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Companies can and do, e.g. Costco, for prescription glasses anyway.

I bet what often happens instead is that the higher margin company just buys out the cheaper guy, and... it's back to the higher prices!

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This is how it seems to work in the US Airline industry.

Luxottica ran the CostCo Optical centers for a little bit. I believe they got out of it because they were not making any money on it.

That makes sense. Costco sells a lot more than just eyeglasses, so it's a rare case where Luxottica just doesn't have leverage. If it's not Luxottica, it's someone else, but Costco's brand is very strong, so there's no concern about quality where you'd otherwise judge based on price/brand.

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