The Quest for 2020 Vision

Image result for eyeglasses industry luxottica


As a consumer of eyeglasses myself, I know that buying glasses is quite pricey. Many glasses range from $200-$500 in price at stores. At LensCrafters, the average pair of glasses is about $300. In reality, the glasses cost $25 or even less to produce! Consumer prices for frames and lenses are so astronomically high, with markups often approaching 1,000%. You may be wondering why you're paying the price of an extreme mark up.

 It is simply, a monopoly. There are many companies dominating the eyeglass industry. To mention some are: Sunglasses Hut, LensCrafters, Oliver Peoples, Pearle Vision, Target Optical, and Sears Optical. Most of the lenses are produced by a company named Luxottica. It currently controls about 80% of the $28 billion global eyeglasses industry. The demand for eyeglasses remains constant. There will always be a demand for 2020 vision because there is no "cure" to poor eyesight (unless you do lasik!). Having control over the pricing of a huge variety of different brands means Luxottica can also carefully choose the prices of different brands to encourage you to shell out an additional $80 for that high-end logo. Because the demand is constant, Luxottica is able to do whatever it wants to the eyeglasses market as it knows that people are still willing to buy the product no matter what (because they need to see!). 

 Recognizing the fact that these companies are overcharging and patronizing consumers is the best way to tackle such monopolies.
https://www.forbes.com/sites/anaswanson/2014/09/10/meet-the-four-eyed-eight-tentacled-monopoly-that-is-making-your-glasses-so-expensive/#3ae18f2e6b66
https://west.visionexpo.com/Press/Vision-Voice-Newsletter/Positive-Economic-Growth-Trickling-Down-to-the-Eyewear-Industry/
https://blog.39dollarglasses.com/2018/11/the-economics-of-eyeglasses/

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