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Businesses The Almighty Buck

How Badly Are We Being Ripped Off On Eyewear? Former Industry Execs Tell All (latimes.com) 440

LA Times reports: Charles Dahan knows from firsthand experience how badly people get ripped off when buying eyeglasses. He was once one of the leading suppliers of frames to LensCrafters, before the company was purchased by optical behemoth Luxottica. He also built machines that improved the lens-manufacturing process. In other words, Dahan, 70, knows the eyewear business from start to finish. And he doesn't like what's happened. "There is no competition in the industry, not anymore," he told me. "Luxottica bought everyone. They set whatever prices they please."

Both Butler and Dahan (former executives with LensCrafters) acknowledged what most consumers have long suspected: that the prices we pay for eyewear in no way reflect the actual cost of making frames and lenses. When he was in the business, in the 1980s and '90s, Dahan said it cost him between $10 and $16 to manufacture a pair of quality plastic or metal frames. Lenses, he said, might cost about $5 a pair to produce. With fancy coatings, that could boost the price all the way to $15.

He said LensCrafters would turn around and charge $99 for completed glasses that cost $20 or $30 to make -- and this was well below what many independent opticians charged. Nowadays, he said, those same glasses at LensCrafters might cost hundreds of dollars. Butler said he recently visited factories in China where many glasses for the U.S. market are manufactured. Improved technology has made prices even lower than what Dahan recalled. "You can get amazingly good frames, with a Warby Parker level of quality, for $4 to $8," Butler said. "For $15, you can get designer-quality frames, like what you'd get from Prada."

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How Badly Are We Being Ripped Off On Eyewear? Former Industry Execs Tell All

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  • by bobstreo ( 1320787 ) on Monday March 11, 2019 @01:10PM (#58254692)

    LASIK is down to about $200 per eye, if you can afford a pair of glasses, you could probably afford to never buy them again.

    The last time I got new astigmatic contacts, I discovered their focal length was further out than my arms could hold something I was trying to read. The brilliant solution of my optometrist was to try to sell me reading glasses...

    • by b0s0z0ku ( 752509 ) on Monday March 11, 2019 @01:14PM (#58254722)
      No stinking thanks to having my eyes permanently altered by the lowest bidder.
    • by PhrostyMcByte ( 589271 ) <phrosty@gmail.com> on Monday March 11, 2019 @01:15PM (#58254728) Homepage
      The only reason I haven't got lasik is that even the best procedures have a significant risk of reducing night vision. Mine is already bad, and I can't imagine having it worse.
      • by jenningsthecat ( 1525947 ) on Monday March 11, 2019 @01:24PM (#58254806)

        Another risk in laser eye surgery is extreme dryness. My eyes are already on the dry side - damned if I'm going to gamble on having to depend on drops for the rest of my life, in addition to the posibility of poor night vision, or worse if the procedure goes sideways.

        I can't even wear contacts - even when I ignore the irritation, all the ones I've tried cause my eyes to get gummy and blurry. I've resigned myself to wearing glasses, (and getting hosed because of it), for the rest of my life.

        • The rate of complications for Lasik is extremely low, like less than 1% if you are using a "surgeon" with more than 15K procedures under their belt. But when the complications do happen they are often quite severe, up to and including blindness.

          People should weight those risks, including getting a consultation to see what your personal risk of complications are. Various parameters, like the thickness of your retina and lens, can greatly modify those complication rates. To simply write off the procedure with

        • Another risk in laser eye surgery is extreme dryness. My eyes are already on the dry side - damned if I'm going to gamble on having to depend on drops for the rest of my life, in addition to the possibility of poor night vision, or worse if the procedure goes sideways.

          I can't even wear contacts - even when I ignore the irritation, all the ones I've tried cause my eyes to get gummy and blurry. I've resigned myself to wearing glasses, (and getting hosed because of it), for the rest of my life.

          My wife had dry-eye due to poor tear production and she also couldn't wear contacts for any length of time (but could when she was younger). She got daily disposable contacts to wear on special occasions. The ophthalmic surgeon (head of Ophthalmic Surgery at EVMS) she saw about getting PRK [wikipedia.org] (he only did PRK and said he spent half his time fixing LASIK complications done by others) said she wasn't a good candidate for laser-eye surgery because of her dry eye and poor tear production (he even tested her by pu

        • by fatwilbur ( 1098563 ) on Monday March 11, 2019 @04:15PM (#58256418)
          Logged in just to comment here on something I actually have experience with. I wore glasses since early grade 2, I had horrible near-sightedness, pretty much to the point of being blind without my thick glasses. Since I had lived my entire life (into my mid-30s) wearing glasses, I didn't actually think they were that big of a deal.

