Why Do Perfumes Cost So Much?
There are many reasons for the high cost of perfume. Advertising, packaging, and the type of distribution channels used by perfume manufacturers account for most of the cost. Fragrance companies advertise perfumes in monthly publications. It costs about $32,000.00 for a one page ad in Vogue magazine. Industry sources say that Calvin Klein spent approximately $6 million to advertise their fragrance Eternity.
Manufacturers pay premium prices for designer bottles, boxes, and display cartons. Some of the world's finest bottle designers charge more than $100,000.00. Department stores typically mark perfume 60% to 100%. Customers pay for these costs.
