Earlier quoted context omitted.
Lenses are much cheaper to manufacture than most people realize. Most of the coatings and upgrades are 95%+ profit with very little cost. An interesting thing I learned in that industry, the uncut "puck" of plastic/material is usually cut to your prescription via an CNC style machine. The cut instructions are essentially a pre-built CAD file based on your prescription/measurements. A significant cost of the process i…
That sounds about right. I remember having gone to an optometrists office some time back and they were able to cut lenses right there and have glasses ready in an hour. I was amazed and couldn't understand why everyone couldn't do this. Sunglasses are the worst. They cost basically nothing to make but the profit margin is Inf% b/c of branding. A $20 (at most) pair of non-name sunglasses instantly becomes a $700 pair…
If forgot to mention sales commissions as I was talking about cost of goods. But a variable compensation for the sales person, is a lot of your cost if you are in a retail setting. Believe it or not, your optometrists gets paid commission too (if an employee) as does the person at the desk. It's a sales heavy business. Buy eyedrops, buy lens cleaner, buy here - we really don't want you to walk out the door with your prescription! We have a metric called "capture rate" that our commission is attached to!!
It's not too bad but was a surprise to learn it's much more retail than medical (as a business). I think in most the world it's not even necessary to see a doctor to get glasses, like in the US. I usually leave and buy somewhere else because my doctor just has a crappy selection of frames, every single time, he gives me the prescription when I ask. Then I have to ask for the pupillary distance and he acts like he doesn't know what that is. "Why do you need that?" Because if I buy online they'll ask, "Oh yeah, I can take that measurement".