The Business End of Beauty: Price Differences
Back in the days before internets, brands could price pretty much as liked from country to country – it was always something of a secret that you could find beauty products far cheaper in other countries than you can here. The USA is a good case in point, although you must remember that most websites aren’t showing sales tax which differs from state to state. And the dollar rate fluctuates (most in our favour).
When a BBB reader asked me why a particular NUDE product is less expensive in the US than it is here, I really wanted to know why. It’s completely unexpected from this brand. Most brands will try and keep an acceptable ratio between prices taking into account exchange rates and shipping costs. So, when you’re looking at brands that are more expensive here than in the US, you actually need to be looking at the retailers who are selling the products more expensively.
If a product is with a huge retailer, they’re more likely to want to offer competitive pricing. The retailer is king when it comes to small brands and if they want to sell it cheaper, nine times out of ten, they can do as they please. It can be the case that a retailer agrees to sell at a particular price and then changes their mind.
Which is what happened to the NUDE Rescue Oil I blogged about – one minute it was in price alignment, the next is wasn’t. Although NUDE is part of a bigger beauty conglomerate (LVMH), each brand has to stand on its own two feet.
The same brand can have entirely different retailers across the world and with that comes different audiences and consumers. In light of BBB readers being hot on this issue (and I thank you for it) and educated around pricing variations, I was able to flag it up to the NUDE team as something that needed to be sorted out.
As it turned out the NUDE team were already on it! Some brands would just let it be, but I know the NUDE team and it’s just not their style so I wasn’t all that surprised that they were already actively making changes to the pricing.
The upshot of all this is that NUDE Rescue Oil will be sold now in the UK for £58 instead of the originally proposed price of £62. This takes into account the movement in price overseas. It’s launching on 5th June into SpaceNK and my blog post with review is HERE.
Don’t even start me on what retailers in France are doing to beauty pricing – they pass on so many costs to brands and don’t like to reduce prices for consumers. It’s a hornet’s nest! I’ll blog more about that when I’ve got my facts solid.
*all products are sent to me as samples from brands and agencies unless otherwise stated. Affiliate links may be used. Posts are not affiliate driven.