This post is in partnership with Knowledge@Wharton, the online research and business analysis journal of the Wharton School of the University of Pennsylvania. A version of the article below was originally published at knowledge.wharton.upenn.edu. The eyeglass company Warby Parker has a lot going for it—including stylish retro-hip frames, a slick website, terrific service featuring a home try-on program, free shipping and returns, and anti-establishment buzz that’s been building for years. Another obvious selling point for consumers is price: The vast majority of Warby Parker glasses sells for a reasonable — and curiously uniform — rate of $95. (Titanium frames are $145.) But perhaps what’s most remarkable of all is that the price of Warby Parker glasses was almost set at $50 cheaper. The National Association of Vision Care Plans puts the average price of eyeglasses at $263. “As customers, we’re so used to being ripped off: We don’t know the difference between a pair of $300 glasses and a pair of $400 ones,” says Simon Blanchard, a marketing professor at Georgetown University’s McDonough School of Business. Beyond offering better prices, Warby Parker strategically uses a uniform pricing system that comes as a relief to overwhelmed consumers. “When all of your products are priced the same, people focus on something else,” adds Blanchard, who notes that Swatch Watch was successful with a similar strategy. “In the case of Warby Parker, customers focus on the glasses that best reflect their personality and style.” (MORE: Game Changers: Neil Blumenthal and Dave Gilboa, the Visionaries of Warby Parker) The decision to price glasses at $95 comes with a back story. Wharton marketing professor Jagmohan Raju recalls that when the founders broached their idea to him, they originally planned to sell their glasses at half that price. “I really liked the idea overall … but after examining their analysis, I told them it’s not going to fly. [At $45 a pair], there’s no money [left over] for brand building; there will be no money in it for you and no money for investors.” In addition to … Continue reading The Consumer Psychology Behind Warby Parker’s $95 Pricing for Eyeglasses