Optical stores: frames, lab lens orders and advances

How optical retail works

Frames come from brand distributors, importers and wholesalers, usually on credit with periodic new collections. Spectacle lenses come from lens manufacturers and their labs: stock lenses for common powers, and prescription lenses ground and coated to order for the rest. Sunglasses, contact lenses, solutions and accessories complete the range. Many stores have an optometrist who tests eyes in-house.

The customer chooses a frame, the prescription is recorded, lenses are ordered from a lab or fitted from stock, and the finished spectacles are delivered after fitting. Most stores take an advance at the time of order and the balance at delivery.

The order cycle

Between the customer's visit and delivery, several things can go wrong: the lab delays the lens, the wrong coating is ordered, the frame breaks during fitting, or the customer forgets to collect. Track each job with the customer, frame, lens specification, lab order date, expected date, advance and balance.

1. Record the prescription and the selected frame and lens.
2. Take the advance and give an order slip with a promised date.
3. Place the lens order with the lab and note its reference.
4. On receipt, fit and check the spectacles against the prescription.
5. Inform the customer, deliver, and collect the balance against the same order.

See job cards and service invoices for a format that suits this flow.

Stock: frames, lenses and contacts

Frames are the visible stock: hundreds of models in several colours and sizes, many looking similar. Barcode labels on each frame make billing and stock counts reliable. Stock lenses are tracked by type and power range. Contact lenses and solutions carry expiry dates; sell older stock first and check expiry monthly. Unsold frames from old collections lose appeal quickly, so review them each quarter and move them to an offer display. The guide on barcode systems for small businesses explains how to start.

Pricing and margins

Optical pricing is usually a frame price plus a lens price, with lens price depending on material, index and coatings. Combo offers (frame plus lenses for a fixed price) are common and can hide the real margin. Work out the cost of each combo using actual frame and lens costs, including the lab's charge.

Figures are illustrative. Remember the price includes GST, so compare cost with the price net of tax.

Follow-ups and repeat business

Eyesight changes, children's powers change often, and contact lens users need regular supplies. A store that calls customers back for an annual check-up or a contact lens refill gets steady repeat business. Keep each customer's mobile number with their purchase history, and contact them when their next check-up is due. Our guide on customer follow-up has message ideas.

Insurance, corporate and camp business

Some optical stores also earn from corporate eye-check camps, school screening programmes, and tie-ups where an employer reimburses spectacles for staff. These bring volume in bursts and come with their own paperwork: a purchase order or letter from the organisation, a list of beneficiaries, individual job records, and a consolidated invoice at the end. Payment usually takes longer than a walk-in sale.

Treat each camp or tie-up as a small project. Agree the rates and what is included before the camp, keep every beneficiary's order linked to the organisation, and send the consolidated bill with the supporting list as soon as deliveries are complete. If the organisation pays only part and the employee pays the rest, record both parts separately so neither ledger is left with a small unexplained balance. A store that handles this cleanly tends to get invited back the next year.

GST points

Spectacle frames, lenses, sunglasses, contact lenses and eye-testing services can fall under different HSN or SAC codes and rates, and rates in this category have been revised. Check the current rate for each on the GST portal. If a combo includes items at different rates, agree with your accountant how to show it on the bill. This is general information, not tax advice.

Cashflow OS for optical stores

Cashflow OS works with your TallyPrime books. Barcodes and labels per frame can be printed on a thermal printer and scanned with the phone camera. Customers can be looked up by mobile number with past visits and wishlists. Service jobs can be used for spectacle orders and repairs: record the job, add frame, lenses and charges, then close and invoice. Proforma invoices with UPI details help take advances. See service jobs.