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From: pam@cepu.UUCP (Pam McGarvey )
Newsgroups: net.misc,net.consumers
Subject: Re: Eyeglass frames--why so expensive?
Message-ID: <442@cepu.UUCP>
Date: Sun, 3-Feb-85 17:02:00 EST
Article-I.D.: cepu.442
Posted: Sun Feb  3 17:02:00 1985
Date-Received: Tue, 5-Feb-85 01:16:43 EST
References: <1068@opus.UUCP>
Reply-To: pam@cepu.UUCP (Pam McGarvey (ADM))
Distribution: na
Organization: VA Wadsworth Med. Center; LA CA
Lines: 42
Xref: dcdwest net.misc:3149 net.consumers:1839
Summary: 

In article <1068@opus.UUCP> rcd@opus.UUCP (Dick Dunn) writes:
>I've been looking for new frames for eyeglasses.  They seem to be
>incredibly expensive for what's involved.  What's going on?  Is this is a
>categorical ripoff or does it just involve some exotic processes that I
>don't understand?
>
>For the price of an average pair of frames, I could buy a good
>microprocessor, a quality router, more than two cases of good beer (:-), or
>various other things which seem to me to take a lot more time and material
>to make and have comparable or lesser economies of scale.
>
>What am I missing?  Why do they cost so much?


Having just completed my MBA thesis on the wholesale eyewear industry, the
following may answer your questions.

Because contact lenses are perceived by the public as more attractive than
glasses and because their price has dropped dramatically in the last 10-15
years, frames have begun to be promoted more as fashion accessories than
as health aids.  This has given rise to "designer" lines (Christian Dior,
Gucci, Sophia Loren) which carry a much higher profit margin for each
segment of the distribution chain (manufacturer to wholesaler to retailer)
than do standard frames.  As an example, Gucci frames cost about $10 to
manufacture, are wholesaled for ~$40 and retail at ~$140.  
Therefore, the retailers push the higher
cost designer frames.  However, each carries lower-cost lines which are
sold primarily for Medicare patients  and are priced ~$15-$25 retail to
meet the maximum Medicare-allowable charge.  If you have bought the
industry line that glasses are fashionable, rather than just functional,
then you will probably go for designer lines or Italian styling, both
significantly higher cost lines than frames made in Korea, Hong Kong, or
Taiwan.  US made frames carry the highest manufacturing costs, then
European (primarily Italy), then Far East -- all a factor of labor costs.
If you are looking for low-cost, functional, minimal style quality
frames, go to a large chain-outlet such as Pearle Vision Centers (the
largest U.S. chain).  Chain operations usually sell  all frames cheaper
than independent outlets because they buy in bulk at substantial discounts.
For the cheapest of the cheap, ask for Medicare-priced lines from a Far Eastern
manufacturer.  Selection
will be minimal but the frames will hold your lenses as well as
Sophia Loren's "personally" designed frames.