Perfume, like many other luxury items, follows a premium pricing strategy. Items whose price alone carries most of the prestige. Price is not always indicative of quality or uniqueness. Sometimes the price is high for the sake of being high. Thank you.
There's a fragrance brand in Australia which is called designer brand and it's literally replicas of hundred dollar perfumes for like under $10 at your local pharmacy
@Elator11777 from another point of view I can say your statement could be true because if we divide Johnny depp fee for commercial with all that fragrance bottle then I would come around 50cents-$1 per bottle probably cause approximately there would be 1M bottle of that perfume after Johnny did commercial
Production cost maybe is very cheap, but i wouldn't dare to spend a single penny just for some nice smelling liquid in a glass bottle. In fact, i will buy a bottle of water and when i fnish it i will put fart spray in it
He is talking about his crappy packed, synthetic smelling fragrances - trust me baccarat rouge is much more costy to produce - i knoe that because i work in manufacture
You are absolutely correct. Making a fragrance is an art and just like many other things are worth far more than the sum of their parts. That being said, there is absolutely no reason it should cost $300 to smell a certain way.
Also keep in mind, that cost of production only applies when buying in bulk, 10k units and up. So thats 50k worth of product you need to sell if you want to break even
I mean there the cost of running a factory... Paying workers to put the stuff together... Paying people to manage and coordinate the production of it...
There’s a cost that is forgotten and it actually is the largest, especially for low production stuff such as fragrance, which is development cost. Those products that goes on your skin and are absorbed by it must respect extremely tight regulations while still being agreeable for people. Also, brands tends to spend millions of dollars just for advertising. The ad that costed the most to ever be made for television were actually French parfum ads. There’s also all the other indirect costs to keep the company running. All of that adds a lot. So much that the product is just a tiny part of the entire cost
Theres a beer in germany that does not spend shit on Advertising and it works. Because a crate costs 8€ 20 bottles So you actually pay for the product and the people who make it.
@@Voiceboxentertainment yes, but what I explained was that production costs are not the only thing to think about. And in some cases it the lowest cost of a product.
@@djisch you can’t compare what is not comparable. We’re talking about multinational brands that sell in the billion. As for beer, in most western countries it’s mostly illegal to make advertisments on alcoholic beverages. And most of the “big brands” (like Heineken, Guinness…) selling those alcohols are ones that started their buisness years ago when those kind of advertisments were not yet illegal. It’s very unlikely (and I really can’t think of any) that a less than 20 years old beer brand can develop as much and internationally (and I mean like in more than 5-10 countries) in the near futur
I like how he was honest about the cost then gives a brief analogy and explanation about the actual value of the product despite the overall production cost.
if he was really honest, he has to breakdown the cost of machinery, factory, marketing, shipment, insurance, government requirements like incorporating, legal, accounting, etc.
he was lying out of his ass, no one cells a bottle, especially one meant for perfume production, as seperate parts. the bottle cap and sprayer combined are roughly 50 cents. source: have purchased bottles for various things including making perfume
Hello everyone, I'm from Vietnam. I am currently looking for a direct OEM perfume manufacturer in France under a private label, but it has been challenging in my search. I hope to receive assistance from anyone who knows reputable factories. Thank you.
Very interesting, you forgot the marketing cost, the perfumer, the natural added cost, the rent ,taxes... The bad batches ( error in production) + transport + Gift for influencers.
He was talking about the costs in just making the product. Not everything else like marketing because we don't know how much a company puts into marketing. It could be 1 million or 100 million
This is price for an individual fragrance not liabilities being taken out of the assets of the fragrance’s sale price, this is how much it costs to make a fragrance which is $6
@@schraderclemens6122 Fallow, subscribe, hit the like button, bla bla, even most popular influencers on yt says that, so i guess your argument is just wrong 😛
I have a retired relative who used to work with a company who is the executive distributor for Asia for one of the top french cosmetic house. She said they paid USD8 for a tube of face serum which retails in shopping malls somewhere between USD90 to USD100. Pretty similar for fragrance. The markup to each country distributor is about 200% and from country distributor to retailers / malls is another 100%. The shopping malls then mark up another 100% or so. Most large discounts made at the stores or malls or discounters are usually backed by the distributors or manufacturers so each supply chain is still making about 30% profit.
Yup for any sought after ingredient, price for it keeps going up at auction, a lot of brands are downgrading quality of ingredients to stop from paying more.
You forgot to mention brand building, fragrance design, direct marketing, celeb endorsement, retail shelving cost, distribution, warehousing, etc. Now it does have a high margin but so many people miss the total costs. Also, these products are bought like once per year.
don't forget marketing cost, distribution cost, research and development cost. it really isn't just the actual value of the bottle and packaging per se.
depends, some brands do not market a lot. Distribution costs covered by customer if strictly online, and the nose behind the scent develops them. For the big brands its all the things you mentioned plus the bottle design is part of the package.
he's also forgetting the shipping/logistics cost and various taxes sales/import etc. that bump up the final price by alot. i'm looking into opening my own fragrance company and the shipping costs only push the fragrance bottle from $1.5 to $6 cause i have to ship the bottles from China all the way to the manufacturing factory in Spain. also if you are doing any customizations on the bottle it bumps up the price even more, it can easily get to $10 per bottle.
