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04-24-2018 12:44 PM
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
04-24-2018 02:45 PM
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.
04-24-2018 08:06 PM
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.
04-24-2018 08:12 PM
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