Lynx IDG - The UK's leading optical interior specialists

Happy New Year and welcome to my 1st blog of 2012.

So here is the news – if you hadn’t already heard, the government have decided in their wisdom to reduce the capital allowance tax relief from £100k to £25k on capital purchases as of April this year. This comes barely a year after it was lifted from the previous £50k limit to the all time high at £100k – Unbelievable!! So much for assisting SME’s on the road to recovery.

All is not lost of course, as long as your equipment / shopfittings etc… are in use before the March 31st deadline, you will still qualify for your full allowance – So if you are thinking of making a large capital investment, the message is clear… Do it now, or lose out.

On a brighter note, research group (GFL) have just released the latest findings – Guess what? Niche sales (high value frames / lenses) are seeing a marked increase (frames valued at £250 plus - rising a staggering 26.1% against the same period 12 months ago) while mid / lower value frames are seeing a decline in numbers sold.

It would therefore appear that those amongst you who decided to venture up market in search of the higher value dispense got it right.

I have long advocated this approach (where viable) as the best form of defence (or attack) against online retailers and multiples.

Only independents carry the kudos and weight of experience the high end purchaser needs when purchasing at this level and this is where professionalism and service trump a discounted offer.

This is your natural domain and surely the figures speak for themselves.

My message for 2012 – Up the stakes, take the bull by the horns and ramp up your offer. Be bold, stock higher value, out of the ordinary brands and styles and push those coatings. It is clear there is still a huge market at this end of the scale, so capitalise on it – Or others will do it for you!

Naturally, your practice will need to look the part in order to exploit this position to best effect. Give me a call and I will help you get there.

Until next time – keep positive and here is to an exciting and profitable 2012.

The Ghost in the Machine.