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Esteemed Contributor
Posts: 5,891
Registered: ‎03-10-2010

Why beauty products in Sephora are expensive

There's an interesting article on the Racked website that sheds light on the costs for companies that sell in Sephora bricks and mortar stores and guess what - those costs get passed to the consumer - meaning you and me. I think that   the business model is standard across the beauty industry too.

 

https://www.racked.com/2018/4/24/17275268/sephora-lawsuit-obsessive-compulsive-cosmetics-occ

Honored Contributor
Posts: 8,736
Registered: ‎02-19-2014

Re: Why beauty products in Sephora are expensive

Really interesting article! So those testers and displays are provided by the cosmetics companies, not Sephora. And all the product training and staff promotion and freebies are paid for by the cosmetics companies too. It'd be hard to afford all that as a small vendor with low profit margins.

 

When we say we want to see small startup cosmetic companies with new innovative products for reasonable prices at Sephora or Ulta or on air on QVC, this article shows some of the reasons that doesn't happen. It just costs too much to get a foot in the door, and only the giant cos can afford to throw away that sort of money.

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Respected Contributor
Posts: 4,088
Registered: ‎03-11-2010

Re: Why beauty products in Sephora are expensive

No matter what brand or where you purchase it, there is a HUGE markup that the consumer pays.  This is nothing new.  Many years ago 20/20 went to a warehouse that made foundation.  From the same vat bottles of product that were from the most expensive foundations only found at Neiman Marcus and Nordstroms to bottles of Cover Girl.  Exact same product.  I don't believe things have changed.  Only what women are convinced of.  If we spend lots it's a better product.  

This is also true of skin care.  

Honored Contributor
Posts: 10,168
Registered: ‎03-14-2010

Re: Why beauty products in Sephora are expensive

Just google Lancôme and see the brands that are all under the same roof....with different labels. Also the fancier the packaging, the higher the price.