Now that we’ve completed the frame board/sold analysis section, let’s move to the frame inventory mix section of the inventory analysis tab. When we move to column L, cells L4 through L14, which is here. Under the frame inventory mix section, we want to enter the corresponding frame amount or number of frames that fall into each of the specified retail price ranges. What I'd like you to notice here is that next to the subtotal you can notice that currently, the cell is green. This is because the information that I’ve entered into each of the cells under column L equal 128 which is also the total number of frames that we included in our total number of on-hand inventory section. If these numbers do not match, then the subtotal cell will turn red.
Now we notice here, as we zoom in, that our cells under column M are actually red currently. This is because in our goal column, we have placed standard benchmarks for you to ensure that you have a decent mix without being too heavy in any one given price range. In this case, the $99 to $130 for example, our goal is set at 10%. However, our percentage of board space currently shows that it is 18.8%. If you follow this guideline, you'll make sure that you're not too heavy or have too many of one specific price range that might cancel out financially some of your patients that would like to shop with you, but feel that you don’t have enough in the price range that they were expecting.
Next, we move to column L, cells 20 through 28. In here, we want to enter the total on-hand quantity of frames that we have on hand and split them up by how many of them are men’s, versus women’s, versus children’s frames. You can also substitute unisex for any of these or place the unisex in whichever category you feel appropriate for you. Next, we want to enter the total number of frames we have and their ophthalmics and the total number of frames we have that are sunglasses. Once you have filled out all of this information, then we can zoom back out to take a look at everything on our boards.
This is how we objectively look at the data to see which frames are moving if we have a proper frame price mix, gender-mix, and style mix between ophthalmics & suns. If you go to the bottom of column E, under turn rate, you’ll notice the overall turn rate is calculated for us as well. Currently, in this example, our overall turn rate is showing as 2.4. This means that overall while some of our frame brands seem to be moving well, there are quite a few that are underperforming. You may notice this in your practice as well. In order to rectify this, we need to start by removing duplicate frame lines. What I mean by duplicate frame lines is simply frame lines that look too much alike to where they confuse your patient. You’ll notice this if you listen to your patients when they ask you what’s the difference between these two frames. Why is one $100 and the other is $200, when they look the same? We need to start reducing the total number of brands in our practice, in order to reach the appropriate turn rate for each frame line.