Module 3: Calculating Your Cost Prices

When it comes to setting up your own beauty brand or business, deciding on the price points for your products can often feel like one of the most difficult decisions you need to make as a business owner.

Over the years, pricing has been one of the topics that our students and members have asked for our advice on time and time again. 

In our How to Price Your Cosmetic Products for Profit course, our aim is to take away some of the stress and confusion around pricing, by teaching you a pricing structure that you can use each time you need to price a product – whether you are selling direct-to-customers or through retailers. 

Ensuring you have a good profit margin is essential so that your hard work and innovation is rewarded and your business is sustainable.

In Module 3 Calculating Your Cost Prices, we will be working on how to calculate these prices correctly, how to reduce them if they are too high and how to work backwards from your target RRP to a target cost price.

If you miscalculate your cost prices (or do not choose them wisely) it is your profit that will be badly impacted.

We will look at methods of calculating your total product cost, calculating development cost and product cost individually and, crucially, formulating products that make a profit.

Module 3 consists of three lessons:

Lesson 3.3 Formulating products that make a profit

In this lesson, we cover:

1. Working backwards from RRP to cost price.
2. How to reduce your cost price without compromising on quality.
3. Tips for formulating within a budget/reducing your cost price whilst still creating good quality products.

Not a member of the Club? Join now and use your first month's credits to access the How to Price Your Cosmetic Products for Profit Module 3 class.

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