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Crowd-sourced Answer To: Why Do Name-brand Glasses And Sunglasses Cost So Much?

Chaseme

Oakley Beginner
40
58
Austin, TX
I had this question on Quora pop up the other day.

Pretty on topic to the forum:

I won't cross-post every comment made - so check out the original post and answers here:
Glasses & Sunglasses: Why do name-brand glasses and sunglasses cost so much? - Quora

Why do name-brand glasses and sunglasses cost so much?

There are frames that will cost you anywhere from $200-$600. How do they justify the price, for a couple pieces of metal or plastic?

I understand sunglass lenses can be pricy but when the frame is made from plastic, how do companies justify such a high price?

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19 Answers:

Hung Lee, Recruitment Strategist
687 votes by Alun Jones, Christopher Rubin, Morena Fiore, (more)
The 'companies' you mentioned is actually more like 'The Company'. The eye wear market is a hidden monopoly, and one company controls the entire market.

You like those shades from Burberry, Chanel, Polo Ralph Lauren, Paul Smith, Stella McCartney, Tiffany, Versace, Vogue, Persol, Miu Miu, Tory Burch or Donna Karan? All are made under license by a company called Luxottica.

More of a Ray-Ban, Oakley, Oliver Peoples or REVO man? All brands owned outright by Luxottica.

Remember the name - Luxottica. The next time you spend $400.00+ on your must-have summer accessory, be aware that they're making 64 cents margin on every dollar you're giving them.

Continued below...
 
Continued:

Will Wister, Quora profiles are better w/links.
398 votes by Hamza Alsbaihi, Viola Yee, Jason Thibodeau, (more)
In general with luxury brands, it usually comes down to a combination of a better product and higher margins.

In luxury products, high gross margins are the norm:
Luxottica is a leader in the sunglasses market and its gross margins are around 65%[7], but that's not meaningfully different from leading competitor Safilo. Safilo's margins are around 60%[1] and this occurs despite the fact that Luxottica is 6x larger.[1][7] These numbers would likely be even higher if they owned all their brands and didn't license them.
For comparison, Polo's margins, for example, are around 60%.[2]
High gross margins are pretty normal for businesses that sell luxury products.
Although gross margins are high, luxury brands need to get supported with advertising. Also, there are various sales, administrative and other costs as well as various taxes.
Net margins for Luxottica are actually below 10% - which isn't all that impressive. [5] This is pretty normal. Margins for Polo are also sub-10%, as are margins for Safilo.[1]
That means Luxottica doesn't get 65c richer for every dollar you spend on their sunglasses. They get less than 10c richer.
It's worth noting that Luxottica also owns the retail distribution chains "LensCrafters, Pearle Vision, Sears Optical, Target Optical, OPSM, Laubman & Pank, Budget Eyewear, and GMO." It also owns "sunglass and luxury retail stores under the brand names of Sunglass Hut, ILORI, Optical Shop of Aspen, Oliver Peoples, David Clulow, Bright Eyes, and Oakley O' Stores and Vaults." It also owns "Ray-Ban, Oakley, Arnette, ESS, K&L, Luxottica, Mosley Tribes, Oliver Peoples, Persol, Revo, Sferoflex, and Vogue." It licenses "Anne Klein, Brooks Brothers, Bvlgari, Burberry, Chanel, Chaps, Club Monaco, D&G, Dolce & Gabbana, DKNY, Donna Karan, Miu Miu, Polo Ralph Lauren, Paul Smith, Prada, Ralph Lauren, Ralph, Salvatore Ferragamo, Stella McCartney, Tiffany & Co., Tory Burch, Versace, and Versus."[3]
Safilo licensed brands include "Alexander McQueen, A/X Armani Exchange, Balenciaga, Banana Republic, BOSS Black, BOSS Orange, Bottega Veneta Dior, Emporio Armani, Fossil, Giorgio Armani, Gucci, HUGO,,JLo by Jennifer Lopez, Jimmy Choo, Juicy Couture,Kate Spade, Liz Claiborne, Marc Jacobs, Marc by Marc Jacobs, Max Mara, Max&Co, Pierre Cardin, Saks Fifth Avenue, Tommy Hilfiger, Yves Saint Laurent." Safilo owned brands include "Safilo, Carrera, Polaroid, Smith Optics, Oxydo, Blue Bay"[4]

There are additional costs associated with running a fashion business:
Like any fashion or style based business there will be unpopular products that don't get sold at desirable prices in a timely manner and that eats into margins.
In general if you produce very few styles, there are economies of scale, but if you produce a lot of different styles, that tends to increase your costs, assuming the volume of products you produce is unchanged.

