The mark-up on cosmetic industry is tremendous, from 25x to 150x, in it's raw material cost. The greatest product expense is the advertisement and marketing.
The product that run $300 could carry a raw meterial cost of $2 (high-end) or the $2 product with a raw material cost of $0.50 (drug store). This is the business I've no problem or judgement. I enjoy the pampered feel. I especially dig a marketing campaigns that puts me in the company of Audrey Hepern and Hungary nobaility, that having this little tester of EL 3-9 Balm is capable of achieving at least for this Wednesday morning.
Being of relative humble means though, keeping in mind the industry mark up of 25x to 150x, my 'sweet spot' for the subscriptions, is a box that brings me 4x in retail value what I paid for (someone is still putting some profit in their pocket along the way) anything below 4x is a 'deal breaker' for my pocket book, because I'm not yet amongst the uber-wealthy.
I'll give you some profit, but my mathmatics are humble. These are testers after all. BB and BA's consistantly do that, even if it included products that I wasn't particularly keen on, I'd be able to trade it and because the box was 4x the value, theoratically that absorbs the cost of shipping and time spent. So far SS has done pretty well on that front, with exception to this box. Too many non-applicable testers and the overall value is not satisfactory. If I'd was in a spa resort in the tropics and saw this in their store I'd pass on it.
I think some people feel this way too instinctively without having to put it in so many words. I'm not sure that I can even trade the tanning product.
The product that run $300 could carry a raw meterial cost of $2 (high-end) or the $2 product with a raw material cost of $0.50 (drug store). This is the business I've no problem or judgement. I enjoy the pampered feel. I especially dig a marketing campaigns that puts me in the company of Audrey Hepern and Hungary nobaility, that having this little tester of EL 3-9 Balm is capable of achieving at least for this Wednesday morning.
Being of relative humble means though, keeping in mind the industry mark up of 25x to 150x, my 'sweet spot' for the subscriptions, is a box that brings me 4x in retail value what I paid for (someone is still putting some profit in their pocket along the way) anything below 4x is a 'deal breaker' for my pocket book, because I'm not yet amongst the uber-wealthy.
I'll give you some profit, but my mathmatics are humble. These are testers after all. BB and BA's consistantly do that, even if it included products that I wasn't particularly keen on, I'd be able to trade it and because the box was 4x the value, theoratically that absorbs the cost of shipping and time spent. So far SS has done pretty well on that front, with exception to this box. Too many non-applicable testers and the overall value is not satisfactory. If I'd was in a spa resort in the tropics and saw this in their store I'd pass on it.
I think some people feel this way too instinctively without having to put it in so many words. I'm not sure that I can even trade the tanning product.