July 2020 StatsCan Report Shows Slowing Bounce-Back

Finance|Wealth, Marketing, Planning, Resources

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April 2020 retail sales report sent shock waves through almost every retail sector in Canada.  Since then the May and June results showed a buoyant bounce-back in most sectors.

The July 2020 StatsCan report of Canadian retail sales, however, show that the rate of the bounce-back has slowed considerably.

From the APRIL low of $43.6 M, May retail sales increased 35.8% and June increased 19.0% over May.

The July numbers,however, are a stark reminder that full recovery of economic activity may not yet be in the cards.  July retail sales reached $57.2 M a mere 1.7% increase over the prior month.

One positive to take from the July numbers is that sales posted 4.5% higher than July 2019.

Taking a sector-specific view July 2020 Canadian Health and Personal Care (H&PC)  retail sales show a similar trend to that of all retail sales.

June H&PC sales showed a strong bounce back of 10% from May, but the July sales rebound, while still positive, were up 1.5% compared to the prior month.

H&PC retail category is a broad swath of personal care retail operations that includes pharmacies and  optical stores but excludes mass merchandisers and private optometry clinics.  The  H&PC retail category might not be an exact benchmark for individual practices, but it is the closest proxy we can gather from the publicly available StatsCan reports.

While each of the sectors showed varying results, so do regional sales. Not all regions across the country shared equally in the positive numbers.

On the plus side, British Columbia and Quebec lead the way with +5.5% and +4.2% month over month sales growth respectively.

Ontario and Man-Sask showed declines of 1.3% and 2.6% respectively in July.

EyeCarebusiness.ca will track H&PC sales as a information bookmark for Eye care Professionals.

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An Early Adopter Partnership: Lessons Learned & Shared

Buying-Selling A Practice, Practice, Resources

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Dr. Christian Nanini was aware of IRIS from their home province of Quebec. IRIS clinics had developed a forward-thinking, profitable business model that Dr. Nanini and his partners attempted to emulate at a smaller scale within their own practice – but without the benefit of the IRIS brand name. Ontario regulations stood in the way.

Profession’s Politics at Play

For many years, the Ontario College of Optometrists (COO) had very restrictive regulations that forced an antiquated pricing mechanism and forbade association among Optometrists, Opticians and corporate entities.

In 2006, the same year that Dr. Nanini consolidated three practices in the Niagara region into one location, IRIS led the charge to challenge the status quo which drew the ire of optometry’s regulators in Ontario.

Nanini and his partners wanted to move quickly but were advised to wait until IRIS’s challenge to Ontario’s antiquated regulations were settled.

Ultimately, by marshalling the support of the Ontario Ministry of Health and the Competition Bureau of Canada and citing the Canadian Charter of Rights freedom of association provisions, the COO publicly acknowledged resistance to IRIS’s business practices would cease.

Listen to Dr. Daryan Angle recount the story of IRIS’s challenge to the Ontario College of Optometrists in the Eyes Wide Open Podcast, hosted by Dr. Glen Chiasson

Gaining a Better Work-Life Balance
As a young family man, Dr. Nanini began to feel overwhelmed having to do everything in his business early on. Work-life balance was not in his vocabulary.

He faced the challenge of juggling all the balls that come with running a small business. Aside from patient care, his time was spent doing joyless grunt work: managing and training staff, marketing, payroll, strategizing how to grow the business and the list goes on.

Like many optometrists he simply wanted to do what he studied and trained for—examining, diagnosing and treating their patients. He did not want to feel weighed down by the tedium and stress of an endless to-do list, but still wanted a sense of control over the business.

A Shared Vision
Knowing of the success of IRIS in his home province, Dr. Nanini believed that his clinic would do better to partner with IRIS rather than compete with them for patients. He also saw the value in relinquishing essential business responsibilities that would free up his time.

“I was 100% okay with that because, for me, it’s freedom from all the workload, all the training, all of the advertisement, all the negotiations with suppliers. Everything was out of my hands now …freeing up my time a lot. After work, I could come home and enjoy quality family time instead of having to do paperwork,” Nanini remarks.

In 2009, two years after his initial meeting with Dr. Francis Jean (the now-deceased founder of IRIS), his clinic was officially a 50% shareholder with IRIS owning 50%. He chose this option over alternative percentage splits or a franchise model.

“Right from the beginning I didn’t want to sell the whole thing. I still wanted to have some power into some decisions.”