Then there's other business expenses like employees/taxes/freight costs/advertising, the fluid also has teams of smellologists, scientists, and ingredient gatherers to collect things like civet paste, ambergris, musk, moss, fungus, etc and put it together which does factor into the price too. Also yeah, companies hike their prices often. Too often being "cheap" is associated with low quality especially with perfume, nobody wants to admit they smell like ass after paying 10k either.
Yeah I think he’s more so just giving rough estimate just to give an idea of approximate cost. Not to mention what the cap is made of shape size and process to make it affect pricing as well as how many order anything in bulk and you can get a better deal. Is it a style they already make or will they need a new process for making your cap style a lot goes into this stuff.
The production cost maybe $2.50. But the actual formulating and planning in order to get it to production for can cost from tens of thousand for a niche company, to hundreds of thousands or more for a larger company. Since they have to pay everyone along the line from the formulation people to the marketers to actually get it produced and into the stores.
That totally depends of the quality of the fragrance and the amount of MOQ of your bottle order. If you do smaller batches with around 300-1000 units your bottles and juice will cost a lot more than that
Worth is based on what people are willing to pay for it. That guy is a genius without marketing team just keep popping those vids. With his funny personality you start to like the guy and maybe you want to try his brands.
That's why MEXX and Bruno Banani cost what they cost (around 10-15€). If anyone thought that a designer fragrance from Dior/Chanel/Armani would cost significantly more to produce then that person also thinks that designer clothes are much more valuable in terms of production value.
One detail he forgot, in order to get the cost per unit down as much as he says, the company had to buy millions of units. So with that in mind, the company paid 6,000,000 for all the product in this example and if they sell it for 120 dollars a bottle they still have to sell 50,000 units to break even not including the costs of the employees and building costs, among other things. Business isn't cheap, you're paying for the risk the company took to buy the units in the first place, among many other factors. That said, I doubt the numbers he stated were even close to actual costs of manufacturing.
The reason a painting is so mutch more then the production costs, is because it takes actual skill, filling a bottle with some fluid doesn't, there is no reason parfume has to cost over 15 dollars
Yea speaking from experience that's roughly the correct amount of production and I wholeheartedly agree with him. The research development in this are not included, the brainstorming, for the logo, logistics, marketing, etc, it's so much work compared to just producing the perfume
That's why Lattafa is bringing great perfumes for much cheaper than designer fragrances and niche fragrances. But yeh the cost to make is really cheap. They just make loads of money by selling them for a lot of money. The only unmentioned cost is the price of creating the scent with different ingredients and experimenting with them. However even still if they make a killer perfume, they would still be rich if they sold the perfume for £20.
I see it as i pay for a splendid blend rather than the value of each ingredient. A perfume is also a work of art which also adds to the value, and last, something you can identify yourself with!
Fun fact: factories that make Jordans and Nikes the production cost of the shoes are actually under 5 dollars maybe about 2 dollars, but since they are a big brand and it’s good looking they have to sell their shoes over 100 dollars which is why they make so much profit out of their shoes alone
Hello everyone, I'm from Vietnam. I am currently looking for a direct OEM perfume manufacturer in France under a private label, but it has been challenging in my search. I hope to receive assistance from anyone who knows reputable factories. Thank you.
Yeah, the only problem is when the $6 perfume is sold for over $200 and it’s not because of low availability but because people will pay for it. It’s basically companies preying on people’s mindset that a higher price creates exclusivity and subsequent bragging rights.
The production might be 6 bucks but the R&D that goes into it, the marketing, complying with the safety regulations, price adjustment for unsold stock, price to take up a space in the store which you pay rent for. You add everything up and the cost of a fragrance to a business is maybe 20-30 dollars. There’s still a huge premium you pay for designer brands but you are paying for the risk they took when starting the business, all those salaries they need to pay, and interest payments for their loans, they add up.
Yea but that’s what it takes to be a good brand and a unique company. You have to believe you can market it, sell it and create endless fragrances and rarely flop. You’re creating a culture fan base within your brand to continue to buy.
Well you need to buy all of those in bulk, pay for marketing, perfumer, store rent, paying lawyers, accountants, staff, getting necessary licence and certifications among many other things. Product itself might be cheap to make per piece. But in order for you to create and sell the product. You need to invest the money in all kinds of things. And that's before you're even making profit. Economy of scale doesn't benefit the business from the beginning. Edit: I'm not in this field of business. But as someone who have recently started a different business. I can say there are many cost that are involved which customer might not see from the surface
So Creed Aventus 100mL costs $8 to produce (not including marketing & distribution), but it then sells for $400. Are consumers getting a fair deal here?
