In-office edging isn’t just a technical decision—it’s a smart financial move. By bringing the finishing process in-house, optometry practices can dramatically improve their bottom line, gain more control over quality and speed, and reduce reliance on external labs. Whether you’re edging private pay jobs or navigating insurance constraints, this white paper breaks down the immediate and long-term financial benefits of in-house edging.
The Profit Margin of In-House Edging: A Game-Changer for Private Pay Jobs
When you bring in-house edging into your practice, the financial benefits are immediately clear. Let’s take private pay single vision jobs as an example. Instead of relying on external labs for the entire job, you can edge lenses in your practice and retain a substantial profit margin.
Consider the following comparison:
- Stock Lens AR Cost (Average): $7
- Surface Single Vision AR Lens Cost (Outsourced, Average): $70
Note: These prices are averages and can vary depending on the lab and the specific products you choose. For more accuracy, please adjust the lens cost in this document according to your particular situation. - Profit Per Lens (in-house vs. outsourcing): $70 – $7 = $63 saved per job
Additionally, there are savings from other common fees charged by labs, including shipping costs and edging fees:
- Shipping Costs (Average): $8 per job
- Edging Fees (Average): $14 per job
When you factor in these additional savings, your overall profit per lens increases significantly.
Real-Life Financial Impact: Breaking Down the Math
Let’s explore the potential savings for a single doctor in your practice, based on a standard workweek and considering the number of single vision AR jobs done daily.
Example Calculation:
- Jobs per Day: 3-6 single vision AR jobs (we’ll use 3 jobs for a conservative estimate)
- Jobs per Week: 3 jobs x 5 days = 15 jobs per week
- Jobs per Year: 15 jobs x 50 weeks = 750 jobs per year
Savings Breakdown Per Job:
- Savings on Lens AR Cost: $63
- Savings on Shipping: $8
- Savings on Edging Fee: $14
Total Savings per Job: $63 + $8 + $14 = $85 saved per job
Now, let’s calculate the total savings per year for one doctor:
- Annual Savings (at $85 savings per job): 750 jobs x $85 = $63,750 in savings per year per doctor
If your practice has more than one doctor, these savings add up quickly. For a practice with 3 doctors:
- Savings for 3 Doctors: $63,750 x 3 = $191,250 in savings annually.
The ROI Calculation: Equipment and Lifespan Considerations
Investing in in-house edging equipment can seem like a big commitment, but the financial benefits will quickly outweigh the upfront cost.
Initial Investment:
The cost of in-house edging equipment typically falls within the range of $40,000 – $60,000. This initial investment is the foundation for long-term savings.
Equipment Lifespan and Return:
A well-maintained in-house edging system can process anywhere between 200,000 to 300,000 jobs over its lifespan, which typically lasts 5-10 years. Let’s break down the ROI:
- Average Jobs per Year (3 Doctors): 750 jobs x 3 doctors = 2,250 jobs per year
- Total Jobs Over 5 Years: 2,250 jobs x 5 years = 11,250 jobs
- Total Savings Over 5 Years: 11,250 jobs x $85 savings per job = $956,250 in savings over 5 years.
So, for an investment of $50,000 in edging equipment, your practice could save $956,250 over five years. This means your ROI is achieved in less than 1 year and the equipment continues to generate savings for many years to come.
A Strong Long-Term Investment: Return on the Life of the System
Let’s extend the ROI calculation to the lifespan of the equipment—let’s say you plan for the equipment to last 10 years.
- Total Jobs Over 10 Years: 2,250 jobs per year x 10 years = 22,500 jobs
- Total Savings Over 10 Years: 22,500 jobs x $85 savings per job = $1,912,500 in savings over 10 years.
So, a single edging system with an initial investment of $50,000 could lead to $1.9 million in savings over its lifespan. That’s a powerful return on a relatively small upfront cost.
Additional Benefits: Speed, Quality, and Control
Beyond the immediate financial benefits, in-house edging gives your practice complete control over the quality and speed of the work. No more waiting for external labs to process your jobs—your practice can quickly and efficiently edge lenses in-house, which directly enhances patient satisfaction.
Why It Makes Financial Sense:
- Faster Turnaround: No waiting for outsourced labs to deliver finished lenses.
- Higher Quality Control: Direct oversight of the finished product ensures it meets your standards.
- Better Cash Flow: By completing the work in-house, you improve your cash flow and reduce external costs.
Overcoming Common Fears and Misconceptions About In-House Edging
There are several common concerns when considering in-house edging. Let’s address these and show why they shouldn’t stand in your way:
“Will it be hard to train my staff?”
Not at all. Many practices, even those with limited staff experience, have successfully integrated in-house edging. There is a wealth of training resources available, including manuals, videos, and on-site training from equipment vendors. Many practices even train high school students or new opticians to operate the equipment.
“What about equipment maintenance?”
Like any equipment, in-house edging systems require routine maintenance. However, modern systems are designed to be low-maintenance and highly reliable. Regular cleaning and calibration will keep the equipment in optimal condition for years to come.
“What about odors from the lenses?”
In-house edging can produce fumes from certain lens materials, but this is easily managed by setting up the edging system in a ventilated room. A dedicated 10×10 space with an exhaust fan is sufficient to keep the odors from affecting the rest of your practice. Many practices have successfully dealt with this by setting up a designated area for the edging system.
Practical Considerations for Setting Up In-House Edging
When setting up your in-house edging system, here are a few important factors to keep in mind:
- Space Requirements: The equipment requires a space large enough to accommodate the machine and allow for workflow. A 10×10 room is typically sufficient.
- Ventilation: Ensure the space has proper ventilation to prevent odors from reaching patient areas. An exhaust fan or air filtration system will suffice.
- Equipment Capacity: One in-office edger can handle up to 30 jobs per day, making it an ideal solution for practices with moderate to high volumes of single vision jobs.
Highland Opti Supply: Your Partner for In-House Edging Success
At Highland Opti Supply, we offer the highest quality stock lenses at the best price and speed to your office. Our team is here to support your practice with not only premium products but also expertise and troubleshooting for your in-office edging system. With extensive knowledge of table-top edgers, we can guide you on how to troubleshoot, maintain, and problem-solve any issues that arise.
We are dedicated to helping you keep the profits in your own pocket, so you can focus on growing your practice while enjoying the benefits of in-house edging.
Visit us at highlandoptisupply.com, or schedule a call with us today! Email us at support@highlandoptisupply.com or call 989-303-1342 to learn how we can help you boost your practice with the best pricing, service, and quality in the industry.
Disclaimer:
Industry prices can fluctuate, and the lens costs and other fees mentioned in this paper are averages based on current market data. To get the most accurate financial analysis for your practice, we recommend inserting your specific lens costs and applicable fees into this document. This will allow you to better determine the exact savings and ROI for your particular situation.
