By Peter Bae, OD, MS
Build patient purchases of eyewear with financing options that can increase average per-patient revenues. With patient financing, the practice is paid immediately and freed from the task of collections.
You prescribe products and services that will most benefit your patients, but some may not be able to purchase what you believe is best for them. Financing options enable doctors to capture such purchases and increase the average eyewear sale.
Peter S. Bae, OD, MS
Kingsbridge Eye Center
Bronx, NY
SUNY College of Optometry, Class of 2000
One location, two ODs
Purchased practice 2004
Staff speaks: English, Korean, Spanish and Tagalog.
Annual Examinations: 5,000+
ROI of Financing
It is financially worthwhile to present financing. I had reservations at first about the transaction fees that credit cards charge practices. However, if you consider how many people are unable to make a lump sum payment, yet able to make monthly payments, your pool of potential customers increases.
After the first month of offering financing through healthcare financing provider CareCredit, our gross sales were increasing. We were paying 3 to 6 percent transaction fees [CareCredit reports standard rates for six-month plans of 5.9 percent and 12-month plans of 9.9 percent], but our profits were soaring. We were easily doing an extra $1,000 per day after offering financing to our patients. Average eyewear sales went from $200-$400 to $600-$800 (for those who used financing).
In addition to a single piece of eyewear, financing options encourage patients to purchase multiple eyeglasses, sunglasses and annual supplies of contact lenses.
When patients have financing options they are willing to spend more because they know that they have up to six months or one year to pay back the balance while getting their eyeglasses without delay.
Increase Staff Efficiency
Our staff saves at least a few minutes per patient per day in collecting delinquent payments. We used to have to constantly call patients back to leave more deposit to order the lenses or call patients to pick up their eyeglasses (with a balance remaining), but with CareCredit, they eagerly pick up their eyeglasses because they have already “paid” for them. My staff is happy because once the financing is processed, the eyeglasses are ordered, made and dispensed. DONE.
Especially For Purchases Over $300
My staff presents financing options to most of our patients, especially those who are interested in making a “larger” purchase (anything over $300, although some patients have used CareCredit for purchases as little as $100). Patients have used financing to pay for eyeglasses, contact lenses, a family member’s eyeglasses/contact lenses and some eyecare tests that their insurance does not cover. Financing allows these patients to purchase the products they really want versus the products they can only afford immediately.
Six-Month No Interest Plan
We usually promote the six-month no interest plan to patients, primarily to minimize transaction fees to our practice. The 6- and 12-month plans are no interest if paid in full within the promotional period on purchases made with the CareCredit card account. Editor’s Note: Not all CareCredit promotional plans are available at all participating professionals.
Address Common Patient
Financing Concerns
Patient: “What if I have bad credit?”
Practice: “Let us check to see if you qualify. It doesn’t cost anything to check, and if you get approved: great!”
Patient: “Can my wife/husband/ mom/ dad apply for a card, and can I use their account for my glasses?
Practice: “Of course, have them come in or apply online to see how much financing they qualify for. Then they can purchase for you.”
Doctor Prescribes; Optical Staff Offers Financing Options
I rarely discuss financing options because my staff does such a good job of presenting them. I try to separate myself from the pricing/sales portion of the office. I concentrate on making recommendations and expect my staff to educate the patient as to why I recommended those things.
Financing Options as Patients Browse
The staff will present financing to patients as they show patients frames and discuss lenses. Whenever a patient mentions that they are not able to purchase eyeglasses, that is a cue for our staff to mention that they can because there is a way to finance with no interest (provided payments are made on time) for six months.
In the past, we used to present layaway options for patients where they pay little by little. However, this posed three problems: Patients wanted their eyeglasses before they paid off the balance; some patients would take one year to pay off the balance; and some patients would pay a little and then never return to finish paying for their eyeglasses, so their eyeglasses would be “dismantled.” Sometimes the cost of the lenses would exceed their small layaway deposit.
Therefore, CareCredit was a good solution for us because patients can often get their eyeglasses the same day. They then have up to six months to pay for the eyeglasses, with no interest (as long as they make the deadlines for payments). Most importantly from a practice management standpoint, we get paid immediately for the sale.
Financing Keys
Present financing to as many patients as possible. If they are approved and use financing, they tend to make a larger purchase.
Suggest to patient to have a parent or spouse apply for financing if they have bad or no credit. Usually the parent or spouse will gladly help the child or spouse in making the purchase.
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Peter Bae, OD, MS, is the owner of Kingsbridge Eye Center in Bronx, NY. To contact him: kingsbridgeeye@yahoo.com.
