Your inventory turn rate compares the number of frames sold each year to the number kept in inventory to determine if inventory is keeping up with frame demand. An ideal turn rate is between 3-4, indicating inventory is neither too large nor too small. A turn rate below 3 suggests excess inventory, while above 4 could mean limited selection from lack of inventory. A practice should calculate its turn rate to ensure frames are available to meet patient needs.

1. Inventory Turn Rate
Is Your Frame Inventory
Keeping Up with Sales?

2. Frame sales are a big portion of most
practice’s revenue!
It’s important that your inventory is
keeping up with your patient’s frame
demand.

3. Your inventory turn rate gives you
insight on whether your inventory is
keeping up or falling behind your
frame sale rate.

4. To calculate:
Inventory
Turn Rate
=
Number of frames
sold each year
Number of frames
kept in inventory

5. Industry Benchmarks
Inventory
Turn Rate
=
Inventory
Turn Rate
=
3
4
Your practice has slow
moving inventory=
=
Your practice needs a
larger selection of
inventory

6. A low inventory turn rate (less than 3) might
imply poor sales and therefore, excess
inventory.
Whereas a high turnover rate (more than 4)
could be a sign of lack of inventory and
limited selection of products.

7. However, having a rate that isn’t 3 – 4 times
isn’t necessarily a sign of a problem. In fact,
higher end, lower inventory opticals should
strive for a higher rate.
A healthy inventory turn rate should usually,
but not always, fall between 3 and 4.

8. What is your practice’s inventory turn rate?
=÷Number of frames
sold each year
Number of frames
kept in inventory
Inventory Turn Rate