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Shufflepants t1_je3tyqc wrote

Reply to comment by Daemonrealm in My perfume bottle has a slanted glass bottom to ensure the last drop can be used by Daemonrealm

I wonder if Chanel No. 5 is even close to that expensive to produce or if it's entirely just an exclusivity thing.

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DoubleSteve t1_je4lj2l wrote

You couldn't make any profit from producing it, if it was that expensive to produce, but it isn't just exclusivity either. Creating a good scent that sells isn't free or easy, so those failures/experimental costs are baked in to the price. The ingredients used can also really be incredibly expensive, the bottles it comes in tend to be much fancier than the mass produced crap, and marketing the product is expensive. The price you pay for the stuff has to cover all that and still make a nice profit for the company.

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Shufflepants t1_je59nmg wrote

Yes, I know profit margins are a thing. But my question is whether those margins are reasonable, compared to other kinds of products (say 5%-15%), or is it almost entirely profit, (like does it only cost them like $50 to make). That's why I said "even close".

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Birthday_dad420 t1_je5wyy2 wrote

"say 5%-15%" Big supermarket chains: *Laughs in 300%+"

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Shufflepants t1_je6886d wrote

What supermarket products have a 300% profit margin? Remember, profit is after all costs. A 300% markup is not the same thing as 300% profit.

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Birthday_dad420 t1_je8kb0a wrote

I meant it like they produce it for 100% then sell it for 400%

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Shufflepants t1_je8m4oq wrote

Supermarket's don't produce anything. They buy stuff from distributors or producers and then resell it. Are you suggesting supermarkets you go to are buying things for x and then selling it for 4*x, or are you suggesting that they buy it for x and then sell for (x+c)*4 where c is a proportional amount of all their other costs?

I'm talking about profit margins which subtract out all their costs. Everything I can find says that grocery stores typically operate on 1%-3% profit margins. Nowhere near the absurd rate you're suggesting.

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