PRICES THAT MAKE THE BEAUTY INDUSTRY BLUSH
Luxury Beauty Products can often retail for 10X(or more) than what they REALLY cost to make.
You could be paying £100 for something that costs £10 to make.
We think that’s crazy.
So we’ve decided to do something crazier...
That’s why at BEAUTY PIE, you can see a pricing transparency breakdown for every product we sell.
Take our Super Healthy Skin™ Ultimate Anti-Aging Cream
As a member you pay £12.04 for...
NOT £87.96 extra for...
For a world-class, imported anti-aging cream that costs about £12.04 to make,
YOU PAY £12.04
(instead of paying up to £100)
plus your BEAUTY PIE membership.
WHY OVERPAY, WHEN YOU CAN BEAUTY PIEJoin now
What do you include in BEAUTY PIEproduct costs?
Product, packaging and development costs make up a large percentage of our BEAUTY PIE members’ prices, and include everything from lipstick bullets, lipstick cases, the fluid of your foundation, the creams and cleansers, the tubes, jars, lids, and wands, moulds that produce our componentry (so powder compacts and lipstick cases and poured concealer pans and pencils) plus costs such as the assembly, filling, quality control, cartons, carton design, photography, duties and transportation (where applicable) and product-related development and design costs . You’ll notice that this cost looks quite low, and that’s because as a Buyer’s Club, when we buy in large quantities, each product’s individual contribution to these costs is quite minimal.
What is included in BEAUTY PIEfulfillment costs?
Fulfillment costs include safe, climate-controlled storage, insurance, picking and packing, credit card fees and order fulfilment.
What is included in Safety, Testing & COS costs?
Safety, Testing & COS costs may include (but not be limited to), costs such as prototyping, package testing safety, compliance and testing, product and packaging compatibility and stability, panel safety testing, compliance and SPF testing (where applicable) and support services.
(And of course everybody pays Sales Tax/VAT)
VAT (UK) stands for Value Added Tax and is included in the final price shown on site (Factory Cost and Typical Price). Sales Tax (US) is charged at checkout and varies based on billing address.
How do you calculate the Typical Price?
Typical industry prices (online or at retail) on luxury cosmetic products can be up to 10X the actual cost of the finished product, fully packaged, boxed, and ready for sale (so you could pay £20 for something that costs £2 to make, or you might pay £300 for something that really costs £30.)
But 5X is industry standard at the moment.
TYPICAL PRICES for luxury skincare can be even higher. (So you might pay £100-£200 or more for something that cost £10 for a laboratory/manufacturer to make, package, and put in a box.) Of course, brands can determine and apply any markups they want. It’s all about what they can convince a customer to pay (all that extra you’re paying covers the brand's other costs such as marketing, middlemen, retailer markups)...
To ensure our TYPICAL PRICES are current, we look at formulation, packaging, ingredients, uses, claims and product size of our competitors, and check their pricing in a variety of well-known online and offline retailers. We also account for taxes and delivery charges. And we repeat this exercise for every one of our products at least once every year.
Don’t forget, finish and ingredients can vary. For example, unlike some mainstream luxury brands, we keep our packaging high quality but minimal- because we believe that you shouldn’t be paying more for layers that end up in landfill (nor should we be contributing to the recycling problem. Retail prices can vary, so we encourage you to compare before you shop- just to see how valuable a BEAUTY PIE membership can be).
Note: We know this, because we used to work in the mainstream luxury beauty industry.
Beauty industry truth #1
Many luxury and premium beauty brands don’t manufacture their products themselves. They source from a handful of elite third-party labs, who conceive of, create, and manufacture FOR them. (They, of course, decorate and stamp their brands on the packaging and pay celebrities to promote them.)
Beauty industry truth #2
Those other luxury and premium beauty brands? The ones that market their products the mainstream way? They often source from the same exact labs that we do. Sometimes the exact same formulations.
That’s why you might think two brands have identical eyeshadow crayons or concealers, lipstick textures or foundation. You’re not imagining it, you may just be right.
About Beauty Pie products
BEAUTY PIE products are produced to our unique packaging + product specifications.
Our TYPICAL PRICES are what you would typically pay at a retailer (online or offline) for a luxury product of similar quality, efficacy, size and weight.
We audit our prices regularly. We never test on animals. Every formula we source follows clean beauty guidelines.