Thursday, July 22, 2010

Glasses industry

The above was posted to FB as well. It is regarding the glasses industry. The following quote sums up a majority of the article

"This is extreme vertical integration. The eye doctor telling you that you need a new pair of glasses, the sales people helping you choose them and the people who design and make the glasses all work for the same company".

Wow...just wow. As the article continues it states that the margin is 63% (gross) and 52% after cost. Is there any other business that you know of with that lucrative of a profit?

As a comparison, the average company needs 30% of gross revenues to be comfortable, 19-20% is breaking even, and anything much less is losing money. Obviously, those numbers do not hold for all industries but they are good guidelines.

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