America is a beautiful nation. It better be, given how much it spends on beauty!
The average American spends roughly $15,000 in their lifetime on beauty products. Applied nationwide, that statistic means Americans spend billions of dollars every year on cosmetics.
No one is saying you can’t spend some money on beauty products. Yet you should find a way to keep the price of beauty from hurting your wallet. One step you can take is learning about why products are so expensive.
Why is the cost of beauty products so high? How do production costs factor into expenses? What marketing techniques cause a spike in the price of products?
Answer these questions and you start saving money while you buy lipstick and makeup. Here is your quick guide.
Production Costs
It takes a lot of time and resources to make beauty products. A company has to source ingredients and then try out different combinations to see what their effects are.
Once a company has a skincare product it likes, it needs to test the quality of the product and its health effects. The federal government takes counterfeit products seriously, and companies face substantial penalties for faking makeup or cosmetics. You can see here and view other sources about the dangers of fake makeup.
After a company receives approval for its product, it has to manufacture a very large amount of it. A company then must transport the product to its stores, paying for trucks and airplanes in order to do so.
Product Demand
The higher the demand, the higher the price. Many people need beauty products because they want to look professional and attractive around others. A company can then charge hundreds of dollars for their products, knowing that people will buy them anyway.
Customer Loyalty
As time goes on, a company can develop a loyal customer base by supplying high-quality products. Some people may buy a product just because a company is manufacturing or promoting it.
With this kind of loyalty, an organization can ask for a significant amount of money. It knows that its customers will buy nearly anything it makes, so it can jack the prices up.
Marketing
Many beauty companies rely on expensive marketing campaigns to sell their products. They buy billboards in high-traffic areas like Times Square, and they run television advertisements with celebrities and supermodels. They need extra money in order to pay for these campaigns.
Some companies market products that aren’t necessary, but seem impressive. They may put cream in a gold container, or they may add an expensive ingredient like saffron to one of their products. The impressive quality of these products may be enough to encourage someone to buy them, even at a high cost.
The Price of Beauty
The price of beauty is high for several reasons. Beauty companies have to buy a lot of ingredients and spend time developing the right products. Failed and unsafe products cost money, let alone manufacturing successful products.
Product demand and customer loyalty encourage companies to jack prices up. As long as people will buy their products, companies can attach high sticker prices. They also like to run expensive advertising campaigns to appeal to different people, so they increase prices to cover the costs.
The beauty industry is more complicated than you think. Read more beauty guides by following our coverage.
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