Dear all Expert,

I would like to plan to open an optical and eyewear wholesaler business.The problem im new in this line.There are few doubt in my mind.
I hope that some exprienced person or for those who are working in this line give me some advice or comment.


1.normally where do optical shop source from?own or does supplier or wholesaler approached?

2.how was the profit margin like?i heard that a cost for a frame was very low eg rm20 - rm30 but can sell up like to rm100++?
(just roughly wanted to know)

actually my most concern is it a lot of optical shop source on their own for normal frame?not those branded eyewear like oakley or gucci.



Will greatly appreciate all comment and advise!!

Thanks

My friend saw a spec tag RM 460 and buy it RM 180. And he stated that, the tauke still earning money.

This post has been edited by edyek: Jan 7 2010, 06:26 PM

i also heard my fren said that the cost of the frame is very low, then the profit margin is very high. Most the glass frame supplier is from taiwan. i don't know whether what he say is true!!

Icic..thx for the info!!

Anyone else can give me some advice on this?tq

You can get cheap RM10 sunglasses. Frame and glass included. Examine them closely. Some of these have frames similar to prescription glasses. They may not have extras like springs, etc, but all these stuff do not justify pushing the cost from RM10 to RM300-RM500.

RM20 to RM30 cost for the shop sounds reasonable. There is some profit from the actual lenses too, but I suspect it's much higher on the frames. The economics of running an optical shop is like this. Unlike some other businesses that might get a hundred or more customer a day, you will only get a few customers daily. Instead of earning a few RM from each customer, you have to earn more. The only way is to earn a lot on the frames and lenses.

Unfortunately, this is also a weakness. This extremely high profits is a very attractive target for a profit destroying, market disrupting company. They could aim to get high volume on low margins. There are online shops that charge very low prices on frames and glasses. Mostly they're in the US and Europe. When one opens up in Malaysia, it will cause difficulties to the present shops that rely on high margins.

@dkk

are you working in this line?thanks for ur comment.out of my curiousity actually i plan to to source from China and bring it back to Malaysia to be a wholesaler but the problem is i doesn't know whether the optical shop will go source themselves at China or does some wholesaler or supplier will
approached them?if most optical shop will get the stock themselves there is no point i running as wholesaler when there no one buying stock from me.

No, I'm not in the business. Just a long-time, 30+ year customer.

The big chains like England, possibly (but probably not), the small one-branch shops, no. If they're only selling about 100-200 glasses a month, there's no point going so far to get this small volume. There *are* local wholesalers selling the frames and lenses. (I hear this from a friend who's sister ran an optical shop for a couple of years). So you'll have to compete with them.

I think u better not open the shop so soon, because u sound not to be well prepared yet. I am in optical line, if u interest pls email to me and let us discuss it. My email is :yeokwoei@gmail.com, thx.

Also please make a note that out of the 10 designs that you bring only 5 might be sold. How many frames you like when you go to an optician? Same thing applies to your customers. Most of your stock will go waste so to cover the cost opticians charge so high.

As this is a credit intensive business how long can you give credit to your customers(small opticians)? Will you buyback unsold stock?

I would suggest you try something that you are master at.

i work at an optical shop for 6months white waiting to enter university.

some frames are free given from factory.
for instance the shop order hundreds of branded frame like bonia, gucci... factory will give 50++ free frames to the shop

thats why you always see the shop got promotion to give out free frame+free lenses

lenses consists of local lense and branded lense
among all the products, they earn the least from selling contact lense because mostly the price is fixed.

**again, the net profit may not as high as you think.. lots of cost need to cover

This post has been edited by vandoren: Apr 1 2010, 12:34 PM

maybe high profit if selling fake branded frame

1. Yes, an optical shop margin is very high, however the cos of running an optical shop is also quite high - Due to the expensive machines, the need for a registered optician / optometrist ( A requirement for all optical shop to have, least you get busted by Kementerian Kesihatan, plus Majlis Perbandaran)

2. Unless you got a lot of capital (And I mean more than 1 million capital), be prepared to bleed to death. There are so many suppliers, that I know some have closed shop because they can't compete. Bear in mind that this is a fashion related business, and all the original brands have their authorized distributors already or are distributing it themselves.

