& IDEAS
FOR THE LABORATORY PROFESSIONAL
JANURAY 2018
PRODUCTS
OpticalLabProducts.com
O P T I C A L
L A B
P R O D U C T S PREP for Safety • PG 10
ESOPS:
Undeniably Good for Business PG 8
Branding • PG12
News • PG 16
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OPINIONS 04 05 06
Rollins on Marketing In the Lab One-to-One with Kevin Mauger, President, NCC Automated Systems
FEATURES 08
ESOPs: Undeniably Good for Business
10 12 14
P.R.E.P. for Safety Brand Anew Give Your Branding Time to Work
RUNDOWN 15 16
New for the Lab News
EDITORIAL STAFF VP, EDITORIAL | John Sailer • JS@VisionCareProducts.com PROFESSIONAL EDITOR | Jim Grootegoed • JG@VisionCareProducts.com ASSISTANT EDITOR | Cara Aidone Huzinec • CH@VisionCareProducts.com ART DIRECTOR | Megan LaSalla • Megan@MHLDesigns.com CONTRIBUTING WRITER | Eric Rollins • EricRollins@Comcast.net PRODUCTION & WEB MANAGER | Anthony Floreno • AF@VisionCareProducts.com
BUSINESS STAFF PUBLISHER | Terry Tanker • TT@VisionCareProducts.com EXECUTIVE VICE PRESIDENT | Shawn Mery • SM@VisionCareProducts.com DIRECTOR OF SALES | Janet Cunningham • JC@VisionCareProducts.com VICE PRESIDENT, MARKETING | Debby Corriveau • DC@VisionCareProducts.com VICE PRESIDENT, OPERATIONS | Sharon O’Hanlon • SO@VisionCareProducts.com
www.facebook.com/OpticalLabProducts www.twitter.com/OLP_Magazine www.linkedin.com/company/Optical-Lab-Products
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An 8-20% SUCCESS RATE
T
his is becoming my annual New Year’s Resolution article. First, here’s wishing you a happy and healthy 2018. Last year’s missive concentrated on business resolutions. This year I’d like to concentrate more on personal resolutions, which will also significantly affect your business success and relationships.
BY JIM GROOTEGOED
CONTENTS
JANUARY 2018
quitting smoking or drinking, saving money or learning something new. Other common resolutions include traveling more, giving back to the community and spending more time with family and loved ones. I read about a couple resolutions in Forbes that I would have never considered. One is to smile more. This actually tends to make you happier and is re-
Prioritize your resolutions, and ask questions about each one, such as, How might I . . . ? What if I . . . ? What do I need to . . . ? What if I fail to . . . ? Each person who resolves on New Year’s Day to improve an aspect of their life that they dislike establishes a motivating force, one that helps those of us who are serious but need a push. Various studies have shown that only from 8% to 20% of resolutions are actually kept, so make your resolution(s) realistic and achievable, and don’t make too many. Resolutions are hard to keep because we all try to change a behavior pattern overnight. The key is to take it slow and steady. Fulfill the resolution, but do not overdo it, making sure not to quit. Your progress will be slower when proceeding in this fashion, but it will be easier to accomplish. Some of the most common resolutions include losing weight, exercising more often,
flected on people around you. Another was “Don’t commit to anything that you realistically cannot do.” Success breeds success, but failure has the same effect. A corollary would be to break down any process into smaller steps, progressing as you move along. From Dear Abby: I will accept today for what it is. I will face reality, correcting what I can and accepting what I can’t. I will improve my mind by reading something that requires effort, thought and concentration. I will make a conscious effort to be agreeable. I will be kind and courteous to those who cross my path. I will not speak ill of others, nor will I interrupt others when they’re speaking. I will take responsibility for my own actions. . . . and a thousand more.
HERE’S HOPING YOUR RESOLUTIONS WILL BE AMONG THE 8-20% SUCCESSFULLY KEPT. HAPPY 2018! JANUARY 2018
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PUBLISHERS Page
Please LET ME INTRODUCE MYSELF
T By Terry Tanker
his is my first column as the new owner of First Vision Media Group and publisher of VCPN, OLP and Optometric Office. However, I’ve written hundreds since 1999 when I first became a publisher. My passion has always been in the marketing communications field, and after college I worked for a B2B advertising agency for several years. However, an offer from a large trade publisher lured me away. I worked there for the next 20 years. In 2005, I saw an opportunity to start my own company and have been leading it ever since. For the last dozen years we’ve specialized in writing about business management topics for owners of small, medium and large mechanical systems companies. Many of the topics we cover would also be relevant for owners in the vision care industry including strategy, leadership, finance, marketing, social media, hiring, sales and much more. And, I hope to incorporate some of those topics into what we do here at FVMG. We’ll also get back to our roots, “products and news.” We were founded on these categories, and according to recent research we’ve conducted, this is the type of content you want more of— and we’ll deliver. Of course, your input is always welcome. In fact, we’ll be conducting readership studies over the course of the next year, inviting your comments about exactly the type of content you
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are looking for in optical trade publications. The VCPN readership study will be conducted in February, and the Optometric Office readership study will be conducted in March.
perspective you look for a good company with a solid foundation you believe can go to the next level. I believe we all found what we were looking for.