Transition Lessons Learned
Dr. Daryan Angle, IRIS VP of business development, worked with Dr. Nanini to transition the Welland Ontario practice. Discussion and negotiation about the partnership was smooth, however they did encounter challenges immediately following the merger.

During IRIS’s initial expansion into Ontario, Dr. Angle frankly admits that there was a steep learning curve with many missteps made around on-boarding, especially for the first handful of clinics that opened in the province. Part of the issue was that IRIS’s onsite on-boarding and training for the new system was compacted into a few short days before the actual launch.

IRIS Welland Reception Desk

Dr. Nanini recalls that he should have briefed his staff more rigorously about why the transition would make life easier, and what to expect when it happened. As a result, he lost two employees who could not adapt to the changes fast enough. Subsequently, he had to scramble to hire and train two new employees on top of everything else.

Today, IRIS’ on-boarding process is far more comprehensive. Training days are held months in advance to give owners and staff time to integrate the information. By the end, staff are well-versed in navigating the software system and have good knowledge about new products.

Navigating Pricing Changes
Even though the legal battle between IRIS and the College of Optometrists had been settled in 2008, it was not until 2014 that regulatory changes were made. While regulators moved slowly, the new IRIS in Welland Ontario was forging ahead with retail pricing while many private practice ODs cautiously remained on the sidelines.

None of Dr. Nanini’s staff, now part of IRIS, were ready for the retail-model pricing which created significantly higher price points than the previously regulated cost-plus dispensing model that IRIS worked to change. Dr. Nanini’s staff suddenly found themselves needing to explain and sell products to sticker-shocked patients.

Nanini recalls “We used to sell our high-end products at a really low price compared to what they were selling for everywhere else in Canada…people wanted the high-end products, but they were suddenly $200 more. That’s what the patients and the staff found difficult.”

Another stumbling block was that IRIS, at the time, only offered premium-priced eyewear therefore losing potential sales from patients with lower budgets. They now adopt a “good, better, best” approach that can accommodate most budgets while maintaining the highest quality of products possible.

Sharing the Experience with Others
Since its inception, IRIS has displayed a willingness to adjust to the needs of its customers, franchisees and partners. Customers get the best care and products, and independent eye care professionals thrive under a time-tested, profitable business model.

Today, Dr. Nanini helps on-board other optometrists who have embraced more profits and more freedom with IRIS. As well, he sits on internal IRIS committees to guide the integration process, sharing his experience.

When asked if he would do it again if he had the chance, Dr. Nanini had no qualms.

“Yes, definitely I would still join IRIS in my mind, knowing I lose some control but there is a lot of stuff that is off my shoulders now…I can enjoy a better quality of life. So, to me, I would do it in a blink.”

Dr. Nanini still works 5 days a week, and sometimes 6!  

He enjoys walking 6-7 km every day, jogging and biking.

 

 

 

 

IRIS provided Eye Care Business Canada full unconditional access to ECPs that have recently completed a partnership agreement with the group.  Each partner story provides and insider’s view to the the acquisition;  challenges faced, obstacles overcome and the final results.

This is the third of a four part series:  The Power of Partnership: Overcoming Challenges Together.

Related Articles:  

Previous articles in the Series:
Power in Partnership: Overcoming Challenges Together (Dr. Christa Beverley, Barrie)
Power in Partnership: Enhancing Value Through Transformation to a Full Service Practice 
Eyes Wide Open Podcast:  How IRIS Challenged the Ontario OD Regs and Won
Eyes Wide Open Podcast:  IRIS sees Sliver Linings Behind the Covid Clouds
Insight Profile:  Dr. Daryan Angle, IRIS VP Business Development

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Ophthalmology Launches New Public Awareness Campaign and Consumer Contest

Advertising & Promotion, Marketing, Practice, Products | Services | Industry News

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The Canadian Ophthalmological Society (COS) has teamed up with Bon Look, an new and rapidly expanding Optical Chain with a National presence, to provide an online risk assessment tool and contest helping consumers understand the risk of developing serious eye disease.

This initiative is one part of a public relations effort highlighting that 75% of cases from serious eye diseases are treatable or preventable with ophthalmological interventions.

Additionally, in collaboration with the the Conference Board of Canada, a newly released report shows that treating vision loss is projected to save $1.6 billion in direct health care costs in 2020, and is expected to reach $4 billion by 2040.

The report, which examines the value of ophthalmology from a health outcome, health care efficiency, and societal/economic perspective, shows the large economic impact on health care systems, society and individuals. According to the study, an estimated 263,400 individuals will have improved vision in 2020 through ophthalmic interventions. By treating vision loss, approximately 82,500 negative medical outcomes will be avoided, including injuries or other associated health care needs such as falls, hip fractures, depression, anxiety, admission into long-term care, and use of home care or caregiver services.

