Leasing vs. Borrowing (Part 1)

A lot of new technologies have recently been introduced in our industry, such as anti-reflective coating, digital surfacing and robotic finishing. All of these represent the future of our industry and present us with even more opportunities to cut costs and provide more to customers. Anyone who makes a big investment must consider how to finance it. Two common ways of financing purchases are leasing and bank debt.

Bank debt is primarily borrowing a specific sum of money from a lending institution for a certain term, interest rate, and amount. If you have a strong balance sheet, good history and the bank determines that you are very likely to pay back the loan with no problem, bank debt is an excellent option and can cost less in finance costs than leasing. Also, with bank debt, you take ownership of the equipment subject to a lien until the debt is repaid. However, sometimes the bank may require additional collateral if it is determined that the debt is riskier for your firm, doesn’t understand the industry, or hasn’t had a long relationship with you.

Next month, in Part 2 of this series, we’ll discuss two basic forms of leases, capital and operating leases.—Jason A. Meyer is senior vice president, HPC Puckett & Company.

Based in San Diego, Calif., HPC Puckett & Company specializes in mergers and acquisitions of wholesale optical laboratories. You can send comments or questions about this article or any other Dollars & Sense articles to Jason A. Meyer at [email protected].

Diversified Ophthalmics Presents Partner and Vendor Awards

Diversified Ophthalmics recently presented its first Vendor Partner of the Year Award 2010 to Transitions Optical. Transitions representative Alicia Sims received the award following her presentation at Diversified’s National Spring Sales Conference.

Diversified Ophthalmics also recognized Tom Gardner of Signet Armorlite as its Vendor Representative of the Year 2010. In making the presentation, Cooke commented, “Tom’s singular dedication has made him an outstanding member of the team of more than 50 vendor reps who work with Diversified. Tom has not only spent a large part of his time co-traveling with the Diversified reps in his territory, he’s also taken additional time to assist in several projects and sales blitz’s with Diversified.”

At top, Diversified's COO, Ron Cooke, Jr. is pictured presenting Sims with her award, and at bottom, congratulating Gardner.

Integrity Optics Opens for Business

Integrity Optics, a new wholesale laboratory located in Midland, Texas, opened for business in January. Owned by partners Randy Cothren, and Jeff Carter, the new state-of-the-art lab has a start-up capacity of 150 jobs-per-shift of operation. The lab specializes in full service Rx work and free-form lens production with same day and next day service to the Texas and Southwest.

Integrity Optics owners Randy Cothren, left, and Jeff Carter proudly display their new Satisloh Compact Pro and ToroFlex digital surfacing production line.

Save the Date

Labapalooza 2010, Jobson’s celebration of optical labs, will return to International Vision Expo West on Thursday, Oct. 7. The event will feature the premier of Vision Monday’s 2010 Top Labs survey, LabTalk magazine’s Web Site of the Year awards, the Trash to Treasure contest and a rock song parody contest. Click here for more information.

Precision Optics Hosts Open House

Precision Optics, a regional, independent wholesale lab based in Richmond, Va., recently held an open house for its customers in conjunction with Younger Optics and REM Eyewear. Food, drink and live music set the stage for a casual evening of conversation.

Robert Lee and Joe Teghtmeyer from Younger Optics shared their insights about polarization technology and Younger’s Drivewear products, providing free fits for each client. Harold Kupper of REM highlighted the launch of Precision Optics’s new Value Package of lenses and frames featuring the REM Eyewear brand. Marlon Remick, of Norfolk Eye Physicians in Norfolk, Va. was the lucky winner of a Garmin portable navigation system generously supplied by Younger Optics.

Pictured at the event, left to right are: Frank Hicks, general manager/director of sales, Precision Optics; grand prize winner, Marlon Remick, Norfolk Eye Physicians; Robert Lee and Joe Teghtmeyer, Younger Optics.

Indianapolis Lab Featured in Business Journal

The Indianapolis Business Journal’s Web site, IBJ.com, recently published an article about local wholesale lab LensTech Optical, “Independent Optic Lab Fights Giants with Technology.” Click here to read the article.

Judy Bruske of RD Cherry Optical

RD Cherry Optical, founded in 1977, is a family-owned independent optical laboratory located in Melvindale, in southeast Michigan. Judy Bruske joined the lab in January of 1994, working in the surface room. During the last 16 years, she has moved up in the laboratory taking on additional responsibilities, and in 2009 moved into her current position as customer service team leader.

Bruske said her fast paced, ever-changing days as team leader are very rewarding. She is in charge of overseeing the customer service department personnel, data entry and monthly reports, as well as being responsible for lens ordering. During an “average” day, Bruske helps customers on the phone, works with her team to make sure the daily reports are complete, handles faxes and does stock lens ordering. “No day is ever the same in the lab, and I enjoy it like that,” said Bruske.

During her tenure at RD Cherry Optical, Bruske has been instrumental in the growth of the lab. She noted that the highlight of her career was when she was given the opportunity to become team leader. “We are passionate about working with our customers, and providing them with the best service and products is what I want to be doing for a long time,” said Bruske.—Amanda Barry

LabTalk Spotlight   June 2010

Building a House...Brand?
By Christie Walker & Ann Shanley, Polycore Optical USA

There are a number of reasons for creating a house brand for your optical laboratory: to build the image of your company as a trusted advisor with your customers; provide different, often more affordable options for your customers; increase profits through your branded product; and/or differentiation your lab from the lab down the street.

There are two main products—AR coatings and progressive lenses—that labs look to for creating house brands. Within the progressive category there are standard progressives and progressives created with free-form equipment, allowing new degrees of individualization. Other products to consider include polarized, photochromic, or sun lenses.

To learn about some of the challenges other labs have faced and how they have overcome them to varying degrees of success, log onto www.labtalkonline.com and go to the Features section where you will find this complete article.