It's 100% fair no matter what price they put on it. Fragrances are a luxury. People (a lot of them) are happily buying Aventus at its price. And they continue to do so. If people are willing to pay for it, obviously they would continue selling it at that price. If some people can't afford it, there are literally thousands of other choices. If you really can't afford it, then buy a duplicate :) Like club de nuit intense by Armaf
@@bornafana Chocolate bars are a luxury. If the confectionary company who makes Snickers decided to charge $50 for a Snickers bar then there would still be a lot of other chocolate bars that I could buy instead. I could afford to pay $50 to buy a Snickers if I really wanted to, but the question is would I be getting a good deal?
they would not make any money if they sold their fragrances for how much they made them. you pay for the time of the perfumer to create a scent, brand, marketing costs that they paid etc...
Mass production minimizes labor cost, you no longer have someone laboring away for months to make one bottle or grinding the ingredients, and the upmarket is usually absurd like 75-300$ especially for larger containers.
The cost of the fragrance sitting on a shelf in a store that’s filled with other products that are all competing to be on that shelf. The cost of the name behind a fragrance that has established a customer base that consistently comes back to that fragrance or brand. The cost of advertisement of a fragrance. All of the above affect the overall cost of a fragrance.
Products are like the stocks. Perceived price is far more important than cost. Doesn't mean we have to support it, and it sucks for the consumer... but its expected for business
The value of a fragrance, as of any other product, is by definition the amount of money where companies are willing to sell it and consumers are willing to buy it
True but these costs are materials only really and dont allow any design costs. However does explain why most cheaper fragrances fall in price over time after initial outlays are recovered.
There's a brand in India called Festora I think. They recreate all branded perfumes of even 800$ in 15-20$ range and deliever all over country. Bought atleast 8 from them, Creed, Dior Sauvage, Bacrat Rouge etc and it's lasting like 14hrs straight!
My favorite perfume went out of production. It used to be prized in the lower category, but after production stopped, prices raised on eBay up to a tenfold. A specific scent can have a high value.
You also have to pay employees a salary to make the fragrance with tons of testing, the materials used during testing, the studies done to get opinions during testing, the advertising and other running costs of the business.
Depending on what ingredients you use in your scents I guess it can be pretty cheap. But it takes talent to come up with a great scent not to mention time.
The thing is your iPhone maybe costs 50$ to produce, but that doesn't include the billions in development, employee and other expenses. Similarly that parfum from Chanel that costs 6 bucks to make doesn't include the outrageous expenses of creating a scent, engineering the perfect nozel to spray exact for the cologne in question. There are a lot of expenses that exist beyond the typical production cost.
This doesn't include R&D costs, transportation costs, employee costs, retail location costs, returns costs, fraud costs, damage costs, advertising costs, and plenty more. With that said, perfumes still have absolutely massive margins and are cash cows for brands. There's a reason why every brand tries selling them.
A general rule of thumb is that a product should be 3x the cost of production to ensure a profit is made, that brings the grand total cost of this product, in a practice business sense, to be 18$
i don’t understand why any company hasn’t attempted to produce genuinely high quality fragrances for a healthy profit but still reasonable price. like, 50$ instead of 200$. Make solid duplicates that are genuinely near perfect, high quality copies.
It's possible if you're talking about synthetic fragrances. Rare and unique ingredients like civet, ambergris, saffron, and oud (agarwood) will cost much more.
The extra cost is for the design of the frag. It takes months to years to build a great scent and once its completed they can re-coop costs of developing it. If you want to pay cheap price for frags, by ones thats been out a long time and dropped in price. You want modern frags, you will pay. Chanel will not drop pricing tho as much lol
What do you mean why? That's how a business works. Imagine spending 5 million on marketing, advertising and research for your product but selling it in total for 1 million. It falls under production costs. It happens with every business regardless of what the product is
He left out many costs like marketing and stuff, but he also overestimated the costs he told us way too high, some shitty plastic cap won't cost 50 cents, more like 5 cents. You can get a lighter for 50 cents, which is way more than a fucking perfume cap, and that includes its markup
I agree with him and for the ones who wonder why perfumes are crazy high prices is only because of the brands name like Apple or Samsung for an example.
guys, don't forget the others costs : the creator of the perfume (Maurice Roucel, Julien Rasquinet, Mathilde Bijaoui for ex) , the investor (Jeremy for ex). The marketing team and so on... and you have to get profit to reinvest for the next project
There's a fragrance company in Fiji opening in 2023, they replicate designers big brands perfume and they have their own perfume creations coming up. You can buy their replicate perfume and compare with the original, reviews from those who spends $300-$500 designer brands after they tried our perfume that our perfume is better than the big brands in terms of long lasting, projection and smells. There's actually no difference the big brands and our own creations, but we hand blend our perfume and they have been there for decades, that's what separate us from big brands.
