It’s a question I get asked frequently, most recently by a colleague who was shocked to find that his new pair of prescription eyeglasses cost about $800.
Why are these things so damn expensive?
The answer: Because no one is doing anything to prevent a near-monopolistic, $100-billion industry from shamelessly abusing its market power.
Prescription eyewear represents perhaps the single biggest mass-market consumer ripoff to be found.
The stats tell the whole story.
I reached out to the Vision Council for an industry perspective on pricing. The group describes itself as “a nonprofit organization serving as a global voice for eyewear and eyecare.”
But after receiving my email asking why glasses cost so much, Kelly Barry, a spokeswoman for the Vision Council, said the group “is unable to participate in this story at this time.”
I asked why. She said the Vision Council, a global voice for eyewear and eyecare, prefers to focus on “health and fashion trend messaging.”
And because it represents so many different manufacturers and brands, she said, it’s difficult for the association “to make any comments on pricing.”
Which is to say, don’t worry your pretty head.
What the Vision Council probably didn’t want to get into is the fact that for years a single company, Luxottica, has controlled much of the eyewear market. If you wear designer glasses, there’s a very good chance you’re wearing Luxottica frames.
Its owned and licensed brands include Armani, Brooks Brothers, Burberry, Chanel, Coach, DKNY, Dolce & Gabbana, Michael Kors, Oakley, Oliver Peoples, Persol, Polo Ralph Lauren, Ray-Ban, Tiffany, Valentino, Vogue and Versace.
Italy’s Luxottica also runs EyeMed Vision Care, LensCrafters, Pearle Vision, Sears Optical, Sunglass Hut and Target Optical.
Just pause to appreciate the lengthy shadow this one company casts over the vision care market. You go into a LensCrafters retail outlet, where the salesperson shows you Luxottica frames under various names, and then the company pays itself when you use your EyeMed insurance.
A very sweet deal.
Why are these things so damn expensive?
The answer: Because no one is doing anything to prevent a near-monopolistic, $100-billion industry from shamelessly abusing its market power.
Prescription eyewear represents perhaps the single biggest mass-market consumer ripoff to be found.
The stats tell the whole story.
- The Vision Council, an optical industry trade group, estimates that about three-quarters of U.S. adults use some sort of vision correction. About two-thirds of that number wear eyeglasses.
- That’s roughly 126 million people, which represents some pretty significant economies of scale.
- The average cost of a pair of frames is $231, according to VSP, the leading provider of employer eye care benefits.
- The average cost of a pair of single-vision lenses is $112. Progressive, no-line lenses can run twice that amount.
- The true cost of a pair of acetate frames — three pieces of plastic and some bits of metal — is as low as $10, according to some estimates. Check out the prices of Chinese designer knockoffs available online.
- Lenses require precision work, but they are almost entirely made of plastic and almost all production is automated.
I reached out to the Vision Council for an industry perspective on pricing. The group describes itself as “a nonprofit organization serving as a global voice for eyewear and eyecare.”But after receiving my email asking why glasses cost so much, Kelly Barry, a spokeswoman for the Vision Council, said the group “is unable to participate in this story at this time.”
I asked why. She said the Vision Council, a global voice for eyewear and eyecare, prefers to focus on “health and fashion trend messaging.”
And because it represents so many different manufacturers and brands, she said, it’s difficult for the association “to make any comments on pricing.”
Which is to say, don’t worry your pretty head.
What the Vision Council probably didn’t want to get into is the fact that for years a single company, Luxottica, has controlled much of the eyewear market. If you wear designer glasses, there’s a very good chance you’re wearing Luxottica frames.
Its owned and licensed brands include Armani, Brooks Brothers, Burberry, Chanel, Coach, DKNY, Dolce & Gabbana, Michael Kors, Oakley, Oliver Peoples, Persol, Polo Ralph Lauren, Ray-Ban, Tiffany, Valentino, Vogue and Versace.
Italy’s Luxottica also runs EyeMed Vision Care, LensCrafters, Pearle Vision, Sears Optical, Sunglass Hut and Target Optical.
Just pause to appreciate the lengthy shadow this one company casts over the vision care market. You go into a LensCrafters retail outlet, where the salesperson shows you Luxottica frames under various names, and then the company pays itself when you use your EyeMed insurance.
A very sweet deal.
by David Lazarus, LA Times | Read more:
Image: Getty
[ed. Repost. I bought some sunglasses last week and wondered why nothing ever changed after this exposé. See also: this 60 Minutes segment on Luxottica.]
[ed. Repost. I bought some sunglasses last week and wondered why nothing ever changed after this exposé. See also: this 60 Minutes segment on Luxottica.]
