Downturn continues but rate of decline seems to be slowing
Downturn continues but rate of decline seems to be slowing
November was the start of the 14th year of the optician Index. The indices represent the percentage change from the initial base of 100 set in November 1992. Hence on average over that time practice turnover for sample practices has increased by around 50 per cent. Unfortunately, over recent times, total practice turnover has not grown, and while sales per eye examination have improved significantly, general volume of dispensing and activity has declined.
In the run-up to Christmas, most benchmarks fall further, although the average annual rate of decline is slowing for dispensing.
Eye examinations are down 5 per cent from October, down 12 per cent from November 2004. The decline remains steady at 5 per cent over the year. The proportion of total eye examinations that are NHS tests is consistent at 63.7 per cent.
The total volume of dispensing is down 3 per cent from last month, down 5 per cent from last November. This month bifocal and progressive lenses have improved slightly, and this has affected the lens mix, with single vision falling from almost 70 per cent to 68.5 per cent of all lenses dispensed.
Overall, over the year, dispensing has fallen by 6 per cent, yet this is an improvement from last month which calculated an annual decline of 8 per cent. The 12-month average reached its lowest point in April this year at -11 per cent. There is unlikely to be a rapid reversal, but the market may level out slightly. This is a sign of increased competition, for example online dispensing, as patients have far more choice.
Volume of spectacles with reflection-free lens coatings has fallen markedly this month by 11 per cent, down almost 8 per cent from last November. However, the annual decline is less aggressive, at -13 per cent compared to -17 per cent reported last month. The proportion of spectacles dispensed with an AR coat is down slightly at 42 per cent compared to 45 per cent last month.
The dispensing rate is unchanged this month at almost 69 per cent, and compares to 66 per cent last November. This figure is calculated from the total number of eye examinations and total dispensing, and hence does not take into account multiple dispensing.
New contact lens fits have fallen by 19 per cent this month, although they often fall in November. In December they are usually the only benchmark to increase. On average there is zero change in growth. This time last year the trend was negative. The definition of a new fit is, 'the introduction of a patient to a frequent replacement scheme (including disposable lenses) or a full price contact lens supply not covered by a replacement scheme or insurance'.
Changes in solution sales are negligible, although the average fall over the year is around 2 per cent.
Total practice turnover is down just over 1 per cent from last month, down 4 per cent from November 2004. There is a slight decline of almost 1 per cent over the last 12 months.
Turnover per eye examination is up slightly this month to 129, from 128. Last November the figure was 126.
When comparing your practice with the results it is important to note that all our figures are equated to a 25-day month, so year-on-year, month-on-month we can compare equal time periods. November had 26 working days (excluding Sundays).
New contributors are always welcome. Benefits of participation include customised graphs and comparisons. There is also the opportunity to benchmark other aspects of practice management or sales against the whole sample. The service is completely confidential. Contact Louise Jarvis on 01622 851726, or email l.jarvis@businessbenchmarks.co.uk
A LOOK AT THE TRENDS
BOXTEXT: Sales per eye examination can be seen to be increasing over the last four years although the period from 2003 to 2004 shows rapid growth in the region of 23 per cent. Over the last 12 months an increase is still apparent but averages at just 1 per cent.
Turnover per eye examination is a good indicator of whether practitioners are adding value to sales by supplying lens coatings or higher index lenses, as well as demand for designer frames or better quality.
Statistics for lens treatments show an increase in hard coats of 23 per cent over 2004, while photochromic lenses increased by 28 per cent. Use of high index lenses where n1.64 have increased by around 50 per cent.
These results are consistent with Index figures as preliminary results for 2005 show a more modest change.
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November was the start of the 14th year of the optician Index. The indices represent the percentage change from the initial base of 100 set in November 1992. Hence on average over that time practice turnover for sample practices has increased by around 50 per cent. Unfortunately, over recent times, total practice turnover has not grown, and while sales per eye examination have improved significantly, general volume of dispensing and activity has declined.
In the run-up to Christmas, most benchmarks fall further, although the average annual rate of decline is slowing for dispensing.
Eye examinations are down 5 per cent from October, down 12 per cent from November 2004. The decline remains steady at 5 per cent over the year. The proportion of total eye examinations that are NHS tests is consistent at 63.7 per cent.
The total volume of dispensing is down 3 per cent from last month, down 5 per cent from last November. This month bifocal and progressive lenses have improved slightly, and this has affected the lens mix, with single vision falling from almost 70 per cent to 68.5 per cent of all lenses dispensed.
Overall, over the year, dispensing has fallen by 6 per cent, yet this is an improvement from last month which calculated an annual decline of 8 per cent. The 12-month average reached its lowest point in April this year at -11 per cent. There is unlikely to be a rapid reversal, but the market may level out slightly. This is a sign of increased competition, for example online dispensing, as patients have far more choice.
Volume of spectacles with reflection-free lens coatings has fallen markedly this month by 11 per cent, down almost 8 per cent from last November. However, the annual decline is less aggressive, at -13 per cent compared to -17 per cent reported last month. The proportion of spectacles dispensed with an AR coat is down slightly at 42 per cent compared to 45 per cent last month.
The dispensing rate is unchanged this month at almost 69 per cent, and compares to 66 per cent last November. This figure is calculated from the total number of eye examinations and total dispensing, and hence does not take into account multiple dispensing.
New contact lens fits have fallen by 19 per cent this month, although they often fall in November. In December they are usually the only benchmark to increase. On average there is zero change in growth. This time last year the trend was negative. The definition of a new fit is, 'the introduction of a patient to a frequent replacement scheme (including disposable lenses) or a full price contact lens supply not covered by a replacement scheme or insurance'.
Changes in solution sales are negligible, although the average fall over the year is around 2 per cent.
Total practice turnover is down just over 1 per cent from last month, down 4 per cent from November 2004. There is a slight decline of almost 1 per cent over the last 12 months.
Turnover per eye examination is up slightly this month to 129, from 128. Last November the figure was 126.
When comparing your practice with the results it is important to note that all our figures are equated to a 25-day month, so year-on-year, month-on-month we can compare equal time periods. November had 26 working days (excluding Sundays).
New contributors are always welcome. Benefits of participation include customised graphs and comparisons. There is also the opportunity to benchmark other aspects of practice management or sales against the whole sample. The service is completely confidential. Contact Louise Jarvis on 01622 851726, or email l.jarvis@businessbenchmarks.co.uk
A LOOK AT THE TRENDS
BOXTEXT: Sales per eye examination can be seen to be increasing over the last four years although the period from 2003 to 2004 shows rapid growth in the region of 23 per cent. Over the last 12 months an increase is still apparent but averages at just 1 per cent.
Turnover per eye examination is a good indicator of whether practitioners are adding value to sales by supplying lens coatings or higher index lenses, as well as demand for designer frames or better quality.
Statistics for lens treatments show an increase in hard coats of 23 per cent over 2004, while photochromic lenses increased by 28 per cent. Use of high index lenses where n1.64 have increased by around 50 per cent.
These results are consistent with Index figures as preliminary results for 2005 show a more modest change.