Taxes, the Hidden Time Bomb—Part Two

Independently owned optical laboratories often represent the primary asset of their owners. Accordingly, owners may be unnecessarily exposed to unforeseen taxation in the areas of estate planning, family transfers and the changing tax climate. Lab owners should divide their goals into three categories: short term, medium range and long term. Each of these planning periods carry different taxation factors, which if not addressed well in advance, may significantly affect the ability of owners to realize their objectives.

The reality of the business is that all lab owners, regardless of age or geographic location, should set up a transition plan coupled with an associated time frame to implement each phase of the plan. Some may consider transfers of ownership to family members or key employees while others should look at outside participation in ownership. This may not necessitate action in the near term, but rather a goal associated with knowing or using the best information available to tie in all of the business and taxation factors to the plan. Whichever plan fits the needs of the lab owners, estate taxes, gift taxes and the taxation on the gains received on a transfer are important factors.

Taxation rates and concessions implemented during the current administration are limited in life. A change of administration coupled with a change in the control of Congress may further expedite the need to give near term attention to planning procedures. The current tax relief in the areas of lower income taxes, a 15 percent Federal long-term capital gains tax and favorable estate tax relief are all scheduled to expire. Accordingly, the years 2007 and 2008 may be critical tax planning years for corporate, individual, long term capital gain, alternative minimum preference, and Federal estate tax rates and treatment.

A solid business plan should include either a Certified Public Accountant familiar with tax planning and or an attorney specializing in taxation and estate planning. The plan should encompass a review of the position and needs of all of the owners, all associated assets of their estates and a complete understanding of their business, its valuation and the needs of their participating family members.



—Thomas F. Puckett is managing director and CEO of the San Diego based investment banking firm HPC Puckett & Company, which specializes in mergers and acquisitions of wholesale optical laboratories. Puckett can be reached via email at [email protected]. For more information about the company, go to their Web site at www.hpcpuckett.com.

The 'Rite' Solution to a Slippery Problem

Kim Scheidler, Director of Education for Sutherlin Optical

Kim Scheidler, ABOC, FOAA, WLO refers to himself as the World's Laziest Optician (WLO). "I hate doing anything twice," explained Scheidler. "If I can find a way to prevent things from going wrong, I will learn it, teach it, write about it, and talk about it, just to save 10 minutes and do it right the first time."

Scheidler, an industry veteran of 30 years, 16 with Sutherlin Optical, explained that his favorite part of the day is seeing "gotchas!" (That wonderful look in someone's eyes when they really understand and he had a part in that.) "I love my job and the work I am able to do," he added. "There is fantastic young talent out there and I get to work with them."

Running doctor's offices in his early years and then selling for laboratories, he explains that his lucky break came when Steve Sutherlin fired him as a sales rep after three years and gave his job to someone else. It was then that Sutherlin University was created. Sutherlin U. offers classes for their customers in everything from the basic optics course to the step by step of lens processing. He even offers ABO prep classes and refresher optics.

Many doctor's offices will spend a day with Scheidler at Sutherlin U. to learn about new lenses, new materials, new processing techniques such as free form lenses, and how to sell and promote these and many other products. "We have a lot of repeat attendees who get an update every year," he commented. "I want our customers to be able to use what they learn to grow their own businesses and be successful."

Scheidler is also responsible for Sutherlin's award winning Web site, www.sutherlinoptical.com.

Adapting the same philosophy of prevention and customer focus; he wanted a site that was friendly, easy to navigate, and had up to the minute information. "I get a kick out of working on the Web site," Scheidler explained. "I wanted more interaction between our customers and their patients by offering valuable information and services for both." With the ability to check pricing, lens availability, and new product information, eyecare professionals can quickly share information with their patients as well as use the information as selling tools. Consumers can look up eyecare professionals and their addresses, product information, and ask questions about eyewear. He continues to add to the Web site every month, and continues to seek feedback from users.

"I am really glad I got fired from sales," he added. 'I love the optical industry, all the changes, the technology, and the people make my job fun. Though I miss going out on the road sometimes." Scheidler does take to the road sometimes, he is often an industry speaker at the Heart of America conferences or the Midwest Optical Laboratories Association meetings.

--Linda Little , contributing editor

Linda Little is an optical industry veteran and writer who specializes in laboratory and technical topics. She can be reached at 214-215-5453, or at [email protected].

Toledo Optical Puts the Breaks on Breakage

Bob Lommerse (left), general manager of Toledo Optical, reviews the lab’s daily breakage count with operations manager Dennis Snell. While employees watched, they calculated the value of the previous day’s breakage.