Price vs. Value: Understanding Cost in Patient Satisfaction

“Price is what you pay. Value is what you get.” – Warren Buffett

THIS QUOTE FROM Warren Buffett holds particularly true in the eyecare industry, where the perception of value plays a crucial role in customer and loyalty.

In his book Kaizen, Japanese management consultant Masaaki Imai highlights three core requirements for achieving customer satisfaction: quality, cost, and delivery. These principles apply universally to all goods and services, including eyecare and eyewear. In this installment, we will explore the role of cost in shaping patient satisfaction.

The optical industry is divided between private practices — which often have higher prices — and corporate providers — which market aggressively with low-cost promotions. Patients frequently encounter offers for multiple pairs of glasses, bundled with exams, for under $100 — creating a stark contrast to the $600 or $700 they may have paid for their last pair of glasses. Given these disparities, cost increasingly determines how patients perceive value.

Unlike quality and delivery, which are evaluated based on consumer expectations, cost is assessed through direct comparison. If a patient believes they can obtain the same quality eyewear elsewhere for half the price, they will naturally choose the lower-cost option.

One significant variable in modern optometry is the prevalence of third-party payers, where patients do not pay full retail prices for frames or lenses but instead utilize their insurance benefits. Many optical businesses set their retail pricing according to third-party reimbursement schedules, and some even offer different prices for cash payments versus insurance-based purchases.

However, as reimbursement rates decline, practices often feel pressure to cut back on service areas that enhance perceived value. This can be a costly mistake. Patients don’t just evaluate cost — they assess whether the price aligns with the quality, functionality, and overall experience. In the first part of this series, we discussed how patients are viewing prescription eyewear as a commodity — if they can see clearly and comfortably, they assume their glasses are of good quality.

Marketing expert Seth Godin puts it succinctly: “The reason it seems that price is all your customers care about is that you haven’t given them anything else to care about.” When practices fail to differentiate themselves beyond price, they risk being viewed as just another commodity provider.

To remain competitive without compromising profitability, consider the following steps to refine your pricing strategy and enhance patient satisfaction:

Competitive Shopping: Identify all competing providers within a five-mile radius. Schedule an exam and eyewear purchase at each. Simply calling for prices is inadequate — you must experience their full value proposition. If you are a well-known provider, delegate this task to a trusted manager.

Pricing Evaluation: Compare the data you collect to your current pricing. Determine your pricing based on patient perception, not just supplier costs. Patients don’t care who your suppliers are; they judge their satisfaction by perceived quality, comparable pricing, and overall value. If necessary, re-evaluate your supplier choices based on where consumer prices need to be, not the other way around.

Increase Perceived Value: Enhance service, convenience, and patient experience; these often require minimal cost but demand consistent execution. Consider personalized service elements such as follow-up calls, quick turnaround and seamless warranty or replacement policies. Train staff to educate patients on product differences so they understand what justifies a higher price.

Patients make decisions based on perceived value — not just price. Practices that focus solely on competing with low-cost providers risk losing differentiation. Instead, enhance the patient experience, clarify the value of your services, and price strategically based on your competitive landscape.

Doing so, you can ensure patients see your practice as more than just a price tag — they will recognize the true value of your care and service.