Frank, Shawn and I have been working on this deal for just over a year. That may seem like a long time, but when you stop to consider all that goes into a sale and acquisition it’s difficult to imagine doing it any
Earlier I touched on plans we have to add to the excellent content we provide. In addition, you’ll notice a significant redesign of the issue as well. This is the result of a lot of hard work from our new creative director
We’ll also get back to our roots, “products and news.” We were founded on these categories, and according to recent research we’ve conducted, this is the type of content you want more of —and we’ll deliver. more quickly than that. I’ve acquired two companies and have learned there are several very important steps that need to be taken. Most notably, however, there has to be some chemistry between the buyer and seller or negotiations can easily get bogged down and go into stalemate. So, I’m thankful we had that working for us throughout the process. No matter the size of the company, the discovery and due diligence process is just that, a process. Neither side wants to get burned; as a result, it simply takes time. From a seller’s perspective, you’re hopeful to attract a buyer who will build upon the blood, sweat and tears you’ve poured into “your” company (in this case, for the last 17 years). From a buyer’s
Megan LaSalla and our VP of Editorial John Sailer. We hope you enjoy the new look and welcome your feedback. I’m looking forward to meeting our subscribers at the many upcoming industry events such as Vision Expo East and West as well numerous others. And, to our many advertisers, I’ll be seeing you soon—based on my itinerary I’ll be moving up a level on United’s frequent flier program. Should you like to reach out before we meet in person I would welcome your call or email and can be reached at 440.471.7810 and TT@VisionCareProducts.com
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OPINIONS Rollins on Marketing
A NEW YEAR, A Stronger Brand
By Eric Rollins
T
he New Year is upon us. Now that we are starting to work on our resolutions, it is also a great time to work on your corporate brand. The best branding campaigns utilize a Unique Selling Proposition (USP), or what you do better than your competitors. Another factor is the Emotional Selling Proposition (ESP), or how you build an emotional connection with your consumers. Your brand is most effective if you can combine your USP with your ESP, such as BMW’s positioning statement “The Ultimate Driving Machine” or McDonald’s “I’m Lovin’ it!” There are many elements to branding, some more important for our industry than others. One of the vital elements for us is brand experience. This is simply a combination of everything a customer goes through while purchasing and using the brand. For optical laboratories that might start with the sales rep or the customer service rep. How knowledgeable, friendly and easy to work with are they? It would also include your website and how hard or easy it is to navigate. It includes your technical experts, answering questions about which lens may be best for a certain patient’s needs. How good is your phone system? Is it customer-friendly,
or does it take many steps and prompts to get to the person with whom your customer needs to speak? There is much more that is a part of the brand experience, and your management team should consider all aspects to improve this vital category. Another important element of branding is the brand gap. This is the difference between what the brand promises to deliver versus what is actually delivered. For example, if a part of your branding includes references to fast service, but remakes somehow end up taking 10 days, then the customer is experiencing a brand gap. Another example would be if your branding position has a reference to high quality, but some aspects of your production have drawbacks (such as drilled rimless mounts) then again there is a gap. Obviously you want any gaps to be as small as possible. Brand equity is the value of the brand. Some brands have tremendous equity due to great products and marketing over the years, such as Apple or Ferrari. We might not be in their league, but we can still build great value for our brand with smart advertising and good products. That’s something that you can eventually take to the bank!
Eric Rollins is a veteran of the optical retail, frame and lab industries. His firm, Rollins Consulting, LLC, consults with the three Os to improve profitability. Email him at EricRollins@Comcast.net.
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In The Lab OPINIONS
A WINNING BUSINESS Model By John Sailer
I
n this era when mergers and consolidations are the norm and offshoring sends jobs overseas, there’s a business model that enables owners to cash out while not only keeping their companies in place and intact but also turns their employees into owners. ESOPs (Employee Stock Ownership Plans) are nothing new. The first one was established in the U.S. in 1957, but the concept gained traction in 1974 when Congress passed ERISA (the Employment Retirement Income Security Act). As you’ll see in this issue of OLP, there are at least three ESOPs in operation in the optical field—Walman Optical,
Salem Distributing and NCC Automated Systems. We spoke to representatives of all three, and none of them had anything negative to say about this business model. But the benefits are numerous and include increased employee productivity and company profitability, the ability to retain control of your company while selling your stock in a tax-free sale, receiving tax-free proceeds greater than from a sale to an outside buyer, and the opportunity to repay the debt with tax deductible or tax-free dollars. And, when your employees cash out their stock at retirement, they are likely to be taxed at a lower rate than they would have been during their employ.
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Other employee benefits include greater attachment, loyalty, participation in decision making and satisfaction with influence at the workplace, higher pay and a willingness to work hard with a lower chance of turnover and greater job security. Studies have determined that ESOPs appear to increase sales, employment and sales per employee by about 2.3% to 2.4% per year over what would have been expected absent an ESOP. In addition, when interviewing these optical ESOPs, they stressed the opportunity to keep their companies in the U.S. Walman expressed that it is an American company “keeping jobs here and investing here,” while Salem feels
that turning the company into an ESOP enabled it to keep its jobs in its community of Winston-Salem, NC. It appears that being an ESOP is a winning model all around. John Sailer is VP, editorial of First Vision Media Group. JS@VisionCareProducts.com
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ONE TO ONE: KEVIN Mauger
Q&A Q: What were your reasons for turning your company into an ESOP (Employee Stock Ownership Plan)? A: The primary reason had to do with shared ownership. What a fantastic, cultural concept that can benefit and create opportunity for those who work really hard and how it can provide for long-term sustainability of the company. There are soft reasons, and there are hard reasons. Soft reasons are hard to quantify. They’re decisions made from the heart, based on core values and character and what you want to achieve in your lifetime, be known for and how you want to feel. Then there are business reasons. Employee-owned companies perform better. Employeeowned companies retain key employees better. Employeeowned companies have better cultures. When everybody’s in it together with a long-term, vested interest, it’s a good situation for an employee. In addition to that, for personal reasons, it allows me to liquidate a portion of my largest personal asset as opposed to waiting to sell it at the end of my career, whenever that might be. I get to have some benefit from that from a lifestyle and
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Kevin Mauger is president of NCC Automated Systems in Souderton, PA, a company that designs and installs conveyor systems for optical labs and converted to an Employee Stock Ownership Plan in 2016.
security perspective. There is some discount for selling to an ESOP at a fair market value versus selling to a strategic acquisition partner. That could be a significant difference.
