I’ve written on lipstick prices before, and why the heck £24+ is becoming a standard price for lipsticks. Lipsticks are seeping up in price annually while the costs of the ingredients are not rising at the same rate (they go up at about 5% a year, with the exception of beeswax which fluctuates more than other ingredients because of the decline in bee numbers). This time though, I’ve pulled out a real formula and added in costings. You will be shocked to see that the price of a lipstick, excluding packaging, is less than a tenth of a pence.
A standard lipstick comprises the following ingredients and next to those are the costs per individual lipstick.
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25 comments
Yes, very surprised! And somewhat dismayed!
http://tashasface.wordpress.com/
The price of raw materials has almost nothing to do with the price of mid market and premium products. L’Oreal are typical in spending about a third of their turnover on advertising. That is where all the money goes. The retailer will put a markup of between 25% and 100% as well, and will spend a lot of that on advertising. Whenever you buy a branded product you are funding the promotion that will persuade you to buy the next one.
Yes, I know, but I just found that stripping it down to the bare bones without accounting for all the other stuff .. packing, shipping, etc.. it’s really quite interesting. I knew the base price was low but even I was surprised at how little each one costs to make.
That’s quite an eyeopener!
It proves that you really do pay for the brand and its packaging.
Its a real eye opener, something everyone should consider when buying their next lipstick.
Would be a good idea to do a similar comparison with foundations and other beauty products!
chlotalks.blogspot.com
This is very disappointing. I always assumed that to invest in a more expensive lipstick was to invest in a higher quality of product. Not to pay for a very very cheap product along with its expensive advertising campaign. This is quite the eye opener and it really hammers home why high end lipsticks especially might not be worth investing in at all.
And what about the price of the labour? Component? Box? Shipping?
It’s very hard to get that kind of information which is why I did a ‘bare bones’ piece on just the ingredients.
I’m a fragonerd and you should see the base ingredient costs for fragrances. It’s even more shocking.
I have actually been told and couldn’t believe my ears.. especially for mass brands x
Unfortunately in the case for fragrance, the difference in cost of a single ‘note’ can and does vary significantly… from around £10 per kilo for a synthetic jasmine note, to nearly £10,000 per kilo for pure Jasmine oil! The worst thing being, that with no disclosure required on labels it’s nigh on impossible for the average person to know if they are paying for synthetic or pure Jasmine! Great article, thanks Jane!
preach! Most of people have this idea of “the more i pay, the better the product” but we all know that it’s not ALWAYS the case. it’s a well known fact in the marketing world that brands (especially luxury brands) don’t charge according to the real quality of the product but to the price they think people will be willing to pay.
Wow, that is crazy! It’s sad that brands are charging so much just for shiny packaging and their brand logo.
Colour Shimmer Sparkle
Bree
Surprised? I think the word here is shocked. The rest of the price is for their humungous marketing budgets I guess.
Very interesting, quite a shock though
Slightly Skint Blog
I’m not surprised at all! It’s just fancy grease, at the end of the day. It is annoying, but hey. We’ve all been paying it for years!
I work in the pharmacy industry and we make suppositories in pretty much the same way a lipstick is made. Tee Hee
“I work in the pharmacy industry and we make suppositories in pretty much the same way a lipstick is made. Tee Hee” Too much information.
I knew there was a big mark up but didn’t expect that scale. £24+ for a lipstick is ridiculous. The good news is that the pharmacy brands have improved their offering. Given the choice of 3 Revlon buttershine or 1 £24+ lipstick I’ll opt for Revlon. Was surprised to read that Revlon are laying people off because they have good products at the moment.
Wow I can’t believe how inexpensive it is to manufacture a lipstick, it is really bad how companies will charge so much based on marketting strategies and brand image 🙁
EmmiHearts
It is really hard to get the figures for packaging/advertising/shipping etc as the brands do not want to disclose this. You also have to take into account that if this is a brand that has a concession in a department store they also have to contribute a large amount money in rental costs as well as comissions/wages for the staff. Mass market brands are cheaper as they only have to pay really for a stand in a store which is looked after on their behalf anyway (Boots etc). It also shows how brands like MUA can charge £1 a lipstick and still make a profit.
This is an eye opening review. Why do we love lipstick sooo much eh? we have been paying for it for years.
Personally I believe that buying mainstream synthetic beauty is no different to eating at fast food outlets, neither offers any real or long-term nutrients to body or skin – its simply a quick fix. I would be very interested to see a comparison with those raw ingredients found in a highly natural or organic lipstick!
I am not surprised as much as I may should be! I think if you’re obsessed with beauty then you already know this a lot anyway. However it doesn’t change the fact to me that a Barry M lipstick will tug or crease or won’t be a very good colour.. whereas my MAC/Chanel ones apply beautifully, brilliant colour, etc etc. And yes you are paying for the packaging but to me I don’t mind – the feeling you get when you’ve treated yourself to something beautiful in beautiful packaging is a great one. I say only pay more if you think it’s worth it and you can afford it!
xx
I wish I could say this surprised me. I used to work in retail and we used to sell £70 dresses for £1 in the sale and the company were STILL making a profit on that. Crazy!
Elissa | styleaffix.com
A piece like this is interesting but the cost of raw ingredients is just the tip of the iceberg when you’re talking about the actual cost of creating, producing, and marketing a product. Listing the price of the raw ingredients in no way reflects the true cost of producing the product. Every step of the way–from creative inception to the finished product in our makeup bag–there are costs associated with commercial spaces/buildings, employees, materials, time, equipment/machines, fuel costs, transportation/shipping, taxes, licenses, research/development, etc. which all add to the cost in transforming those base ingredients into that much coveted product we swipe on our lips. And, although the cost of the raw ingredients themselves might not have risen by much, that has not been the case with many of the other related expenditures and we all know that such increases get passed on to the consumer.
I’m not saying there isn’t a substantial markup on cosmetic products because we all know that there is. We are, after all, buying an image, a dream, a promise and it is well known that the cosmetic industry charges what they think a customer is willing to pay to achieve that feeling of beauty. Most of us also know from experience, that not all lipsticks are created equal. Differences in formulation which affect the texture, finish, color, longevity, and the ability to moisturize and condition our lips also have an impact on the cost of the product and the price we’re willing to pay.
Bottom line: A list of raw ingredients and their cost is interesting, but really says nothing about the cost of producing the actual product.