A BUSINESS WITH VISION AND PROFIT

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A BUSINESS WITH VISION AND PROFIT
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• TODAYS AGENDA
• Company Introduction
• Market Place
• Market Forces
• Current Players
• Advertising Buys The Business
• Our Opportunity
• How Much Money Can I Make
• What does It Cost To Get Started

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• COMPANY INTRODUCTION
• Specslab.Com is a specialist marketing company
• 50 years experience of Prescription Spectacle
  Manufacturing
• Qualified London Dispensing Opticians check all
  prescriptions
• Own Brand Frames
• Designer Brand Frames
• Vast Range of Lenses readily available
• Next Gen Transition Lenses
• Tinting
• Fast turn-around times due to latest cutting
  technology

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• UK MARKET PLACE FACTS FIGURES
• Market size today at 1.4B increasing by 2pa
• 2003 Spectacles 59VOS 7 Contacts
• 2007 Spectacles 55VOS 26 Contacts (predicted)
• 2003 771.6M Spectacle sales
• 2007 783.7M Spectacle sales (predicted)
• 2003 274M Contact Lenses
• 2007 335.9M Contact Lenses (predicted)
• (VOS value of sales) (Statistics by
  Euromonitor)

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• MARKET FORCES
• EU Legislation Health Regulations
• Re Employer paid for eye-tests in the
• work place POSITIVE
• Laser Surgery (Still a niche market due to cost
• and fear) NEGATIVE
• Ageing population increase POSITIVE
• Higher incidence of vision problems POSITIVE
• Designer Brand licensing of frames POSITIVE

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Four major players dominate the market place,
Specsavers, Dollond Aitchison, Boots Opticians
Vision Express. Two are losing market share.
Two are struggling to generate satisfactory
profit levels and another has seen profits fall
because of intense discounting THEY ALL FACE THE
FOLLOWING CHALLENGES Smaller groups / chains of
independents are building critical mass.
Supermarkets are entering the market bringing
even greater competitive pressure. On-Line
retailers are becoming more acceptable to the
general public
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MARKETING SPENDS IN THE UK Over 41.5M spent on
Advertising 28.6M on Eye-Care 12.1M on Frames
Lenses 0.82M on Lens Care Products SPECSAVERS
alone in 2003 spent 11M. A lot of that
advertising was used to promote specsavers.co.uk
and direct its traditional customers to BUY ON
LINE (Source Euromonitor 2003)
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MINTEL 2004 INDUSTRY REPORT HEADLINES Overall
Market shows slow but steady growth Imports
dominate spectacle frame market Franchising
proves formula for success Direct supply takes
off slowly but is undoubtedly growing
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CONCLUSIONS Although the market place will
continue to grow year on year two issues must be
addressed if opticians are to survive. 1/ Cost
of High Street operations / product supply must
reduce. 2/ Sales values / margins must increase.
Specsavers are already preparing themselves for
the future by promoting their on-line
facilities. As growth in this sector is achieved
it would be realistic to see them dispose of
their less profitable High Street outlets. As all
on-line activity can be monitored by post code
such definite areas of growth can be seen and
advertising effect clearly monitored.
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OUR OPPORTUNITY
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MANUFACTURING Specslab.com operate a low
cost-base model. In simple terms our Opticians
already cover their costs with local sales. We
take up the surplus capacity in their
manufacturing capability with our on-line sales
capability. As such our cost-base is difficult to
match as we are not covering any real
manufacturing cost. Moreover we pay a fixed and
flat labour fee which simply adds directly to the
bottom line profit of our Opticians as a bonus.
In this way we maintain total control of
manufacturing and quality with a very low cost
price.
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ADMINISTRATION As an On-Line retailer we have
minimal administrative costs as all the real
work is carried out by the customer and our
servers. Sales receipts, work orders and packing
labels are all self generated by the server, the
whole process from order -to- payment -to-
manufacture is automated. Correlation and quality
control are carried out by our Opticians, leaving
only packing, shipping and posting to be achieved
manually.
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MARKETING This is an education process not a
sales process. The general public have been
historically trained to go to the High Street
when purchasing prescription glasses. Which is
why the major players are situated there and why
frame manufacturers like De Rigo purchased the
High Street Opticians Dollond and Aitchison to
increase their retail market share.
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MARKETING The only way to educate the population
at large is to meet with em, talk to them but
keep the message simple and short (Winston
Churchill 1944) We believe Mr Churchill was right
in this respect and thats exactly what we at
specslab.co.uk do everyday. Utilising branded
vehicles (Mercedes A series) and Ad Trailers, our
promotional staff locate in town centres,
supermarket car parks and any other heavy
footfall areas that are suitable, and simply
approach the public with our leaflets and an
explanation about our business. All vehicles
carry sample frames and Laptop computers with Wi
Fi capability to demonstrate the site or take an
order if required.
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SALES ADMINISTRATION Each specslab.com agency is
allocated a geographical area with a minimum
2,000,000 population. The area is determined by
Post Code boundary's to allow the accurate
allocation of sold and delivered business. Larger
areas are available but only if the agent is
prepared to put more teams and vehicles out. All
agents have access to the SQL servers to monitor
their performance and follow their orders through
on the system. Settlement is carried out on a
weekly basis by direct transfer into the agents
account.
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MARGINS Agency retained margins are 20 of
purchase price. MARKET SIZE In the UK today in
excess of 30 million people are eyewear users or
approx 60 of the population. The 45 - 59 age
group account for 19.8 of the population and of
these some 86 are eyewear users. (Source Mintel
2004 Euromonitor)
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TARGET MARKETS Older consumers who remain the
key purchasers of all eyewear products are
reluctant to trade up from traditional spectacles
due to the higher cost and also due to a lack of
awareness about contact lenses in general. This
explains the difficult future Contact Lens
manufacturers may have in attracting the ageing
population. (Source Euromonitor 2004)
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TARGET MARKETS The major emerging trend noted by
opticians and teachers is the deterioration in
the eyesight of children and young people. This
problem has arisen as a result of spending more
time on computers, playing with Game-boy type
products and watching television. The number of
people undergoing eye tests is on the increase -
despite the fact that the government is cutting
back funding for free eye tests. (Source
Euromonitor 2004)
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• THE NUMBERS ASSUMPTIONS
• Each agency area has a minimum population of
  2,000,000.
• An estimated 60 of these use eyewear.
  
