You Get What You Pay For

Nathan Motylinski - Monday, November 09, 2009

I’d like to take a moment to address an issue that affects many consumers today:  why are fine fragrances so expensive?

The fact of the matter is that most fine fragrances on the market are priced the way they are because of expensive marketing campaigns, packaging, and mark-ups rather than the fragrance itself. 

When creating a fragrance, one of the parameters that can be carefully controlled throughout the entire process is the cost of fragrance oil, which is calculated in dollars per kilogram.  For many companies, this price is a larger determinant in the fragrance development than creative direction, as companies set these prices at levels that work best in a spreadsheet rather than the fragrance itself.  So unless extremely rare and expensive raw materials are being used, which is rarely the case, the fragrance oil can remain at a pre-determined price level throughout development and production.

Once the fragrance oil has been made, production of the final product begins. Fine fragrances for the body usually come in a liquid form such as eau de parfum, toilette, and cologne.  These classifications are determined by what percentage of the liquid in the bottle is actual fragrance oil, with eau de parfum being the highest (at least 15%) and body splashes the lowest (somewhere in the 3% range).  The rest of the liquid in the bottle is usually a combination of alcohol and water, two relatively common and inexpensive materials that really add an insignificant cost to the product.

So during development, companies can not only control costs by setting oil prices where they want, but also by determining how much oil will be used in the final product.  So why the high price for consumers?

The costs start to rise as companies vie for consumers’ attention through extravagant packaging (which all ends up in the trash at some point) and advertising.  You see, the fragrance industry is a very ‘me too’ world.  Fragrance companies are constantly chasing the same trends and each other, creating a flood of fragrances that are often very similar. So in order to stand out, these companies are then forced to spend enormous amounts of money making their products ‘look’ different.  And celebrity and brand names come at a price – often charging a percentage of the final price for the use of their names.  In addition, custom bottles, heavy (and often unnecessary) cardboard, PR, billboards, TV ads, and magazine placements are all very expensive, and you, the consumer, are paying for these costs in the price of the fragrance. 

On top of these costs, every company involved (marketing, distribution, retail) then adds their profit (usually in the 30-50% range for each company involved) into the price of the product until the consumer ends up paying more for the marketing and distribution of a fragrance than for the fragrance itself. 


At Le Cherche Midi, we work directly with our perfumers, suppliers and consumers, allowing us to offer our luxury products at a better price and value to the consumer. As a small company, our costs are probably still higher than most fine fragrance companies since we work in lower volumes, but without expensive marketing budgets and overhead, we focus our time and resources on what we do best: creating unique, sophisticated fragrances unlike anything on the market.

Comments

By Roland Helby on September 10, 2010

Everyone has own special “smell”. No one should be aware of your fragrance unless he or she steps inside your “circle.” Perfume should be one of the most delicate, personal messages you send to those with whom you come in contact.

By debbdrummond on September 26, 2010

hi! It’s good to have a website like this! Thanks!

By studio thirtythree on July 11, 2011

As a designer, I think the appearance of a fragrance is what really makes it stand out from the rest. You can choose a summery or wintery fragrance, a fruity or chemically fragrance etc etc but once you’ve got past that it’s hard to really define an individual smell with lot’s of perfumes being similar!


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By Phillip Smith on February 01, 2012

I used to live without any fragrances to be honest but recently i bought one, big surprise was when I figured it only keeps few minutes or is it just for myself this it outsourcing feeling?!

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