          All I can say, is that without any hyperbole at all, the decision to get laser eye surgery was the best money I have ever spent in my life. You have no idea the freedom and "HD" vision that comes as a result. The slight inconveniences are way more than worth it. I just can't tell you enough how awesome it has been - do not discount it.

          If you're interested, what finally made me look and take the dive was the fact I started skiing a lot, and the glasses fogging up under my goggles was highly annoying. I likewise could not use contacts for various reasons.
      • My night vision is permanently f-ed up due to RK surgery leaving 16 scars on each of my eyes... but the starbursts around lights at night are beautiful!
        • by marklark ( 39287 )

          I had LASIK done about 16 years ago. No problems. The pattern that the laser made on my corneas resulted in my eyes becoming DIFFRACTION GRATINGS when looking at bright, point-light sources like LEDs. For normal viewing everything was normal.

          Green and red LEDs are pure. Yellow LEDs are a blend of several colors. -- This from looking a LED stop-lights at night. :^)

          After a few years, it went away. :^/

      • You could look into lens implantation. I had the Visian ICL one done and it is amazing.
        It is more expensive than any of the laser surgeries, but it is reversible and there is a significantly lower chance of complications (no dryness issues etc.).

        The only actual 'complication' is seeing ringlike lens flares from the edges of the 'aquaport' (a little hole in the center of the lens), which I'm told your brain adjusts to over a longer period of time (I'm 2.5 months in). They're not problematic in any way alread

    • Last time I looked lasic didn't handle farsight.

    • by im_thatoneguy ( 819432 ) on Monday March 11, 2019 @01:17PM (#58254748)

      LASIK is down to about $200 per eye

      Citation needed, I keep checking prices and the bargain basement back alley LASIK is still $1k.

      • Same, reputable normal LASIK goes for 2k (per eye), with wavefront guided LASIK in the 2.5-3k range. I'm evaluating it right now. There is some ways to get discounts, but the only way I see 200 is if your flying to some other country maybe?
        • by Anonymous Coward

          $200 lasik myth [berkeleyeye.com]

      • by Wulf2k ( 4703573 )

        I've never had, or investigated, Lasik, but I've heard this place mentioned often:

        https://www.lasikmd.com/price-... [lasikmd.com]

        I have no clue what "Starting at $490/eye" means though, and how quickly the cost jumps.

        CAD pricing, so still above $200 per eye as mentioned above, but not a ridiculous amount, I guess, when you're discussing eye surgery.

    • Vision can change over time – that still is true after LASIK. Even if nothing went wrong, it can happen easily that two or three years later your eyes have changed again and you'll need glasses again even though you had them lasered.

      • If you prescription changes every year or two, you are not a great candidate for LASIK.

        I got mine done about 20 years ago. Vision is still good enough to drive without glasses.

        • I always suspected the 'prescription always changes' was a scam to make money. My prescription kept getting stronger over the years, so I decided to do an experiment. I stopped wearing them for 2 weeks prior to my checkup, and I changed doctors so they had no history. I telecommuted and I didn't need them for the computer, and my wife drove during this period when I needed to go somewhere. My prescription was 1/2 as strong as it was before, only 0.50 worse from when I first got glasses. Then I switched
      • People tend to get more farsighted as they get older, so if you correct your nearsighted now, your farsightedness will be worse in the future. My dad, on the other hand, stopped wearing glasses to drive when he got old...
    • LASIK does not cover all eye problems. It would have never corrected mine.
    • The last time I got new astigmatic contacts, I discovered their focal length was further out than my arms could hold something I was trying to read

      Welcome to getting older. I'm almost up to three separate prescriptions depending on what I'm doing.

    • I know people who've had lasik performed... Now their sight is "better" but they can't tolerate "bright" lighting and need to be in dimmer environments. No thanks.

