Capitalist Vision
March 7, 2019
ANTI-TRUST laws have not prevented the sometimes intense consolidation of retail businesses to the detriment of the consumer. A good example is eyeglasses:
This week, the Los Angeles Times spoke with two former executives of LensCrafters: Charles Dahan and E. Dean Butler, who founded LensCrafters in 1983. Both admitted that today, glasses are marked up nearly 1,000 percent.
“You can get amazingly good frames, with a Warby Parker level of quality, for $4 to $8,” said Butler. “For $15, you can get designer-quality frames, like what you’d get from Prada.”
Butler added that shoppers could get “absolutely first-quality lenses for $1.25 apiece.” When hearing that some glasses sell for $800 in the US, he laughed. “I know. It’s ridiculous. It’s a complete rip-off.”
Butler and Dahan confirmed what shoppers have already suspected: There’s price gouging in the optical industry. The main culprit? The eyewear giant EssilorLuxottica, which essentially controls the industry. [Source]
