1-800 CONTACTS Competition
Now Viewing 1-800 CONTACTS's competition in: Optometrists and Opticians (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What types of marketing does the company do? - Single-unit companies may advertise in the Yellow Pages and newspapers.
What types of customers does the company try to appeal to? - One-store operations are usually limited to the demographic in their local area.
What types of promotions does the company use for retail products, like glasses? -
Does the company match promotions run by competitors? -
Does the company have competition from the large national chains? - Large chains account for 50 percent of industry revenue.
Has the company been able to increase the average charge per customer in the past year? - Prices for eye care were flat for several years, but have increased lately.
Competitive Landscape
Demand is driven by demographics, fashion, and changing healthcare practices. Most important is the aging US population, which is increasing demand for eye exams and glasses. The profitability of optometrist practices depends on efficient operations and whether they also sell glasses and contact lenses. There are few economies of scale in retail operations, except that large stores can offer a larger choice of product styles. Small retailers can often compete successfully with large chains by offering a different product mix. Eyeglass purchases are mildly cyclical with the economy, as many consumers view extra glasses as an expense that can be deferred.
Business Challenges
CRITICAL ISSUES
Growth of Eye Care Insurance Coverage may Lower Prices - As more consumers receive eye care coverage from their health insurer, the average price retailers get is likely to decline. Payments for eye exams and glasses from health insurers are often 25 percent lower than the regular prices optometrists and opticians charge. To get business from members of managed care plans, optometrists and opticians have little choice but to accept the discounted prices.
Improved Corrective Eye Surgery may Shrink Optical Market - Although corrective eye surgery like LASIK has so far had no major impact on sales of glasses and contact lenses, the volume of such surgery is expected to increase as quality improves and costs decrease. LASIK eye surgery has rapidly grown into a multi-billion dollar industry.
Industries Where 1-800 CONTACTS Competes
- Consumer Services
- Optical Services(primary)
- Retail
- Nonstore Retail
- Internet Retail
- Nonstore Retail