I’m convinced that everything in our modern society costs 50 cents
it is everything is jacked up so the board members get paid
Pretty much, but then there’s the time and effort that goes into it among other things
100%
eft production cost & netcode was 50 cents too
The mark up on fragrance and cosmetics is crazy high.
Perfume, like many other luxury items, follows a premium pricing strategy. Items whose price alone carries most of the prestige. Price is not always indicative of quality or uniqueness. Sometimes the price is high for the sake of being high. Thank you.
Agreed, you just pay for standing away from crowed! Luxury is synonym for over pricing
Yep, they're called Goods of Ostentation
@@tejasmisra9115 ooh, I like that terminology.
But can someone explain, I
Bought 3$ perfume but the fragrance gone in 2 hours, but the 60$ perfume still have it for whole day.
Idk 🙄
@@ytaiku 60$ is nothing
We are talking about when one costing hundreds or 1k+ of dollars
There r a certain threshold
There's a fragrance brand in Australia which is called designer brand and it's literally replicas of hundred dollar perfumes for like under $10 at your local pharmacy
wait what??! you buy a perfume from a pharmacy!!!
Any chance you know where I could get some online?
@@victoralhilali3893 yeah us aussies can get perfume from the pharmacy haha
The packaging is similar or dupe from it
Have you compared them? If so how could I order some?
And another 50 cents to Johnny Depp to star in a fragrance commercial
🤣🤣🤣
Hahhahah
@Elator11777 from another point of view I can say your statement could be true because if we divide Johnny depp fee for commercial with all that fragrance bottle then I would come around 50cents-$1 per bottle probably cause approximately there would be 1M bottle of that perfume after Johnny did commercial
This is the funniest comment I’ve seen all year
Don't forget research and development cost...
As for Johnny, I'll pay whatever it cost...
Me who just bought a $260 perfume: 👁️👄👁️
It`s the Sperm whale dingle berries and anal secretions of beavers that drives up the price👍
Bruh i wanna get to a point where i got $260 to throw on sum perfumes
Production cost maybe is very cheap, but i wouldn't dare to spend a single penny just for some nice smelling liquid in a glass bottle. In fact, i will buy a bottle of water and when i fnish it i will put fart spray in it
He is talking about his crappy packed, synthetic smelling fragrances - trust me baccarat rouge is much more costy to produce - i knoe that because i work in manufacture
@@carlof2771warm and stinky 🤌🏽
You are absolutely correct. Making a fragrance is an art and just like many other things are worth far more than the sum of their parts. That being said, there is absolutely no reason it should cost $300 to smell a certain way.
If the cap is 50 cents you’re getting a horrible deal my guy
stop the cap
It would be 50 cents for a kilo of that in my country and it's not even made here most likely
Who’s your cap guy?
I don’t know if it costs him 6 bucks and he sells it a 200 I think he can pay 50 cents for a cap
I have a perfume and the cap literally weighs over 25 grams, it’s gotta be at least worth 3$😂
Also keep in mind, that cost of production only applies when buying in bulk, 10k units and up. So thats 50k worth of product you need to sell if you want to break even
Blah blah blah
In india i can buy a perfume like this completely filled for less than 2$
And that's the retail price
Only 1,000 if they're selling it for $50
@@abhishekgaba2953 shitty ass perfume tho lol
@@abhishekgaba2953 they r cheap like Indian standards, they don't even last for long time.
@@swas2eek Lol
U westerns are used to pay highly inflated prices
50 cents for just perfume cap 🤣🤣🤣
Explain me that?
I really appreciate and admire your honesty, especially on the social media. Thank you kindly! 💐
And when he created his perfume he sell it for 200$ 😏
@@wassimabd9163 only 200 that’s cheap seriously, and with all due respect. Wishing you a great weekend وسيم I love your name🌹👋🏻🙋♀️
I mean there the cost of running a factory... Paying workers to put the stuff together... Paying people to manage and coordinate the production of it...
But how much does it cost to pay a perfumer like Alberto Morillas to make a parfume for you? You have to include this costs, too.
It's included in the juice price he gave for one perfume.
I think that was the whole point of the video 🤦🏼♂️
ITS fixed in the end price haha 159 Euro for one parfum from him ..
And the distribution (taxes) IVA
Bruh thought that was my name
There’s a cost that is forgotten and it actually is the largest, especially for low production stuff such as fragrance, which is development cost. Those products that goes on your skin and are absorbed by it must respect extremely tight regulations while still being agreeable for people. Also, brands tends to spend millions of dollars just for advertising. The ad that costed the most to ever be made for television were actually French parfum ads.
There’s also all the other indirect costs to keep the company running. All of that adds a lot. So much that the product is just a tiny part of the entire cost
You said it yourself, it's development cost. Not production cost.
