Connect with us

The Big survey

More Than 60% of ECP Businesses Expect Earnings to Fall This Year

Thanks primarily to COVID-19, only about a quarter of owners and managers expect to see any bottom line growth.

mm

Published

on

IT HAS BEEN a difficult year for eyecare businesses’ bottom lines, as many of you are no doubt well aware—and as INVISION’s Big Survey of more than 270 owners and managers confirms.

Our snapshot of the financial landscape shows that no less than 63 percent of the ECP biz owners and managers responding to the Big Survey expected their earnings to fall to some degree in 2020, with the biggest group—24 percent—expecting the hit to be in the region of 20-25 percent (see first chart below).

big survey 2020-man holding umbrella against corona virus

But if it’s been a bad year, it’s also been a tricky one for simply assessing an eyecare business’s financial condition. Practices that were furloughing staff and applying for government assistance in March were in some cases struggling to cope with pent-up demand in the exam lane and raking in surplus expendable cash in the optical by May. This may go some way to explaining the fact that a fifth of eyecare businesses claimed to be confident they’ll show some growth this year (with 5 percent expecting a “really strong” 2020).

Of course, the COVID-19 pandemic was hands down the most significant factor in ECPs’ poor financial performance this year, according to our survey respondents, who gave “lockdown-related orders” an average of 4.5 when asked to rate a number of negative factors on a scale of 1 to 5 (see second chart below). It was not the only burden that eyecare businesses faced, however. Uncertainty associated with widespread and prolonged street protests played a role, and another noteworthy example that has been all but eclipsed by the coronavirus headlines is the changes to tariffs amid the ongoing trade spat between the U.S. and China. A full 63 percent of respondents said tariffs had affected their cost of goods to some degree, with 6 percent saying the effect was significant.

big survey 2020-COVID impact on finances

The 2020 INVISION Big Survey was taken by more than 270 North American eyecare business owners or managers. Look out for the November-December edition of INVISION or visit www.invisionmag.com/the-big-survey-2020 to read the full results, and even more on how ECPs fared during a weird, weird year.

SPONSORED VIDEO

SPONSORED BY VARILUX

The Best Overall Progressive Lens, Now Powered by AI

Engineered with Behavioral Artificial Intelligence and utilizing new XR-motion™ technology, Varilux XR series goes beyond prescription and eye physiology to consider the patient’s visual behavior and design a progressive lens that respects how
their eyes naturally move.

Varilux XR series comes in two versions, Varilux® XR design and Varilux® XR track. The Varilux XR track lens provides an additional level of personalization by incorporating the exclusive Near Vision Behavior Measurement, providing up to 25% more near vision width3 according to the patient’s need, so patients get the highest level of customization.

Discover Varilux XR series and enjoy instantly sharp vision in motion4 and seamless transitions from near to far.

For more information, visit here.

Promoted Headlines

Advertisement

Advertisement

Subscribe

INVISIONMAG.COM
BULLETINS

Get the most important news and business ideas for eyecare professionals every weekday from INVISION.

Advertisement

Advertisement

Most Popular