In-line vs. Off-Price
Independent Optical Practice Case Study
Same frame. Same patient. Same insurance reimbursement. Two very different profit outcomes. That is not a hypothetical, it is a real transaction, and the only variable that changed between the two outcomes was where the frame was sourced. For an independent optical practice, that single variable is worth understanding in detail.
In-line eyewear via direct brand accounts remains an important part of many optical practices’ frame strategies. However, it’s not always the strongest business decision. Strategically incorporating off-price eyewear into your frame boards can expand patient choice while drastically improving profitability—particularly when insurance reimbursements remain fixed.
What We Mean by Off-Price Eyewear
Throughout this case study, the terms off-price, overstock, excess, discontinued, and closeout eyewear refer to authentic, factory-new designer frames purchased outside the traditional in-line wholesale channel. MJG Trading supplies off-price eyewear to independent optical practices and multi-location optical groups, allowing them to add recognized designer brands to their frame boards at costs significantly below traditional wholesale while improving margins and expanding patient selection.
Key Takeaways: Under the same insurance reimbursement scenario, purchasing an in-line frame directly from the brand generates $82.60 in frame-level gross profit. Sourcing an off-price frame from the same designer through MJG Trading generates $167.50—an increase of $84.90, or 103% more frame-level gross profit.
Overview: One Frame, One Insurance Claim, Two Sourcing Paths
Same Designer, Lower Frame Cost, Higher Profit
In this example, the optical practice receives $207.50 in total frame revenue, combining the insurance benefit and the patient’s out-of-pocket responsibility. That revenue remains the same regardless of how the frame was sourced. What changes is the practice’s acquisition cost—and therefore the gross profit earned on the frame.
The comparison looks at two designer frames positioned at the same reimbursement level. One is an in-line frame purchased directly from the brand, while the other is an off-price frame from the same designer sourced through MJG Trading. The exact style may differ, but the insurance benefit, patient responsibility, and total frame revenue remain the same. The key difference is what the practice paid for the frame.
In this example, the optical practice receives $207.50 in total frame revenue from the insurance benefit and the patient’s responsibility. Because that revenue remains the same in both sourcing scenarios, the difference in frame-level gross profit comes down to one factor: how much the practice paid to acquire the frame.
Scenario One: Buying Direct From the Brand
Scenario One: $82.60 in Frame Profit With an In-Line Frame
The practice purchases an in-line designer frame directly from the brand for $124.90. The practice receives $207.50 in total frame revenue from the insurance benefit and the patient’s responsibility. After subtracting the frame cost, the practice earns:
$82.60 in frame-level gross profit
$207.50 revenue – $124.90 frame cost = $82.60 gross profit
Buying this premium designer frame direct from the brand costs the practice $124.90. Against a fixed $207.50 charge to insurance and patient, that nets $82.60 in profit. That is the baseline most independent practices assume is close to the best available outcome for that frame.
Scenario Two: Sourcing the Same Frame Off-Price Through MJG Trading
Scenario Two: 103% More Frame Profit With Off-Price Eyewear
The practice purchases an off-price frame from the same designer through MJG Trading for $40.00. The practice still receives $207.50 in total frame revenue from the insurance benefit and the patient’s responsibility. After subtracting the lower frame cost, the practice earns:
$167.50 in frame-level gross profit
$207.50 revenue – $40.00 frame cost = $167.50 gross profit
The frame may be a different style, but it is from the same designer and is positioned at the same insurance reimbursement level.
The Result: 103% More Frame Profit
The math here is simple because the $207.50 revenue figure cancels out in the subtraction. The delta between the two scenarios is just cost minus cost: $124.90 minus $40, or $84.90 more profit per frame when sourced off-price through MJG Trading. As a percentage of the direct from brand profit, that $84.90 gain represents a 103% increase in profit on the frame alone.
Both framings matter because they answer different questions. The dollar figure, $84.90, tells a single practice what one frame is worth. The percentage figure, 103%, tells the same practice what happens when that gap compounds across a month of premium frame volume. Measured against the full profit of the job, including the lens and anti reflective coating, the same sourcing decision adds roughly 53% more total profit on that job.
The profit difference between buying direct from the brand and sourcing off-price through MJG Trading on this frame is $84.90, a 103% increase over the direct from brand baseline. That gap is driven entirely by cost basis, not by any change in the claim, the patient, or the product.
Why Optical Practice Margins Are Under Pressure
Vision plan fee schedules are not moving to compensate. The American Optometric Association Health Policy Institute tracked this in 2024 and 2025: more than 70% of independent optometrists report no fee schedule increase from their largest vision plan in five or more years. Over a third have never received one at all. When the claim amount itself is effectively frozen, cost basis becomes the only lever left for margin.
That pressure shows up across the broader numbers too. In 2025, optical goods cost of goods sold commonly ran 27% to 35% of gross revenue for an independent practice, according to ODs on Finance. Product sales, frames and lenses together, made up roughly 52.5% of gross profit for a practice near $500,000 in annual revenue, per mybcat.com practice benchmarking data. Frames are not a side category. They are close to the largest single driver of practice profitability, which is exactly why the sourcing decision behind them carries so much weight.
