Fragrance is an invisible accessory that serves as the finishing touch to any outfit. It can conjure an entire mood—sexy and sultry, sweet and carefree, earthy and mysterious—trigger emotions and memories otherwise locked deep inside, and help you feel put together.
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There’s a plethora of perfumes to choose from across a spectrum of price points, but what factors ultimately affect the price tag? And is an expensive perfume worth the spend? We reached out to fragrance aficionados to understand more about the difference between cheap and expensive perfumes so you can make an informed purchase.
Why Is Perfume So Expensive?
Generally speaking, perfume is an investment. Even on the lower end of the cost spectrum you’re still looking at around $25 to $75 for perfume. But what’s the justification for a fragrance that costs several hundred dollars? Turns out, a lot goes into development from beginning to end—from the sourcing of ingredients and scent payoff to the packaging encasing it.
Fragrance Conception
Developing a refined, perfectly balanced scent profile requires real brain power and a keen understanding of fragrance science. (And yes, it’s a lot of science that requires comprehension of various chemicals and molecules and how they interact together.)
“Typically, something cheaper will be less complex and more simple and obvious,” notes fragrance expert Aimee Majoros. “For example, you will clearly smell a single note very prominently—often the top note—[like] lemon or a single floral.”
On the other hand, expensive and well-designed perfumes tend to have an air of mystery and complexity about them. “You can’t quite identify what the notes are exactly,” Majoros says. She adds that such perfumes also tend to beautifully evolve as it settles on your skin.
All that said, the ideation and conception phase—plus testing until the scent’s perfectly fine tuned—takes time and experience. The experts who are exceptionally good at this process can charge top dollar.
Ingredient Quality
Even if a fragrance producer is good at what they do, you need a juicy budget in order to develop a stellar fragrance.
“Cheap perfumes will use synthetic oils, rose, patchouli, jasmin, etc.,” says perfumer Darryl Do. “Expensive ones use natural oils where the quality of these oils differentiates them from the low priced oils and sets them apart.”
The key difference between synthetic oils and natural oils is the depth and “realness” of the scent profile. The latter costs much more, so the perfume that uses these ingredients is naturally more expensive. Even if cheap perfume brands do use natural oils and complex accords (and otherwise expensive ingredients) they typically do so in smaller quantities whereas expensive perfumes use higher quantities.
Ultimately, cheaper perfumes tend to have a sharper, less full-bodied scent profile while expensive fragrances are bursting with rich, luxurious complexity.
Mass vs. Limited Production
When you mass produce anything, it’s going to cost less. This is true for fragrance, as well. That’s because the perfume house can buy the ingredients in bulk and produce them more quickly. Conversely, when a fragrance is produced in smaller batches it’s almost always going to cost more.
“Newer brands, like Victoria’s Secret, are lower priced but not cheap and the packaging of the bottles and cartons reflect this,” Do says. “They had the bridge between mass market and prestige—the masstige—fragrance category.”
However, when you add in the exclusivity factor—AKA a little “supply and demand” action—the price tag may soar. When there’s limited supply and a strong sense of demand, a product naturally costs more.
Intensity and Staying Power
Have you ever noticed that some perfumes follow you around all day long while others seem to disappear completely within an hour after that first spritz? This is referred to as “scent payoff,” and it’s no mistake when expensive perfumes have the ability to last.
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Featured content:“A luxury fragrance will almost always last longer on the skin than a less expensive one. I have some very high end scents that I can still smell on my coat days after I have worn them,” Majoros says. “I have never done the math but often I think that a more expensive fragrance might end up being a better value, because sometimes you only need very little to make an impact.”
Note that a single fragrance can come in various levels of intensity for those who prefer a lighter or heavier scent payoff. An eau de cologne (EDC) is the least concentrated, an eau de toilette (EDT) is slightly more concentrated, and an eau de parfum (EDP) is the most concentrated. The more concentrated the perfume, the more expensive the price tag.
Packaging and Presentation
In the same way that much thought goes into the formula of a luxury perfume, tons of care is given to enhancing the customer’s experience via exceptional presentation.
