Warby Parker

•  Warby Parker disrupted the eyewear chain industry in 2010 when it offered a flat fee of $95 for a pair of stylish lenses.
• The fee included frames as well as shipping and returns.
• The company also offered a try-before-you-buy system where an interested customer can try 5 frames at home with no added cost.
• Mashable reports that if the eyeglasses are scratched within a year of purchase, Warby Parker will replace them for free.
•  DemandCaster showed that Warby Parker was able to offer the same high-quality pair of eyeglasses for less than a fifth of the price from a typical high-end boutique.

Pricing Model Breakdown

• Warby Parker still offers eyeglasses starting at $95 in 2020, 10 years after its launch.
•  Prices are higher for eyeglasses with progressive or transition lenses.
•  Clark.com reported that Warby Parker's standard rate is $170 for a pair of glasses and an eye exam.
• Warby Parker also offers installment options ($32 per month for a $95 pair) with no interest, late or hidden fees.

Pricing Model Background

• Co-founder Neil Blumenthal shared how the company settled on the $95 flat fee.
• Blumenthal told Inc that the company initially wanted to sell $500-worth glasses for $45.
• However, a meeting with a business professor forced them to reevaluate as consumers associated quality with pricing.
• The company founders conducted market research and found that customers will buy glasses priced up to $100, after which willingness to buy hit a plateau.
• Warby Parker then adopted the $95 flat fee which proved popular with customers.