Theres a beer in germany that does not spend shit on Advertising and it works. Because a crate costs 8€ 20 bottles
So you actually pay for the product and the people who make it.
@@Voiceboxentertainment yes, but what I explained was that production costs are not the only thing to think about. And in some cases it the lowest cost of a product.
@@djisch you can’t compare what is not comparable. We’re talking about multinational brands that sell in the billion. As for beer, in most western countries it’s mostly illegal to make advertisments on alcoholic beverages. And most of the “big brands” (like Heineken, Guinness…) selling those alcohols are ones that started their buisness years ago when those kind of advertisments were not yet illegal. It’s very unlikely (and I really can’t think of any) that a less than 20 years old beer brand can develop as much and internationally (and I mean like in more than 5-10 countries) in the near futur
Tights regulations? Don't make me laugh
I like how he was honest about the cost then gives a brief analogy and explanation about the actual value of the product despite the overall production cost.
if he was really honest, he has to breakdown the cost of machinery, factory, marketing, shipment, insurance, government requirements like incorporating, legal, accounting, etc.
Also he claims a plastic lid is just as valuable as the bottle or the mechanism in the sprayer
he was lying out of his ass, no one cells a bottle, especially one meant for perfume production, as seperate parts. the bottle cap and sprayer combined are roughly 50 cents.
source: have purchased bottles for various things including making perfume
Hello everyone, I'm from Vietnam. I am currently looking for a direct OEM perfume manufacturer in France under a private label, but it has been challenging in my search. I hope to receive assistance from anyone who knows reputable factories. Thank you.
Then why is your brands cheapest fragrance $170-$250 😅
research, development, and marketing all cost $$$
The problem is not just $6.
You have to order minimum order requirements on this price which can be min 10 000 units. Add that up.
Nah they would sell you 500 - 1000 bottles no problemo. 10,000 minmimum? Pfft come on
@@andrewchapman5659still like 10000$+. Not even counting all other things like store rent among other things
Very interesting, you forgot the marketing cost, the perfumer, the natural added cost, the rent ,taxes...
The bad batches ( error in production) + transport
+ Gift for influencers.
He was talking about the costs in just making the product. Not everything else like marketing because we don't know how much a company puts into marketing. It could be 1 million or 100 million
he was talking about fixed cost. not variable cost
Well i think salary of a perfumer also a fixed cost (wether he's a full or part time employee)
you gotta pay attention not once did he mention “marketing cost”
This is price for an individual fragrance not liabilities being taken out of the assets of the fragrance’s sale price, this is how much it costs to make a fragrance which is $6
“Don’t underestimate the actual value of a fragrance.”
Well, it’s all arbitrary, so..
The actual value is 6$
Not the other way around haha
It's not arbitrary it's what people are ready to put on the table for a fragrance
And the man don't talk about all the developement part
@@chaussurefrancaise2693 he did
@@28KKaann no it cost more to come up with and research the idea.
Congrats on learning a word that nobody uses !!
There’s no way that tiny plastic cap is 50 cents
more like 10
it is made in other 3rd world countries, so it is much cheaper
@@Kamrankhan23333 That shit should be two cents not 50
@@opsanta6974yeah I was gonna say too.. in China they'll probably make you 10 caps per 1 cent, obviously in big batches.
Maybe wenn you buy just one piece 🥸
I hate how surprisingly useful this information is
Youre a hit again Jeremy! Good man! Bless
the real cost is in the marketing, vouge announcement, advertisement and stuff
Not if you are a influencer like him and can just sell to your fans. No advertisements needed and therefore insane margins.
@@schraderclemens6122 Fallow, subscribe, hit the like button, bla bla, even most popular influencers on yt says that, so i guess your argument is just wrong 😛
Wtf's a vouge
Thats another 50cents
I have a retired relative who used to work with a company who is the executive distributor for Asia for one of the top french cosmetic house. She said they paid USD8 for a tube of face serum which retails in shopping malls somewhere between USD90 to USD100. Pretty similar for fragrance. The markup to each country distributor is about 200% and from country distributor to retailers / malls is another 100%. The shopping malls then mark up another 100% or so.
Most large discounts made at the stores or malls or discounters are usually backed by the distributors or manufacturers so each supply chain is still making about 30% profit.
Working in cedar oil production here...
Fragrance, oils, all that and then some... it's a crazy, global game. You have no idea.
It’s that cheap?
Yup for any sought after ingredient, price for it keeps going up at auction, a lot of brands are downgrading quality of ingredients to stop from paying more.
