An Italian manufacturer called Luxottica, which makes shades for Dolce &Gabbana, Oakley, Ray-Ban, Prada, Chanel, Donna Karan, REVO, and Versace—yes, these are other pricey brands are all made by the same company—says it earns a hefty gross profit of 64¢ on each $1 in sales. And here’s another fact you’ve probably suspected but never knew for sure: The $300 pair of sunglasses doesn’t protect your eyes any better than the $100 pair, and chances are the pair that costs $40—or even $4—does the job pretty well too.
Luxottica not only owns or makes glasses for all of the listed brands and more, the Italian company also owns LensCrafters, Pearl Vision, and Sunglass Hut, according to the WSJ. No wonder the choices in these stores can seem limited—not necessarily with a skimpy number of options, but limited because it’s rare to find a pair of sunglasses for under $100.
Two experts quoted in the WSJ story get to the main point:
“Three hundred dollar sunglasses don’t do anything better than $100 sunglasses, except maybe look better and have a brand name associated with them” says Dr. Jay Duker, chair of ophthalmology at Tufts Medical Center.
“A significant chunk of what you pay for isn’t the quality of the lenses, it’s the brand,” adds Dr. Reza Dana, director of the cornea and refractive surgery service at Massachusetts Eye and Ear Infirmary.
So don’t fool yourself. If you’re paying $300 for sunglasses, you’re buying them to look cool and impress people. You’re not buying them for the sake of your eyes’ health.
One $300 splurge is probably not a savings account buster, of course. But the problem is that it’s hard to look cool and impress people wearing an older model of sunglasses. Hence the likelihood that someone who buys one pair of $300 sunglasses this year will buy another $300 pair next season, or next week for that matter. This is how costs can add up, and how some people wind up with piles of sunglasses and other accessories they never wear—because they always prefer the newer stuff they just bought.
The other drawback to dropping serious bucks on sunglasses is that an expensive pair breaks or can be lost or scratched just as easily as the pair that costs $2.99—more reasons why my sunglasses cost $2.99.
Related:
I Know Women Love Shoes, But $25,000 Worth of Shoes?!?
FAQs
Yes, Most Sunglasses Come with at Least a 1,000% Markup
So, maybe we shouldn't feel so bad about the fact that most sunglasses come with a 1,000% markup.
What is the profit margin on sunglasses? ›
However, what we can reveal, is the average profit margin—which typically sits around 50-70%. Let's return to our past example. Because our glasses were sold for $60 and we bought them for $20, calculating the profit margin in percent would leave us with a 33% profit margin.
What is the markup on Ray Ban sunglasses? ›
Luxottica has a monopoly, and as the owner of these brands, they can set whatever price they want. They mark up the prices by 1000%, and consumers are left with no choice but to pay the inflated prices.
What is a good price to pay for sunglasses? ›
The cost of a good pair of sunglasses can vary widely based on the brand, materials, and features. Generally, a reliable pair can range from $30 to several hundred dollars.
What is the average markup on glasses? ›
Did you know that the average markup on frames is around 250%? So that hundred-dollar pair of eyeglasses that you think is a bargain, your optometrist paid about $40 for it. It's important to shop around and compare prices before making purchases to avoid getting duped by an unfair markup.
What is the markup on eyewear? ›
The Management & Business Academy reported that the median gross profit margin earned on eyewear is approximately 61 percent or 2.9 times the cost of goods.
What is the profit margin on Gucci? ›
According to public financial information, as of 2021, Gucci's net profit margin will be about 35%.
Is 20% a high profit margin? ›
An NYU report on U.S. margins revealed the average net profit margin is 7.71% across different industries. But that doesn't mean your ideal profit margin will align with this number. As a rule of thumb, 5% is a low margin, 10% is a healthy margin, and 20% is a high margin.
How much should you mark up a product to make a profit? ›
Charging a 50% markup on your products or services is a safe bet, as it ensures that you are earning enough to cover the costs of production plus are earning a profit on top of that. Too small of margins and you may barely be earning money on top of the costs of making the product.
Is it worth spending money on expensive sunglasses? ›
UV-blocking and shatter-resistance ratings are usually impressive with higher-end offerings, so you're treating your eyes better. And because superior hardware is used on expensive models, they last longer than the convenience-store options.
Maui Jim is an American sunglass brand whose products are considered high-end luxury in the sunglass market. Maui Jim uses high-quality lens materials, such as ultra-thin glass or lightweight polycarbonate materials, to provide superior optical performance and visual clarity.
Which brand of sunglasses is best? ›
- VINCENT CHASE EYEWEAR.
- Ray-Ban.
- ELEGANTE.
- ROYAL SON.
- Oakley.
- CREATURE.
- JIM HALO.
- grey jack.
The frames, materials, and brand you choose will influence the cost of your sunglasses, whether they are polarized or not. Polarized glasses tend to start at $25 and can cost up to $450 or more if you choose a designer label. A regular pair of sunglasses can cost about the same.
Why are sunglasses so marked up? ›
Branding and marketing play a significant role in eyewear pricing. Designers and well-known brands often charge higher prices based on reputation and perceived value. Consumers also pay for marketing expenses when a brand advertises or uses celebrity endorsem*nts.
Can you pawn designer sunglasses? ›
Designer sunglasses are not only fashionable but can also be pawned, purchased or sold for quick cash. A great time to pawn or sell your sunglasses is in the winter months when the sun isn't as strong, and you no longer need them or have multiple pairs.
Why are designer shades so expensive? ›
Designer brands aim to provide their customers with the best experience possible, and this starts with using high-quality materials. From the frames to the lenses, designer sunglasses are often made from durable and premium materials that ensure longevity and comfort.