Dr. Colin Mann, President of COS, says, “Of all the disease categories in Canada, vision loss has the highest direct health care cost. The report shows that the economic benefits of averting vision loss far outweigh the cost of delivering ophthalmic interventions and help to safeguard the future of eye care in Canada.”

COS says the number of ophthalmic interventions in Canada increased by 30% between 2014 and 2018. Demand is projected to rise from around 1.1 million interventions in 2018 to 1.7 million interventions by 2040, driven by population growth and aging, as well as innovation and changes in clinical practice.

The Conference Board of Canada report, part of a series on The Value of Health Services in Canada, can be found here.

The online risk assessment tool can be viewed here:  seethepossibilities.ca

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The Importance of Self-Care for Practice Owners During a Pandemic

Human Resources

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It is amazing to reflect on how much life has changed since mid-March. We all went into 2020 with high hopes and had no inkling of the need to wear masks and social distance. We now know that these precautions are necessary to keep those around us safe.

It is difficult to constantly live within these restrictions and increased protocols. Many of us are experiencing COVID fatigue. We are stressed by not being able to enjoy simple things we took for granted. We also feel guilty because the sacrifices we are being asked to make pales in comparison to what our parents and grandparents needed to do during times of depressions and wars. We miss not having human touch—shaking a hand, giving an encouraging hug, or even worse, holding someone’s hand when they so desperately need our support.

When you are an owner, there is an added layer of complexity. Despite feeling anxious about the state of the world, you must always be positive for your patients and staff. When a patient asks how things are, you cannot tell the truth. You must put on a brave face and while it is necessary, it is also incredibly exhausting and takes a toll.

While the word “self-care” these days is associated with social media posts of face mask rituals, inspirational quotes and the like, the reality is that self-care for owners and leaders during uncertain times is so critical to our health, both physically and mentally. You can only look after your family, staff and patients if you are looking after yourself!!

Like you, I am looking for strategies to ride out the storm with my sanity in tact. We all need a plan to build and sustain our resilience.

• I focus first on being mindful of time. Time has always been a precious commodity. Since March many of us feel we are caught in a time warp or living through the plot of a sci-fi novel. We seem to be constantly putting out small fires on a regular basis and wonder at the end of the day—where did all the time go?

I challenge you to try this little exercise (it takes time but its worth it). Create a table with seven columns (one for each day of the week) and 16 rows (for each hour that you’re awake). For a week, write down what you did for each hour so you’ll have a clear idea of how you spent your time. You can make adjustments later on. Being more focussed on how you spend your time, allows you to have more control during a pandemic that doesn’t allow us to feel any control.

• It is critical to stay in touch with friends and colleagues. By now, we are all Zoomed or webinared out. I know for myself, the last thing I want to do is spend time on another call. However, many are feeling apprehensive about eating in restaurants, etc. so how are we engaging socially? It is so easy to let the absence of social physicality create self-isolation. We may see patients or clients, or chat for a few minutes to a salesperson but these encounters cannot replace the physical and one-on-one social interaction we have with our friends. A good old-fashioned phone call is a huge boost not only for the other person on the other line but for you as well.

• I recently read an article, written by leadership mentor Michael Hyatt, who suggested we identify our “Weekly Big Three”. Hyatt states the “Weekly Big Three” are your weekly achievements that will move the needle on your major life goals.

In the context of the pandemic, you identify in your working environment the three big tasks you should do for the entire week. The intention is to prevent feelings of being overwhelmed by your to-do list at your practice or office. Your weekly big three can range from learning how to use Instagram to cleaning out your email inbox. And if all you can do is a “Weekly Big One”, that is completely fine too.

• Personally the pandemic has made me stop and think about how I spend my time unrelated to business. It is easy to allow ourselves to become defined by our work but now, more than ever, developing a hobby or pursuing an activity outside of your practice or business can prove to be an excellent release of stress. There are so many facets to us and we must not feel guilty for taking time for non work-related interests. It’s absolutely fine to have unproductive hobbies or indulge in reality-based television.

• Finally, never be afraid to ask for help. Our egos and pride can unfortunately get in the way. Asking for help is one of the critical things you can do to keep yourself sane and well during these unsettling times as a practice owner.

