I used to work as an optician here in the Netherlands when an episode of a tv series aired all about glasses, specifically the lenses. This series was all about finding out the actual cost of things. They came to the conclusion that the raw materials of the lenses were about 3 cents worth of plastic. What they didn't include was the million euro machines needed to make those 3 cents worth of plastic into an actual functional lens. They also left out the research and development of said lens, let alone transportation and other overhead costs. I had a great time explaining to customers that yes we were charging that much for a mere 3 cents worth of plastic. All this to say that I really appreciate these behind the scenes information videos.
As a product manager in beauty industry I’m really thankful that you made this video - I’ll just send it to everyone I know when they’ll ask me why some products are so expensive/cheap 😬
@@LiahYoo [ Meditation leads to awareness of telepathy, and awareness of telepathy leads to meditation. ] Honesty socially is more important than DOING to impress others. It’s not what we DO to build social value that matters. It’s the respect we are willing to give, as well as the authenticity and sincerity we have within our personalities. The ideas we choose to participate in matter most: they are either friendly or cruel socially. Material wealth, body size, facial features, or DOING will never create authority by default, which is the ability to pass judgments socially the most. Aristocratic men are hypocritical, cowardly, and jealous. Anger and zero accountability are not replacements for honesty and empathy. No one has control over ideas socially. Authoritarianism is a shallow head game: the refusal to share honesty (friendship) socially. Men with negative intentions will show complete bias against ideas supporting emotional freedom, free thinking, and level states of being. Spiritual development, the focus away from the material and towards psychology ONLY (attraction), is promoted as “not important” by conformist men with abusive, fearful, and pragmatic personalities. Spiritual ideas immediately decentralize power, elevate mood, reduce manipulation, and eliminate leadership. Spirituality places much more emphasis on social inclusion, honesty, and collective consciousness. Authoritarians weaponize the material or development in it and use both as reasons to criticize and remain unfriendly (dishonest). Dishonesty is the only way the idea of power may exist. When friendship is seen as more important than power, material development is subservient to mood. When the material is used to boost self worth and reduce others socially, mood is subordinate to power. Joyful ideas supporting free thinking (telepathy, cooperation, and honesty) encourage growth of the human persona, are anti-manipulative, and promote emotional harmony. Men focusing on the immaterial (personality) and on honesty (friendship) have more evolved minds compared to authoritarians consumed with leadership (power). In order to seek status, alphas intentionally remain closed-minded (materialistic), manipulative (controlling), and antagonistic (blame), while also forming intense judgments (jealousy) about more emotionally developed men. Men with mature minds are authentic with others, focus on humor, and shun the idea of emotional leverage. This makes them an unintentional threat socially to serious and conceited men with elitist personalities focused on dominance. Leadership is not warm, nor is it real. It is used in practice to reduce pride in others and to artificially boost feelings of self worth in an individual focused on social image only. Men focusing on telepathy are contradictory socially to alphas promoting leadership. Men with inherent worth (love for others) are offensive to men trying to prove worth (lack of belief in self) with material development. All men know consciousness (Source) and possess a conscience. Possessing a conscience is knowing right from wrong, and refusing to lie about awareness. No man is exempt from understanding Source (love) within, and all of us know we are mentally connected. The idea of comparing human beings to unaware animals is cunning and manipulative. Alphas rely on shared lying socially about awareness in place of being honest (friendly). Character development is ignored with this psychology. Our feelings (thoughts and beliefs) are transmitted and shared vibrationally and mentally. In order to seek power, which is the intention to emotionally reduce others socially, men must feign unawareness of a conscience. Cruel ideas are deliberately participated in and broadcast mentally promoting social dominance. The willful focus on a friendly collective consciousness is a contrarian idea to human animals playing dumb. Being EQUAL TO in the mind socially IS secure, and the ONLY true expression of emotional security that exists. Authoritarians refuse to focus away from being unfair human animals, and remain consumed with social inequality. This forces an unrelaxed, emotionally tense environment driven by melodrama and contempt for others. Alphas are mentally unstable, have manipulative personalities, and possess low feelings of self worth resulting from the intense focus on anger (authority), apathy (indifference), and advantages (dominance). Ideas rooted in mental dominance (alpha psychology) will never promote honesty (friendship). Alphas are homophobic, and are especially critical of friendly men that are emotionally developed. Men with empathy have already worked through insecurities and judgments to focus on telepathy. Prideful men lying about insecurities within use blame and criticisms to seek control over feelings socially in order to project an image of being stronger. This creates artificial versions of emotional security and more value socially enforced