You forgot to mention brand building, fragrance design, direct marketing, celeb endorsement, retail shelving cost, distribution, warehousing, etc. Now it does have a high margin but so many people miss the total costs. Also, these products are bought like once per year.
don't forget marketing cost, distribution cost, research and development cost. it really isn't just the actual value of the bottle and packaging per se.
depends, some brands do not market a lot. Distribution costs covered by customer if strictly online, and the nose behind the scent develops them. For the big brands its all the things you mentioned plus the bottle design is part of the package.
he's also forgetting the shipping/logistics cost and various taxes sales/import etc. that bump up the final price by alot. i'm looking into opening my own fragrance company and the shipping costs only push the fragrance bottle from $1.5 to $6 cause i have to ship the bottles from China all the way to the manufacturing factory in Spain. also if you are doing any customizations on the bottle it bumps up the price even more, it can easily get to $10 per bottle.
Then there's other business expenses like employees/taxes/freight costs/advertising, the fluid also has teams of smellologists, scientists, and ingredient gatherers to collect things like civet paste, ambergris, musk, moss, fungus, etc and put it together which does factor into the price too.
Also yeah, companies hike their prices often. Too often being "cheap" is associated with low quality especially with perfume, nobody wants to admit they smell like ass after paying 10k either.
It's all included in the price of the juice.
I don’t believe production cost of a cap is 50 cents it’s probably like 3 cents other wise water bottles wouldn’t be profit lol
Ya a cap will never be 50c unless its made of gold and fuck that
Neither are the box and the botteling.
5 dollars "cost of goods" is an over estimate.
Yeah, there’s infact a manufacturer here in PH where they sell the whole bottle for like $0.75-$1.00
I can assure you we are talking less than a tenth of a cent per cap if made in china.
Yeah I think he’s more so just giving rough estimate just to give an idea of approximate cost. Not to mention what the cap is made of shape size and process to make it affect pricing as well as how many order anything in bulk and you can get a better deal. Is it a style they already make or will they need a new process for making your cap style a lot goes into this stuff.
This person seems the most accurate portrayal of an apathetic businessman.
he's the fragrance man
Facts
oh dude if only you knew 😭😭
Problem is I can buy those sprayers in bulk with a plastic lid for 7 cents a piece if I buy In bulk
@@xathridtech727 But what will you do with all that?
The production cost maybe $2.50. But the actual formulating and planning in order to get it to production for can cost from tens of thousand for a niche company, to hundreds of thousands or more for a larger company. Since they have to pay everyone along the line from the formulation people to the marketers to actually get it produced and into the stores.
That totally depends of the quality of the fragrance and the amount of MOQ of your bottle order. If you do smaller batches with around 300-1000 units your bottles and juice will cost a lot more than that
High quality raw materials if used in perfumery is very costly of all !
Thank god. This is the only time I’ve seen you explain this where it didn’t come out awful. Good job my boy
So his own fragrances are like worth 10$ in total 😂😂😂😂😂
Yep!!! 0 marketing also. Smart man
Don't confuse cost with worth. Making you cost nothing, but I wouldn't say you are worthless.
Worth is based on what people are willing to pay for it. That guy is a genius without marketing team just keep popping those vids. With his funny personality you start to like the guy and maybe you want to try his brands.
I am just blown away with this precious knowledge!
That's why MEXX and Bruno Banani cost what they cost (around 10-15€). If anyone thought that a designer fragrance from Dior/Chanel/Armani would cost significantly more to produce then that person also thinks that designer clothes are much more valuable in terms of production value.
Let's be honest here. People don't buy luxury brands for their quality most of the time; it's for their ego.
People, don't forget, Jeremy is a comedian. Dont overestimate the value of an influencer
Well, I call people who meet with fascists and neonazis in their free time fascists and neonazis.
Number 1 fragrance icon that follows the teachings of Jesus
One detail he forgot, in order to get the cost per unit down as much as he says, the company had to buy millions of units. So with that in mind, the company paid 6,000,000 for all the product in this example and if they sell it for 120 dollars a bottle they still have to sell 50,000 units to break even not including the costs of the employees and building costs, among other things. Business isn't cheap, you're paying for the risk the company took to buy the units in the first place, among many other factors.
That said, I doubt the numbers he stated were even close to actual costs of manufacturing.
I really miss this type of content Jeremy. Love that!
The reason a painting is so mutch more then the production costs, is because it takes actual skill, filling a bottle with some fluid doesn't, there is no reason parfume has to cost over 15 dollars
Middleastern fragrances are best bang for the buck.
Very true. But they need more variety. Still top tier tho
Can u suggest me names of them ?
@@djalilgsf6845 what’s your favourite fragrance? Niche or designer
100% agree. Great quality.
Appreciate, very informative 👍
Of course you don't need to pay the perfumer anything for his work! 🙃
Yea speaking from experience that's roughly the correct amount of production and I wholeheartedly agree with him. The research development in this are not included, the brainstorming, for the logo, logistics, marketing, etc, it's so much work compared to just producing the perfume
That's why Lattafa is bringing great perfumes for much cheaper than designer fragrances and niche fragrances.
But yeh the cost to make is really cheap.
They just make loads of money by selling them for a lot of money.
The only unmentioned cost is the price of creating the scent with different ingredients and experimenting with them.
