Women are willing to spend 100 dollars on lipstick, but how much does that lipstick actually cost to make?
It is reported that the 35 dollar lipstick that is ALWAYS in your purse only costs about $2.50 to make. This means that most cosmetic brands are marking up their prices ten to eleven times.
This is the broken down costs associated with creating one tube of lipstick. The ingredients cost about 1 dollar. Believe it or not, this is the most expensive aspect. The physical components, including tubes and brushes, cost about $0.70. Then assembly which costs $0.38. And then there is shipping which costs as little at $0.10.
These markups pay for extremely expensive ad campaigns, items that people don’t buy, and for external retailer costs. The markup system is actually very complex in the cosmetic industry.
All of this in mind, people will always continue to buy the beauty product to have their lips looking luxurious.
