I love plouise products, but I’m genuinely confused how she is making money as someone who has worked in the cosmetic industry for years. Lots of maths coming up lol!!
Example - I have ordered the lip bundles which contains 4 sets of lip products, with each set containing 2 products - so 8 products in total - for £23.
£23 after VAT is £19.17.
I believe tiktok will then take 5%= £18.21
I’d say each lip product at cost from the supplier is at least £1 each, totalling £8 (a conservative estimate!) = £10.21
Sea freight and air freight can affect cost, between 5-20%, going with 5% this would be an addition 40p = £9.81
Packaging - at least 40p per individual carton, plus outer box - rough estimate would be around £2 = £7.81
Then shipping to the customer will be around £4-5, which means she makes £3-4 max profit from this - again based on very conservative estimates and not accounting for business tax, labour, software, tooling costs, new product development, freebies, marketing etc. To put it in to perspective, her profit margins just on the product and not including anything will be around 15-20%, whereas most direct to consumer beauty brands aim for a minimum of 70%.
Maybe tiktok are funding but genuinely confused how this business is profitable…