How does Warby Parker make money?

Warby Parker makes money selling glasses, sunglasses and lenses directly to the consumer

Having been a glasses wearer since I was in elementary school, starting in the fourth grade, I know how cheap, ugly and yet extremely expensive, glasses can be. Nothing stylish comes cheap.

That was the impetus behind Warby Parker, which has shaken up the industry by taking out the middle man and selling glasses direct to consumer by allowing them to be purchased online.

By selling directly to customers, the company is able to avoid retail markups and offer its glasses, which are decidely not ugly, for a relatively cheap price. 

The company sells regular eyeglasses for both men and women, starting at $95 a pair. It sells 89 different styles of glasses for men, and 101 different styles for women.

Warby Park also sells prescription sunglasses for $150, or $275 with polarized prescription lenses, of which there are 39 styles for men, and 50 styles for women. 

Finally, it also sells a Colonel monocle for $50, which includes prescription lenses. Hey, hipsters need eyewear too! Also, the monocle is unisex.

Warby Parker does not charge shipping, though customers can pay $30 to expedite their order.

And finally, the company makes money by selling replacement lenses. If Warby Parker lenses are scratched within the first year, the company will replace them for free. If a prescription has changed, the company will replace the lenses for a fee, based on the prescription and the lenses that were selected. 

Replacement lenses can go for as low as $50, for single-vision polycarbonate lenses, or as high as $445 for progressive polarized 1.67 high-index lenses.

In addition to selling online, Warby Parker has also opened a series of brick and mortar store to sell its frames and lenses. It has a total of 31 stores in 16 states, including Texas, Oklahoma, Maryland, Georgia and NewYork, as well as Washington D.C.

Founded in 2010, Warby Parker has raised $115 million in venture funding, including a $100 million round in April of last year, which valued it $1.2 billion. Investors have included American Express, Felicis Ventures, First Round, General Catalyst Partners, Interplay Ventures, Lerer Hippeau Ventures, Spark Capital and Thrive Capital, among others.