Today’s Independent eye care practitioner (ECP) gains revenue in two ways. This first is through “medical billings” and the second is through “eyewear sales”. The current breakdown is 60% and 40% respectively. This according to the publication Management & Business Academy, For Eye Care Professionals. For years the standard of purchase for the doctors of ophthalmic lenses has been to go to the top three global optical manufactures who control the industry and purchase direct. These manufacturers are vertically integrated thus profiting from all areas of the process. Owning our own digital equipment in this space would significantly change the optometric landscape. We will have success due to the captive business of the doctors having built in revenue. There will be many synergies tying back to the lab while profit sharing back to the optometric doctors. This model will better position Black Lab Optical to achieve our long term strategic goals.
According to Jobson Medical the independent eye care industry is expected to grow 11% into 2020. As we know our vision is one of the senses we treasure most. Through proper asset acquisition and field education we can capitalize on this growth trend and help protect vision through our owners and network of doctor as they join as LPA’s Lab Participant Agreements. These new Lab Participants are doctors as well and have to currently send their lab business to other entities with no benefits of protecting their current business model or future.
Today we have 3 founding doctor owners and 17 additional LPA’s and growing along with a grouping of outside (non-LPA work being processed) with plans to expand to a minimum of 50 doctor’s Lab Participants within 2 years. Based on conservative estimates we would expect our annual revenue to exceed $5.367 million by the end of 2019. These revenue estimates are based on a conservative average selling price per job (ASP) of $71 and an average of 300 jobs per day (JPD). With our new digital equipment & AR in house this will allow us to provide better service to our doctors, incremental job revenue, and continued expansion outside of AZ to recruit outside lab business.
To further enhance our business, we are now pre-approved to do in house VSP insurance work for member doctors. In addition, are working on completion of the same for EyeMed and other Vision plans.
In conclusion, we opened Black Lab Optical from scratch and have quickly brought it to profitability using a proven business model. We have assembled the necessary infrastructure, contracts, and referral network to open expansion. Our new German technology of digital production will result in a stronger foundation in:
- Production control
- Higher quality lens designs
- Significantly reducing COGS while improving product mix.
- Greater opportunity to grow organically and throughout the optical industry
Thank you for your consideration. Fax @ 623-223-9561 or Email firstname.lastname@example.org
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Contact John McManus direct with any further questions at (623) 341-0878 or email@example.com.