Why Do Anti Aging Skin Care Products Cost So Much?

Why are some anti-aging skin care products so costly? One important point is that cost and value don’t always go hand in hand. Just because a skin care product is expensive also doesn’t guarantee it works. The fact is many anti aging products simply don’t work.

Let’s look at a few companies that frankly turn out substandard skin care products but charge “an arm and leg” for them.

I’m not going to name names but you can easily find them at high end department stores. You know the ones that as you walk in the store entrance the whole place is one big fragrant atmosphere. You can get a “free” makeover. The others are heavily advertised on the TV.

Why the High Price Tag?

Overhead often dictates the price of any product. But TV ads are not cheap. For example, during the Super Bowl the cost is $3 million dollars for 30 seconds. Wow! Of course, if a famous person endorses it, up goes the cost to YOU.

Some companies do make good products, but their price tag is exorbitant. Why? Marketing and advertising. Many multi-level type companies have fairly decent skin care lines but the dollars they have to pay out for the downline makes the cost go through the roof. Others who try to sell at a fair price often go out of business because the cost of keeping up a store and paying employees usually results in higher prices.

Product Promotion Takes a Big Bite

Companies often sacrifice product research and testing to spend it on advertising. If more money went into product development that turned out a quality product sales and profit would go up. Not too many companies will do that.

Most Anti Aging Products “Recipes” Don’t Work

Most skin care product manufacturers know what ingredients are needed for a product to work. But very few of these ingredients are ever found in the skin cream. If they are they are just enough to technically list it on the label, but ineffective still. Again its cost that causes this to happen. Why put out a product that really doesn’t work? That’s is why you often see advertising that says, ‘new and improved”. All that means is that they probably just changed the formulation. What a Trick!

What Should a Skin Care Product Have?

To be an effective it should have ingredients that are active and be around a 50% concentration of the whole product amount. Very few companies can make this claim.

What most companies do is use purified water as their main ingredient. Then they add coloring, parabens (unnecessary preservatives) and imitation fragrances to cover the smell of the product. After that there isn’t much space left to put in much of the ingredients that work. Look at the label, you’ll see what I mean. So where do you find an effective and safe skin care product?

The Better Skin Care is NOT in High End Stores

The best skin care products are sold direct from the manufacturer and over the internet. This method usually brings down the cost yet delivering a product that works.

Most of these companies have an excellent skin care line that works and sometimes a nutritional supplement line that is superior to even health store products.

Look for ingredients like CoQ10, natural vitamin E, Cynergy TK, Wakame sea kelp and grape seed oil, just to name a few. These are the ingredients I found in one such company. Performance speaks loudly. For more information see my website. My skin is a living testimony.

Ford Can Cut 30% Production Cost If It Starts To Share

Focus Coupe-Cabriolet, the European Focus, Focus C-Max, Volvo S40, V50, C30, C70, Mazda3, Mazda5, and CX-7 have several things in common. First glance might be deceiving however; if one delves deeper, a significant realization can be had. The mentioned vehicles employ elements of the C1 platform. To some auto analysts, if Ford starts to share the architecture with other brands, the company will be able to cut about 30 percent of the total production cost.

According to Derrick Kuzak, the brains behind C1 platform for the European Ford Focus, this is what Ford needs for future products as well: A shared versatile architecture with a high amount of variation. Kuzak added, “If you look at C1, it’s almost a microcosm of what we’re trying to do in the enterprise as a whole. Having a very strong and capable platform — and on top of that you put very unique products that are unique not just in how they look but are very consistent with the individual brand DNA.”

Volvo cars like S40, V50, C30 and C70, can very well adapt to the sharing. In fact, Volvo S40 upgrade parts and Volvo C70 parts and accessories are made more flexible and sophisticated to accommodate future enhancements and modifications.

If this concept will be entertained by Ford to augment its financial stability, it will be deemed as the boldest move yet for the automaker. Nonetheless, it will also be one of the most apparent, so far. Analysts are saying that Kuzak seems to have the right idea. Nevertheless, he has to move swiftly for time is of the essence. No matter how brilliant the idea is, it will turn out to be futile if implemented out of time.