“Packaging is, of course, another huge factor where [manufacturers] cut costs,” Majoros says. “There are a lot of cheaper scents that I really love, but after having them for time the cap will break, you will notice that the gold of the cap is not solid and is peeling off. A more expensive fragrance … will not have this problem, but they have spent more on the packaging.”
High end perfumes tend to feel weighty in your hands and look beautiful on your dresser. It may have special design elements that are very unique, or generally just give off a sense of refined taste.
Final Thoughts
All of this is to say that fragrance is highly personal. One person might find that a $20 bottle of perfume is the best thing they’ve ever smelled while others may feel like they aren’t living their best life until they’ve splurged on that $500 bottle. Ultimately, the goal is to consider which scents resonate most with you.
“I definitely suggest getting your nose on a fragrance in person versus blind buying online, which you can do via visiting a department store or fragrance boutique,” Majoros says. “There are also incredible independent fragrance shops in many cities, like The Scent Room in Dallas, Scent Bar in Los Angeles, and Aedes de Venustas in New York.”
Get samples to take home and then wear and live with each fragrance for a while. If shopping online, see if you can order a discovery kit that allows you to sample a handful of fragrances.
HOW MUCH DOES a perfume really cost? That’s everybody’s question when they see a $350 price tag on a bottle of Bijan or one for $250 on Joy. Does it really have to cost so much? Nobody who markets perfume will tell you exactly, but by asking the right questions of the right people, you can get an idea.
Consider first the amber liquid that smells--the “juice,” as it is known in the trade. Without a winning compound, as Giorgio’s Michael Gould says, “You can have the most beautiful bottle and box in the world and the product won’t sell. If the juice isn’t right, long term you won’t have a franchise.”
So perfume makers rarely spare the expense when formulating a prestige fragrance. If it takes 692 ingredients to make it work, as in Giorgio’s new Red, then so be it. But, according to one Los Angeles fragrance expert, even the most expensive ingredients in the world--such as pure jasmine and attar of rose--do not raise the price to three figures. The ingredients in the average bottle of prestige perfume cost about $1.20 to $1.50. The actual liquid in a typical bottle of $150 perfume is less than 1% of the retail cost.
The bottle, box and and display carton typically cost four to six times times more than the fragrance itself. Manufacturers pay premium prices for special stoppers, sometimes as much as for the bottle. They also pay for decorating the bottle and for filling, shipping and packing it. All these extraneous costs might bring the cost of a filled bottle to about $20. Consider shrinkage and product overruns and add 50 cents.
But the costs keep mounting. Those women in the stores who spritz. The salespeople behind the counter. Their salaries are augmented by the fragrance companies. The salespeople get a commission on every bottle they sell. The companies also provide the tester samples.
Then consider the advertising costs. It costs about $31,200 to buy one page of advertising in Vogue magazine. Few prestige perfumes are advertised in only one publication each month. And scented strips increase the production costs of each ad.
During the research and development stages, high-salaried executives work full tilt to formulate the scent, the marketing strategies and the advertising campaigns. Consultants’ salaries may exceed $100,000. Some of the world’s finest bottle designers charge more than $100,000 for their work. Don’t forget the support staffs that keep companies rolling. Department stores typically mark up the product from 60% to 100%.
Spoiled’s Herb Fink and Lee Bronson say they spent just less than $500,000 to get their perfume into the department stores, even before the first sale. Fragrance marketing experts David Horner and James Roth Jr. recall that less than $300,000 was invested in Giorgio 10 years ago (“not counting the party,” Horner says, “but you really don’t need (a pricey launching) party”). But that was low budget for a scent that eventually hit $100 million in sales. Industry sources say Elizabeth Taylor’s Passion cost about $10 million to $15 million. Estimates are that Calvin Klein spent $4 million to $6 million to advertise his new scent Eternity.
Most experts agree that the profit margin on a $150 bottle of perfume is low, when all costs are taken into consideration. Higher profits come from sales of colognes whose ingredients, bottling and packaging costs is about half as much as those of perfumes. And far more bottles are sold; according to industry sources, cologne accounts for at least 65% of most fragrance firms’ sales.
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