The question of how many frames to carry has come up for years. If you carry too little, your patients might think you don’t have much of a selection, you carry too much, you don’t get the turns. It can be a fine line and a lot depends on space, location, patient base, insurance and the type of merchandise you carry. Bottom line the amount of frames you carry should be determined by inventory turns and exams (if you have a doctor)
You have now determined:
- Your Inventory Turns:
- How To Rid of Dead Stock
- Increasing Inventory Turns by Conversion Rate
- Increasing Inventory Turns by Multiple Pair Sales
200 Eye Exams or people walking in door/mth- Sell 100 frames and carry 1,000 frames- that is a 10% turnover a month- Which is excellent per month, but you still have to management the overall yearly count
Using eye exams as an example:
- Calculate the average number of eye exams/ per month. Let’s say 150 eye exams x 4 (which you want to be the minimum number of turns) and you will come up with 600 frames to carry. That give you a good start and a goal to work towards.
But monthly eye exams or patients vary, so it is best to determine how many on average do you have. Take last year as an example.
- Total eye exams 2011= 3, 200
- Average Exams per month= 266
- Potential sales is 266 + frames per month. x4 turns = 1064 frames in inventory.
There are exceptions to this:
Safety Frames, specialty frames, Medical-medicare, Some insurance programs.