Ford is currently battling one great storm, and it is up to the automaker to take measures to protect its name and standing. Time is short and Ford should not let it slip away without doing something essential. The automaker badly needs a home run to return to the good days in the auto industry. Further, the home run must be achieved in the shortest possible time.

Your Product Costs Too Damn Much

The part of being a Product Manger that I hate the most is pricing. How am I expected to come up with just the right price for my product? Who am I – Goldilocks: my product’s price is supposed to be not too high, not too low, just right? That’s a tall order. Now I’ve found out that this impossible task has just become harder: an entirely new way of pricing has shown up and it’s called freemium…

Why The Right Price For Your Product Is $0 (Not!)
Like ungrateful disaster victims who grab their Red Cross food packages and walk away without saying thanks, your customers would love to get their hands on your products for free. Now while this will make your customer extraordinarily happy, it will drive your company out of business overnight. Good marketing concept, bad business concept.

Damon Darlin at the New York Times has been looking into this new pricing scheme. Just like a product management version of crack, pricing your product at $0 is so attractive that you can find even the large guys doing it: Flickr, YouTube, etc.

Having an “it fell off the back of the truck so just take it” sale everyday for their products sure gets them lots of “customers”; however, even though they are huge and seem to be doing well, a close look at their books shows that free is a pricing model that is slowly killing them also.

How Do You Make Money If Your Product Is Free?
Wouldn’t you know it, there are actually some smart product managers out there who have taken the time to sit down and figure out a way to tame the wild beast that is a free product. While everyone else is getting eaten by the cost of supporting an unlimited number of freeloading customers, these guys have actually started to make some serious money. What’s their secret?

I know where these successful product mangers have been spending their time: strip clubs. If you’ve not been to a strip club in a while then you may not be aware of the clever marketing that goes on there. To get in to the club is generally free, to get the undivided attention of the performers is going to cost you.

This is the only place that the product managers could have realized that the secret to having a successful free product is to create a better version of the free product that once hooked, their users would be willing to pay more to get their hands on. What these paying customers are willing to pay is what the company can use to support everyone else’s use of the product (or they could sell expensive beer like they do in strip clubs).

The madness of giving away the product that you’ve worked so hard to create and spent so much to market is called freemium, a term that Fred Wilson, a New York venture capitalist came up with.

Show Me Some Proof That Freemium Can Work
Instead of drinking the kool-aid of free product pricing that all of the other companies seem to downing, Phil Libin who is the CEO of Evernote, a startup that offers a web-based storage system for personal information is brewing his own brand of product pricing.

Phil’s Christmas wish is that Evernote will be able to convince enough of the folks who are using their product for free to convert to paying customers in order for the firm to start making money.

Cracking open Evernote’s books reveals some interesting user behavior patterns:

  • Longer Relationships Are Good: The longer a user continues to make use of the Evernote application, the more profitable they become to Evernote.
  • One Night Stands: An amazing 75% of the people who use Evernote end up leaving within the first four months. You would think that no company could withstand this kind of enduser turnover; however, the money that Evernote is making from the 500,000 folks who have opted to start paying them is actually growing faster than Evernote’s overall customer base.
  • Reasonable Prices: In order to entice users to become customers, Evernote keeps their prices nice and low: $5 a month or $45 a year for the extra features that heavy users just have to have.
  • More Stuff Means More Value: somewhat unsurprisingly it turns out that the more that Evernote’s customers use their service, the greater the probability that those customers will end up as paying customers. The simple reason is that once you’ve got a bunch of stuff stored at Evernote, it would be a big pain to move it somewhere else.

Final Notes
If you’d like to lose your product manger job real quick, you just go ahead and march right in to your CEO’s office and tell him / her that you’d like to start giving your product away because you read a blog post that said that it was the trendy thing to do.

Nope, freemium is a crazy idea that works for some product managers, but probably won’t work for all. If your product is trying to break into a crowded marketplace and you don’t really have any compelling features that will make your product the “must have” solution, then perhaps a freemium approach would be a way to get some attention and lots of users.

If you do this, then your product is going to have to be able to get by on slim profits from each customer. Over at Evernote they only get 3 cents of revenue from each active user during their first month of use. This gets better after a year when those customers start providing roughly 35 cents each. You’d need a lot of customers to make this work out!

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