Keeping Profit Margins High in Your Eyecare Practice (2024)

FAQs

How profitable are optometry practices? ›

Optometry practices are known to be lucrative businesses, especially if they are able to survive their first year and solidify themselves as an organization. In fact, optometric practices have the potential to earn between 30-40% net profit.

Good optometrists are good listeners and good communicators. We all think we're good at communicating. Time and again it is a failure in communication that results in an unhappy patient, a complaint and, in the worse situation, a General Optical Council (GOC) referral.

1) Determine where you want to live and practice optometry

On the flip side, if you move to an area that has fewer optometrists, the income potential for ODs is often higher. Take the time to do your research and identify areas of the country that have a need for optometrists. Doing so will pay off in the long run.

Valuations generally range between 40% and 70% of the prior year's gross income. As a result, you simply take the optometry practice's prior year gross income and multiply that number by 58.7% of gross income. While this valuation may seem simple, there are a few important nuances.

Best-Paying States for Optometrists

The states and districts that pay Optometrists the highest mean salary are Connecticut ($155,070), Maryland ($144,570), Alaska ($143,260), North Carolina ($141,140), and Louisiana ($138,520).

Yes, being an optometrist is a good career because it has a good work-life balance, is relatively low-stress, and has higher-than-average salaries. Optometrists usually work a 40-hour week, which allows them to pursue activities outside of their jobs. An optometrist might work a daily 9 a.m. to 5 p.m. schedule.

Optometry is rewarding and provides excellent career opportunities for growth. In addition, most Doctors of Optometry have high job satisfaction and excellent quality of life.

Herbert Wertheim, the billionaire optometrist who Forbes hailed as “the greatest investor you've never heard of.” He quietly built a stock portfolio estimated at $4.6 billion. Affectionately known as Dr. Herbie, Wertheim has built his portfolio through traditional, time-tested investment strategies.

What is the average salary of a doctor of optometry in the US? ›

The average Optometrist salary in the United States is $138,106 as of June 26, 2023, but the range typically falls between $122,268 and $152,976.

Spending long periods looking at a screen can strain the eyes. Using the 20-20-20 rule can help to prevent this problem. For every 20 minutes a person looks at a screen, they should look at something 20 feet away for 20 seconds. Following the rule is a great way to remember to take frequent breaks.

According to the College, professionalism in optometry is defined as being honest and knowledgeable; acting ethically in the best interests of patients; applying knowledge; improving competence and critical judgement; communicating effectively with patients, colleagues, other health professionals and the wider ...

EBITDA is Earnings before Interest, Taxes, Depreciation and Amortization. To get to EBITDA, take your Adjusted Optometric Net and add to it Interest, Taxes and Amortization. (You already added back Depreciation to get your Adjusted Optometric Net.)

The argument for oversupply

A recent workforce study, conducted by the American Optometric Association (AOA) and consulting group Abt, measured demand for optometric services and concluded that the supply of optometrists outstrips demand by about 12%.

Job Outlook

Employment of optometrists is projected to grow 10 percent from 2021 to 2031, faster than the average for all occupations. About 1,700 openings for optometrists are projected each year, on average, over the decade.

Optometrists Graduate With $80,000 More Debt Than Estimated

But between tuition increases each year and the cost of living, the average optometry student debt for many ODs can be $200,000+. That amount of debt shifts them from being able to pay it back in 10 years or less to 20 years or more.