No idea why its so damn expensive this side.
TL;DR Warning
Labour. You have absolutely no idea how many hands your final pair of specs went through (when obtained locally) before it was finally dispensed. Minimum wages can bankrupt you if you need that many hands to build up 1 complete pair.
That and a bit of this:
Lets say I buy those frames + glasses at R70 cost price. Also assume a zero-rated "eye-test" fee as that does not "cost us anything". Also include the case, the cloth, spray and some spares into that price. Realistically one can only see 1 person every 30 minutes, 2 per hour, 18 per 9 hour day, 450 per any 25 working day month.
All my estimated costs would then have to fall on these 450 people I expect to see every month.
R
00600 Professional licensing fees
R15000 Rent
R
03000 Rates/Taxes/Water/Electricity
R
02000 Banking related fees etc
R
09500 Salaries
R
09500 Optometrist Salary
R
03000 Accounting fees
R
02000 Security/Insurance/Maintenance
R
02000 Loan repayment
(Ignoring so many other costs it is not even funny: bulbs, optical equipment, screws, cases, tools, advertising, coffee, petrol, telephones, sms's, internet, creditor control, debtor control, collecting of accounts in arrears, legal fees, alcohol pads, eye drops, medical aid update files, software, PCs, backups, etc etc... I could go on)
R46600 / 450 = R103.56
And lets not forget about the ~R27 it is going to cost me per pair to transport them from HK down to me. People do not want to wait 6 weeks for their specs, have to shell out for some non-economy courier services here. Of course I am ignoring any tax implications, breakages, insurance, sendbacks etc etc etc etc.
R70 cost + 27 + 103 = ~R200 per pair to just break even. That is a R130
markup on a R70 product!
Realistically, I have only ever seen 450 people visit a single practice in a month in England... this is not the case in South Africa. On a good day one can eg. expect 4 people = 100 in a month. That still works out to R493 per person
markup!
Then one needs to look at what each person wants/needs. I cannot merely markup all my lenses with R493 as one would expect us to spend more of our time/expenses towards patients requiring more specialized lenses like multifocals than basic readers. But multifocals also cost more, so that complicates things even more. Just to give everyone an idea: You will be hard pressed to find a complete sungray/allclimate multifocal pair of specs in this country, at cost, going for R70 + R493!
People walking into an optometrist wants choice. This translates into us not being able to restrict ourselves to what eg. the HK provider might carry, lens and frame wise:
The frame model in South Africa almost works like the PC parts industry. You have companies that exclusively import range X adding costs and then sells it to us via one of their reps that work on commission basis. The more different models and brands that we want to make available to the patient, the less we are able to buy in one go... also increasing the cost price of frames even more.
Same goes for lenses. If everyone just wanted reading lenses and had good eyes, we could order the lenses by the thousands and score on the wholesale rates. Unfortunately this is not the case. There are a wide array of branded and non-branded lenses available and each one is made on-order to suit your specific needs. All of this increases costs in the end and there is not much one can do about it.
The sad reality is that we are a business. We try to make a profit. It does not always happen at the end of the month once you've cashed up, but such us life. Sure we could import everything ourselves and sell you a pair for R70 + R493 + R100 profit ... but we would have to restrict you to a set of strict lens choices and qualities to eg. obtain a better discount at the supplier and maybe getting a bit more than just that R100 profit out of you.
That is one of the things I have not addressed above ... quality. One cannot expect a R70 pair of specs to function 100% the same and be of the same quality as a pair of R4000 Zeiss lenses. We have tried out quite a lot of different labs and lenses and have settled for a few that gives us the best price/quality/manufacturing time/etc ratio. There is no use in giving someone a pair of el cheapo lenses/frames if I do not even believe in them myself - in the end we are responsible for any breakages etc. As a matter of fact, I would be weary of lenses that are too cheap ...
I hope it it somewhat understandable - it is a wee bit late/early. Will
ninjaedit a bit later.
