The price structure in the cosmetics sector
Design and manufacturing costs
Designing a product takes time: market study, establishment of specifications, development of formulations, choice of places of supply of ingredients, laboratory tests, iterations of recipes, creation of packaging. Once the product has been designed and the feasibility study carried out, it must be produced:
- laboratory formulation;
- packaging production;
- packaging in bottles and cases.
The following steps must also be considered: purchase of goods necessary for the production of cosmetics (ingredients, packaging), anticipation of necessary stocks, remuneration of intermediaries in the logistics and production chain. Developing a new cosmetic product involves an incompressible base cost.
The cost of marketing
Once the product is created, it must be marketed. Several channels are possible and combinable:
- Marketing at physical points of sale owned by the brand or through partnerships with distribution chains and independent resellers;
- Marketing on the internet, via the brand's own site or on other online sales sites. If the product is sold on the brand's own website, you must also plan for the costs related to the design of the online store, website maintenance costs, tracking and sending orders. ;
- Marketing at physical points of sale (stores and supermarkets). In this case, a commission is to be expected for the reseller, which corresponds on average to half of the final selling price of the product. In exchange for this commission, the reseller will put the product on the shelves. From one point of sale to another, this commission varies.
Product promotion
It is not enough to market a product for it to sell, that would be far too simple! A communication must be done upstream in order to make the brand and its assets known to its target consumers. The cosmetics market is vast, and customers are demanding and reluctant to buy care from an unknown brand.
For this, advertising campaigns are generally put in place: television, radio, displays in public or private spaces such as public transport, etc. On the internet, promotion is carried out via social networks and their advertising, “ads” from search engines and associated sites, inbound marketing (offering content with high added value for free) or even influencer marketing .
At points of sale, presenters must be paid by the brands in order to present the products and display stands must be provided.
Designing samples is also a widespread practice for introducing products to potential customers, or to users of the brand in the case of the release of a new range.
Concept of profitability
For a business to last over time and be able to remunerate all the actors in the chain, it must of course be profitable. As you have noticed, the fixed and variable costs linked to the creation, manufacturing, promotion and marketing of a cosmetic are significant and must be taken into account.
The final sale price must therefore be set so that the brand can cover all of its expenses (i.e. the break-even point) while generating an acceptable profit (profit margin).
Ingredients: a central role in the price of cosmetics
Ingredients play a central role in the price of cosmetics: eyeshadow, perfume, highlighter, mascara, foundation, pencil, blush, liner, lipstick, gloss, concealer, but also shampoo, day cream, scrub, moisturizer, body lotion or even cream solar can be formulated from natural ingredients, or components from petrochemicals.
Depending on the type of ingredients you use, but also on the quantity of active ingredients contained in your beauty product or makeup, the price can vary from simple to doubling.
Products that exclude parabens, carcinogenic dyes, Phenoxyethanol, silicones, PEGs, irritants, allergens, comedogenic ingredients, petroleum derivatives, endocrine disruptors, pollutants are generally more expensive than cosmetic products which contain them, because they take care of your health, and that at a price! To find cheap cosmetics, and of quality, you will therefore have to turn to a brand which pays very attention to the composition of its products, but who is keen to offer affordable prices to its customers.
To find out if the body and facial care, or if the products that make up your makeup bag respect a clean charter, cosmetic analysis applications can be real allies! A real plus for finding affordable cosmetics, and respectful of your health.
Cheap cosmetics: can we find some with vegan labels?
Yes, it is entirely possible to turn to a brand labeled Cruelty Free and Vegan, and which also ensures that it offers attractive prices, whether for your makeup palette or for all of your cosmetic products. This is particularly the case of the Grangettes Switzerland brand, which obtained the label PETA Vegan and Cruelty Free : the cosmetics do not contain any animal products, and have been made with the greatest respect for animal rights. No tests have been done on them, neither for the ingredients nor for the finished products.
Of course, this type of certification, like the certifications for organic cosmetics, influence prices: they nevertheless allow you to make an ethical purchase, one that respects the environment and animals. An argument that weighs in the balance!
Grangettes Switzerland: quality products at affordable prices
A bold specification
At Grangettes Switzerland, we are committed to conceptualizing products based on the needs of our customers: quality, efficiency, sensoriality, ecology, design and price: The price is the last element allowing us to validate our thinking and serves us to determine whether the product will see the light of day or not. Once a new product meets our standards, if its price falls within our acceptable range, we will produce it. Otherwise, we will postpone its release, while waiting for supplier prices to drop.
Our aim and purpose, in short:
- Respect our charter 100% clean ;
- Offer our customers high quality and effective products at accessible and fair prices, corresponding to their expectations;
- Be a sustainable, and therefore profitable, business;
- Increase our sales volume, to provide our customers with ever lower prices, for the same quality specifications!
- Regular price
- CHF 29.00
- Regular price
- Sale price
- CHF 29.00
- Unit price
- per
How do we guarantee our commitments
Automation and digitalization
Grangettes Switzerland is a modern company. We use all the IT tools at our disposal, allowing us to drastically reduce fixed costs. This allows us to significantly reduce our margins and be able to offer our customers high quality products at low prices: exfoliant, serum, moisturizing cream, anti-aging, body lotion, make-up remover and gel for the eye area are formulated from of ingredients which respect your skin and your health.
Cheap cosmetics: no intermediaries for a more affordable price
Apart from a few rare exceptions in Geneva, our city of origin, we have chosen not to use physical resellers and distributors. We promote and sell our products directly through our e-commerce.
By freeing ourselves from these two expensive intermediaries, we are able to offer our products at highly competitive prices, without risk of compromising our guideline: effectiveness, sensoriality, respect for health, the environment and animals, and formulations. with high scientific technicality.
This strategic choice allows us to offer, at identical quality, products up to 3x cheaper than if we sold them in points of sale.
By choosing Grangettes Switzerland, you choose the best quality and efficiency, at the right price, without paying distribution taxes which bring no added value to the product!
