVE CATEGORIZATIONS

There are multiple approaches to categorizing progressive lenses. For example, a broad, binary taxonomy of standard versus custom is sometimes used to differentiate free-form (digital) progressive lenses. This binary classification may also be based on lenses that incorporate “as-worn” measurements, though those are often skipped and default measures are utilized. Vision plans have their own proprietary groupings of progressive lenses, typically 4 or 5 categories, typically based on cost of goods.

METHODS

To analyze progressive lens pricing, we anonymized and aggregated over 1.8 million progressive lens sales from more than 2,000 practice locations across the US between January, 2022 and June, 2022. We calculated the average list price per progressive lens pair sold, then analyzed the range of list prices and created price groupings. The results are reported for each of the nine US Census Bureau divisions: average and max list price (map); share of list dollars and share of units by price groupings (column chart).

RESULTS

The average list price per progressive lens pair sold in this sample was $632.  Among the nine US census divisions, the Eastern South Central division averaged lowest ($627 average list) while the Mid-Atlantic states were highest ($635).

Five (5) price grouping bins were created with $150 intervals to evaluate share of units, and dollars sold by price. 

From this analysis we learned that nationwide:

• 17.3% of progressive lens pairs are selling below $400, accounting  for 8.5% of the total progressive dollars sold.  
• 24.1% of progressive lens pairs are selling between $400 and $549, and amount to 19.2% of progressive dollar sales. 
• 28.8% of all progressive pairs are selling within the $550 to $699 range and account for 29.9% of progressive dollars. 
• 18.6% of progressive lenses sell in the $700 to $849 price group and account for 23.7% of dollar sales. 
• Progressive lenses that sell for $850 or more account for 11.2% of unit and 18.6% of progressive dollar sales

Use the selector to choose a census division and explore how the share per range changes by census division. Hovering over the map reveals the average list price. You can further explore by choosing a range from the column chart to narrow the average price.  

DISCUSSION

Setting your pricing model requires balancing multiple factors. Set your pricing too high and your sales will suffer, too low and your margins will be negatively impacted. Workable pricing also requires understanding how your patients perceive the value. The sales, margins and perceived value factors which you must account for are compounded by the competitive marketplace prices that patients may compare against.  Review the data provided here to see the prices in your market.  

Use this information to establish a fair price. If you are inclined to offer tiered pricing, the multiple options will help keep you in range of your competitors. You can also use this information as competitive intelligence to charge a little more than the going rate to increase margins, or a little less to boost sales.  Lastly, be sure to communicate your pricing model in simple terms so that your patients appreciate the value of your offerings.

For a detailed look at your local market neighborhood, check out localEyes reports.