It truly is important to look after yourself and others during this incredibly crazy time. No one really knows how long the precautions and restrictions will be in place or how long the recovery process will take. However, your practice will come through this pandemic if you look after its greatest asset—YOU. If you are proactive in looking after yourself and others, you will feel more relaxed, focused and have a renewed sense of purpose for not only surviving but managing the pandemic successfully.

Jackie Joachim, COO ROI Corp

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.

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Words of Encouragement

Human Resources, Managing Others

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Working solo in a consulting company, I normally march along fairly happily getting my job done, satisfied that I am doing all that I can. I make my fair share of mistakes – do I ever! – but I learn from them (and at least try not to beat myself up too much!) and then move on.

What I find a little harder to do is to “compliment” myself on a job well done. It’s one of the hidden pitfalls of sole ownership and I know my clients and all independent optometrists can feel the weight of it too.

As small business owners, we don’t often get the loop back of praise and encouragement. As the person at the top, it is our job to offer encouragement to others and not normally the other way around.

Words of encouragement for sole owners are few and far between at the best of times. We are in more challenging times, without a doubt. Everything is taking more time, more energy and more money. Practice owners everywhere must be starting to feel worn down.

Lately, I have had a number of clients go out of their way to acknowledge my work and offer me words of encouragement. They have struck me and the impact of these words was not been insignificant. They have lifted me up and I have felt lighter and more capable every since.

I started thinking about this in the context of my role. I am often looking for gaps and ways to improve optometric businesses.  But I also see so many great results! Moving forward, I want to add a much stronger emphasis on all the things that are going well in a practice.

2020 has been a year uniquely filled with much uncertainty and anxiety, beyond what any of us could possibly have imagined.  When you are navigating so many new policies and procedures, reassuring patients and staff that they are safe and keeping your business running as smoothly as possible, it is bound to take a toll on your energy and enthusiasm.

I want to acknowledge how the owners of optometric practices all across Canada have stepped up.

I hope every owner will take some intentional time to reflect on all that they have accomplished this year. They have all researched and outfitted their offices with protective barriers. They have all sourced PPE, taken courses on infection control and introduced protocols into their offices to keep staff and patients safe  They have reassured patients who are on edge because everything is new in their office. They have added extra measures of security to ensure staff members with underlying medical concerns feel valued and protected.

We will look back on 2020 in awe and disbelief. I hope you will also look back and feel pride. There was no roadmap, there still isn’t. And yet, optometric practice owners have not let themselves get discouraged. That is truly impressive and my hat’s off to all of you.

KELLY HRYCUSKO

is the co-founder and managing partner of Simple Innovative Management Ideas (SIMI) Inc. and expert Practice Management contributor for Optik magazine. She can be reached at info@simiinc.com.

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Enhancing Value through Transformation to a Full-service Practice

Buying-Selling A Practice, Practice

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For health care providers, interprofessional collaboration is key—and that’s never been more true than in the working relationship between optometrists, opticians, and ophthalmologists.

Although this relationship can be fraught, the interprofessional model can enhance eye care delivery services and do wonders for your bottom line.

Through a partnership with IRIS in 2016, BC Optician Phil Mattes, was able to immediately unlock a substantial part of the equity in his optical business. The IRIS partnership then enabled the business to add optometric services to the practice, creating additional value and facilitating a successful exit strategy and a retirement plan for Mattes.

In this case study, we look at Phil’s journey with IRIS, and the challenges and successes he faced along the way.

Retirement Planning – Get an Early Start
At 62, Phil was starting to think about retirement. His store, Optix, was an attractive street-level store on  Marine Drive in Vancouver, and he decided it was time to start thinking about selling the store. Since exit planning can often take 5-7 years or longer to implement, Phil knew he needed to find a strategy soon; “You have to prepare for this years before and have a plan and start early, and not wait until the time you want to retire”.

Phil’s first thought was to sell the business to the current staff. He had the business professionally appraised and offered his staff the opportunity to buy the store. After a substantial discussion, the staff ultimately decided not to pursue the opportunity.

Phil had hoped that selling the store would be his reward for building up his practice for so many years. Fortunately, he did not have to look far to find a potential buyer.

Opportunity Knocks
Phil told a colleague about his staff’s decision not to buy, and word travelled fast, as it often does in the optical world. Soon afterwards, he got a call from IRIS about the possible sale of his business and took them up on a lunch meeting.

IRIS was able to offer him the value of the appraisal that he had previously commissioned, so he moved ahead with the acquisition process.