Q: It’s a win-win where you’re cashing out now while the employees become owners incentivized to make the business successful. Do you retain ownership? A: Yes. I did a partial ESOP to start. My goal is to make it completely employee-owned at some point. I still own a little bit more than half the company. It’s a 58/42 split.
Q: What other incentives were there for becoming an ESOP? A: There are a lot of different ways of establishing the value of a company, but essentially earnings times the multiple is what the company is worth. Generally, you’re in the five to six times range with an ESOP, while in a strategic sell, you could easily be in double digits. You can say that you’re selling for less than half the value,
but that’s where the benefits of the ESOP come into play. There would be no strategic partner that would want to buy 42%. They’d want 51% to 100%. In that scenario, we would be owned by somebody else, which would not be a bad strategy to exit in a short-term fashion. Frankly, that’s what most people do to maximize return, but if you plan on staying you then work for somebody who may not have the same vision, ideals, relationships, goals, everything. For a lot of small business owners, that would not be a good thing. It would not be the best thing for me at this point in my life because I want to maintain the overall control of the company to make sure it’s going in the direction that I know makes sense for us and our employees. That’s part of the deal. I’m cashing out to a certain degree, getting paid for the 42% now. But I’m paying for it. The company is paying for it with future profits.
Q: What is the process for turning a company into an ESOP? A: The process I followed was to engage with a consultant who specializes in ESOPs. An ESOP is a trust with a set of rules about how to form that trust and what it can and can’t do. It is
governed by ERISA, which is the same part of the government that monitors 401ks and pensions and any type of retirement plan because that is literally what an ESOP is, a retirement plan. There are very specific rules, so you need a lawyer who specializes in ESOPs and a consultant who has the financial acumen to understand all the intricacies. The consultant I hired did a feasibility analysis, helped me do a preliminary evaluation of the company, told me what it’s worth, what this means to me now, what this means to me in the future, what this could mean for employees based on various scenarios. At that point, we said, “All right, this makes sense,” so we started the process. The first thing is to establish a legal document, the trust. The trust is a legal entity. A trust has a trustee. We chose to hire a trustee, as opposed to trying to do that internally because it’s just the right way of doing it. The trustee has fiduciary responsibility, which means he needs to protect the members of the trust and the trust itself. Then you have to figure out how to fund it. There are two different ways you can fund it. You can fund it yourself over time, or you can find somebody to fund it for you now and pay
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them back over time. We chose to find a bank to fund it, which meant we needed to show them what it was worth. The trustee negotiated the purchase of the company with us, who were selling the company. Then we found a bank to fund it based on the negotiated amount. At that point, you’re selling a company, so you go through the same things you would when selling a company with strategic partners. There’s a discovery process. There’s a due diligence process. You have to tell them what the company is, and then they have to establish a value for it. Then you negotiate and go through the process of getting it funded.
Q: How long did the whole process take? A: I made the decision to engage in the feasibility analysis in October of 2016. I got a report back in two months, asked a lot of questions, went back and forth, and made the decision in the third month. We officially formed the trust in December of 2016. The employees still didn’t know. Then we started the process of the actual transaction, which took four months.
Q: That’s not as long as I thought. You kept it a secret to surprise the employees, but some must have been aware. A: Only four employees knew, the executive team.
management
Q: Can you describe how things changed once you converted the company to an ESOP? A: I didn’t expect I’d find myself being harder on employees than I had been previously. I have more expectations of them if they’re now a partner. I didn’t see that coming. From an employee perspective, it’s super simple. It doesn’t cost them anything. It doesn’t require anything. Basically, they keep working. Of course, the harder they work, the more their company’s worth. They have a potential golden ticket, if the company’s really successful. There are stories about grocery clerks who were with a company for 35 years, the company did incredible, and their return was $1 million. I’m not suggesting that’s going to happen because it depends on the growth of the company. What I am suggesting is that if you’re an employee at a regular company, you can only have so much influence over the compensation you’re going to get. A company that’s ESOPowned, particularly a smaller growing company, you can have a substantial impact on the value of your company, the growth of your company, and your long-term retirement benefits.
Q: Have you seen employees change in the way they perform? A: Absolutely 100%. I’ve seen people who were mostly concerned about their area of business step into other areas voluntarily, just to help. I’ve seen
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a lot of good ideas from people who wouldn’t necessarily normally say something, whether it’s another employee’s performance or a policy that doesn’t make sense, or we’re wasting money. People are showing that when things get tough they are the ones who are going to step up and create change and drive the company forward. People are literally saying, “This is a company that I’m now part owner in. I want to make sure it’s successful, and if this team member is or is not pulling their share, then I’m going to either help them or make sure it’s addressed.”
