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Thread: What determines the cost of a PAL?

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    OptiBoard Apprentice Mightymouse's Avatar
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    What determines the cost of a PAL?

    Hey all,

    This is my first post. I was wondering if someone could explain to me what determines the price of a PAL design?

    Is it R&D or differences in manufacturing processes?

    Cheers:cheers: ,
    :D

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    Master OptiBoarder Jedi's Avatar
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    I would presume R&D, marketing and what the market will bear are the main factors in pricing of most PAL's. Lenses like the Ipseo, ILT, Seemax, i.e. freeform stuff, probably have some machinery costs factored in there too.
    "It's not impossible. I used to bull's-eye womp rats in my T-16 back home."


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    Manuf. Lens Surface Treatments
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    Blue Jumper No difference............................

    Quote Originally Posted by Mightymouse
    I was wondering if someone could explain to me what determines the price of a PAL design?
    Is it R&D or differences in manufacturing processes?
    Actually all PALS are the same basic thing. Some minimal differences in height or width of progressive area and or reading area. Basic launch date of PALS was 1955 under patent protectiction by SL (then ESSILOR). When patents expiried everybody else jumped in. The first one actually was HOYA in 1967 or 68.

    Once the mold is made to cast a PAL in CR39 do NOT cost a cent more than making a single vision lens. The same applies for polycarbonate. The manufacturing process is exactly the same as for any other lens. Of course the manufacturing of the mold is more expensive, but that is a one time cost factor.

    Taking the mold factor into consideration, a PAL should be slightly more expensive. The large factor for the high price is advertsing and creating a big hype plus super high profits for the manufacturers.

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    Cape Codger OptiBoard Gold Supporter hcjilson's Avatar
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    Respectfully beg to differ.......

    I repectfully beg to differ with my Canadian friend who winters where its warm. ;) The premise of the progressive lens may be the same, but the lenses are not. That is to say, all progressive lenses begin with the distance correction and the power of the lens is gradually increased as you move lower, until the reading power is reached. As the power increases, the focal length decreases.

    There is a world of difference between the lenses themselves as any practicing eyecare professional can tell you.One of the factors determining cost is reasearch and development. These are the unsung heros of this industry who are paid to find new lens designs that are improvememts over what is available, or to fill a niche in the market not being currently filled.These are the Bill Tillyer's of today....and R&D is expensive.For every design brought to market, hundreds are scrapped. You can learn more about this from Darryl Meister who moderates here.

    In short, there are many factors contributing to the cost of progressives, and yes, profit is one of them.....but in terms of price in relationship to cost, I don't think its any more profitable than .....say, the optical solutions industry with its dyes and cleaning solution, or for that matter, the oil industry with their 30% price increases overnight. This is a capitalistic society, profit is not a dirty word.
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    Objection! OptiBoard Gold Supporter shanbaum's Avatar
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    Quote Originally Posted by Mightymouse
    Hey all,

    This is my first post. I was wondering if someone could explain to me what determines the price of a PAL design?
    The market.

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    PALs are more expensive also because the manufacturers offer to exchange them if the buyer doesn't adapt. So the cost of way more returns must be factored into the pricing.

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    One of the worst people here
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    Quote Originally Posted by SkiBunny
    PALs are more expensive also because the manufacturers offer to exchange them if the buyer doesn't adapt. So the cost of way more returns must be factored into the pricing.
    that too. However, remember, that only adds a few dollars to it. I mean I only get one every few years, but the warranties do up the price a little.

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    Price is also dependent on the facility and personel of the dispensary. Usual influences, rent, maintenance, personel cost, shipping, etc. Go to a dump, it'l be cheaper, see a novice dispenser it may be cheaper, etc.

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    Sawptician PAkev's Avatar
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    Quote Originally Posted by chip anderson
    Price is also dependent on the facility and personel of the dispensary. Usual influences, rent, maintenance, personel cost, shipping, etc. Go to a dump, it'l be cheaper, see a novice dispenser it may be cheaper, etc.
    Ahh.........:idea:
    Any entrepeneurs for a self service optical.... Who will patients blame when they take responsibility for their own actions?

    Heck, think about all the things purchased that we end up contributing effort toward that someone else once got paid to do!

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    Quote Originally Posted by For-Life
    that too. However, remember, that only adds a few dollars to it. I mean I only get one every few years
    Yeah but maybe some others may only get one RIGHT every few years.
    One store I was in seemed inundated with people returning their specs.

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    Bad address email on file QDO1's Avatar
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    R&D, method of manufacture, number of order parameters, quality of surfacing / coating, quantity made Vs fixed cost - all have a bearing on the price of A PAL

    If you are a consumer, then generally the more you pay for a PAl the more your optician paid for it. It is worth noting that the "expensive ones" are usually at a lower margin than the cheap ones. I would imagine this is also reflected in the B2B price / margins between the optician and supplier

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    Manuf. Lens Surface Treatments
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    Redhot Jumper Just to clarify..............................

    Quote Originally Posted by Mightymouse
    I was wondering if someone could explain to me what determines the price of a PAL design?
    Is it R&D or differences in manufacturing processes?
    The cost of manufacturing is the same as a single vision lens, they are all cast or moulded depending on material.

    The high price is a left over from the old days when these lenses were made only in glass and there was a lot of work involved to grind and polish the curves into a glass lens.

    Fro CR39 the molds are made from glass which makes the more expensive than single vision molds, but on the other hand they can be used thousands of times over and over again.

    For policarbonate lenses the molds are made from steel and a molding machine can spit out a rack of six to eight lenses every few seconds.

    The R&D has been done many years ago (like 50years) and should have been written off.

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    Bad address email on file QDO1's Avatar
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    Clearly if all progressives are the same we should dispense a Varilux 1 to everyone. As patently this isn't true, we have to look at the differences between the lenses

    I do belive there is a lot of effort made pre-release in the development of a lens. Over the last years I have seen a massive improvment in the quality of the distance portions (for example) of progressive lenses. There have been developmets in single vision lenses - for example the new release of the Rodenstock ILT Near vision lens, which is also very expensive, but technically ground breaking

    I have progressive lenses which sell for a similar price to a surfaced S/V lens, or bifocal lenses. I also have progressive lenses which sel for a lot more than that. I do agree that we get to a point of the law of diminishing returns, especially for a average prescription. The more expensive lenses generally suit the more tricky Rx's I deal with. The real question is what lens should we dispense to who, and why

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