Tariffs and the Eyecare Industry

There is lots of “Tariff talk” on how it may help and how it may hurt. Here is how select experts think tariffs may impact the eyecare industry.

Tariffs are taxes or duties that governments impose on imported and sometimes exported goods and services. They are typically used to control trade between countries, protect domestic industries from foreign competition, and generate revenue for the government.

There are different types of tariffs, including:

1. Ad valorem Tariffs: A percentage of the value of the imported goods. For example, if a country imposes a 10% tariff on a product worth $100, the tariff would be $10.
2. Specific Tariffs: A fixed fee or charge per unit of the imported goods. For instance, a tariff might be $5 per item regardless of the price of the item.
3. Compound Tariffs: A combination of both ad valorem and specific tariffs. For example, a tariff might include a percentage of the value of the goods and an additional fixed amount per unit.

Tariffs impact the price of goods in the market, often leading to higher prices for consumers.

Tariffs have a significant impact on the eyecare and eyewear industry, affecting everything from the cost of raw materials to the pricing of finished products. Here’s how they influence different aspects of the industry:

1. Increased Costs for Eyewear Manufacturers

• Raw Materials: Many components of eyewear, such as lenses, frames, and certain chemicals, may be imported. If tariffs are imposed on these materials, it raises the cost of production for manufacturers.
• Finished Goods: Tariffs on imported eyewear (such as glasses or sunglasses) can make them more expensive. Eyewear brands that import their products from other countries (such as China or Italy) might raise prices to cover the tariff costs.

2. Higher Retail Prices

• The increase in production costs often results in higher retail prices for eyewear & contact lenses

3. Supply Chain Disruptions

• Tariffs can disrupt global supply chains. For example, if a country imposes tariffs on eyewear or components coming from a specific region, manufacturers might face delays in receiving their products or raw materials. This can lead to shortages in the market, affecting both the production schedules and product availability.

Some ways Tacoma Eye can combat Tariffs:

Private Label contact lenses, the same quality but at a lower price.

We now offer private label contact lenses from Cooper Vision including Reveal & Aquaclear contact lenses, this can help lower prices for consumers in several key ways. Here’s how:

• No Branding or Advertising Costs: Private label products typically don’t require the same level of investment in branding and marketing as national brands do. Established brands often spend large sums on advertising, sponsorships, and promotional efforts to build and maintain their brand image. Private label companies can pass on the savings from these lower marketing costs to the consumer, making their products more affordable.
• Simplified Packaging: Private label products often use simpler packaging, which can further reduce production costs.

• Less Intermediaries: National brand products often go through multiple layers of distribution, with each party (manufacturer, distributor, wholesaler, retailer) adding their own markup. Private label products, on the other hand, often have a more direct path from the manufacturer to the retailer, cutting out some of these intermediaries and thus reducing the overall cost structure.
• Rebates: Right now CooperVision is offering rebates on the private label contact lenses (Reveal, Aquaclear)- Please review the illustration from 2023 as an example. Come in and get your 2025 rebate while supplies last.

At your next eye exam with Tacoma Eye, don’t forget to ask if Private Label contact lenses are right for you!