  • by goombah99 ( 560566 ) on Monday March 11, 2019 @01:12PM (#58254704)

    While I agree with this I will point out that depending on your vision the service you get in getting the glasses rightly fitted is the hard part that may be worth paying for. FOr simple single vision lenses that's only weakly important. But for bifocals and even more critically progressives, the fitting is everything. I usually have to get two and sometimes 3 sets of glasses made before I'm happy. I've done tests where I have my vision measures four times in a row. They never agree. But some optics shops have a little leeway on progressives to tilt the degree of maginification in the center one way or the other. And that really helps when they get it right. It sucks when they don't.

    So I don't mind paying for the service even though I know the glasses are not worth the price in materials.

  • Why would they? (Score:5, Informative)

    by Actually, I do RTFA ( 1058596 ) on Monday March 11, 2019 @01:13PM (#58254706)

    TFS says:

    Both Butler and Dahan (former executives with LensCrafters) acknowledged what most consumers have long suspected: that the prices we pay for eyewear in no way reflect the actual cost of making frames and lenses.

    Absent people who took no or a single econ class, why would anyone assume there is a relationship between cost to produce something and the cost we have to pay? Hell, Apple/Google get 30% of all app payments for credit card processing and hosting a static website. Corporate profits in general are at record highs.

    And Luxottica is particularly horrible. They bought Oakley by refusing to stock them (they own LensCrafters, Pearl Vision, Sunglass Hut, Walmart Optical, Target Optical, and more). Then, when the stock cratered, they bought the company, started stocking it, and raked in the bucks.

    • Video [youtube.com] about all this. Hardly new "news",
    • Re:Why would they? (Score:5, Informative)

      by sjames ( 1099 ) on Monday March 11, 2019 @01:28PM (#58254826) Homepage Journal

      The entire justification of market economies hinges on the central premise that competition drives the retail price towards the marginal cost of production. If that is untrue, the market has failed and intervention is necessary if the economy is to remain market based.

      I think they understand that just fine.

      • Re:Why would they? (Score:5, Insightful)

        by HornWumpus ( 783565 ) on Monday March 11, 2019 @01:56PM (#58255080)

        For commodities.

        If you look, you can find no name glasses at commodite price.

        • by nmb3000 ( 741169 )

          For commodities.

          If you look, you can find no name glasses at commodite price.

          The problem is the "medical device" and "prescription" lables associated with glasses. For absolutely no reason at all, people have to see a doctor to get a prescription every few years, and this makes it feel like you need to buy this specialty vision device at the doctor's office. Very few optometrists will just hand you a paper with your prescription on it and suggest a few inexpensive options for buying glasses. They all push their stock very heavily because the margins are obscene.

          Of course you can

      • Luxor has a monopoly position on manufacturing glasses, therefore market pressures do not drive the price down, and they can charge excessive markups... isn't that what the article says?
    • Re:Why would they? (Score:4, Insightful)

      by AmiMoJo ( 196126 ) on Monday March 11, 2019 @01:36PM (#58254902) Homepage Journal

      why would anyone assume there is a relationship between cost to produce something and the cost we have to pay?

      Wrong question. Why would anyone assume that if something was being sold with a very large profit margin there would not be new entrants to the market undercutting the incumbents?

      In many places you can buy glasses at much closer to the cost price, often online but sometimes in shops as well. Personally I like JINS. I find them more comfortable than designer frames and the last pair I bought was $30 (admittedly on sale but I think only $50 normally).

    • First of all: the web sites are not static. They include rating of apps etc. and you are usually logged in.
      Secondly: Apple does not only host the apps and reviews and processes credit cards, they analyze every app for security risks etc. I doubt they earn more than 15% (half of the 30% they charge).

    • why would anyone assume there is a relationship between cost to produce something and the cost we have to pay?

      Because there is.

      I'm curious about if the prices above are gross or net costs. Basically, what's the profit margin?

      Luxottica's net profit margin is about 15.8%, meaning that for every $1 of revenue they keep about 16 cents of profit. This is similar to Apple, Microsoft, and Google (20%-22%), and dissimilar from Comcast (11%-13%, depending on year), Adidas (8%), and Walmart (3%). Large pharmaceutical companies pull fluctuating profits generally holding around 12% for a 5-year average.