However even still if they make a killer perfume, they would still be rich if they sold the perfume for £20.
I see it as i pay for a splendid blend rather than the value of each ingredient. A perfume is also a work of art which also adds to the value, and last, something you can identify yourself with!
Fun fact: factories that make Jordans and Nikes the production cost of the shoes are actually under 5 dollars maybe about 2 dollars, but since they are a big brand and it’s good looking they have to sell their shoes over 100 dollars which is why they make so much profit out of their shoes alone
Hello everyone, I'm from Vietnam. I am currently looking for a direct OEM perfume manufacturer in France under a private label, but it has been challenging in my search. I hope to receive assistance from anyone who knows reputable factories. Thank you.
You shouldn't be selling your fragrance at such a high price point. SMH
Yeah, the only problem is when the $6 perfume is sold for over $200 and it’s not because of low availability but because people will pay for it. It’s basically companies preying on people’s mindset that a higher price creates exclusivity and subsequent bragging rights.
The production might be 6 bucks but the R&D that goes into it, the marketing, complying with the safety regulations, price adjustment for unsold stock, price to take up a space in the store which you pay rent for. You add everything up and the cost of a fragrance to a business is maybe 20-30 dollars. There’s still a huge premium you pay for designer brands but you are paying for the risk they took when starting the business, all those salaries they need to pay, and interest payments for their loans, they add up.
Yea but that’s what it takes to be a good brand and a unique company. You have to believe you can market it, sell it and create endless fragrances and rarely flop. You’re creating a culture fan base within your brand to continue to buy.
When you got a good compliment for it from a person you like PRICELESS
Such a typical beta statement.
From what I hear, most of the money are spent on researching and finding new fragrance itself
nope...its the branding and prestige of it
Cool video, can you take us through the entire production process J-Frag?
I happy that you're back to yourself man, I was sad when I saw you losing yourself ☹️
Well you need to buy all of those in bulk, pay for marketing, perfumer, store rent, paying lawyers, accountants, staff, getting necessary licence and certifications among many other things. Product itself might be cheap to make per piece. But in order for you to create and sell the product. You need to invest the money in all kinds of things. And that's before you're even making profit. Economy of scale doesn't benefit the business from the beginning.
Edit: I'm not in this field of business. But as someone who have recently started a different business. I can say there are many cost that are involved which customer might not see from the surface
So Creed Aventus 100mL costs $8 to produce (not including marketing & distribution), but it then sells for $400. Are consumers getting a fair deal here?
I think Que quality of ingredients are supposedly hard to make. I mean, for a creed or a Marly production should be at least 15 dollars
It's 100% fair no matter what price they put on it. Fragrances are a luxury. People (a lot of them) are happily buying Aventus at its price. And they continue to do so. If people are willing to pay for it, obviously they would continue selling it at that price.
If some people can't afford it, there are literally thousands of other choices. If you really can't afford it, then buy a duplicate :) Like club de nuit intense by Armaf
If they don't feel that they are - then they do not need to buy. That is how capitalism works.
@@bornafana Chocolate bars are a luxury. If the confectionary company who makes Snickers decided to charge $50 for a Snickers bar then there would still be a lot of other chocolate bars that I could buy instead. I could afford to pay $50 to buy a Snickers if I really wanted to, but the question is would I be getting a good deal?
I only buy frags under £20 or less... Just wait for deals etc... A lot of good stuff at that price range
Goes to store
Me: *_"JUST NEED THE JUICE"_*
So, even brands that sell their bottles for $50 are making an astronomical mark-up? That's wild man
And much less.
they need to pay their employers, taxes, profit,etc
marketing costs a lot
they would not make any money if they sold their fragrances for how much they made them. you pay for the time of the perfumer to create a scent, brand, marketing costs that they paid etc...
Mass production minimizes labor cost, you no longer have someone laboring away for months to make one bottle or grinding the ingredients, and the upmarket is usually absurd like 75-300$ especially for larger containers.
It's information like this that really makes me respect the intelligence of the wealthy less and less.
Thanks for letting me know something I already know, luxury brands are 99% full of shit and their price is not indicative of their quality.
The cost of the fragrance sitting on a shelf in a store that’s filled with other products that are all competing to be on that shelf.
The cost of the name behind a fragrance that has established a customer base that consistently comes back to that fragrance or brand.
The cost of advertisement of a fragrance.
All of the above affect the overall cost of a fragrance.
Products are like the stocks. Perceived price is far more important than cost.
Doesn't mean we have to support it, and it sucks for the consumer... but its expected for business
Please compare Club De Nuit Intense Man EDT vs EDP
STRENGTH POWER KRAFTTTTTT
Does the bottle magically fill with the juice?
Does the ingredients magically come together? Wow
The value of a fragrance, as of any other product, is by definition the amount of money where companies are willing to sell it and consumers are willing to buy it
There you have it. The reason I WOULD NOT spend more than 50$ on a fragance, love my cheapies. Thanks Jeremy 🙂
Interlude is my fav. Try reviewing psychedelic from Jovoy.
