Women are a complex creature, studied by many yet rarely understood. A few weeks ago a friend of mine was discussing on the possibility to start a fragrance business. Out of curiosity I searched the profit margins for fragrances. They were on average a whopping 95%. With technological advancements fragrances are now made on an average of around $1-2. The majority of the costs come through packaging, the container itself, and advertising. I thought to myself a fragrance business would be a great idea but slowly realized the difficulties involved. Most high end fragrance companies are not selling a fragrance at all, they sell their brand. The difference between a $150 perfume to a $20 is really close to none. Some cases the $20 perfume may even smell better than the $150. One would think the barriers to enter are relatively low, which they are but yet not. You could even say there are two barrier of entry for fragrance companies. The small barrier is creating a fragrance. The second barrier is the brand barrier. To make these logic defying profits you need an established high end brand or the cash to endorse a celebrity.
I was shocked by the power and the influence that brands can have on people.
Unless one really likes the smell, is there a need to buy a 30 cent chemical for over $150?