Saturday, April 13, 2013

Pricing Eyewear, according to a Warby Parker Founder

“Price is ultimately what customers are willing to pay,” writes Neil Blumenthal in the Wall Street Journal. One of the founders of Warby Parker continues, “Price is the biggest indicator of quality. Always watch your gross margins. The four founders of Warby Parker (including me) were students at Wharton at the time we launched the company. Seeking advice about pricing, we approached our marketing professor Jagmohan Raju with a PowerPoint presentation that outlined our strategy. The plan, we proudly explained, was to sell prescription glasses that typically cost $500 for $45 — and to do so online. Without even glancing at our slides, Professor Raju shook his head. ‘No way,’ he said. ‘It won’t work.’” Read more.

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