“Price Fixing” in the Beauty Industry
Skincare, hair care and makeup brands have control over where their products are sold and at what price. Then, with the right marketing efforts, consumers are made to believe that these products will solve their concerns – and they are willing to pay the cost.
It is crucial to remember that manufacturers, retail stores, and e-commerce websites have one main goal: to make a profit. They entice you with their product, maybe even make you feel like you are getting a deal. Unfortunately, most of the time you are paying a high cost for a product with non performing and ingredients.
How Do They Get Away With This?
Manufacturers refuse to sell their products to those who will try to discount them. When checking the cost of cosmetics at different retail locations, you will find that they are sold at about the same price everywhere. So, when they offer you a sale – are you sure it is even a sale?
How Brands Fool You
There are many ways brands fool consumers. Fancy packaging is often enough to catch the eye and make consumers think they are getting a top-of-the-line product. Some beauty brands even put markings on their products, such as “organic” or “natural,” even when they aren’t – and sell them at a higher price. They may lead you to believe you are getting a good-for-you product even though this isn’t the case. Sadly, this happens quite often since regulations for these types of beauty products are seriously lacking.
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