EVIL COMPANY LUXOTTICA CORNERS MARKET, JACKED UP GLASSES PRICES 1,000%
I never had to wear glasses before I turned 43 years old. But then suddenly, there was this six foot tall blond amazon eye doctor telling me I needed reading glasses. As you can imagine, that wasn’t what I wanted to hear nor how I wanted to hear it. Anyway. So there I was, suddenly needing to explore the market for reading glasses with absolutely no familiarity at all. I sort of figured it out, eventually, with the help of my bespectacled wife. But I did quickly learn that the price of glasses just keep going up without reason. But here’s one reason that will make your blood boil. One company purchased every outlet that sold glasses. Ok. Then they forced retailers to lower their prices to them. But then they jacked their selling prices as much as 1000%. See? Blood boiling.
LUXOTICCA STARTED BY BUYING SUNGLASS HUT AND LENSCRAFTERS, LEVERAGED EVEN MORE
The evil company’s name is Luxottica. They are a giant company. But most people have never heard of it. They bought out both Sunglass Hut as well as Lenscrafters. Once they had that market oligopoly, they then leveraged every major brand eyewear maker to sell to them. Then they took their extra leverage and bought out any other eyewear retailer of any importance as well. Then they bought out the insurers, too. Think of Eyemed Vision Care and Essilor. So that left Luxottica in control of the labs, eyewear insurers, the frame makers as well as all the big retail outlets. But then they could also squeeze suppliers for better bulk buys.
OAKLEY SAID NO, GOT SCREWED AND BOUGHT BY EVIL GIANT FOR PENNIES
But the jacked numbers are truly staggering. It’s crazy cheap to make frames these days. High-end frames, like Prada, only cost $15 to make, each. So this evil market cornering company could then raise their pre-acquisition prices by up to 1000%. That’s just fucking insane, and evil. But what about lenses, you ask? They cost $1.50 to produce each one. But Luxottica sells them for as much as $800 in the US. Feel screwed yet? Well, get this. Oakley refused to change their prices or play ball. But they were so marginalized that Luxottica was able to buy Oakley for pennies just a few years later.
Buying up all your competition used to be illegal under antitrust law. But then along came Ronald Reagan. So thanks a lot, Ronnie.