True but these costs are materials only really and dont allow any design costs. However does explain why most cheaper fragrances fall in price over time after initial outlays are recovered.
There's a brand in India called Festora I think. They recreate all branded perfumes of even 800$ in 15-20$ range and deliever all over country. Bought atleast 8 from them, Creed, Dior Sauvage, Bacrat Rouge etc and it's lasting like 14hrs straight!
You look like you wanna see Paul Allen’s card
Something that stuck with me: You pay for a specific outcome.
My favorite perfume went out of production. It used to be prized in the lower category, but after production stopped, prices raised on eBay up to a tenfold. A specific scent can have a high value.
What was it? 🤔
@@t-bv1bz It was a licensed product with Harley Davidson label. It had a very nice sandalwood scent.
I am amazed this perfume costs so much money to produce and package.
I thought it was about 2 dollars.
I love perfumes.
You are very lucky man, every time living in perfume heaven ♥️♥️♥️♥️♥️♥️♥️♥️♥️
You also have to pay employees a salary to make the fragrance with tons of testing, the materials used during testing, the studies done to get opinions during testing, the advertising and other running costs of the business.
I appreciate the info boss. God bless you
I’m CONVINCED he just made that all up right at the spot.
Depending on what ingredients you use in your scents I guess it can be pretty cheap. But it takes talent to come up with a great scent not to mention time.
🌞very interesting 👌
Wow nobody did this before! Thank you for the transparency
Add also a marketing, salary of people, rent etc. It is ok about cost we understand
Don't forget the research and development cost on Juice, bottle, and everything involved plus cost of the
Perfumers craft
The thing is your iPhone maybe costs 50$ to produce, but that doesn't include the billions in development, employee and other expenses. Similarly that parfum from Chanel that costs 6 bucks to make doesn't include the outrageous expenses of creating a scent, engineering the perfect nozel to spray exact for the cologne in question. There are a lot of expenses that exist beyond the typical production cost.
I’d almost forgot what this video was about so I’m glad he reminded me at the end
This doesn't include R&D costs, transportation costs, employee costs, retail location costs, returns costs, fraud costs, damage costs, advertising costs, and plenty more.
With that said, perfumes still have absolutely massive margins and are cash cows for brands. There's a reason why every brand tries selling them.
A general rule of thumb is that a product should be 3x the cost of production to ensure a profit is made, that brings the grand total cost of this product, in a practice business sense, to be 18$
i don’t understand why any company hasn’t attempted to produce genuinely high quality fragrances for a healthy profit but still reasonable price. like, 50$ instead of 200$. Make solid duplicates that are genuinely near perfect, high quality copies.
Al haramain very good
See that's the reason why he is who he is! Not the drama, not the dancing. This! Right here! His knowledge about perfumery!
It's possible if you're talking about synthetic fragrances. Rare and unique ingredients like civet, ambergris, saffron, and oud (agarwood) will cost much more.
The extra cost is for the design of the frag. It takes months to years to build a great scent and once its completed they can re-coop costs of developing it. If you want to pay cheap price for frags, by ones thats been out a long time and dropped in price. You want modern frags, you will pay. Chanel will not drop pricing tho as much lol
opportunity for a nice loop ... missed
very nice info though
very nice message too
Advertising, marketing, research, clinical testing etc must also be added to the cost as well
why?
What do you mean why? That's how a business works. Imagine spending 5 million on marketing, advertising and research for your product but selling it in total for 1 million. It falls under production costs. It happens with every business regardless of what the product is
He left out many costs like marketing and stuff, but he also overestimated the costs he told us way too high, some shitty plastic cap won't cost 50 cents, more like 5 cents.
You can get a lighter for 50 cents, which is way more than a fucking perfume cap, and that includes its markup
Honest Man ♂️🌻
He don’t tell you YES .50cent if you buy 700,000 of them each
I agree with him and for the ones who wonder why perfumes are crazy high prices is only because of the brands name like Apple or Samsung for an example.
This is why I buy and wear Cremo. Inexpensive and smells great! Longevity for 9+ hours.
guys, don't forget the others costs : the creator of the perfume (Maurice Roucel, Julien Rasquinet, Mathilde Bijaoui for ex) , the investor (Jeremy for ex). The marketing team and so on... and you have to get profit to reinvest for the next project
There's a fragrance company in Fiji opening in 2023, they replicate designers big brands perfume and they have their own perfume creations coming up. You can buy their replicate perfume and compare with the original, reviews from those who spends $300-$500 designer brands after they tried our perfume that our perfume is better than the big brands in terms of long lasting, projection and smells. There's actually no difference the big brands and our own creations, but we hand blend our perfume and they have been there for decades, that's what separate us from big brands.
5 dollars for production rest for producers skills they mastered over 50 years.