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  1. #1

    Default Perfume costs... 2%

    While this is old news for Basenotes veterans, I found this article interesting: http://www.feelingsexy.com.au/blog/t...-perfume-cost/
    If it has already been posted here, my apologies for the post.

    In this modern era of efficient Internet marketing and direct distribution, the "new wave", uber-priced fragrances leave me scratching my head.
    Newbies would do well to read this to better understand why we keep reminding them that higher price does not automatically mean higher quality juice.

  2. #2

    Default Re: Perfume costs... 2%

    Does that include research and development costs? I mean, putting together random fragrances together is going to be cheap, making it smell good is the hard part.

  3. #3

    Default Re: Perfume costs... 2%

    Quote Originally Posted by insomniac View Post
    Does that include research and development costs? I mean, putting together random fragrances together is going to be cheap, making it smell good is the hard part.
    Don't you hire a guy who went to perfumery school for that? LOL. Seriously, I think it's more about trying to put together something that seems "new" but isn't that challenging, at least for the major "houses," which are now mostly owned by a few companies.

  4. #4

    Default Re: Perfume costs... 2%

    Quote Originally Posted by Bigsly View Post
    Don't you hire a guy who went to perfumery school for that? LOL. Seriously, I think it's more about trying to put together something that seems "new" but isn't that challenging, at least for the major "houses," which are now mostly owned by a few companies.
    So the answer is "no", thanks.

  5. #5

    Default Re: Perfume costs... 2%

    Quote Originally Posted by insomniac View Post
    So the answer is "no", thanks.
    My impression, when I've seen such claims, is that 2% (or whatever the percentage given) is for the actual cost of materials. if the CEO makes a billion dollars a year because he is such a genius, that is not included in the 2% figure, for example.

  6. #6

    Default Re: Perfume costs... 2%

    This does not bother me at all.

  7. #7

    Default Re: Perfume costs... 2%

    Perfume walks the fine line between art and consumer good. If one was to judge the price of a painting off of the cost to make it, that would seem rather silly. But I do agree that price does not always go hand in hand with quality.

  8. #8

    Default Re: Perfume costs... 2%

    Knock out a cheap fragrance with easy to like notes, spend money on the packaging, advertising and celebrity endorsements. Then sit back and watch the money roll in. The process has little to do with making a good scent but just making money, I give these type of scents a wide berth.

  9. #9

    Default Re: Perfume costs... 2%

    Quote Originally Posted by insomniac View Post
    Does that include research and development costs? I mean, putting together random fragrances together is going to be cheap, making it smell good is the hard part.
    This is always the first of many thoughts I have every time some anti-business thread like this pops up.

    That article was clearly not written by a business person - or intended to be read by one. It doesn't really even touch on fixed costs. It sounds like the percentages (made up I am guessing) are only discussing variable costs - and not even a fraction of those. Insurance? Electricity? R&D for the fragrance? Legal fees? Web site maintenance? Transportation costs, Etc., etc...........

    is this "breakdown" for a successful fragrance or for a failure? The winners need to pay for the losers - not every fragrance will be a hit - or even make it to market. Those costs need to be paid for by the successful ones.

    The "prosperous middleman"? I see a lot of brick and mortar stores closing up every day. They have salaries, rent, utilities, to deal with also. With more sales being done online, I sure wouldn't want to be one of those "prosperous middlemen". The 2014 version of owning a bookstore - remember those prosperous middlemen?

    If you are sitting in your parents basement wearing a Che Guevara tee shirt, you will probably read that blog post and think "companies are evil!" But the reality is this: profit - or the opportunity for profit - is what gives us better products. That diagram may has well been about televisions, phones, cars, clothing, or just about anything else. You know who makes out the best? Government. I don't see a special slot for taxes, but if there were one, they would have the biggest slice - corporate taxes, personal income tax, gas taxes for the transportation of the products, sales tax, etc...



    Quote Originally Posted by TLS View Post
    This does not bother me at all.
    same here. People cry about a company making a profit on a fragrance... then cry when their favorite scent is discontinued.
    Seasonal favorites:

    1. Creed - Spice & Wood
    2. Creed - Aventus
    3. Dior - Vetiver
    4.
    by Kilian - Straight to Heaven
    5. by Kilian - Cruel Intentions
    6. Puredistance - Black
    7. Tom Ford - Plum Japonais
    8. Neela Vermeire - Trayee
    9. Creed - Royal Oud
    10. Chanel - Egoiste

  10. #10

    Default Re: Perfume costs... 2%

    It's all in the master blenders hand .."Analogy" there are chef's that make the fanciest egg omelette and charge an Arm and a foot for it and let me tell you it's Delicious but there also short order cooks that will Make an awesome omelette that will have you coming for more"....question is how much payment the Chef requires for his service and ingredients(Packaging/presentation etc) use to enhance his omelette versus in constrast to what the short order cook requires and demands for his work + ingredients plus presentation.
    "Thank GOD for the nose, for without it we would not be enjoying these beautiful created Scents" also Remember "Balance is everything and the key to appreciating "

  11. #11

    Default Re: Perfume costs... 2%

    Me either
    Quote Originally Posted by TLS View Post
    This does not bother me at all.

  12. #12
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    Default Re: Perfume costs... 2%

    Quote Originally Posted by dougczar View Post
    That article was clearly not written by a business person - or intended to be read by one. It doesn't really even touch on fixed costs. It sounds like the percentages (made up I am guessing) are only discussing variable costs - and not even a fraction of those.
    So true.
    Remember that while it is perfectly acceptable to criticize the content of a post - criticizing the poster is not.
    Mean spirited, nasty, snide, sarcastic, hateful, and rude individuals don't warrant or deserve other individuals' acknowledgement or respect.

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