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597. Why Do Your Eyeglasses Cost $1,000?

Freakonomics Radio

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Profitability of Luxury Brand Licenses

Luxury brands that are licensed require sharing profits through royalties and marketing contributions, ranging from 5% to 15% of revenues for royalties and 7% to 13% for marketing contributions. Compared to other luxury licensing sectors like fragrances, the conditions are similar, with high-end frames requiring more human intervention and intricate processes, leading to lower profit margins for brands like Chanel or Tiffany's compared to brands like Ray-Ban or Oakley.

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