Setting up an Optical Shop
Divya Ramaswamy
Volunteer

Given that the prevalence of refractive error is high and largely unaddressed it makes strategic sense for an eye care provider to expand his services to include spectacle dispensing.

Spectacles are the simplest solution to refractive error because they are cheaper, involve less technology and are easier to dispense than other correction options like contact lenses and refractive surgery.

By dispensing spectacles we can ensure that your patients do receive the necessary correction and that the spectacles are of good quality (the correct power, appropriate lens and frames). As patients have been found willing to pay for this service, it also serves to generate funds which may be used to subsidize other services.

At Aravind, we have observed that 10% to 25% of the total outpatients need refractive correction. This large volume justifies a dedicated set up for dispensing spectacles.

Today, setting up a spectacle shop is fairly risk-free as the spectacle market is quite well-established, globally. With many players in the market, both in the corporate as well as unorganized sector, the raw materials are available at fairly cheap rates.

Spectacle dispensing is a fairly simple procedure with minimal training needs. With sufficient demand being created in-house and the low cost of goods, this could easily go beyond being a sustainable venture and generate a surplus of funds.

Equipping an Optical Shop
Besides the showroom infrastructure and the necessary shelving arrangement for the stock, certain minimum equipment will have to be invested in for sales as well as for processing the lens to get the right power and to fit them into frames. The range of equipment necessary for spectacle dispensing, again, varies with the variety of products and services provided.

For sales and order taking, only basic instruments for taking the various measurements of the patients face are necessary. This could range from a simple ruler to a sophisticated digital pupillometer.

Processing equipment include grinding or surfacing equipment and edging equipment. Surfacing is the process by which the power is generated on the lens surface by creating the desired curvature. Edging of lenses is done to shape them in a way that they can be inserted into the frame.

These equipments are available in a wide range in terms of automation and sophistication. Manual egders are available at cheap prices and can be handled with basic training. Automatic edgers may be used only where there is a high volume of work or where training is not sufficient and the lenses require sensitive handling. Other essential tools include:

  • trial lens set or lensmeter to determine power of lens
  • marking, chipping and cutting instruments to trace and roughly cut the lens to the shape of the frame before fine edging is done on the edger.
  • screwdrivers to fit the lens into metal frames
  • frame warmer to enable the lens to be fitted into plastic frames
  • adjustment pliers for adjusting the frame
Lens surface generators or surfacing machines are also available from basic manual models to fully automated CNC machines.

Workflow in a Typical Optical Shop

chart

It must be noted that not all the above processes need to be part of dispensing. This will vary based on capacity and circumstance. The following units show the processes that can be outsourced.

The set up will vary depending upon the number of spectacles we can expect to sell. In order to be sustainable, the resources employed must match the expected demand.

table


When should you outsource an activity or process?
In order to remain sustainable and to preserve focus, certain processes can be outsourced while some can be done in-house. The following factors might help decide the processes that can be outsourced:
  • Volume: The volume of any activity must justify the amount of fixed investment that is incurred. For instance, if you are debating about setting up your own surfacing unit, you would want to look into the number of orders you receive and the number of orders that one would need to make to order.
  • Delivery time: It is also necessary to look into the time involved in out sourcing an activity. It might be cheaper to get it done by a contractor but it might take a longer time. In order to save on time it can be done in house.
  • Quality & reliability of contractors: To maintain the quality standards of the product, a check if the contractor is able to deliver equal or better service than if it were done in house is necessary. His service would have to be reliable.
  • Cost in outsourcing: Cost of outsourcing the process must ideally be less than or equal to an in-house arrangement.
  • Capacity to manage: Sometimes, cost and volume might dictate that a certain process could be done in-house but expertise or the capacity to manage it as well as a contractor would might not be possible.
A trade off on all these factors will help decide which activities to outsource and which to arrange for within our set up.

Era of the Plastic Lens
Glass lenses were predominantly used for spectacles. It is still so in most developing countries though plastic has been introduced. Glass lenses are brittle and heavier when compared to plastic which is shatter-proof and only half the weight of glass, making it more durable and comfortable. (Plastic lenses are more susceptible to scratches, but recent advances in scratch-resistant coatings have made them durable).

Plastic lenses have lesser shelf life and need more sensitive handling. Thus the decision to dispense plastic lenses can have implications on the nature of equipment used. World over the trend is moving towards plastic lenses more so because it is becoming more affordable.

The Supply Chain
The spectacle goods market has evolved over the years making lenses, frames and equipment accessible and affordable even for developing countries. However, small retailers will have to be aware of huge mark-ups down the supply chain that can escalate the prices. Thus, the closer up the chain, cheaper it is. With a large number of players in the unorganised sector, price regulations are absent. However, cost is controlled by a very highly competitive environment. Today, China has become a major source of good and inexpensive frames and lenses.

Finances
The following illustrates the finances involved in setting up an average sized optical shop that handles 25 to 50 orders a day.

Initial Costs: Initial investments for setting up the infrastructure for the dispensing unit include:
  • Space
  • Furniture ($ 1000 to 1500)
  • Equipment manual edger ($250)
  • Inventory Lenses & Frames ($ 2000)
Overheads: Other indirect costs that are usually incurred are:
  • Rent
  • Electricity
  • Stationery
  • Salary
  • Freight
  • Machinery maintenance
  • Miscellaneous
Recurring Costs: Direct costs incurred in manufacturing spectacles are to cost of:
  • Frames
  • Lenses
  • Accessories
  • Direct labour charges
The following are the average unit selling prices* of spectacles at Aravind Eye Hospitals, India.

In outreach camps: Rs.200 (US$ 5)
In the free hospital: Rs.250 (US$ 6)
In the paying hospital: Rs.500 (US$ 12)
* These are not prescribed prices and do not serve as an indicator of the prices of spectacles in this region

Human Resources
Spectacle dispensing involves human skills in two major areas:
  • counselling and salesmanship
  • technical skill for fitting and surfacing
Thus, training will have to be structured for both categories of staff. It must include
  • order taking
  • salesmanship
  • product knowledge
  • vendor relationship management
  • inventory management with an understanding of the latest trends and fashion so that appropriate frames are stocked
It is equally important to continuously update the staff on new developments, products and techniques.

Spectacles at Outreach Programmes
Outreach programmes make eye care accessible to rural and remote areas. Thus, it is essential that the service is comprehensive and complete. At Aravind we have observed that 10% of the camp patients need refractive correction and now, dispense spectacles on the spot.

For an average camp seeing 500 outpatients, the expected number of orders being 50, the following resources are needed:
  • 1 sales person
  • 1 technician
  • Assortment of Frames (150 nos.)
  • Inventory of Lenses (5000 nos.)
  • Edging and Fitting equipment set
This ensures that the patient receives appropriate correction.

Camps at Aravind were generally focused on cataract services. However, today they provide comprehensive eye care and now, special refraction camps are conducted at schools to address the child population, and at industries and offices for the working population.