Wholesale Cost Breakdown

As part of our commitment to transparency, we're sharing the cost breakdown for all our products. This will help you to understand the factors that go into making our products and why they cost what they do. 

What’s the average markup for a skincare product? Depending on whether you’re buying from a drugstore, clinical, or luxury brand, the markup on skincare can range anywhere from 2x to 10x. A 5x markup is usually considered the sweet spot for ensuring healthy long-term business sustainability. 

Some brands may wish to pursue a low markup strategy and as a tradeoff, they may have more sales (revenue) but less margin (profit). 

Other brands may wish to pursue a high markup strategy and as a tradeoff, they will usually have fewer sales (revenue) but much higher margins (profit).

Generally speaking, the markup on drugstore products will generally be on the lower end of the spectrum, whereas the markup on clinical and luxury products will be significantly higher. 

What else are you paying for? For many products (ours included), there can be other costs that aren’t technically a direct cost of selling the product. The margin you see for our products is based on the traditional cost-of-goods-sold (COGS) formula. Other common costs that aren’t represented in a COGS model include

  • Clinical research or R&D
  • Formula development 
  • Formula IP
  • Formula testing
  • Packaging development & compatibility testing
  • Skin tolerance testing (HRIPT)
  • Clinical studies or consumer perception testing
  • Medical professional endorsement

Below, you’ll see an outline of the costs associated with making each product along with our markup.

 

Super Sensa Barrier Repair Moisturizer with Pre & Postbiotics

Category Cost
Raw Materials (Ingredients) $10.25
Primary Packaging (Pump Bottle) $1.77
Secondary Packaging (Cardboard Box)  $1.04
Freight and Duties (Getting all components and finally the finished product to our warehouse partner) $1.39
Pick & Pack (When an order is placed, our warehouse partner charges a fee to prepare the shipment) $2.40
Merchant Processing Fees (We use Shopify and they take a percentage of every purchase) $1.58
Total Cost of Goods $18.28
 Markup
2.39x

 

Tidy Pores Water Jelly Lipid Peroxidation Serum With Stabilized Vitamin C

Category Cost
Raw Materials (Ingredients) $7.10
Primary Packaging (Pump Bottle) $1.77
Secondary Packaging (Cardboard Box) $1.44
Freight and Duties (Getting all components and finally the finished product to our warehouse partner) $1.14
Pick & Pack (When an order is placed, our warehouse partner charges a fee to prepare the shipment) $2.40
Merchant Processing Fees (We use Shopify and they take a percentage of every purchase) $1.58
Total Cost of Goods $15.43
 Markup 2.85x