No surprises that December was a quiet month in terms of eye examinations and dispensing, but while turnover was down on November it was up slightly from 2004, as are new contact lens fits. Solution sales are also up significantly from November.
Eye examinations are down 19 per cent from November, down 4 per cent from last December. The growth over the year compared to 2003 is negative at -7 per cent. The previous period had negligible growth. Over the period of the survey it has been seen that the number of eye examinations is cyclical. However, it would be more satisfying if, despite this cyclical downturn, overall eye examinations were seen to be increasing.
The proportion of tests that are NHS is 63.4 per cent, in line with the average for the year.
The total volume of dispensing has decreased by 17 per cent this month. On average for the year dispensing has fallen by 11 per cent compared to figures for 2003. Progressive lenses are hardest hit, down 20 per cent on average, with single vision and bifocals down 9 per cent and 8 per cent respectively. Lens mix has not altered remarkably, single vision account for 69.8 per cent of the total, same as last year, bifocals are down very slightly from 13.1 per cent to 13.0 per cent, progressives making up the difference.
Reflection-free coatings are down 23 per cent from November's results, and lag behind last December by 39 per cent. The average growth over 2004 is a negative 26 per cent. This means that the proportion of spectacles dispensed with reflection-free coating is down to 41 per cent compared to 48 per cent last December.
Dispensing rate is unchanged from last month at 66 per cent. Last year, it was slightly higher at 69 per cent. Dispensing rate is calculated from total number of eye examinations and total dispensing, and hence does not take into account multiple dispensing.
New contact lens fits have risen by 7 per cent from November and 4 per cent from December 2003. The annual growth, however, is negative by 2 per cent, whereas the previous year was positive by 5 per cent.
Solution sales generally do better at Christmas. Sales are up by 7.5 per cent from last month. There is negligible change from last December and the annual trend is -1 per cent.
Total practice turnover results are down by almost 7 per cent from November. Figures are up by 2 per cent from December 2003. Overall, the year shows growth of 4 per cent, compared to 12 per cent the previous year. The trend graph shows that this was a remarkable increase. However, prior to this the industry was recovering from a period of decline in 2000-2001.
Turnover per eye examination is up at 139, the highest result yet recorded by the Index. It is an increase of 13 from last month. Last year the figure was 133. Since volume of dispensing is not increasing, customers are looking for higher quality frames and lenses over the Christmas season.
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. December had 24 working days (excluding Sundays and UK Bank holidays).
If your practice would like to contribute to the Index please contact Louise Jarvis on 01622 851726, to discuss the benefits, no obligation, or by email to l.jarvis@ businessbenchmarks.co.uk.
BOXTEXT: The chart depicts the growth rates in eye examinations, dispensing and practice turnover over the past 10 years. The growth rates are calculated by taking the average results for the year and comparing this figure to the results for the previous year. Hence, where 2004 is shown we would be comparing 2004 to 2003.
With turnover it can be seen that positive growth was uninterrupted until 2000, albeit decreasing. After a year of poor sales, practitioners have been able to improve turnover, perhaps through reviewing pricing strategies and marketing, so that growth becomes positive and climbing. The trend in dispensing and eye examinations is clearly downwards and the last year shows a reflection of general retail results.
Other benchmarks have also faltered. Interestingly, the downturn in new contact lens fits started almost a year before the negative turnover results became apparent in September 1999. Turnover is holding up compared to other measures because of higher expenditure per eye examination, and added-value products. However, inflation can account for much of this, so profit margins may be suffering.
Dispensing falls again with all lens types showing negative growth