Beauty Products - part 2

| May 18, 2010 |

You didn’t think I could actually stop ranting after just one post right. I’m sorry, I do try, but the words just keep flowing out of me. Now where were we, right - There are only a few manufacturers out there that make all the products. The same goes for makeup and nail polishes. While products can and do differ, some do not. It doesn’t hurt to read the ingredients and check the manufacturer when comparing products or looking for a less expensive alternative.

The manufacturer that I buy my makeup line from is the same company that manufactures cosmetics for many of the expensive department store brands. I pay a significant amount more for my products then they do though. Why is that? It’s because I don’t order in bulk the way larger cosmetic companies do and the more you order the cheaper you pay per item. If you really want to understand the game I’ll give you an example.

A company that orders in large bulk quantity may get a fancy eyeliner for say $1.00 each (I would pay $3.00 for the same eyeliner due to the quantity I order). They stick a designer label on one and market the other as a less expensive brand. The designer brand has more expensive packaging and labels so we’ll add $1.50 to the cost of that product. The company sells the designer eyeliner for $20 making a profit of $17.50.

While that is a great profit, they have other costs like marketing to deduct and it can get expensive. They also only sell a certain amount of these high priced cosmetics. Now take their less expensive brand. They will sell that product for $3.50 and make $2.50 profit on each. They don’t have the same advertising costs to worry about and they sell more of them. Lots more, so they make their money on these products because of the quantity that they sell. So the next time that you are torn between two items, be sure to think about more then just the price.