• This gives a target market per agency of
  1,200,000.
• An agency earns sales commission of 20 - so on
  the basic priced
• product of 15.00 commission of 3.00 is payable
  
  
• The average cumulative order value over a monthly
  period is 34.11
• Therefore the agency earns commission of 6.82
  per pair.

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• THE SALES EARNING POTENTIAL
• 1 Area penetration 20x6.82x300 40,920 pa
  
• 2 Area penetration 40x6.82x300 81,840 pa
• 3 Area penetration 60x6.82x300 163,680 pa
• .

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WHAT DOES IT COST? Sales Option 1 A one time
payment of 5,000 provides The license to
promote, market and operate www.specslab.co.uk
within your dedicated area. Initial supply of
printed promotional material. Business
Cards Presentation Case with a full set of
Frames. Full staff training on the products and
site administration. Full on going support and
training on new products as they come on line.
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WHAT DOES IT COST? Sales Option 2 A one time
payment of 15,000 provides The license to
promote, market and operate www.specslab.co.uk
within your dedicated area. Initial supply of
printed promotional material. Business
Cards Presentation Case with a full set of
Frames. Full staff training on the products and
site administration. Full on going support and
training on new products as they come on line. A
Shrink Wrapped Branded Promotional A series
Mercedes Vehicle A Wi-Fi enabled Notebook
Computer
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WHAT DOES IT COST? Sales Option 3 A one time
payment of 19,000 provides The license to
promote, market and operate www.specslab.co.uk
within your dedicated area. Initial supply of
printed promotional material. Business
Cards Presentation Case with a full set of
Frames. Full staff training on the products and
site administration. Full on going support and
training on new products as they come on line. 1
x Shrink Wrapped Specslab.co.uk Branded
Promotional A Series Mercedes Vehicle 1 x Double
Axle Advertising Trailer complete with Specslab
Branding 1 x Wi-Fi enabled Notebook computer
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The Optometrists Opportunity Each designated
area contains corporate accounts that will
provide a minimum number of on site contracted
eye examinations per year. Our standard contract
fee is 20 per examination We guarantee 500
examinations per annum in Year 1 or an income of
10,000 Each geographical area will contain a
population of not less than 2 million individuals
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WHAT DOES IT COST? Optometrists Option 1 A one
time payment of 45,000 provides The license to
promote, market and operate www.specslab.co.uk
within your dedicated area. Initial supply of
printed promotional material. Business
Cards Presentation Case with a full set of
Frames. Full staff training on the products and
site administration. Full on going support and
training on new products as they come on line. 1
x Fully Furbished - Specslab Branded - Trailer
mounted - Mobile Consulting unit fully fitted out
with with new eye examination equipment. 1 x
Wi-Fi enabled Notebook computer
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Finance Packages Specslab.co.uk have negotiated
with various lenders attractive rates and terms
for all Franchisees. Further information is
available upon request.
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Thank you for your interest in our Company and
business opportunity.We hope that you found the
presentation interesting, informative and
appealing. If you wish to discuss any point
covered by the presentation then please do not
hesitate to contact our UK Business Development
Director - David Cregor via one of the
following Mobile [phone] Fax
0871 711 0187 Email dcregor_at_specslab.co.uk Onc
e again thank you for your participation in this
event.