Price Guiding – How much does it cost to start a cosmetic product?

Price Guiding – How much does it cost to start a cosmetic product?

Author:Kasey Beauty Time:2019-8-30

A lot of new customers send inquiries like below.

Hi Mark, I am looking to start up my business by launching a cosmetics line. How much the lipstick?

Actually customizing cosmetics well flexible, and there can be many prices.

  • Who’s your ideal customer? High-end market, mid-range market or low-end market?
  • Do you plan to sell the goods in which country market?

What we do is based on your information provide you a competitive price while guaranteeing the quality.

 

Detailed analysis

The cosmetics price can be roughly divided into 6 parts.
Price= Cosmetic material + Packaging (tubes/container) + Packing material + Labor cost + Profit

Price Guiding - How much does it cost to start a cosmetic product?

1. Makeup formulation
   The content which used for eyes, lips, and face.
• Normally we quote based on standard quality.
• Material cost can be controlled when making samples, as engineers can use tens of dollars or hundreds of dollars raw materials.
Cosmetics regulations are a little bit different in some countries. Such as some ingredients can be used in Europe, but forbidden use in the USA. So sometimes we need to use other same effect or more expensive ingredients instead.
Price Guiding - How much does it cost to start a cosmetic product?
How to choose makeup material quality(formula)?
Ⅰ. We recommend existing mature formulas
       •  the makeup formula can be updated based on your feedback.
Ⅱ. Customer provided quality sample
       •  normally our engineers can copy famous brand goods formula if you can provide sample
Ⅲ. Customized formula according to the requirements

 

2. Primary packaging  ( direct contact with cosmetic product )

Many types of packaging to contain various types of cosmetic products(make-up, skincare, fragrances, wipes, …): Container, bottles, tubes, aerosols, jars

Many materials: plastics(PET, PP, PE), glass, metals, paper, wood…
Different level of complexity: simple to very complex packaging (eg: pumps)
Different tube / container comes with different material, design which the price sometimes quite different.

 

Example:
Obviously below gold container Luxurious than the black one

Price Guiding - How much does it cost to start a cosmetic product?

             Gold  powder container                                             Black container

If black one do the same shiny gold color add cost around 0.1-0.2USD, and the cost that depends on the container size

Price Guiding - How much does it cost to start a cosmetic product?

              Same tube with 3 different designs, price quite different.

Mold cost:
If you design a whole new plastic tube/container, which the size or structure not the same as our products
Mold cost around 5,000-50,000 USD that depends on the design, and the size.
  No mold cost, if design and develop according to existing products
  No mold cost, if design and develop Paper/ Cardboard palette

Price Guiding - How much does it cost to start a cosmetic product?

3. Secondary packaging
   (e.g. color box, plastic display tray, bottom label, Opp bag, shrink film etc.
Which packing way should choose? That depends on how you’re going to sell your products.
Are you selling online or in-store? In small boutiques or in large retailers?


Price Guiding - How much does it cost to start a cosmetic product?

Different raw paper material / printing procedural which price quite different.

Private label cosmetics Private label cosmetics

4. Labor cost
There will be costs for each link, as doing private label cosmetics order that is multi-link cooperation.
From purchase, production, logistics distribution, all need to invest a lot of resources and work with different material suppliers.

Our factory has around three hundred employees. Our organization chart

5.MOQ

Our factory each item MOQ 12000pcs, and each color MOQ 2000-3000 PCS.
Different materials MOQ is different. The more you buy,the lower the price will be.

6.Profit

Reasonable profits can help us to continue operation and expansion, provide better customer service, after-sales service.

As above, there are many factors affecting the final price. That need to consider all above-mentioned factors before drawing a conclusion.
If you keep looking for low prices, you may lose quality if you get a price.
Quality Is Our Culture, work with us your money in safe and your business in safe

Online Inqury

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