Q: Have you seen any financial benefits yet? A: It’s way too early. The transaction was formalized in May of 2017. There are obvious tax breaks. Profits allocated to the ESOP come off income. They reduce your taxable earnings. What happens is when an employee leaves the company, they have x amount of shares, and the share value at that time is whatever it is. They don’t get that money all at once; they get it over a period of a few years. The company has to fund that year to year over a period of time. But you don’t have to keep the cash in the ESOP account. It stays in the company, and they let you expense it in that year. Whatever I contribute in that year reduces our taxes for that year. So, not only do I have cash, I have reduced income tax, which allows me to invest further in the company to hopefully provide a better return. It’s fantastic. The reason the government does that is they want to encourage ESOPs and
growth, and when employees cash out, that’s income at their retirement age, so they’re going to pay the taxes then.
Q: Do you have any idea if the new tax plan impacts ESOPs? A: In general, every party and area of the government is in favor of ESOPs because they’re undeniably good for our country. There’s been nothing that’s been said or discussed about eliminating the concept. If corporate taxes go down significantly, then the benefits of having an ESOP will be reduced because one of them is the tax deferral feature.
Q: What is your customer base? A: We have two main industries: food and optical. In the ophthalmic world, we are partnered with Satisloh. We are kind of mutually exclusive with each other. We only go to market through them. We are their partner in integration, exclusive partner in North America, and we do quite a bit overseas as well, which is a growing aspect and initiative for us together to bring to the table. That being said, we work both through them and directly with their customers as well, which have become our customers over time. We’ve done hundreds and hundreds of projects, last count was over $30 million. It’s 90% North America at this point, anything from really small labs to the biggest most technologically advanced labs in the world.
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BUSINESS Finance
ESOPS: Undeniably Good for Business EMPLOYEE STOCK OWNERSHIP PLANS (ESOPS) LET OWNERS CASH OUT NOW AND TURN STAFF INTO OWNERS FOCUSED ON THE BOTTOM LINE WHILE PROVIDING TAX ADVANTAGES TO ALL INVOLVED.
NCC Automated Systems is the optical industry’s youngest ESOP after converting in 2016.
By John Sailer
E
SOPs are not fables. They are real life business models, essentially retirement plans that effectively sell a company to its employees, turning them into owners with many of the benefits and responsibilities as well as concerns of ownership. There are approximately 7,000 employee stock ownership plans (ESOPs) covering about 14 million employees in the U.S., according to estimates by the National Center for Employee Ownership (NCEO). While there has been a decline in the overall number of plans since the beginning of the 21st century, there has actually been an increase in the number of participants.
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In the optical world, companies operating as ESOPs include Walman Optical in Minneapolis, Salem Distributing in Winston-Salem, NC, and NCC Automated Systems in Souderton, PA. Walman, which has been in business for over 100 years since it was founded in 1915, became an ESOP in 1989. Salem was founded 45 years ago in 1972 and became an ESOP 17 years ago in 2000. NCC is the youngest company having been founded in 1986 and the newest ESOP, converting in 2016.
HOW ESOPS WORK Governed by ERISA (the Employee Retirement Income Security Act), a federal law controlled by the U.S. Department
of Labor, an ESOP is a retirement plan under the auspices of the same department responsible for 401k plans and pensions. The ESOP is a trust managed by a trustee. The company stock is held in that trust. In the case of Walman, 100% of the company stock is held in the retirement plan in the trust. One-third of Salem’s ownership was purchased by its employees in 2002, and the remainder was bought in 2005. For NCC, it holds 42% of the company stock in the ESOP trust because president Kevin Mauger retained 58% ownership in the company. Being a retirement plan, ESOPs allow employees to
cash out when they retire at an amount based on the share value at that time. In order to ensure that there is cash available at the time of retirement, the company must make contributions into the trust. All contributions into the plan are tax free. After employees retire and cash out their stock ownership in the plan, their shares are reallocated to current participants. Walman Optical’s HR manager Jill Gerrick said, “It’s Walman’s philosophy to be an employee-owned company into perpetuity, so we are constantly recycling those shares.” Success can be a double-edged sword, however, because the company is required
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to buy back the shares of a retiring employee, and when the value of those shares is high, the cost of buying them back is high as well. This can be a “huge cash strain on the company,” Gerrick said.
THE BENEFITS Overall, the benefits of converting your company to an ESOP are substantial and can include increased employee productivity and company profitability, the ability to retain control of your company while selling your stock in a tax-free sale, receiving tax-free proceeds greater than from a sale to an outside buyer, and the opportunity to repay the debt with tax deductible or tax-free dollars. There are soft reasons and there are hard reasons for converting a company to an ESOP, according to Mauger. “Soft reasons are hard to quantify. They’re the decisions made from the heart,” he said. “From a business perspective, there are cold, hard facts that employee-owned companies retain key employees better and perform better.” (For more from Mauger about ESOPs, see the One-toOne on page 6.) As might be expected, when working for an ESOP, employees literally take ownership of their work and the company overall. “We feel employee owners say, ‘I own stock in the company where I work and can affect the stock price by my efforts. If I do a good job and provide quality manufacturing or selling or a service, whatever my specific job description is, if I do it to the best of my abilities I can drive business results,’” said Gerrick.
When Salem went to 100% employee owned, there was a palpable difference in attitude. “It was almost like we woke up the next morning and realized, ‘Okay, now we have to be responsible for the things the previous owner worried about,’” said controller Gale Marett. “We stress employee engagement and want people to take ownership. We’re all in this together and pulling for the same thing.” In addition to changing employees’ perspectives so they act more like owners, there are other benefits as well. According to Gerrick, “It allows us to invest in our business and maintain it in the U.S., something that is also a selling point to our customers. We’re an American company keeping jobs here and investing here, and we’ve been able to do a number of acquisitions over the 28 years we’ve been an employee-owned company. We’ve acquired a number of independent wholesale labs and turned them into ESOPs too.”