The broader industry context reinforces the point. In 2025, the U.S. optical industry reached $69.5 billion, according to The Vision Council’s VisionWatch report, even as unit purchase volume and eye exam counts declined. That combination means the value in this industry is concentrating in fewer, higher value transactions, not more transactions overall. Isn’t that exactly the environment where off-price sourcing on premium frames matters more, not less?
More than 70% of independent optometrists have not seen a fee schedule increase from their largest vision plan in five or more years. That finding comes from the American Optometric Association Health Policy Institute, 2024 to 2025. With the claim amount effectively fixed for most practices, cost basis at the point of purchase is the primary remaining lever for protecting frame profit.
Calculate the Margin Opportunity for Your Optical Practice
This case is one frame, one claim, one moment in time. Every practice’s own cost basis, claim amounts, and monthly premium frame volume will differ, sometimes significantly. The value of this exhibit is not that the exact numbers apply everywhere. It is that the mechanism, cost basis driving profit while revenue stays fixed, applies to every practice running this comparison for itself.
This case study uses a mid-tier frame as a simple example, but your profit opportunity could be even greater with higher-cost designer eyewear. Enter the cost of an in-line frame, the cost of a comparable closeout frame, the insurance reimbursement, the patient responsibility, and your monthly frame volume into the Margin Calculator to instantly estimate how much more frame profit your practice could generate—no email required.
The same premiumization dynamic covered in The Profit Blueprint: Sourcing a High-Margin Designer Eyewear Collection helps explain why this math matters more in 2026 than it did a few years ago. As more practice revenue concentrates in premium designer frames, the cost basis behind each one carries more weight on the bottom line.
Frequently Asked Questions
Is it cheaper to buy frames direct from the brand or source them off-price through MJG Trading?
It depends entirely on the specific cost basis each option actually offers, not on the channel label itself. In this case, buying direct from the brand cost $124.90 on the frame. Sourcing the same frame off-price through MJG Trading cost $40, a $84.90 difference in profit on an identical $207.50 claim. The channel that looks more prestigious is not automatically the one with the better cost basis.
Why do vision insurance reimbursements not cover the full frame cost?
Vision plan fee schedules have largely stayed flat for years. The American Optometric Association Health Policy Institute found that, as of 2024 and 2025, more than 70% of independent optometrists report no fee schedule increase from their largest vision plan in five or more years. That means the claim amount itself rarely rises to match a practice’s actual acquisition cost for premium frames.
What margin should an independent optical practice target on frames?
In 2025, optical goods cost of goods sold commonly ran 27% to 35% of gross revenue for an independent practice, according to ODs on Finance. Product sales made up roughly 52.5% of gross profit for a practice near $500,000 in annual revenue, per mybcat.com practice benchmarking data. Frame sourcing decisions that move cost basis meaningfully affect both benchmarks directly.
Does off-price sourcing always mean a lower cost than buying direct?
No. This case shows the opposite outcome on a real transaction: the off-price cost basis through MJG Trading was lower than the direct from brand cost basis on the identical frame and claim. The deciding factor is the actual cost basis a given account is offered, not an assumption tied to the channel label.
Is vision insurance reimbursement the same for an off-price frame and an in-line frame?
Yes. The insurance reimbursement is set by the vision plan’s fee schedule for that benefit tier, not by where or how the practice sourced the frame. In this case study, the practice receives the same $207.50 in total frame revenue, combining the insurance benefit and the patient’s responsibility, whether the frame is an in-line purchase direct from the brand or an off-price frame from the same designer through MJG Trading. Because the reimbursement is fixed, the frame’s acquisition cost is the only variable that changes, which is why sourcing off-price increases frame-level gross profit without affecting the claim, the patient, or the reimbursement itself.
See What Off-Price Eyewear Could Mean for Your Practice
Three facts converge in this case: the claim amount was fixed, and the product was identical. Yet the profit outcome still varied by 103%, based on one decision made before the sale ever happened. That is not a marginal detail. Product sales already make up roughly half of practice gross profit in this category, and cost basis is one of the largest levers an independent practice still controls.
See this math against your own numbers with the Margin Calculator, or apply for a wholesale account to see the cost basis MJG Trading can offer on your own frame board.
Sources
- The Vision Council, VisionWatch data via Eyewire News, “US Optical Industry Grows to $69.5 Billion in 2025 Despite Fewer Purchases and Eye Exams,” eyewire.news
- American Optometric Association Health Policy Institute, vision plan reimbursement reporting, aoa.org
- ODs on Finance, “The Practice Owner’s Financial Statements,” odsonfinance.com
- mybcat.com, optometry practice finances benchmarking, mybcat.com
- Optometric Management, “Negotiate Successfully With Frame Vendors,” background context, optometricmanagement.com
- MJG Trading case data, 2026 (proprietary, internal)
See What Off-Price Eyewear Could Mean for Your Practice
See this math against your own numbers with the Margin Calculator, or apply for a wholesale account to see the cost basis MJG Trading can offer on your own frame board.
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