Phil signed the agreement with IRIS in February 2016; IRIS would purchase 75% of the business, and Phil would continue to own 25% for the next three years. While IRIS initially wanted to extend the partnership to five years, Phil decided that three years was enough for him—so they settled on his requirement.

Phil received a significant portion of the cash up front, with future payouts that would vary depending on sales performance over the three-year “earn-out” period.

Transforming an Optical to Full Service Eyecare
Prior to the partnership, Phil did not have an in-store optometrist. He relied upon referrals to local ophthalmologists and walk-in prescriptions. Increasingly, he observed that customers increasingly would buy their frames at the clinic where they got their exams instead of coming back to his store. He knew he would keep more customers with an optometrist at his location.

The IRIS partnership resolved this challenge by transforming his optical store into a full-service eye care and eyewear practice, with the addition of in-house optometric services.  There were significant changes required to complete the transformation.

 IRIS added a pre-test room and refractive and diagnostic equipment in order to fully outfit an optometric lane at the location. Although it required some shuffling, Phil was happy with the result. The stage was now set for expanding the practice and building greater value in Phil’s remaining equity.

Business and Personal Challenges
Another adjustment stemmed from the difference between the frames Optix and IRIS sold. Optix had always been known for its unique fashion-forward frames: “we were always known as more of a boutique-y store. A lot of frames from France, from Germany, and Japan. They weren’t typical IRIS brands.”

When he explained that clients come to Optix because of the unique frames they carried, Phil was able to reach a compromise with IRIS. The store would let go a few of the lines but kept the top performers to satisfy discerning clients.

From Left to right: Paul Schinkel, Phil Mattes, present manager Duane Salmon

One of the biggest challenges for Phil was the transition from a paper-based office to electronic records. There were a few late nights learning the new system: “I would say I was probably illiterate on the computer to a certain extent. But they didn’t put pressure on us.”

Fortunately, one of his longtime staff had worked for IRIS in the past and was able to transition to the new system quickly.

It was also a challenge for Phil to go from an owner, to a management position and then part-time staff: “It’s a tough transition going from owner-boss-manager to a part-time person. And that’s a big adjustment for me because I still like to call the shots. But you have to adjust to that.” He saw it as a necessary step on the road to leaving the store completely in his retirement.

The End Result
Overall, Phil found extra security in partnering with a large corporation, particularly with the knowledge he had a new safety net in case things go wrong—as well as having a successfully implemented retirement plan.

The greater spending power and the resources that a well-financed partner brought to the table was a relief from the uncertainty he’d sometimes felt as the sole owner of the business.

Ultimately Phil was happy with the decision he made: “It’s been a good experience, challenging adjusting to the new stuff from IRIS, but I really look at it this way. I win, IRIS wins, so it’s a win-win situation. Everyone’s happy with this. You can’t ask for a better situation than that.”

Today, Phil is fully retired.

He is enjoying “cabin life” in Manitoba, which includes golfing, fishing and the occasional cabin maintenance chore.

Looks like there’s Pickerel for dinner tonight!

 

 

 

 

IRIS the Visual Group provided Eye Care Business Canada with unconditional access to four Eye Care Practitioners who completed a partnership agreement  and/or  transaction with the group. Each partner story provides an insider’s view to the the acquisition;  challenges faced, obstacles overcome and the final results.

This is the second of four in the “The Power of Partnership” series.

 

Related Articles: 

Power in Partnership: Overcoming Challenges Together (Dr. Christa Beverley, Barrie)
Eyes Wide Open Podcast:  How IRIS Challenged the Ontario OD Regs and Won
Eyes Wide Open Podcast:  IRIS sees Sliver Linings Behind the Covid Clouds
Insight Profile:  Dr. Daryan Angle, IRIS VP Business Development

 

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5 Reasons You Need Google Reviews

Digital Marketing, Marketing, Resources

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Google Reviews

In today’s day and age, most consumers try to determine the reputation of local business, including eye care practitioners, by consulting and reading online reviews.  Google links your clients and prospects with nearby businesses, local restaurants and services and even helps them plan itineraries and events. When consumers want to connect with local health care providers, it’s not much different. Google is usually the logical first choice.

When clients want to plug into other users’ experiences, Google Reviews gives insight on how a practice might compare to another. As such, Google Reviews is, without a doubt, one of the biggest contributors in helping the average web user make a quick decision on which health care providers, including optical stores and optometric services, best suite their needs.

Google Reviews also allows users to write reviews on a business’s Google listing. Since these reviews are posted publicly, potential customers rely heavily on the experiences others have had and are willing to share.