ESOP Resources Employee Ownership Foundation: a 509(a)3 public foundation whose primary purpose is to support programs that will increase the level of awareness and appreciation of the benefits of employee ownership and increase the number of employees who have access to this benefit. EmployeeOwnershipFoundation.org • Info@ EmployeeOwnershipFoundation.org • 202.293.2971 The ESOP Association: a national nonprofit organization with 18 local chapters, its members include ESOP companies, companies considering an ESOP and service providers that assist in setting up and maintaining ESOPs. Founded in 1978, the Association seeks to enhance federal laws governing ESOPs, provide members with expert information and fund research via its affiliate, the Employee Ownership Foundation. ESOPAssociation.org • ESOP@ESOPAssociation.org • 866.366.3832 National Center for Employee Ownership (NCEO): a self-sustaining nonprofit membership organization that provides practical resources and objective, reliable information on ESOPs, equity compensation plans and ownership culture. A primary publisher and research source in the field, NCEO holds dozens of webinars and in-person meetings annually and provides services to thousands of members and others. NCEO.org • CustomerService@NCEO.org • 501.208.1300
Marett agrees that converting a company to an ESOP can help keep a company successful without having to sell out or move. “Selling out to a competitor was the last thing he wanted to do, and he kept those jobs right here in the Winston-Salem community,” said Marett about Salem’s previous owner, Bob Long. “I’ve worked for other companies before, and I can’t imagine why every company wouldn’t want to do this,” she concluded.
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Salem was founded in 1972 and became an ESOP in 2000.
More than 100 years old, Walman Optical converted to an ESOP in 1989.
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MANAGEMENT Safety
P.R.E.P. for Safety PROTECT YOUR WORKPLACE, AND THE PEOPLE IN IT, BY FOCUSING ON P.R.E.P. (PEOPLE.REGULATIONS.ENVIRONMENT.PROPERTY.) TO MAKE SAFETY A HABIT RATHER THAN A CONCERN.
By Joey Lowery
W
hen it comes to health, safety and compliance for your lab, it’s important to adhere to the four principles for preventing risk—People, Regulations, Environment and Property. Remember these essentials of safety with the acronym PREP, which will always remind you to be PREPared.
them informed of corrective action through shift briefing and regularly scheduled safety talks. All employees must receive the required safety training before performing any task. Manage this training to ensure that they are up to date and current. Well trained employees are well prepared employees.
occurring at all levels.
ENVIRONMENT Focusing on environmental factors pertains to the natural environment, the people working within the lab as well as the facility itself. It’s important that any decisions that are made and activities pursued decrease any environmental impacts by responsibly managing natural
PEOPLE
Perform a job safety analysis to ensure that each employee has the proper personal protective equipment by assessing the frequency, probability and severity of any task that they may perform. Every employee, whether permanent, temporary or contracted, must be provided with safe and healthy working conditions. Management should encourage and empower employees to identify any potential or perceived hazards and keep
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Environmental impact concerns regarding chemical management should address hazardous materials storage, handling and disposal; spill control; and their potential impact on people.
PROPERTY
ENVIRONMENT
REGULATION
GROWTH
PEOPLE
Prevent work-related injuries and occupational illnesses by providing employees, contractors and temporary staff with safe and healthy working conditions. Accomplish this by assessing the ergonomics of each employee’s workstations and even encouraging stretching exercises for those whose work does not require much movement.
be sent by chemical manufacturers to those who purchase their chemicals. OSHA says that those who work in a lab where chemicals are used should be aware of SDS and their relevance to health and safety, be aware of how to access SDS, and maintain any SDS that are received with incoming chemical shipments, ensuring that they are readily accessible to lab employees during each shift. Electronic access is acceptable with a printer.
ORGANIZATIONAL PRINCIPLES REGULATION Be sure to adhere to any and all applicable local, state and federal environmental, health and safety standards (EHS) while also implementing any of your own that would be appropriate for your specific lab operations. It’s important to keep these standards on your radar and remain aware of any regulatory changes
resources and preventing pollution throughout the design, manufacturing and distribution of products. The proper management of any chemicals used within the lab is not only good practice but also a regulatory requirement. OSHA requires that Safety Data Sheets (SDS, formerly MSDS)
While OSHA requires that extension cords be visible at all times, they should never be used as permanent wiring or in a series.
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WHAT IS YOUR WHY?
Guards and panels should always be properly placed and maintained around equipment
PROPERTY
ELECTRICAL
Protecting property can be assured by maintaining the same high standards followed when focusing on people, regulations and environment. Specific procedures should plan for periodic checks of equipment safety devices and maintenance reviews while ensuring that fire protection systems are in place and functioning.
Extension cords should never be used as permanent wiring. OSHA requires that extension cords be visible at all times. Extension cords should not be used in a series, and power strips should not be used for high amperage items such as microwaves, as this can exceed the power rating of the cord. There should be no blank spaces in electrical panels or junction boxes. The risks of not following these rules are fire and electrical shock, and exposure to electrical parts increases the potential of being electrocuted.
COMMON FINDINGS After extensive experience inspecting optical labs and observing oft-repeated errors in how certain aspects of the work environment are managed and maintained, it’s clear that the electrical and equipment are two specific areas that should be of primary focus for those responsible for environmental, health and safety standards.
Follow LOTO, or lockout tag-out safety procedures to ensure that dangerous equipment and machines are properly shut off and not started up and to control the release of stored energy prior to the
The proper management of any chemicals used within the lab is not only good practice but also an OSHA regulation.
completion of maintenance or servicing work. Management/ supervision must conduct an annual audit of each LOTO procedure to make sure that the procedures are still effective and that the LOTO authorized personnel are proficient.
