People normally change specs once a year some even more, sunglass maybe change even more.

But many times i see Spectacle shops opening in really remote place, or shopping center area where not many people passby, usually i see only the staff are in the shops, Spectacle shop is not like IT shop can focus on online sales and needs walk in business, so i'm wondering how these shops actually survive?

The profit margin may be high for the frame & lens but without sufficient sales still how they cover the rental, salaries & utility bills?

I'm talking about those smaller individual shops not big shops that open in prime locations like Paris Miki, Focus Point, England Optical.

I don't think people who launder money would bother opening spectacle shops so how they survive with such little customer flow?

But everytime i passby those shop no customers one, not including those in prime shopping malls la, like very remote or secluded areas for example Scotts garden 2nd floor, that area hardly got shoppers walk around. Expenses should be at least 7k a month so how they sell so many specs/contacts to even cover the cost?

And if the margin is really that high, cost rm30 sell few hundred then other shops will be competitive already especially online private sellers.

This post has been edited by advocado: Nov 18 2012, 02:17 AM

What you trying to say? Ur answer got nothing to do with the topic le...

OK but i'm not asking about how to get cheap specs. Pasar malam fram not long lasting one. Sometimes bengkok somemore.

if you don't know don't need to answer. thx.

u wanna explain explain properly, dun simply say pple sleep in class. u think everybody study business, or have the chance to go to college meh?

supply demand, if the shop whole day only few people walk pass how they get good business? somemore secluded new shopping malls got old customers meh? just wondering cannot be money laundry coz laundry usually do those ah beng business one.

matiko95 you need to stop posting before people start reporting you.

have a nice day 2".

Good explanation but not quite the answer as i understand old shops and shops with good location usually no problem getting customers. But recently i notice smaller shops opening in less prime spots so even lunch time quite empty, so how they tahan?

Also if the frame margin is that high, why won't competitors go on cut throat price war? Or at least you'd see online private sellers selling it at maybe 70% of retail price? But you don't see that wo.

I believe the lens margin is actually higher.

i don't think u told us anything useful.

regards.

but if the margin is like what people say so big, there leaves alot of room to reduce price to gain business, end up cut throat unless they all own by same owner.

also private sellers like you and me would be able to offer frames at even cheaper price becoz no shop, but you don't see that. other things like computer stuff due to competition margin quite small already.

unless distributor make it clear no price war but i don't think possible.

Cost really rm30 ah, the rm300 brand consider expensive frames already, like this those rm150 frame only cost like rm10??? Then the distributor & manufacturer make peanuts???

just wondering for a rm1k rayban how much is the cost actually, rayban themselves would wanna make big profit also right? unless you say, bootleg la...

nowadays you can go shop test the frame, then buy the frame online.

i'm sure selling frames only or sunglass is easier than selling it with glass. If the margin is really that high, i'm sure private sellers would be willing to sell at 60-70% market price the buyer will still save alot when they take it to old shop to do glass right?

but new shop also can get customers, coz many people move to big cities so dun have familiar shops anyway, so with attractive promotions and good service can also.

Just many these shops the location is really secluded, which means less likely customers will walk pass let alone go in. Some really kesian swap fly but can still tahan very long.

Or maybe they already move into online sales so they make alot of deals online. Maybe they sell in lyn also.

hmm, distributor can only limit when them, but if they drop price behind their back they cannot do anything especially online sales.

but i don't see any sellers do that, not even on ebay. Those that sell dirt cheap are usually selling bootlegs.

i'm sure if cost is rm30, retail at rm1000, you will see people selling it at rm300, still alot of profit le... not like each rayban got tag so distributor can monitor who is doing what.

usually the distributor gets it cheap, but when go to retail should not be like you say 300% profit very big, business usually 10-20% profit consider high already.

which makes me wonder like handbags how much % they are making off cost price...

1000% profit is really crazy, i doubt there are many business out there that can do 100% profit or even 50%.

Usually in terms of margin, the distributor would have taken a big chuck in terms of volume sales, before that still got manufacturer & brand company taking big portion of the profit, so when optical shops get the stock the cost should not be that low to allow over few hundreds or thousands % profit right? If the retail profit so high why won't distributor increase their profit margin in the end everyone still make alot.

If you say the glass has higher profit margin i can understand as most shops do their glasses or have special shop do that and usually normal glass cost more than normal frames.

But then your numbers already gave us the insight the startupcosst & running cost, so how many glasses & frames you need to sell each month just to cover the running cost?

My question is on those smaller private shops that are not located in prime areas. Maybe they rely alot on school plans etc but then there are so many competitors around also eyeing on such bulk orders, so smaller shops that takes less stock means their cost is higher than big shops in terms of stocking, so i'm wondering what they do to counter the less customer flow & higher stock price disadvantage.

If you talk about those cheaper clothing shops that sells rm20 a piece, their cost is probably very cheap maybe rm5 per piece or less but that is due to lesser quality and crazy China suppliers that's selling it dirt cheap. I know some China factories actually selling their stuff close to cost price, but i guess the big bosses doesn't know about it or there's hidden reason.

The thing is people need to know your shop is at ulu place and got good deal, but most of these shop i ran into, if i didn't walk pass i wouldn't have known. I don't see banners near the escalator or promotions whatsoever.

You know i go shopping center try to cover all areas to check them out, normal people don't, they just jalan jalan see what they saw.