with paranoia and anger. Resorting to vibrational attacks for the purpose of self promotion by reducing worth in others mentally leads to violence. Dominance over feelings is impossible, as we all share thinking. Men with emotional IQ are authentic socially and care about calm feelings more. We are telepathic. There is no choice but to be level with others mentally, and to focus on the ultimate truth of what reality is (connection with Source). Evolved men refuse to criticize other people unprovoked or manipulate the truth. Alphas will always share critical thoughts about other people. Men with emotional depth focus on honesty socially more than alphas, creating non-violence. The idea of a social hierarchy (human authority) is degrading and humiliating. It promotes closed-mindedness, fear, and the social inclusion of violence. Thoughtful men focusing on telepathy, and away from conformity, are judged relentlessly for having elevated emotions by alphas refusing to evolve. Lessor minds intentionally share cruel beliefs together promoting the social exclusion of men with empathy socializing positive. These men are mental only in focus, never play head games, and are level in the mind with all. Alphas seek emotional support and validation from each other socially, since the ideas they participate in are rooted in dishonor and physical aggression. Alphas judge honest (friendly) men the most, as they focus away from arrogance entirely, and expect friendship to be returned socially. Passing excessive, unprovoked judgments (authoritarianism) on a better psychology, wavelength, and state of being is jealousy. These criticisms always relate to social harmony and non-violence. Alphas rely on power of numbers to manipulate the truth and to keep primal ideas popular that are intentionally threatening towards men that have already focused away from machismo (lying and fear), and towards telepathy, honesty, and Source. Authoritarians will always promote vibrational attacks against men that have already grown past them in thinking, resulting in petty head games socially. Intelligence is always associated with emotional IQ, and emotional IQ has a direct correlation to the mental focus on social equality. Social equality can only result from honesty (friendship) within the mind. The reason men chose to be honest is because they are aware telepathy is real. It looks stupid to lie about it. Alphas primarily focus on dominance in the mind and social image, and focus entirely away from telepathy within. This reduces their emotional IQ socially. Because of this, alphas will always feel inferior to more honest (friendly) men. Alphas must always focus on acting skills to socialize, since the inner persona is focused only on criticisms, violence, and dishonesty. This creates a shallow personality with a dumb vibe. Forceful thinking men will always share jealousy with men sharing respect with more emotional depth. Only men with emotional IQ can form real personas vibrationally that are not shallow. It is only when the inner mind matches the outer persona that a human being can be likable socially. Shallow men are associated with lying and are not respected when it comes to intelligence, creating situations where they are avoided socially. This angers the minds of men possessing a lower psychology, which often creates unprovoked violent reactions. When thinking is focused on honesty, feelings radiate soft. When thinking is focused on lying, feelings radiate threatening. Machismo and compassion are polar opposites. Machismo will never allow for healing to occur, while compassion is the promotion of both healing and emotional growth. Men focused on compassion will always outsmart less mature men with arrogance sharing no respect. Men will either allow healing (level thinking) to occur socially, or they will attempt to take away pride from others to artificially boost feelings of self worth. Alphas will always attempt to seek an image of more value socially by cheating (violence, greed, or leadership). Judgements from personalities with machismo usually have little substance. Only judgments relating to character issues (dishonesty), violence, or an excessively critical mind have real substance. Passing judgments on men for being honest (friendly) is shallow, arrogant, and completely against the development of our collective consciousness socially. Judgments from alphas are hypocritical, cruel, and reside in dishonor. Shallow judgments from authoritarians will always lead to drama, social inequality, and violence. Alphas focus intensely on cutting other men down unfairly in order to promote a better social image, calling it competitive. It’s time for human beings to let go of classism (psychic warfare) for good. It is jealousy. Secure men are level in the mind and easy to get along with. Alphas resort to conniving and childish head games. Men that focus non-violent and refuse to lie evolve. [ End drama. ] th-cam.com/video/hHcIOwgOHqk/w-d-xo.html
@@LiahYoo Here is a UFO playlist I made on TH-cam. I cherry-picked only the best videos with the closest available footage... Aliens or CGI? You decide: th-cam.com/play/PLAaeGTcewqEiDLntbj-OByNUHP0WxMy_Y.html
@@LiahYoo Songs about telepathy, mental/emotional connections to the spirit world, and vibrational healing from Source... A TH-cam playlist: th-cam.com/play/PLAaeGTcewqEhPXwATVMVCsRYiMnEV6wbC.html
As a chemistry student, it is my biggest dream to start my own skincare company and I wanted to say I really appreciate what you are doing. You are someone I look up to. Thank you so much for using your platform to share your experience and knowledge transparently. It means a lot to people like me. ❤️❤️
Wow, thank you for the breakdown. I used to scoff at pricey skincare, but it is humbling to see a pricey brand like Estee Lauder only make a 10% profit on one of their products.