GUARDS AND PANELS To protect equipment operators as well as anybody near or passing by, guards and panels should always be properly placed and maintained around equipment such as drill presses, abrasive wheels and all machines with moving parts. There should never be missing maintenance panels on any machinery, and personal tools brought in for use in the workplace should be thoroughly inspected for safety guards and panels.
”What is your why?” is a question that should be asked of each employee. One answer might be, “The reason why I follow safety procedures is because my family needs me.” Your Why? is what keeps you safe. Your Why? is what encourages you to follow safety procedures. Making it personal promotes safety awareness throughout the workplace as well as in home. Joey Lowery is EHS manager, general services, Essilor of America. After serving 24 years in the U.S. Air Force, he became an OSHA compliance officer and stormwater compliance manager for the city of Dallas before joining Essilor.
There should be no blank spaces in electrical panels or junction boxes.
Best Practices
Follow these best practices to be sure your lab adheres to environmental, health and safety standards (EHS): • Ensuring management commitment and participation • Establishing a safety committee • Running an employee recognition program • Keeping a maintenance log and managing predictive maintenance • Designating an individual responsible for maintaining inspection records • Having periodic visual inspections by a supervisor or group leader • Posting all safety procedures where necessary
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MARKETING Branding
BRAND
Anew
GET IN FRONT OF YOUR CUSTOMERS, AND YOUR COMPETITION, BY BRANDING YOUR LAB WITH UNFORGETTABLE WORDS AND GRAPHICS THAT ESTABLISH YOUR REPUTATION’S EXPECTATIONS. By Jamiee Palkovicz
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randing lets customers identify your lab in an instant with just a few words or a slogan. Think, “Finger Lickin’ Good” from KFC, “I’m Lovin’ It” from McDonald’s, and “Taste the Rainbow” from Skittles. Without a branding strategy, it’s easy for your lab to get lost in the shuffle. Lead with your brand so it instantly comes to mind when people think of your lab. With few words or possibly even just a graphic (think Nike’s swoosh) you can get your point across and put your lab in control. Here’s how.
BRAND NEW START Our brand at i-see Optical Lab in Blackwood, NJ, is “Your Trusted Local Optical Lab.” Accounts immediately know that i-see Optical is in their
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In an industry like ours, where consolidation seems to happen more and more every day, being different is the only way to get noticed. – Bill Heffner, FEA Industries
neighborhood, and the trust is more than implied, it’s stated. Current as well as prospective customers know what to expect when working with “Your Trusted Optical Lab.” In this way i-see Optical zeroes in on accounts specifically within the local tri-state area. Branding is your way of setting a precedent on expectations and taking control of what accounts might otherwise assume. FEA Industries, Inc.’s Bill Heffner talks about his lab’s brand as “Focused on Technology.” This slogan lets their accounts know that they are dedicated to using
technology to push the envelope in providing the best quality and innovation available at that moment. “We did the opposite of what everyone else was doing,” Heffner said about FEA’s branding strategy. “In an industry like ours, where consolidation seems to happen more and more every day, being different is the only way to get noticed. In many of the major logos and branding, you see the same thing regardless of what company creates it — safe, corporate and probably with an eyeball in it somewhere. We wanted to shake this up but also establish
some brand guidelines in order to communicate a consistent message.” One way FEA has differentiated itself was by creating its own magazine. (See “‘Opt’ Out” May 2016 OLP.) OpticalLabProducts.com/ Opt-Out “Providing Patients With the Best Vision Possible” is how Greg Ruden describes Expert Optics in Shorewood, IL. When branding your lab, Ruden explains that you want to specify what makes you different and why accounts should use your lab instead of a competitor.
SPREADING THE WORD After creating your brand comes the next most important step, getting your brand out there . . . and keeping it out there. Both Expert Optics and i-see Optical go about accomplishing this
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in the same way, using their skilled sales consultants to go out and convey their message to prospective accounts and to reassure current customers what they stand for. “Our sales reps go out there and keep our brand relevant,” said Ruden. “Along with that we host webinars that go along with our brand.” In addition, i-see Optical Lab has a large social media presence that it relies on to convey its brand to a wide audience. Rebeca Nicole, account relations for i-see Optical Lab, explained further, “We make sure that everything we put on social media goes along with our brand of being ‘Your Trusted Local Optical Lab.’ Always letting our customers know we are there for them with whatever they need and that they know they can trust us is a part of who we are; it’s our brand.” Along with social media, i-see Optical also makes sure its branding is on all material it sends or gives out. FEA’s approach “in order to ensure the brand is known” said Heffner, is “we adopted a consistency in our presentation. Branding standards and
guidelines help give us this consistent approach across multiple platforms. That helps to ensure that if someone finds us online, in a magazine or from regular mail, they see the same branding and imagery and get the same message.” You want to live and breathe your brand and make sure your sales consultants are relaying that to your customers and prospective accounts. When you look at Expert Optics’ website, the brand is the first thing you see on the homepage, and the company also makes sure the brand is also on all the marketing items that go out.
FREE-FORM LENS DESIGNER
Defines the lens as a continuous surface which increases optical definition, improves field amplitude and reduces peripheral aberrations...
Your brand sets expectations. It is how you want to be recognized by your current accounts and prospective customers, so start thinking about it, develop it and spread the word any way you can.
Jaimee Palkovicz is marketing coordinator of i-see Optical Lab in Blackwood, NJ. Her “I-Catching Lifestyle” blog is updated every Tuesday and Friday. TheICatchingLifestyle.com/Blog
... while other digital lens design software define the lens as a sequence of points connected arbitrarily.
