Optometrists Industry Overview

Excerpt from Optometrists Report

Companies in this industry perform routine eye exams, write prescriptions for corrective lenses, and treat many eye conditions. No major companies dominate the industry.

Competitive Landscape

Demand is driven by demographics. The aging of the US population increases demand for eye exams and glasses as well as increasing incidences of eye disease such as glaucoma, which is often diagnosed by an optometrist although treated by an ophthalmologist. The profitability of optometrist practices depends on efficient operations and whether they also sell glasses and contact lenses. Eyeglass purchases are mildly cyclical with the economy, as many consumers view extra glasses as an expense that can be deferred. The industry is highly fragmented: the 50 largest companies account for less than 10 percent of revenue.

Products, Operations & Technology

Optometrists perform routine eye examinations, mainly to write prescriptions for corrective lenses, and can treat some simple eye conditions. Complicated conditions like glaucoma, cataracts, or retinal detachments generally are referred to ophthalmologists. Optometric eye examinations are fairly standard, usually take less than 20 minutes, and are charged at a flat fee. Revenue from eye exams depends almost entirely on how many customers an optometrist can see. Both optometrists and ophthalmologists may also sell glasses and contact lenses directly from an office dispensary. Because of space constraints, retail sales in office practices are often limited to contact lenses.