3. Unless you plan to populate your shop with Perasan Cun fellow from Hong Kong brand (2 inci, 3 inci, Takde X - all China made) - This one got lots of supplier willing to supply.

4. Few smaller chains I know, now go and buy direct from China. In fact, you can now buy online direct from the factories for the no-name brands - So long as you got somebody that can speak mainland Mandarin.

TS, try working at any spectacles shop and fork out some ideas and secrets. I think, that's the best way for you to get better exposure.

Dear Friend,
May I help.

1. Capital are very expensive and buz may not as luxurious and profitable as you think.
2. There are many bad pay masters and you need alot of cash. Sometime, overdue payments are over year or two are very common in the field. Worst are those non committed pay master which you need to seek legal advice to collect payment.
3. If you are really interested, I have ready and running company for JV or take over if you are interested. Then, you will learn the trade without going thru lesson 1. Reason, I can teach you all you want to know as as your partner, I want you to preform well and make money for both of us.
4. Why did I want to let go?
a. I have so much buz to attend to and I really don't have the time to take care of the Optical wholeseller company.

5. Profit, very good if you are willing to work hard and a promise of good income and future but what a RM20 sellng for Rm100 is absurd lah. In this world there is none such buz except if it's illegal or very dangerous.

Contact me if anyone interested in this trade, JV or take over esp. those who are keen and willing to work hard. I shall be able to help you to help me in this field. Promised that you won't lose but how much you will make will only depend on how you work and plan.

Money back guarantee if you lose.......but not if you cheat.

Hi West Wing,
I am interested in your business. My email is cheongkaishien@hotmail.com. What is your email address?

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Added on May 13, 2012, 2:06 pm

The most difficult part in doing optical (eyewears) Wholeselling is getting accounts ie optical outlets to buy from you.

Many new wholesale companies find it impossible to open account with optical shops and only those bad shops that buy and never pay. So beware.

I do have a wholesale company to let go if any here interested and I no longer promised what I said before as this time I just want to let go and reason is that I got cheated by many partners before and wanting out.

The company do has one thing, good optical outlets accounts and has many of oversea manufacturers and suppliers ready which will make interested people very easy to start the biz. Lazy, no time and without initiative people, better stay out cos you won't make your future in the trade.

Like me, I do have all contacts with factories and suppliers oversea but lacking precious time cos I have so many other biz to attend to like optical outlets and managing swiftlets houses which took the toll of me... and given me my fortune.

So, interested? better hurry cos chances is just once.


Oyes, my email has been forwarded to your email above..

This post has been edited by West Wing: May 13 2012, 02:11 PM

so sad, England is down.

Is not as easy as u think. Average expenses to run an optical shop every month is about 10000-15000. This only apply if u open a shop in taman area with only u alone working or just hire a 900-1000 sales assistant. This expenses include salary and others like rental & bills. There's no consignment in frames & sunglasses. U need to take 12 frames for u to sell 2 or 3 out of it. The rest u just put on display. At the end of the day those money you've make has been converted to stocks coz you're replenishing more than you're selling. 1 specs average u can wear 1 year+. Repeat sales is not as high as food. If you're taking RM20 stocks and sell for RM100, confirm you'll cry after 3 months. How many pairs of specs can u sell in a day? And RM20 frame quality sucks. You'll receive complains from customers. Don't compare with big chains like MOG or Focus Point coz they've a lot of cash for rolling and a lot of branches to circulate their stocks. We're talking about just open a small shop in a housing area. Starting up cost now is average 100K-150K with simple renovation, cheap machines and normal stocks. Correct me if I'm wrong if there's someone in this industry here.

depends on where you plan to open, there's alot optical shop nowadays