WEAR FIT TECHNOLOGY Personalization technology that compensates for the aberrations produced by a lens due to its position of use.
THICKNESS TECHNOLOGY Complete customization with the ability to optimize & reduce thickness for all kinds of frames, shapes & materials.
BLENDING TECHNOLOGY Developed to thin the edges of a lens by reducing the thickness with a gradual change of curvature.
i-see optical
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MARKETING Branding
GIVE YOUR BRANDING Time to Work BRANDING — A LOT OF COMPANIES LARGE, SMALL AND IN-BETWEEN DO THIS WELL, BUT MANY DO NOT. FOLLOW THIS EXPERT ADVICE TO ENSURE YOU FALL INTO THE GROUP THAT DOES IT WELL. By Terry Tanker
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ompanies fall into two categories — those that understand the “what” of marketing communication strategies and, probably more importantly, the “how.” They also understand the basics, such as the fact that branding takes time and it’s about everything you do, not just the ads you run. The other category consists of those who don’t understand. Commonly, they expect immediate results and consistently confuse the many different components. They expect an X result when they should be expecting a Y. In the real world, you don’t have infinite resources and you don’t have perfect products — no one does. Guy Kawasaki, an early Apple employee, knows a lot about branding. Here is some of his sage advice, along with definitions and commentary that should help you apply it to the lab business.
THE HIGH GROUND Establish your brand on conditions that are positive such as “making meaning,” “doing good,” “changing the world” and “making people happy” – not destroying your competition. This is straightforward. There is nothing better for a customer than to have a great experience with your lab — it will make them happy. You are doing good, fixing problems for customers. And, it can easily be
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argued that you are changing the world. (Can you imagine our world without eyeglasses that enable people to see well and look good at the same time?) Create one message. It’s difficult enough to create and communicate one branding message, but many companies try to establish several because they want the “entire” market and are afraid of being niched. “Our computer is for Fortune 500 companies. And, oh yes, it’s also for consumers to use at home.” Pick one message, stick with it. Enough said. Speak English. Not necessarily “English,” but communicate without jargon. If your positioning statement uses any acronyms, the odds are that a) most people won’t understand your branding and b) your branding won’t last long. For example, “the best MP3 decoder” presumes that people understand what “MP3” and “decoder” mean much less the term “MP3” itself. Not to be an ageist, but a good test is to ask your parents if they understand what your positioning means — assuming your parents aren’t computer science professors. Many large companies struggle with this. They let engineers get involved with writing marketing copy, and 99% of the time it doesn’t turn out well. Take the opposite test. How many times have you read a product description like
“Our software is scalable, secure, easy-to-use and fast”? Companies use these adjectives as if no other company claims its product is scalable, secure, easy-to-use and fast. Unless your competition uses the antonyms of the adjectives that you use, your description is useless. You’ve got competitors — a lot of them. Create a simple message. Superior Service; Certified Technicians; Quick Turnaround; Experts At … Over time, you can use all of these, just not all at once. Cascade the message. Cascade it up and down your organization. The marketing departments of many companies assume that once they’ve put out the press release or run the ad, the entire world understands the message. This is simple. Make sure everyone in the organization understands the message and your branding. The folks answering your phones and sales reps in the field are the most critical. Examine the bounce back. You know what messages you send, but you really don’t know what messages people receive. Here’s a concept: you should ask them to bounce back the message that you sent so that you can learn how your message is truly interpreted. In the end, it’s not so much what you say as much as what people hear. This is really important. Make sure your message is
being interpreted and understood the way you intend. Branding is one of the most important aspects of any business, large or small, retail or B2B. An effective brand strategy gives you a major edge in increasingly competitive markets. Your brand is your promise to your customer. It is derived from who you are, who you want to be and who people perceive you to be. Are you the innovative maverick in your market or the experienced, reliable one? Is your product the high-cost, high-quality option or the low-cost, high-value option? You can’t be both, and you can’t be all things to all people. Who you are should be based, to some extent, on who your target customers want and need you to be.
Terry Tanker has more than 25 years of experience in the advertising and publishing industries. He began his career with a business-to-business advertising agency. Prior to forming JFT Properties LLC and HVACR Business in January 2006, he spent 20 years with a large national publishing and media firm where he was the publisher of several titles in the mechanical systems marketplace. Through JFT, he recently acquired First Vision Media Group, publisher of OLP (Optical Lab Products).
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NEW For the Lab PHANTOM LABS’ AUTO LENS TINTER
An upgraded version of the Model 85, the Model 95 was developed for both solid and gradient tinting with no lines. This automatic lens tinting machine is microcomputer controlled and features dual digital time displays that show the tinting cycle set time and remaining cycle time. A versatile arm rotates 360˚ and can accommodate up to four pairs of lenses at a time. The Model 95 also features continuous agitation of the dye solution and comes with one lens holder (Model V1-RS) and a ULlisted power adapter. For more information, contact Phantom Research Laboratories, Inc. at 800.225.5559 or PhantomResearch.com.
3D LENS VIEWER FROM OCUCO
Innovations Lab Management System and LabLink customers now have the ability to see thickness on all lens points — not just on edges — with Ocuco’s 3D Lens Viewer. ECPs can determine if an Rx is appropriate for a chosen frame without having to call the lab, but if a call is necessary, labs can easily obtain lens thickness information “in a matter of seconds,” according to the company. For more information, contact Ocuco, Inc. at 800.708.1610 or Ocuco.com.
