Marketing That Works: How Entrepreneurial Marketing Can Add Sustainable Value to Any Sized Company, Second Edition

3. Entrepreneurial Pricing: An Often-Misused Way to Garner Extraordinary Profits

Determining Price at Warby Parker

Neil Blumenthal, CEO and cofounder of Warby Parker, likes to tell the story of how his pricing was determined. When he was still an MBA student at Wharton, he presented his original pitch deck to Professor Jagmohan Raju, a pricing expert. The value proposition was very stylish, hip, prescription glasses sold over the Internet, with free try-ons of up to five different frames at home, delivered with excellent customer service, and donation by the company of one pair of glasses to a needy person for each pair purchased. The price in the pitch deck for all of this was $45 per pair of glasses. With his forecasted costs, the business ...