Challenges in Cosmetic Product Pricing
Cosmetics are in the lifestyle and brand business, therefore pricing not only determines the profit you make when considering costs and customer preferences, but the price can suggest quality or exclusiveness of a cosmetic brand. People respond emotionally to brands which is why customers are willing to pay a higher price for certain branding or characteristics regardless of the markup price. Price optimization for cosmetics brands is an area where PriceBeam has long experience and expertise. Consumer goods companies benefit from price optimization more than any other industry, but at the same time, it is often an incredibly challenging task. Cosmetic brands are being increasingly transparent about costs , due to an increase in demand for transparency from customers in terms of product costs and ingredients, and this leads to a greater need to find the optimal price for your cosmetic brand products