FREEDOM TO FORMULATE
WHY DOES THEIR TINY JAR HAVE SUCH A BIG PRICE TAG? Check out the extra expenses that go into a luxury eye serum on today’s market. This is just an example, but the scenario presented here is very real and very pricey! No matter what product you buy on the traditional retail market—whether at the grocery store or a luxury retailer— the marketing costs are passed on to you.
Department Store Skin Care Brand
SERUM “A” RETAIL PRICE
$120
DISCOUNTS TO RETAILER (40%)
$48.00
RETAIL SIGNAGE/ VISUALS
THE PRICE OF THE PRODUCT MUST ACCOUNT FOR THE MARKETING COSTS REQUIRED TO SELL THE PRODUCT AND MEET PROFIT MARGINS. ANY BUDGET LEFT OVER FROM THESE COSTS CAN THEN BE PUT INTO THE FORUMLA.
ADVERTISING COSTS (ALL FORMS)
ENDORSEMENT FEES
BUSINESS OVERHEAD
44 APRIL 2022 | MELALEUCA.COM
Made with FlippingBook Digital Proposal Creator