Sean Cooley, Altair’s VP and general manager said Altair’s signifi cant growth over 25 years has been a business model based on access, data, great product and “risk reversal.”
NEW YORK—From its beginnings as a frame company launched by VSP in 1992, Altair Eyewear took an approach unlike all other U.S. frame companies in the category.

Communicating to VSP doctors about its frame selections via an internal telemarketing sales team and sending out “kits” which the practices would pay for only when the products sold through, Altair’s tactics ran counter to the industry’s norms.

Today, with its product portfolio bolstered by its own proprietary brand labels, like Genesis and Altair as well as a range of designer and lifestyle brands including Anne Klein, bebe, Cole Haan, Joseph Abboud, Joe by Joseph Abboud and Revlon, in 25 years Altair has grown into one of the U.S. eyewear industry’s largest companies in terms of sales and units.

In fact, Sean Cooley, vice president and general manager of Altair, told VM, today, Altair is the fifth largest frame supplier in terms of both units and dollar sales, among all VSP frame claims. The company, a division of Marchon (which was acquired by VSP Global in 2008), sells to approximately 50 percent of VSP’s 17,000-plus network practices.

Cooley said, “The origins of Altair go back 25 years and the founders asked doctors, what do you need in a frame company? The end result reflected three key principles. It was accessibility. It was frame board management insights and it was positive cash flow—doctors asked, ‘what can we do to reduce the risk of inventory?’ So Altair was built around a consignment model and it is still all about risk-reversal. You the doctor or practice put the risk on Altair and when the product sells through, that’s the only time that it’s invoiced.”

He continued, “Altair is a great example of VSP investing back in the business and the needs of doctors. Frame board management insights are so important to them. In the beginning, the inspiration for the products chosen were based on the value segment and proprietary brands.

“Through our access to data, and as a part of VSP, we have a great deal of aggregate data. That data gives us tremendous perspective on the ’80-20 rule.’ We were learning about what is connecting with 80 percent of the members/patients in the U.S. From the frame claims, we could ascertain what frame shapes, what brands and styles were selling the best.”

As a result, Altair, for its proprietary brands and for its licensed brands, the company develops tightly focused collections.

Altair’s now 35 member internal sales team started out 25 years ago with phone calls and now the phone is accompanied by Webex and online presentations to help explain the collections and styles to doctors. “We use video conferencing, presentations, a recommended product mix, a tight collection of styles informed by, but not driven by, data,” noted Cooley.

Doctors can choose delivery of Altair product to their own lab choices, but those who work within the lab-direct model at Altair are benefiting from free shipping on orders. Those frames are inventoried at VSP’s HQ and sent over to the VSP One lab three times a day. Frames stay on the practice’s board, orders are transmitted electronically to the lab for processing and then delivered to the doctor’s office. Other VSP labs are also part of the system.

Stated Cooley, “It’s really a force multiplier—doctors and their staff know their patient base best; they determine the prices they put out there. But the model of Altair is to use our capabilities within the company for product design and development combined with insights and collective data that can help them make risk-free decisions.”

In recent years, the issue of fill rates and product availability is paramount to doctors, Cooley said. “Doctors tell us they need very high fill rates and availability of the product so they can be assured the order can be fulfilled. That has led to our deep investment in inventory. The results of that are that we have a very high 99 percent-plus fill rate, which is tremendous. Any order we receive by 5 pm PST will go out that same day.”

Erin Allen, director of sales for Altair, who joined the company a few years back after a long-time sales career in the lab and lens business, explained, “Our sales model is built around technology and this important data piece. My role is to be part of a team that provides the product and a great service to independent optometrists to help them with their inventory management.”

Erin Allen, Altair’s director of sales. An internal team of 35 people sell and manage business for practices via phone, conferences and other tools.
She added, “Doctors want to understand how their practice compares to other practices and want to know how to move their inventory management into more of a data mode. Our product has such a wide appeal. Our reps work as board consultants too, to help our accounts make sure the best product for their patient base is on the board and selling properly. We have lots of tools and resources we can provide and have streamlined much of our data which helps the process.”

Altair’s product development, licensing and market knowledge as well as field sales reach was amplified after the VSP acquisition of Marchon in 2008, Cooley pointed out. “Our brands, which are value and lifestyle segment brands are a great complement to Marchon’s, which spans from lifestyle all the way to luxury.

“The acceleration of Altair’s business is directly related to our partnership with Marchon. In New York City, at the design center and showroom in Manhattan, we’re so close to all our licensors, the design expertise and the deep relationships Marchon has developed. Actually, our largest brand, Bebe, is sold through the Altair group and also through about 50 reps from Marchon in the field, but with their own business model, which is complementary to our consignment model. This has worked very well.”

Cooley stated, “We’ve seen the compounding growth of Altair, even into our 25th year and that growth is reflective of our doctors’ growth. We focus on providing value, but we’re a great example of how VSP has invested back into the model of independent optometry,” he concluded.