Why you shouldn't compete on contact lens pricing with online giants

Learn why our advice to clients is to not try to compete with the online giants on price.

Key takeaways

• You're a premium service — they are not
• Lean on manufacturer rebates to do the heavy lifting
• Timely refill reminders and frictionless reorders discourage price shopping
• Otto helps you track online competitor pricing and recommends your own pricing
• Don't undercut the competition, but try to be within about 10%
• Stop throwing money away with multi-box discounts

Why you don't need to compete on price

In the modern landscape of eye care, clinics often find themselves questioning how they can compete with online giants like Clearly.ca and 1800contacts. The allure of matching or undercutting their prices can be tempting. However, this approach is neither necessary nor advisable. Hundreds of clinics successfully sell contact lenses at a premium, leveraging unique advantages that online competitors simply can't match. Here's why you shouldn't try to beat these online giants on price:

1. Comprehensive, holistic eye care services

As an eye care provider, you offer much more than a simple transaction. Your services encompass comprehensive eye examinations, personalized fittings, ongoing care, and expert advice that ensures the health and comfort of your patients' eyes. When patients purchase contact lenses from your practice, they're not just buying a product — they're investing in their eye health, receiving expert guidance, and ensuring optimal vision and comfort.

2. Manufacturer rebates: a unique advantage

Eye care practices have access to manufacturer rebates that are not available through online competitors. These rebates provide direct, often substantial net savings, allowing your clinic to price lenses higher while still being the most economical option in the long run. Patients may initially see a higher sticker price, but once rebates are factored in, the overall cost can be significantly lower than that of online retailers.

3. Reduced price shopping with proactive engagement

One of the biggest challenges for clinics is ensuring patients return for their refills. Left to their own devices, patients often resort to price shopping. This is where a service like Otto becomes invaluable: it proactively engages patients in advance of their refill dates, offering a frictionless reorder experience. This keeps patients within your ecosystem, significantly reducing the likelihood of them shopping around and ultimately boosting your retention rates.

Automated competitor price tracking with Otto

One of Otto's standout features is competitive price tracking. Otto scrapes competitor sites daily, capturing updated prices for all their products and displaying them in your dashboard next to your own pricing. Otto goes further by analyzing this data and highlighting when it thinks your prices might be too high or too low. This proactive approach lets you make informed pricing decisions, ensuring your clinic remains competitive without compromising on the premium service you offer.

Our advice

Instead of trying to undercut online competitors, aim to price your lenses within a reasonable range — say, 10% of the online prices. This positions your practice competitively without undermining your value proposition. Additionally, there's no need to push annual supplies or offer 6-month or annual supply discounts. The manufacturer rebates naturally promote larger purchases, so you don't need to double down on volume discounts.

It's safe to say volume discounts are motivated by the fear that patients won't return for their refills. However, with a service like Otto ensuring regular engagement and reminders, you can confidently sell three-month supplies at full price — sparing patients a large upfront cash burden — while knowing they'll be back for the refill down the line.

Emphasize value over price

Your eye care practice holds numerous advantages over online competitors that go beyond mere pricing. By emphasizing comprehensive care, leveraging manufacturer rebates, and utilizing proactive patient engagement, you can successfully sell contact lenses at a premium. Focus on the value you provide — superior service, expert care, and long-term patient relationships.

Position your practice as a provider of exceptional eye care rather than just a retailer of contact lenses, and watch it thrive without the need to compete on price alone.