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Pros and Cons of Buying Eyeglass Closeouts

April 22, 2009 by 1 Comment

Optical Closeouts

Both Shirley and I love closeouts- I buy clothes and other things at TJ Maxx, Marshalls and other discount stores. I even shop the ‘day old’ rack at grocery stores. As the economy and consumers tighten up their wallets- is this an opportunity for you? Buying eyeglass closeouts is a completely different purchasing and mark-up strategy. Closeouts have a certain risk factor, usually you buy in bulk and you can’t return. In many cases- you can’t pick out the product or styles. 

Pro’s of Buying Optical Closeouts

  • Great way to bring down cost of sales.
  • Financially Challenged?- Good way to fill up the Frame Board
  • Way to increase 2nd and even 3rd pair sales- or even offer a family plan
  • Offer quality eyeglass products for insurance programs
  • Way of getting free ink (Publicity) 
  • Good Promotional tool for optical marketing events
  • Provides a competitive edge against online eyeglasses sellers 
  • Provide- online sales strategy like selling on ebay 

Cons of Buying Optical Closeouts. 

  • No Returns
  • Parts availability may be limited
  • If not listed in Frames, could be a problem with insurance coverage  
  • Usually have to purchase a minimal amount. 
  • Don’t get to choose which products you want. 
  • Could get ‘stuck’ with slower movers
  • Having too much stock of close out frames may deter from your current and best selling products. 

How to Buy Closeouts

  • Educate yourself on Vendors who offer closeouts, price points, retail markups, warranty, and FRAMES listing. 
  • Inform all staff- many staff are opposed to closeout products and will hide, not show or promote the product. 
  • Set a Budget and a space allotment. 
  • Determine how are you going to use – promotional events, sale rack, 2nd pair sale promotion, Sunglass promotion, online sales 
  • How are going to price them? 
  • How are you going to warranty them?
  • If they don’t sell- how are you going to get rid of them- since you can’t return. 

Where to get Eyeglass Closeouts: 

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Comments

  1. Michael Duffy says:
    May 26, 2009 at 7:17 am

    I read this article with great intertest as both of our companies (The Frame Broker, Inc. & OpticalCloseouts.com)sell eyewear and sunwear closeouts.

    The author made several good points but there are a couple of misconceptions that I would like to address.

    First, with The Frame Broker, Inc., there are no minimums. Most importantly, the customer is free to choose the product. When a new customer asks if there are minimums, I always tell them that “They are free to save as much as they want”. So while we do not impose minimums good buyers that truly understand the benefits of opportunity buying usually purchase multiple units to maximize their savings and profits.

    As for getting stuck with a frame, it could happen. But, if you have sold 99% of the purchase and saved 70% or more on each unit, have you really been stuck? It owes you nothing. Use it for parts or a charitable donation or be a hero to one of your customers with a great price for that frame.

    Our other business, OpticalCloseouts.com does package product in minimum quantities for maximum savings. Those packages are called “Lots” and may range from as few as two units to as much as twelve units. The customer still chooses the product and may purchase multiple lots if the product is a good fit for their business.

    The author makes a very good point about closeout purchasing being a good way to reduce the cost of sales. In truth, it is the only way to influence your bottom line short of reducing personnel or your own paycheck.

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