It Costs $2.50 to Make Lipstick — Here’s Why You’re Charged So Much More

Have you ever thought about this?

“Cosmetics are marked up so much because conglomerates aren’t just in the ‘sell you great makeup’ business. [Some of these] companies are in the lifestyle and brand business, and because cosmetics are so cheap to make, they use the opportunity to make 90% profit on the makeup they sell you in order to subsidize the rest of their business,” says Fredrickson. “Your lipstick is paying for everything from really expensive brand campaigns, to unprofitable designer clothes, to the profits for the retailer that sells the makeup to you.”

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Cheryl Wischhover — Racked

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