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> How do Spectacle shop survive?

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infernoaswen
post Nov 18 2012, 02:36 AM

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i work in spectacle shop before & to tell you the truth, they actually earns more than what people think.

earn from:
-returning customers
-contact lens, solution, etc
-sunglasses

but most importantly is from the lenses & frame that they sell. The price for the frame is actually 2-3x more than the original price & yes that is just the frame. Havent include the profit they make from the lens. Some more there are customers who change their frame like every month..must be some richfag or something but he returned to the shop many times & change spectacle so my boss earn like that lor, but of course returning customers reduce the price so that he come again...

I saw the book where my boss record the price for each frames & from the sales i can say the profit margin is very high. So yeah...they can survive but if new business its harder la coz not much returning customers....like the shop i worked before is very old so many trusted old customers go back....i know coz he keep the customers record details & everytime i need to go dig up...so mafan doh.gif
infernoaswen
post Nov 18 2012, 03:06 AM

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QUOTE(advocado @ Nov 18 2012, 02:55 AM)
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.
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smaller new shops wont tahan long, there were few competitors opened near the shop i worked before and after few months close down coz cant compete. Mainly its because the shop is new, if you wanted to buy a spectacle will you go to a new shop that you never heard of before compare to a old 1 next door? Are you willing to risk your glasses power to be determined by someone who you are not even really sure qualified or not compare to someone else next door who have so many years of experiences?

Yes price war is going on but my boss dont get involved in those, only major branches like focus point etc do that. They got all sort of school sales la this that but the sales they do is on ugly/cheap frames. Last time a competitor did cut price to challenge my boss shop, in the end he got angry and made 0 profit on all the frames. Major sales, few months went by and the shop had to close down. So as a competitor you cant simply cut prices also...

My boss make the most profit on expensive branded stuff, like ray ban, zerox frame, sunglasses etc...it can cost up to rm1k just for 1 sunglasses and the profit you know la brows.gif

Online sales is a different story, it dosent really work out for spectacle because if you want to buy spectacle how you going to check your eye power? There are some customer who bought frame online & come to make lens but even buying online frames is risky because different frames fits different head, we all got different size & shape face so need to try physically in order to find the matching one...
infernoaswen
post Nov 18 2012, 03:09 AM

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also yeah you cant simply reduce the price, distributors will check they usually have a limit that you cant sell this particular frame lower than this specified price...
infernoaswen
post Nov 18 2012, 03:27 AM

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QUOTE(matiko95 @ Nov 18 2012, 03:11 AM)
that depends on customer.. even i seen in lowyat still they use to sell ray ban, uv protection glasses with power, its like goreng pisang..
when i see the actual shop, i dont believe it is like a ghost shop...
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yeah depends on customers but even ray ban sunglasses got sizes. If you know your size then sure you can buy online but usually not everyone knows their size. They usually would like to try it on first then only buy which suits the best. Plus sunglasses usually is bought as a gift in the place i work, so yeah wife will come in & start trying for the husband etc...

QUOTE(advocado @ Nov 18 2012, 03:13 AM)
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.
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rm1k i was referring to zerox, but for ray ban depends lor...different models different price...some range from 350-450 & some higher... distributor them self already set and make the profit, then they will give a recommended price the sunglasses should sell to the shop. Its then up the the shop whatever price he want to put...some shop sells expensive some cheaper due to the rent lor....some just simply put really high price for new models....etc...

thats why when you are a sales men you need to be smart to read the person. If the person is not going to buy you can know so dont layan that person lor....also usually we ask them to check their power first....if they refuse then thats a sign they not interested in buying actually. Its all business man....you need to get involved in it to know....

yes but the world dosent work like that....many of my customers are old chinese pipul....all return back the the old shop because we give good advice, etc....its all about customer service also....new shops usually put inexperience young workers...they dont know how to handle customers...and you cant simply reduce the price... disturbor will check & if they find out they will blacklist you...

also it depends on the month....usually holiday, or weekends got customers...weekdays people busy working...no time to bring kids out for eye check etc...sunglasses etc usually people buy as gifts like christmas present, deepavali etc...
infernoaswen
post Nov 18 2012, 03:35 AM

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QUOTE(advocado @ Nov 18 2012, 03:17 AM)
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...
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this is why you are wrong, each ray ban got its unique tag....they can track if they want. Its not that hard actually....i dont know about online sales i am referring to physical sales but yeah distributor will control so you cant simply reduce dirt cheap.

There is also grade AA ray ban....for those who dont know much, easy to fool them lol....of course we dont lol....there is even few old model ray ban sunglasses that is BL....BL yo....its very rare to find BL models anymore....limited stock though....you go any other shop and ask them for BL models its most likely they dont have tongue.gif tongue.gif
infernoaswen
post Nov 18 2012, 01:01 PM

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QUOTE(DarkNite @ Nov 18 2012, 08:12 AM)
interesting and useful info, many thanks!

BTW wat is BL?
and how to know wat wat grade is the RayBan?
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BL is from USA, last time ray ban is from usa then company bankrupt or something and italy bought over...nowdays all the ray ban is from italy if i am not mistaken...this is what i learn when i was working part time la....from italy is label RB...its engraved to the lens at the right side if i am not mistaken...like a signature...need to look closely to notice...some prefer the USA models due the the lens quality thats why some people are still finding BL models but its super hard...limited old stock only left...

its not easy to know about grade AA and original...just like perfume got grade AA also...very hard to smell the difference since they smell the same. if you deal with ray ban many times then only you can know the difference by the look and feel of it...

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