      I generally des

  • by Futurepower(R) ( 558542 ) on Monday March 11, 2019 @01:13PM (#58254708) Homepage
    America's Best Contacts & Eyeglasses [americasbest.com] "2 Pairs Of Eyeglasses For $69.95".
    • Assuming you don't need:
      (1) Variable-focus lenses
      (2) Any sort of scratch-resistant coating
      or
      (3) High-index lenses

      Because then the price goes up a LOT more...
      (for the record, I use them, but their glasses are nowhere near 99$)

  • by Joe_Dragon ( 2206452 ) on Monday March 11, 2019 @01:15PM (#58254732)

    most of the us health care system is an ripoff.

    With
    hidden fees
    networks that are hard to stay 100% in.
    any out of network person can drive by and bill you 100K with no control over stopping them.
    each person can bill on there own.
    if an place miss bills then you can be on the hook for the full rate
    there are like 3-4 different rates for the same thing.
    the mark up makes the apple app store look good

    • Is Luxottica selling the same lenses/frames that cost $300 in the U.S. for less in Europe?
  • There's a joke about that in there somewhere... just can't put my finger on it right now.

    Might be I finally need glasses...

  • by Kokuyo ( 549451 )

    My last pair cost upwards of 800 bucks!

    The prices touted as phenomenally expensive seem like a bargain to me.

  • by b0s0z0ku ( 752509 ) on Monday March 11, 2019 @01:19PM (#58254764)

    Cohen's Optical exists in NY and surrounding area -- they do exam + glasses for $100 and have a decent range of frames for that price.

    It's even cheaper to order directly from China, and I doubt that US Customs really gives a fuck about ordering Rx glasses without a prescription when they have bigger fish to fry...

    https://hackernoon.com/how-to-... [hackernoon.com]

  • by MindPrison ( 864299 ) on Monday March 11, 2019 @01:21PM (#58254778) Journal

    There was a consumer test program done by our national television station, they tested various sunglasses and what got you the most for your money.
    Interestingly enough, some of the fashion brands where actually protecting you less against the dangerous UV rays from the sun, than the 7$ dollar ones they got at our version of the dollar stores. So in fact, in this case - you where better off buying the off-brand rather than the mainstream fashion brands.

    Kind of reminds of a certain PC vs Another brand war that still today is on-going, you purchase a lifestyle, the product, well ...comes second.

    • Is there a test you can run yourself on a pair you buy to check a cheap pair of sunglasses? Maybe with a full-spectrum light source (or sunlight + IR + UV LEDs) and a few sensors?

      • Only buy polarized sunglasses, they cut glare much better. You can use the pair you are carrying to test the ones you are considering.

        Yes, some of the super cheap ones are labeled 'polarized' and aren't.

        If they spent the money on the polarized layer, they won't have cut the UV layer corner.

      • by Wulf2k ( 4703573 )

        Since you've outlined the important pieces that would go into such a test, then yes, I'm pretty sure you could run the exact test that you've theorized.

    • Off topic, different item. But Payless opened a fake shoe store and people thought the shoes were designer brands. With that being said, how many dollar store sun glass's would sell for premium prices if they were sold in a different store???

      https://philadelphia.cbslocal.... [cbslocal.com]

      PHILADELPHIA (CBS) â" Paylessâ(TM) recent marketing campaign tricked fashion influencers into paying significantly more for a pair of affordable shoes. The retailer created a new store, called Palessi, as an experiment t
    • My problem is that there are no cheap sunglasses that fit my head. I have a gigantic noggin, and the only sunglasses I've found which really fit are Oakley M-frames, specifically in the XL size. I used to be able to buy knockoff frames at the flea market, and then fill them with quality replacement lenses sourced online, but Luxotica has spent a bunch of money attacking counterfeiters, so now I can't find the counterfeits any more. I still see other styles at flea markets, but not M2s, and never M2 XLs. I c

  • by fluffernutter ( 1411889 ) on Monday March 11, 2019 @01:29PM (#58254844)
    This is the invisible hand of unregulated capitalism.
  • by phoenix_rizzen ( 256998 ) on Monday March 11, 2019 @01:32PM (#58254868)

    With places like Zenni Optical (http://zennioptical.com) available, where a complete set of glasses with all kinds of coatings and options and extras comes out to under $50 US, why are people still buying at their optometrist's office?

    There's several different places like Zenni online. Even with shipping and currency conversion, it's a lot less expensive to buy online than any eye wear places here in Canada.

