It's tempting to think that higher-priced cosmetic products automatically equate to better quality for your skin. But is that really the case?
Cost Analysis: Understanding the True Price
To unravel this question, it's crucial to understand the real benefits you're gaining from your skincare expenditures—whether it's for your skin, health, or even the environment.
Decoding the Cost of a Cosmetic Product
So how is the price of a cosmetic product calculated? The price comprises the following components:
- Cost of ingredients
- Production costs
- Product development costs
- Packaging (bottles)
- Labeling
- Certification and legal compliance costs
Margins in the Cosmetic Industry
It's important to note that cosmetic companies apply margins, which are typically structured as follows:
- The finished product cost multiplied by 2 to 10 times or more to arrive at the retail price to the distributor
- The retail price to the distributor multiplied by 2 to determine the final selling price
Elements Included in Margins
What elements are factored into these margins? They include:
- Shipping costs
- Administrative expenses
- Advertising
- Logistics
- Rent
- Salaries
- Other business-related expenses
Scale of Margins
Large companies generally apply much higher margins, which can reach up to 10 times or more than the production cost, especially for luxury ranges.
Differences Between Luxury and Budget: The Cost of Skincare
It's important to distinguish between luxury and budget product ranges.
Luxury Ranges
Luxury products often feature elaborate packaging and elegant bottles. While active ingredients may be present, they are often used at such low concentrations that they provide little real benefit to the skin. Due to lower production volume, manufacturing costs are slightly higher than for economical products.
Budget Ranges
Budget products frequently use inexpensive bottles, mostly made of plastic, and rely on cost-effective ingredients. Production is often outsourced to countries with lower labor costs.
The Organic/Natural Market: A Nuanced Analysis
When it comes to organic product ranges, it's important to differentiate between two types of organic.
Organic in Major Retailers
Organic products available in major retailers are generally better than their conventional counterparts, but often include commercial aspects to meet growing demand.
Independent Organic Brands ( Indie beauty)
Independent bio product brands focus more on quality. They use ingredients rich in actives and adopt an ecological approach.
Beware of Appearances: Handmade, Natural, and Local Products
It's also crucial to be vigilant with handmade, local, or seemingly natural products. Even when produced on a small scale, these products don't always guarantee the use of truly natural ingredients.
Similarly, the "natural origin" label doesn't always reflect reality, as some ingredients, despite being of natural origin, may undergo transformations that alter their nature and could have a negative impact on the environment.
Even if a product claims to be 98% of natural origin, it's important to question the remaining 2%. Checking the ingredient list is crucial. With the rise of "greenwashing" and misleading marketing messages, vigilance is paramount.
The confusion around "Clean Beauty"
The term "clean beauty" is also subject to varying interpretations. It's important to decode messages to truly understand product values and ingredients.
And éméo in all of this?
At éméo, your investment goes into the quality of ingredients, packaging, and our values. We don't charge you for "prestige," models, or influencer marketing. Our mission is to provide you with solutions for healthy, natural skin that respects your well-being and the environment. Be informed, read labels, and ask questions to make informed decisions in the cosmetics universe. Despite their small size, our products are sustainable. They are rich in active ingredients, and a few drops are enough for healthy skin.
Ingredient Selection
At éméo, we prioritize organic ingredients and unprocessed plant oils. We support small producers as well as Swiss and European botanical actives. We avoid any potentially problematic synthetic fragrance or ingredient.
Ecological, Social, and Organic Commitment
By taking care of yourself, you're also taking care of the environment and contributing to a positive social impact. Our commitment to the planet and society runs deep.
Organic Certification
éméo is currently in the process of COSMOS ORGANIC certification and is a member of the Cosmébio association. We're also proud partners of 1% for the Planet, contributing positively to the environment.
Social and Local Responsibility
Our social commitment extends locally. Our logistics and packaging are managed by a Swiss social enterprise that supports people with disabilities. Additionally, our products are manufactured in Switzerland in a Bio and ISO-certified laboratory.
Packaging Selection
The violet glass bottles were chosen to preserve the properties of the actives and protect them from harmful UV rays. They are also recyclable.
Cost Comparison Table: Luxury, Budget, and éméo
Luxury 30ml Cream | Budget 30ml Cream | éméo 30ml Serum | |
|---|---|---|---|
| Ingredient Cost | CHF 1 | CHF 0.10 | CHF 7 |
| Packaging Cost (bottle, box, labels...) | CHF 1.50 | CHF 0.20 | CHF 3.5 |
| Manufacturing Cost | CHF 2 | CHF 0.20 | CHF 4 |
| Research and Development Cost | CHF 3 | CHF 0.10 | CHF 5 |
| Bio Certification Cost | CHF 0 | CHF 0 | CHF 2 |
| Finished Product Cost | CHF 7.5 | CHF 0.60 | CHF 21.50 |
| Selling Price | CHF 145 | CHF 5 | CHF 70 |
This table is meant as an approximate example to give you an idea of the cost distribution of a product.
Conclusion
By choosing éméo, you're choosing to provide your skin with the best care. Our transparent and authentic approach allows you to get to know the founders behind the brand—a dedicated team genuinely concerned about your well-being. Besides caring for yourself, you're also making a positive contribution to the environment through our commitment with 1% for the Planet. Furthermore, our social involvement translates into concrete support for those in need. In summary, éméo represents much more than just a product range; it's a true commitment to your skin, the planet, and society.
Remember, at éméo, we're always here for you. Feel free to contact us anytime to learn more about our formulas, which have been developed by us. Our goal is to provide you with high-quality products, complete transparency, and proven efficacy. At éméo, we're here to guide you on your journey to radiant and healthy skin while contributing to a better future for all.
