WHY ARE COSMETIC SO EXPENSIVE?

Are you paying for what you get?  Most consumers don’t realize just how little it actually costs to make cosmetics.  So when you purchase brand name cosmetics, what are you actually paying for?

Ingredients:  Many department store cosmetic companies use expensive ingredients such as crushed pearls and diamonds or exotic ingredients such as rare plants.  The problem is, there is no proof that any of these ingredients have an effect on the skin.  Also, the amount of these ingredients is so minimal that they are almost not measurable.  Most department store cosmetics do not use “Active” ingredients that are proven effective.

The Name:  Lancome, Chanel, Estee Lauder, Dior.  The thing is most of these companies don’t make their own products.  Most products are manufactured by independent laboratories and sold to the cosmetic company.  These laboratories sell to everyone, from the big expensive cosmetic companies to the little hair salon on the corner.  What you may not know is, many big name department store cosmetic companies also have cheaper drug store sister companies (Lancome and L’oreal).  They have the exact same products but packaged under different names.  The only difference is price. 

Advertising:  look at how many ads there are in all the major publications.  A one time full page ad in “People” magazine costs approximately $254,075.00.  That’s “People” magazine.  Magazines like Vogue, Harpers, Glamour and “W” charge far more.  Don’t be fooled by those “Editors Choice” segments in the fashion magazines.  Companies pay to have their product placed there either by committing to advertizing or paying out of pocket for the placement.

Packaging:  Every brand has their own exclusive packaging and you’re paying for that exclusivity.  Cosmetic companies pay big money to packaging manufacturers to make sure their packaging remains “their packaging”.

Shipping:  Raw materials shipped to the lab, Blended products shipped to the filler, Packaged products shipped to the warehouse, then again shipped to the distributor, then again shipped to the store.

Gift With Purchase:  GWP’s are not free.  Those freebies where paid for many times over by your previous purchases (another reason why you’re paying $150.00 for that cream).

Face Models:  It costs the cosmetic company millions of dollars to use a celebrities face to promote their products.  These are not endorsements.  These celebrities are paid big bucks to lend their face to those companies.

Sales People:  You pay for that person behind the counter.  Problem is 90% of the people that work in the cosmetic department have no formal skin care, makeup or hair care education.  They are only trained on the line they represent.  The person who’s selling you that $150.00 face cream might have been selling shoes the week before.

Returns:  The amount of cosmetics that are returned and destroyed every day is astronomical.  Every time you purchase a cosmetic, you are also paying for the millions of products that are returned to the store.  Those returns end up in land fills or end up floating in the middle of the ocean.

"When I developed a men's skin care line (Guy Stuff Skincare), I chose to take the cheapest route possible.  I contacted a laboratory famous for manufacturing natural skincare and told them exactly what I wanted in my line.  They sent me hundreds of samples of stock products to test.  After choosing the products, I looked for the most affordable and easiest packaging to recycle.  When I was through, I had a pretty cool men's line.  The reason I bring this up is, I chose the cheapest way for my to go to create a men's skin care line but it's a rather expensive way as well.  The big cosmetic companies have far larger profit margins to play with than I did.  Yet!  I was able to put a substantial mark-up on the products and still sell them for far less than the department stores sell their products for.  A 4oz Moisture Gel (one of my most popular products) cost me $1.50 for product, packaging and label.  I in turn wholesaled it for $7.00 and it retailed for $14.00.  I used the most expensive method when it comes to cosmetic manufacturing.  A big cosmetic manufacturer would have been able to do the same for less than .25 cents and they would have sold it for $25.00 to $30.00." 
   
Renovar: has gone straight to the laboratories that manufacture products for all of the big cosmetic companies and we are able to purchase products that are the same (or even better) than the major brands.  Only thing is, we demanded that all questionable ingredients be removed.  By doing so, we can sell a serum that would retail for $150.00 at the department store or salon for only $20.00.