Practice Management
Cooperative Advertising Revenue
Next in a series of easy, quick management tips that you can implement in your practice today in less than an hour,
There are very few free things in the business world, but cooperative advertising revenue is one that is available to every ECP that operates an optical dispensary or participates in contact lens management. We live in a very brand oriented society that crosses from fashion to optical licensing and consumers connect to a known brand with perceived value which keeps them in a comfort zone. Unfortunately this month’s topic cannot be executed easily in an hour but can uncover a new source of revenue available to the practice. Cooperative advertising revenue commonly referred to as coop dollars or funds are funds available from vendors that sell the ECP name brand merchandise. The ECP uses what is usually a dollar for dollar match, or 50% of the costs, to promote the vendor’s brand merchandise in a variety of ways. The origin of coop funds was to place print advertising in newspapers or magazines and/ or radio or television advertising spots promoting the brand with a tag identifying its local availability. This has expanded to include cable television, billboards and other outdoor advertising.
The ECP can use these funds in office for a number of different products and services in addition to traditional advertising. One area is the use of any number of advertising specialties such as bags, pens shirts, point-of-purchase displays, signage as well as premiums and giveaways. Another excellent cost savings is to include the brand logo on recall cards, pickup notification cards and direct mail pieces to offset their production costs.
The logistics of using coop funds does require a bit of housekeeping to ensure that the rules are followed and deadlines are meet as these funds tend to time out once a year. Additionally, most of the time, pre-approval of the layout and design is necessary for payment to be made. The vendors may pay by check after the initial outlay, split the costs from the start or apply a credit to future purchases.
On a final note, if you choose not to use your coop funds, many times they can be donated to your state association.
Dr. Dubick prepares private practice appraisals, lectures and writes on many practice management issues. He may be reached at 818.843.2214 or email at dubick@studioeyes.com.