    And the quality is quite good, comparable to $200+ US frames and lenses. Even if the quality isn't as good as the uber-expensive ones, you can always just buy 2 or 3 pairs each year and still come out ahead. :D

  • zennioptical.com (Score:4, Insightful)

    by lcall ( 143264 ) on Monday March 11, 2019 @01:33PM (#58254886) Homepage

    The prices in the summary are why some of our family have started using https://www.zennioptical.com/ [zennioptical.com] (no connection except as customer). One family member got very basic lenses & frames for $9 if memory serves (could be off but it wasn't even $40 with shipping), Mine were more but had more features. It was worth getting the account and submitting photos to "try on" glasses, but one order I placed would have been better if I had paid attention to the posted length of the temple and actual frame & lens dimensions: next one I did better and it is good now.

    (My one complaint is that their customer service gave info that was overconfident -- they didn't really know. And their site EULA had terms I didn't like, and nobody was willing to discuss it, either at the posted contact info or the customer service. But the site FAQs etc were helpful for other things, and I was able to adjust frames myself, etc.)

  • I live in a country where the state subsidises pretty much every health issue. Except glass lenses and frames. You go and make a health insurance around here and guess what it doesn't include in all but the top-of-the-line plan: everything eye prosthetic-related. It is literally cheaper here to perform corrective eye surgery than to buy 2 or 3 pairs of glasses (if you do it through public health and wait around 8-20 months).

    And it's getting worse. 3 years ago I paid 35 bucks for top of the line Zeiss lenses

  • Here in Europe and as soon as glasses varifocals, we're talking about four-digit EUR figures for ones with good lenses...

  • First of all, you can get glasses from (say) EyeBuyDirect for around $15-$20 on a good day, for normal single vision lenses. (Search for coupons first.)

    Secondly, it's like any other product. There will be a range of prices, depending on all sorts of factors from designer names, to service, to whatever. ALL of which will above the cost of manufacture, since these are businesses and not charities.

  • To begin with, this doesn't mean that Luxottica isn't doing bad things. It's just this bullshit line of reasoning makes me a bit crazy.

    Cost to produce something and get it into the hands of consumers does not equal the Bill Of Materials (BOM) cost. There are a lot of other people involved in the supply chain that - shockingly enough - don't want to work for free. This includes:

    1) The designers and engineers that create the product.
    2) The manufacturers that pay everyone from the people actually making the pr

    • In most cases, BOM is maybe 10%-15% of the price you pay

      Ok, so it costs $4-$8 to make according to TFS, which means the glasses should cost $40-$80 according to your formula.....and they charge >$200.

      Wanna try to justify the monopoly rent again?

  • Enough glasses for me. Employer covering it, too.

    Zap zap. Bionic upgrade time.

  • I did what any sane person would.
    I shopped around the outlets, tried on the frames and chose one.
    I then went online and ordered it from overseas. You just enter in the numbers on your prescription and choose the frames.
    I got the frame I wanted for half the price it would have cost locally. The lenses only cost $10 with anti-reflective coating and I got another spare set on cheap frames for another $10.

  • by Hrrrg ( 565259 ) on Monday March 11, 2019 @02:46PM (#58255640)

    People are posting that Lasik only rarely had adverse effects. Actually the rate of complications is very high. Below are a couple of excerpts from a recent NYTimes article:

    "A recent clinical trial by the F.D.A. suggests that the complications experienced by Mr. Ramirez are not uncommon.
    Nearly half of all people who had healthy eyes before Lasik developed visual aberrations for the first time after the procedure, the trial found. Nearly one-third developed dry eyes, a complication that can cause serious discomfort, for the first time."

    and

    "Yet few studies have followed patients for more than a few months or a year, and many are authored by surgeons with financial ties to manufacturers that make the lasers.
    One such study, written by the global medical director for a large laser eye-surgery provider, reported high satisfaction rates among patients five years after Lasik.
    But the study also found that even after all those years, nearly half had dry eyes at least some of the time. Twenty percent had painful or sore eyes, 40 percent were sensitive to light, and one-third had difficulty driving at night or doing work that required seeing well up close."

    I was thinking about Lasik until I read this. No thanks.

    https://www.nytimes.com/2018/0... [nytimes.com]

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