In terms of product quality, here are some considerations, some of which affect price:
In terms of safety, you just want glasses that block 100% of UV light (UVA and UVB light. Most sunglasses do this. This should be printed on the sunglasses you buy and if it's not you should probably find another pair, because it's one of the most considerations. UVC gets blocked by the atmosphere so that's not really an issue.[6]
Different materials will affect durability, and price
Glass—PROS: Superior optical clarity; superior scratch-resistance. CONS: Heavier than others; expensive; glass will "spider" when impacted (but not chip or shatter).
NXT polyurethane—PROS: Superior impact-resistance; excellent optical clarity; flexible and lightweight. CONS: Expensive.
Polycarbonate—PROS: Excellent impact-resistance; very good optical clarity; affordable; lightweight and low bulk. CONS: Less scratch-resistance; slightly less optical-clarity than glass or NXT.
Acrylic—PROS: Inexpensive alternative to polycarbonate, best suited for casual or occasional-use sunglasses. CONS: Less durable and optically clear than polycarbonate or glass; some image distortion.[6]
Lens coatings affect cost:
The more expensive the sunglasses, the more likely it has several layers of coatings. These can include a hydrophobic coating to repel water, an anti-scratch coating to improve durability and an anti-fog coating for humid conditions or high-energy activities.[6]
Lens construction affects cost:
Two methods are commonly used. Lenses made via the injection process offer the best in optical clarity, but are more expensive. The bent-sheet process is used to make both performance and inexpensive glasses. High-end styles use a longer process to offer similar optical clarity as injected models, while lower-cost styles used a simplified process that yields a bit less clarity.[6]
Polarization technology can also add to the cost:
Inexpensive casual styles have the polarizing filter applied as an external film coating.
More durable and expensive sport styles sandwich the polarizing filter between layers of the lens.
The newest high-end technology combines the polarizing filter with the lens material while the latter is in a liquid form. This allows the filter and lens to bond without the use of adhesives and sustains an exceptionally high optical quality.[6]
Different sunglasses can block different amounts of light:
All-purpose sunglasses have a VLT of around 15-25%. Aim for glasses in this range if you need a pair for everyday use and basic recreational activities.
Glacier glasses (special sunglasses designed specifically to protect your eyes from the intense light at high altitudes) have a VLT of around 4-10%. Most glacier glasses also have shields to protect your eyes from light coming in from the sides of your lenses. Because of their low light transmission, glacier glasses should not be used for driving or other everyday activities.
Photochromic lenses automatically adjust to changing light intensities to protect you in a wider range of conditions. These lenses actually get darker (to block more light) on bright days, and lighter when conditions get darker. A couple of caveats: The photochromic process takes longer to work in cold conditions, and it doesn't work at all when driving a car (UVB rays do not penetrate your windshield, so the process is moot).[6]
Materials used to tint the glass also matter:
Brown/gray/green—Brown, gray and green lenses are color-neutral, which means they cut down on overall brightness without distorting colors. These darker shades are intended primarily to cut through the glare and reduce eyestrain in moderate-to-bright conditions.
Yellow/gold/amber—Yellow, gold and amber lenses provide less overall brightness protection, but excel in moderate-to-low level light conditions. They provide excellent depth perception, which makes them perfect for skiing, snowboarding and other snow sports. They also enhance contrasts in tricky, flat-light conditions.
Rose/vermilion—Rose- and vermilion-colored glasses really do make the world seem brighter. They provide excellent low-light visibility and enhance contrast (perfect for skiing and snowboarding in cloudy conditions). They also enhance the visibility of objects against blue and green backgrounds, which makes them ideal for driving or exploring in forested areas.
Mirrored or flash coating—This refers to a reflective film applied to the outside surfaces of some sunglass lenses. They reduce glare by reflecting much of the light that hits the lens surface. Mirrored coatings make objects appear darker than they are, so lighter tints are often used to compensate for this.[6]
Frame materials matter, as do hinges and nosepieces:
Metal—PROS: Easy to adjust to your face; less obtrusive to your field of vision. CONS: More expensive and less durable than other types; not for high-impact activities; can get too hot to wear if left in a closed-up car.
Nylon—Manufacturers use different brand names for their frame nylons, including Grilamid and O Matter(TM). PROS: Inexpensive, lightweight and more durable than metal; some have high impact-resistance for sports. CONS: Not adjustable, unless they have an internal, adjustable wire core.
Acetate and Zyl—Sometimes called "handmades," these variations of plastic are popular on high-style glasses. PROS: More color varieties are possible. CONS: Less flexible and forgiving; not intended for high-activity sports.
On most nylon frames, hinges feature a molded pin that's actually part of the frame material. This creates a very durable hinge. Metal, acetate and zyl frames must use either a barrel-hinge or spring-hinge design. These offer the advantage of extra flex to fit larger heads, at the cost of some durability. Higher-quality frames may use nickel-silver hinges that are more rugged and reliable.[6]
Lens shape also matter with wrap around lens offering better protection vs. light that comes from the side.

So why do people pay such high prices:
Some people want to feel like they are wearing a quality product - even if it might be a higher quality product than the actually need. This is akin to why people bought SUVs even though they rarely went off road.
Some people may not understand that they may not need to spend so much in order to get a pair of sunglasses that meets their basic needs of UV protection - or other basic needs they may have when they buy sunglasses.
Some people love style, and they may find certain styles to be so cool, interesting, or well-suited to their face that it is worth it for them to pay more.
Some people love brands and are susceptible to marketing and brand image.
Some people genuinely want quality or genuinely need quality sunglasses that are durable, and are willing to pay the necessary costs to acquire them.
 
Based on your quick and non-contributive reply it seems you did not read my post; just the title.

I'm not asking a question not am I hoping to post anything new. I simply wanted to share an outside reference to the industry.
 
Based on your quick and non-contributive reply it seems you did not read my post; just the title.

I'm not asking a question not am I hoping to post anything new. I simply wanted to share an outside reference to the industry.

That's a hell of a post to read.
 
Chaseme said:
Based on your quick and non-contributive reply it seems you did not read my post; just the title.

I'm not asking a question not am I hoping to post anything new. I simply wanted to share an outside reference to the industry.

No I read it, i read the first post before you even posted the second. I'm just saying that most of us know. It's still pretty crazy stuff. It's amazing they're allowed to controll such a percentage of the market.
 
I buy luxury items because I am attracted to good design - both in beauty and form and also in strength and utility. Consequently, I lean more toward the more innovative of Oakley's designs and have no desire for the "lifestyle" line.
 
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