Here are 6 key reasons why, as a practice owner, you will need to set up Google Reviews to boost your overall growth and reputation.

1. Accessibility
You’ve probably been in a situation where a quick search on Google and a glance at the Reviews section gave weight to your decision-making process. There have been times where I have decided against going to a nearby restaurant because the reviews on Google were mixed or unfavourable. Getting to this conclusion with just a quick search on my phone has also proven to be handy.  ECPs are no exception to these entrenched behaviours.

2. Getting your clients to trust you
Last year, my cat fell ill and required an emergency visit to a veterinary clinic. His usual vet was away on holiday and he required immediate treatment. My cat is a pretty big deal, so I knew it was imperative that I find a reliable service that would be worth the cost and provide him with top-notch care. A survey of the Google Reviews left on each of my city’s vet clinic pages led me to a well-reviewed veterinarian that got him the treatment he needed (and made his owner pretty happy, too).

According to BrightLocal’s Local Consumer Review Survey, 86 percent of customers check local reviews before consulting a local business. Furthermore, consumers are said to read an average of 10 online reviews before they feel like they are able to trust a business.

3. Negative feedback helps you grow
Nobody likes negative feedback when it first comes in, but it can be just as important as your positive reviews. Negative reviews are an extremely useful tool in pinpointing what you can do to make your services and online reputation better. Bad feedback can also help you track the growth of your practice and target opportunities for improvement. Who better to help you do that than your customers? Your customers might highlight the shortcomings that you may not be noticing.

4. Reviews offer another opportunity to connect with your patients
Your patients love to be heard and Google Reviews gives you a chance to thank them personally for their patronage. Since you can reply to a review, you can further showcase your exemplary service by coupling their review with an expression of gratitude. Also, Google Reviews provides the opportunity to address negative feedback. Perhaps, by replying to a negative comment, you’ll have the chance to turn a patient’s negative experience around and gain back their loyalty.

5. There are SEO benefits, too
Google Reviews also helps your practice rank higher in search results. The higher your review quantity, the higher the likelihood is that your business will land on the front page of local search results. Positive reviews will, of course, trigger more clicks through to your site and, in turn, increase your traffic. Depending on your content and calls to action, this can help you get a higher conversion rate. This also heightens your potential for ROI and increased revenue.

In all, setting up Google Reviews for your business is a quick, effective and efficient method that is completely cost-free. You will develop brand trust with your customers and leverage your ranking in Google search results.

Should you need any further help with understanding Google Reviews or building your web strategy, please don’t hesitate to reach out to us!

is the VP, client relations for OneLocal, based in Toronto.

As marketing budgets decrease for clinic owners, the opportunity to acquire new customers online is increasing, as that is where all potential clients are. Ever since the pandemic started, OneLocal has been working closely with clinic owners to recommend a marketing strategy that will not only sustain them through the pandemic but won’t break the bank. Get a free consultation here: www.onelocal.com  https://info.onelocal.com/ECP

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Who Represents the Vision Industry in Canada?

Practice, Products | Services | Industry News

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The Vision Council, as US-based  the non-profit organization serving as a global voice for the eyewear and eyecare industry, announced the launch of a new brand identity, including a new logo and a new website.

The Vision Council (TVC) is comprised of several hundred companies and member-based organization across the entire spectrum of the eyewear and eyecare industry; from the very large multi-national corporate entities to smaller privately-owned companies, including a significant number of Canadian-owned companies.

TVC helps members succeed in their businesses by providing curated resources and tools, from market research to training and exclusive access to industry networking events.  Most people in the industry would know them best as a partner-operator of the largest Vision trade shows in North America – Vision Expo East and Vision Expo West.

New Direction Announced
In  January 2020, The Vision Council announced a new direction for the organization based on community-building and industry growth. Ambitious roadmap for Vision Expo was put forth but, like many pre-COVOD plans, the roll-out was put on hold due to COVID.

In response to COVID, The Vision Council’s leadership team held regular industry task force calls with optical community leaders to understand the implications of the COVID-19 pandemic on the vision care industry and to determine what kinds of tools and resources would best serve members in a rapidly changing marketplace.

“Coming out of The Vision Council’s Executive Summit in January 2020, we announced a five-year plan reflecting a renewed focus on community-building and promoting industry growth. Since then, the industry has been confronted with unprecedented challenges. The need to come to together as a community and bolster our industry has resonated more powerfully than we could have imagined,” said Ashley Mills, CEO of The Vision Council.

