Key Elements When Pricing Beauty Products


It can be difficult deciding what price point to sell your makeup products for but prices can be the difference between profit and loss. There are several key things you should know when effectively pricing a beauty product.

Pick Your Lane & Price Accordingly

It is important to understand demographics and figure out where you want to be when deciding on a price for your product. For example, if a lipstick is priced for Mac, it wouldn't make sense for it to be sold at Walmart. Look at other sellers in your niche. That way you can do price comparisons. You should find 3-5 sellers that are also selling similar beauty products; this will help you pick an average price. Experiment by launching new items, then give them a fair price and then keeping the prices for your old items the same. People think creating higher priced items will cause them to lose customers but actually, the newer higher priced items may end up selling more.

Labor Costs & Wholesale Prices

It is important to factor in labor costs when pricing your makeup products. Your prices should include a small profit on every item, not just material costs. If a boutique or e-retailer company were to call you, you should keep a price in mind for what you want to sell your product for in one of these places. A good formula to keep in mind is (labor+materials) x 2= wholesale price. To figure out what your labor costs should be, you should take into account how much you would want to pay yourself per hour or how much you would pay someone per hour to make your products. Then, divide this number by how many products you think you can make in an hour. If you plan to sell your products in retail stores then you should know that retailers usually markup your wholesale price x2. To set your retail price you can use this formula: wholesale price x2=retail price.

Assess Costs & Margins

The price of your product should be based on knowing that the cost of goods and margins can shift. Your margins can be 40-50% at the beginning but the goal is to get that to 50-60%. It is important to "trend high on the price" because costs can unexpectedly increase. The cost of raw ingredients can be unstable which can make it hard to make set prices. Even increasing prices by 10% can be beneficial in case prices for ingredients and labor costs increase. A good indication that your product is not priced properly is if your business is not making money. Having good product strategies can help you to price your makeup products appropriately. CPQ Pricing stands for configure, price, and quote and is a software system that allows sellers to quote products. It includes invoicing, billing tools, a quotation builder and much more.


Your product's value is shown through your price, so if your product is priced low, it may reflect the quality of your product. Creating a price for your product can mean the difference between success and failure for your company. The fundamentals of product pricing should be incorporated to accurately price a makeup product.