Opticians make 1,000% profit on glasses
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HIGH STREET opticians are making profits of more than 1,000% on glasses, it was claimed yesterday.
A standard pair can cost as little as £7 to produce - for frames and lenses - yet the public is charged £99.
The claim comes from the founder of a new website offering glasses from as little as £15.
A recent Government study found that the sale of spectacles is the one area where deregulation and the supposed introduction of greater competition has failed to drive down prices. In fact, the average price paid for a pair is now put at £148.50 - up by around 40% since 1999.
The industry is dominated by four major chains, Boots, Vision Express, Specsavers and Dollond & Aitchison, which are responsible for more than 70% of sales.
It is claimed there is little evidence of price competition - except around promotional periods such as January.
The public is largely kept in the dark about the true cost of frames and lenses, which means they are unable to challenge charges. And there is little or no value in shopping around because prices across the major High Street names, and even small independent opticians, are about the same.
The figures on the real cost of lenses and frames come from dotcom entrepreneur James Murray Wells. His cheapest pair of standard frames and lenses cost £15 - saving £84 on the £99 charged by Boots for its equivalent product.
His firm - glassesdirect.co.uk - has rimless glasses with thin lenses for £85, a saving of £145 on the equivalent from Boots. He claims the savings are just as good when compared with similar products sold by the three other big opticians.
Mr Murray Wells, 21, is now taking on the major chains and professional bodies, which say he cannot offer the personal service that is vital to the supply and fitting of spectacles.
Suppliers of frames and lenses are under pressure not to do business with firms offering bargain spectacles.
The future of an industry worth £2.41bn is at stake. The UK market for optical goods and eyecare saw a 19% increase in value between 1998 and 2004. Retail analysts Mintel say it will rise another 26% to top £3bn over the next five years.
Mr Murray Wells said he was driven to investigate charges when, as a student, he faced a bill of £150 for a pair of glasses.
'I was staggered by the price tag for what was essentially a piece of wire and two pieces of glass,' he said.
'I contacted a number of laboratories to discover the actual price of making a pair of glasses, but I was met with a wall of silence. Eventually, I found one who told me the actual cost was generally no more than £7, including frames and standard lenses.
'The process takes about 20 minutes, while the majority of the work is done by a machine.'
Spokesmen for the big opticians said personal fitting is vital to get the right glasses. Boots and Specsavers said their spectacles start from £30, while Vision Express said it has frames from £9.
Boots said prices have been rising because the industry is using lighter, stronger materials. The average price is being driven up because people increasingly choose designer label frames.