The Vision Council’s new brand identity is anchored by a new logo. Inspired by the concepts of refracted light and the visible light spectrum, the logo includes a “V” shaped mark comprised of seven different lines and colours—representing each of The Vision Council’s seven membership divisions—alongside “The Vision Council” in bold typeface.

The Vision Council’s new website, TheVisionCouncil.org, has been reimagined based on the needs of members. The new website offers improved navigation, modern features and curated content.

Watch the video introducing the new brand identity:

Details on new virtual programming and member initiatives for the remainder of 2020 and 2021 will be announced in the coming months.

For news and updates, follow @OpticalIndustry on Twitter and ‘The Vision Council’ on Facebook and LinkedIn. For a more visual look at the industry and what’s new, follow @thevisioncouncil on Instagram.

Source: The Vision Council

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Overcoming Challenges Together: An Insider’s Look at Selling Your Practice

Buying-Selling A Practice, Practice

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Optometry is a complex, challenging career—and managing an independent practice on top of seeing patients is exponentially more difficult. If you are considering selling your practice, you’re not alone.

Many other independent practice owners decide to sell in order to focus on their profession, prepare for retirement, or just to take some work off their plate.

The following case study was one of the first optometry acquisitions in Ontario made by IRIS, and the experience of Dr. Christa Beverley gives some insight into the acquisition process.

Dr. Christa BeverleyDr. Beverley bought her Barrie, ON practice after the former owner suffered health issues that forced her to stop working. Subsequently, a business partner purchased half the practice, and together, they moved to successively larger offices establishing themselves as a progressive practice with happy staff and satisfied patients.

A Few Twists and Turns
Her partner started to take an interest in the IRIS business model, and after some talks with Dr. Francis Jean (the late founder of IRIS), Dr. Beverley ultimately became partners with IRIS. The partnership agreement was a long and difficult negotiation process, and included a plan for two new startup practices.

The original arrangement proposed would have resulted in IRIS owning 50% of the practice, and Dr. Beverley and her partner with 25% each. After some family issues forced her partner to relocate, IRIS bought his half of the practice, and recalibrated ownership to a 50/50 position with Dr. Beverley.

With significant emotional investment on the part of both parties, negotiations were tough. At the time, IRIS had less flexible rules around their business model; in particular, there was an expectation that their doctors work five days a week, which didn’t suit Dr. Beverley: “I didn’t want someone telling me that I couldn’t take Wednesday afternoon off, or if I had to work late nights.”

She was able to negotiate with IRIS to retain her existing work-life balance, describing them as “special considerations” that she and the company ironed out.

IRIS has since become much more flexible around work-life balance in general. As the current VP of Business Development for IRIS, Dr. Daryan Angle describes it, “The lifestyles of our optometrists and partners are very important to us. Schedules are based on open discussion and consideration of what is best for the practice, business and partner. In the early days, on-boarding new practices and staff did prove to be difficult before IRIS had developed a comprehensive strategy and dedicated team.”

Hard Lessons Learned
There were a few more difficulties as well: Dr. Beverley partnered with IRIS on two other new locations, which struggled to succeed. She thought that the cold starts would be manageable, but they proved to be more difficult than she envisioned.

After their failure to launch the new locations, IRIS bought them back from Beverley—so although she didn’t have the lucrative new business she expected to have, she was saved from losing money on them.

In Dr. Beverley’s words, “IRIS is great in that they saw what we saw—which, the end, was the error in all of our ways. It is really hard to do cold starts no matter how good you are at it.”

Challenges with On-boarding
The acquisition was also an adjustment for staff, with new checks and balances contributing to some turnover. Dr. Beverley described the process as a “bit of a free fall,” with management assistance from IRIS in the early days being less robust than it is now: “I know that the systems are in place now so it’s a lot different, there’s actually people to onboard stores and to be there and to help.”

Bariie IRIS Team Ready to Reopen

In addition, the IRIS business model offered glasses at a high price point at the time, which were an issue with some customers used to seeing less expensive options. IRIS has since shifted to offer more value options in 2017, when it was acquired by New Look Vision Group Inc. This helps new acquisitions stay competitive given their geographic region and the market they serve.

IRIS Partnership Offers Exit Options
Ultimately, Dr. Beverley feels that the sale was the right decision for her business. Even though it was hard for her to let the management side of her practice go, she acknowledges there’s an upside to handing over the administrative tasks: “I don’t have to do anything except be a doctor.”

Another upside for her was that the acquisition means she’ll always have an exit strategy ready if she decides to sell. As a partner, she also could continue to collect dividends as a retirement strategy as an alternative to selling her share of the practice, once she found someone to replace her.