TWO NEW GENERATORS FROM SATISLOH
Introduced at SLUGFest in November, two generators from Satisloh can easily be upgraded to meet lab needs. VFT-orbit 2E provides generating capability for all lenses, including freeform, and features VFT fast tool technology that generates up to 70 ready-to-polish lenses per hour. Available as manual or automated, the VFT-orbit 2E also features auto calibration to save time and eliminate manual adjustments and a power-save for up to 20% energy savings, according to the company. The VFT-macro-E entry-level generator for digital surfacing is designed for small labs with its small footprint and low weight. The VFT-macro-E also features auto calibration and energysaving functionality with a throughput of up to 25 lenses per hour. For more information, contact Satisloh North America at 800.866.5640 or Satisloh.com.
DIGITAL VISION TAKES OUR CUSTOMERS TO THE NEXT LEVEL Do you feel stuck at your lab with manual workarounds? Do simple tasks seem harder than they should be? DVI's flexible software and responsive support helps you take command of your lab's processes. Our guiding principle is to empower customers of all sizes to run their labs efficiently, in a way that makes sense for them. Our industry leading system provides tools to streamline, automate, and integrate all aspects of your business. Our consulting partnership ensures you're never left wondering what to do next. As an independent company focused solely on the optical lab industry, our only agenda is your success. Phone: 503.231.6606 Fax: 503.231.4943 6805 SE Milwaukie Ave. Portland, OR 97202
www.thedvi.com
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LAB News
Classic Optical Sets All-Time Company Record Youngstown, OH-based Classic Optical Laboratories, Inc. set a company record in November for fabricating more than one million custom prescription lenses in a single year. “The entire Classic team is continuously striving to find ways to increase performance to provide the best service possible to meet the needs of our customers quickly and efficiently,” said Dawn Friedkin, president. A full service lab, Classic Optical develops custom solutions to manage high-volume eyeglass programs and serves independent ECPs across the U.S.
UNIVERSAL PHOTONICS ACQUIRES POLISHING DISCS/CLOTHS BUSINESS
Universal Photonics, Inc. (UPI) announced last month it acquired Southbridge, MA-based J.I. Morris Co.’s surface polishing pads and materials business, which will operate in the JH Rhodes Co., Inc.’s facility in Vernon, NY. JH Rhodes is a subsidiary of UPI, which manufactures polishing pads for processes from pre-polish to final polish for silicon wafers, ophthalmic lenses and quartz material. “J.I. Morris Co.’s high quality products and services fits well into the polishing material business of Universal Photonics,” said Neil Johnson, president and CEO of UPI. “The acquisition will expand our ability to meet specialized customer applications with an even larger variety of pad materials and technology.”
LUXEXCEL TO INSTALL 3D PRINTING IN SECOND LAB
Luxexcel, developer of 3D printing technology of ophthalmic lenses, is set to install its second system this month in Quest Vision Care Specialty Lab in Largo, FL. Luxexcel’s VisionPlatform of 3D printers, lens design software and workflow integration tools were installed in November in IFB Solutions of Winston-Salem, NC. (See “3D Printed Lenses Are Here, Now,” November 2017 OLP.) Michael Walach, president and founder of Quest, said Luxexcel’s technology will enable Quest to produce lenses with either extreme or unusual requirements. “Quest Vision Care Specialty Lab is known as the lab in the industry for specialty lenses,” Walach said. “The flexibility the Luxexcel VisionPlatform offers empowers us to provide completely customized ophthalmic lenses made to measure.”
NEW SERVICE MANAGER FOR NORTH AMERICA AT SCHNEIDER
Schneider Optical Machines appointed Florian Kloes service manager for North America. Kloes has worked for Schneider for 15 years, having held senior technical leadership and product management roles. As service manager, Kloes is responsible for leading the technical team and acting as a key service resource for customers. “Flo adds a key contact level to our growing team,” said Kurt Atchison, president. “He has been invaluable to virtually every Schneider customer for many years now and has proven his ability to lead a first class team into the future.”
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GIVE YOUR LAB THE
ULTRA ADVANTAGE
SOLUTIONS FOR EVERY NEED.
GET IT RIGHT. EVERY TIME.
essential products for every lab.
coater, offering the best coating yields in the market.
Superior coatings for all substrates and
• UV-XBT scratch-resistant coating offers unmatched adhesion to all lens substrates • AST-1 scratch-resistant coating is the hardest coating in the optical industry • ClearView is specially formulated to offer the
The 44R is the fastest and most reliable automated
• Capable of running lenses Off or On the Block to best fit your lab’s coating needs • 125 lens-per-hour throughput • Best process technologies for the lowest breakage rates
best lens preparation before backside coating • ConsisTint will eliminate white spots and blotchiness for your tinting department Ask Ultra Optics about our other chemistry offerings.
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Because quality matters
CCP m dulo Faster, without limitations The powerful and reliable CCP Modulo S puts quality first without compromising flexibility. Now fitted with high-speed handling systems, top quality has become even faster. This powerful combination keeps breakage and cost per lens at an absolute minimum, producing excellent results even with knife-edged lenses. Perfectly suited to cover basic everyday needs and highly sophisticated specialty jobs alike, this jack of all trades polishes the widest range of curvatures, any material and any process without limitations. Premium quality, full flexibility, faster than ever.
SCHNEIDER GmbH & Co. KG Biegenstrasse 8–12 35112 Fronhausen, Germany Phone: +49 (64 26) 96 96-0 www.schneider-om.com
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SCHNEIDER Optical Machines Inc. 6644 All Stars Avenue, Suite 100 Frisco, TX 75033, USA Phone: +1 (972) 247-4000 info-us@schneider-om.com
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