All my life, I have been gifted perfumes by my loved ones. I never really felt the need to purchase a perfume on my own. Hence, I was never really aware about the prices of perfumes. Recently, I found myself wanting to purchase a perfume for myself. While researching perfumes, I came across how expensive some of the perfumes were, which got me wondering what would be reasons behind such a high price.
Is it because of the brand name? Is the manufacturing cost? Are the companies charging for the formulation? Are all these factors at play? Are there any more factors? We will find out exactly that in the following paragraphs.
While digging out information on the internet, I came across a variety of reasons why consumers can be charged as high as 2500 dollars for a 33 fl.oz. perfume bottle. A few factors that can increase the overall cost of the perfume are - use of rare ingredients, high expenditure by luxury brands on marketing, expensive packaging of the product, and markups on the final product.
Use of Rare Ingredients
Most of the expensive perfumes tend to use rare ingredients. These ingredients are sometimes difficult to procure, many of them are also seasonal in nature which can be found only at certain times of the year. Some ingredients may be difficult to produce or manufacture. The manufacturers need to also use quality ingredients which makes the fragrance long lasting.
High Expenditure On Marketing
A part of the reason why luxury brand perfumes are so expensive is because of the advertising expenditure that is incurred by the companies on marketing of the perfumes. In many instances, celebrities are hired to endorse the perfumes. Hiring celebrities can incur huge costs to the companies.
Expensive Packaging of the Product
There are hundreds of perfumes in a perfume store. For every perfume to stand out, a lot of thought goes into selecting an exclusive bottle for the perfume. The other reason why packaging costs go up is because the liquid inside the bottle should maintain its quality to perform through its course of use. It is hence imperative that a sturdy bottle is selected which does not compromise the fragrance and its performance in any way.
Exclusiveness of the Product
It takes a lot of research and development to make an exclusive perfume. Expensive equipment and labor may go into making a unique perfume, which only adds to the overall cost of the final product. Essentially, you are paying to smell unique from everyone else.
Markups on the Final Product
The retailers have to also include the overhead costs to the product’s price. They incur the costs of keeping a sales person, merchandising in the store, storage space and many more such costs which they have to retrieve from the sale of the products.They also haven to keep a profit margin in the product, because let’s face it, everyone is here to do business.
If you ever wondered why some perfumes were so expensive, like me, hope you have gotten some clarity over what exactly are reasons behind their huge price tags.
This content is accurate and true to the best of the author’s knowledge and is not meant to substitute for formal and individualized advice from a qualified professional.
© 2020 PGupta0919
PGupta0919 (author) on September 13, 2020:
Thank you Umesh.
Umesh Chandra Bhatt from Kharghar, Navi Mumbai, India on September 13, 2020:
Interesting article. I was also wondering as why some of them were so costlier.