She says that ultimately, she would have decided to wait a little longer if she had to do it again, but doesn’t know if she’d advise someone else to do the same.

For practitioners who don’t like handling the management side of their practices or those that need a little more time in their day, she says it’s a good solution: “as a way to sell a good practice to a company that’s going to keep your practice amazing and make your patients happy, and respect your patients and look after them and make sure they have a great standard of care, then it just makes you feel like you are sort of leaving it or selling it to somebody who’s like you.”

Any Regrets?
It wasn’t an easy process, but for Dr. Beverley the experience was worthwhile: “I think they’ve learned from the things that went wrong in our acquisition. I think for other people, it’s the control freak doctors like myself that will have the biggest struggle with this. But … that’s not why they wanted to be an optometrist—they wanted to be an optometrist to look at people’s eyes and have no business portion. And to work in IRIS and be able to do that, I mean, they’ll be as happy as they could be. It’s a perfect scenario.”

Dr. Beverley continues to work, on average, less than 3 days per week at the Barrie, Ontario location, and has a 50% stake in the IRIS practice.

This interview was conducted while she was relaxing at her cottage.

 

 

 

IRIS the Visual Group provided Eye Care Business Canada with unconditional access to four Eye Care Practitioners who completed a partnership agreement  and/or  transaction with the group. Each partner story provides an insider’s view to the the acquisition;  challenges faced, obstacles overcome and the final results.

This is the first of a four part series:  The Power of Partnership: Overcoming Challenges Together

 

Related Articles: 

Eyes Wide Open Podcast:  How IRIS Challenged the Ontario OD Regs and Won
Eyes Wide Open Podcast:  IRIS sees Sliver Linings Behind the Covid Clouds
Insight Profile:  Dr. Daryan Angle, IRIS VP Business Development

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COVID Sales: How Am I Doing?

Practice, Practice Metrics & Benchmarks, Products | Services | Industry News

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There is scant information on the havoc wreaked by COVID on retail optical and eye care sales in Canada.

Public companies must report their financials, and are therefore a potential source of some information.  Most, however,  are either in selective wholesale niche markets, such as contact lenses, frames or lenses which offer only broad directional signposts of market dynamics.

The supplier companies’ results reflect sales at the wholesale market level and are separated in time from the retail market.  Different sectors will vary on the impact of this time gap since retailers have the option to work down existing inventories where they can, e.g. frames.

Other suppliers’ sales, such as lenses, optical labs and contact lenses, more likely reflect consumer demand in real time.

We are a small player on the Global Scene
Another obstacle to gathering useful information is that the public corporations are almost exclusively multi-nationals. Canada-specific information is often hidden in the aggregate reporting of “North American” revenues.  Canada rarely warrants a reference in the global reporting from these companies.

So then, how are we to understand the Canadian market?  And, “How does an individual practice understand their performance relevant to competitors?”

Publicly Traded Optical Provides Some Insight
There is one insightful opportunity provided by the only publicly traded retail optical and eye care corporation in Canada, the New Look Group.

New Look, with its coast to coast network of banners, including IRIS, NEW LOOK, Vogue, Grieche and Scaff and others is not perfectly representative of the Canadian Market. It  is over-represented in BC, Quebec and the Maritimes, and underrepresented in other provinces, particularly Ontario.

While it is a far from a perfect benchmark for Canadian optical performance,  it is the best we have that is readily and publicly available.

So with these caveats in mind, let us see what story the numbers tell us.
The Q2 financial statements for the 3-month period ending June 27th,  reflects that most locations stopped operating in mid-March and started a gradual reopening in mid-May, with a complete reopening by June 21, the first day of summer.  Gradual reopening’s started in the first week of May. 

During this 3-month period, relative to the same period one year prior, revenues decreased by 64.9%. This decline primarily reflects COVID closures, but also includes scheduled store closures and offset by sales from newly acquired locations.

Even with its enviable financial resources and brand strengths, a  65% decline in quarterly sales is tough pill to swallow.

Nevertheless, in its Q2 statement, the company remains optimistic that it,”… has resumed its profitable growth journey, organic and external.”

Ultimately, consumer behaviour will determine the future course. Optical and eyecare practices taking the necessary and prudent steps to safe-guard associates and patients will significantly factor in, as will the responsibility we all have to protect each other to ward off a 2nd wave shut down.

We can only hope that New Look and all optical retailers continue to recover from the COVID catastrophe.

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