Cost per unit - final product

Hi guys,

What would you say is a reasonable cost per unit (including carton, component, formula) for a product retailing $60 USD.

I know it's sort of a complex question with many variables to come into play...

As an example - if I were to say the cost per unit of a $60 USD 1fl oz of a cream was approx. $5.30 USD -  manufacturing 10,000 units in the country of origin, would you say that was pretty steep?

Thanks for your input!
Cosmetic Product Development
Sussex Research Laboratories Inc.
www.sussex-research.com

Comments

  • PerryPerry Administrator, Professional Chemist
    That sounds like a reasonable figure. In truth, I don't think the retail price has much to do with the cost of goods when you start charging that much.

    You could make a good cream formula for less than $2 a pound which means ~13 cents a unit for just the formula. The packaging is where all the cost is.
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