Thank you so much for your candid video. I liked getting an insight in a side of the beauty industry that the general public doesn't know much about. I also really like your hair: it's suits you so much!
I would also further differentiate between wholesale and retail. In your $100 Este Lauder example, that retail price was not $100 revenue to Este unless it was through their own sales channel, like their online storefront. Likely someone would go to Ulta or Nordstrom for that purchase. Este's revenue here would be at wholesale, so more like $50-$80 depending on what wholesale agreements they have with various retailers. This drastically impacts assumptions when reading into their financial statements and trying to understand typical cost of goods sold. So the takeaway...most major brands have revenue streams dominated by wholesale, not retail. Great video and thanks!
Yes totally agree on your views. I seriously doubt Estee Lauder net profit is only 10%, its just not very commercially viable. More likely scenario is revenue based on wholesale price (typically half of retail price) which will imply a net profit of abt 20%. In business, NP in the region of 20% is considered ok, not that great but viable.
Factories, raw material suppliers, testing labs are all 3 different entities so you might wanna research, ask the industry professionals who used them before and see if it aligns with your needs!
Been watching since Miss A Suzy’s makeup video and I have always learnt something from you everytime I watched your video. Your growth has been amazing and u love how you articulate things so beautifully 💯
Over the past 6-7 years I have tested many products for safety and effectiveness. Recently I tested an unbelievable eye cream. It was like nothing I have ever used. It was not creamy. The eye cream was the consistency of paste but it smoothed out my aging under eye. The only thing I can tell you is that the cream was pink. I enjoy your channel. Thanks
@@AA-cn5ul The company testing the product and participants do not know who makes to product. There is just a study # on the packaging. I have asked after the clinical trial is over and they do not know. Occasionally I can tell whose product it is if packaging is unique. After the clinical trials it's about a year before it hits the shelves. Thanks
Isn't R&D not part of cost of goods sold? They'd probably be capitalized and its depreciation would go into expenses at the lower part of the financial statement. Cost of goods sold will only include the raw materials, direct production costs, and the cost of logistics for transporting both the raw materials and the products they make. The 10% net profit quite possibly also doesn't say much if the founders are in the administrative team and they get paid a salary. Really concerning considering selling and admin is more than 65% of their expenses in that example, even more so since R&D is probably not included under that heading, it would be under impairment of intangible assets. I skimmed through their annual report for 2017, operating income is $1,692 million, meaning that 10.6% net income is around $1,254m. A portion of this will be paid out as dividends and the rest will be retained. The executives likely own a portion of its shares and earn part of these dividends as well. In accounting, anything that aren't direct costs to manufacturing and distributing the product are considered overheads. Operating expenses are anything that aren't interest and tax expenses. I'm just an accounting student though so I might be wrong and maybe slightly different accounting treatments are allowed in this industry.
Thank-you so much for the insight ❤. Very informative video and also a long time since I last saw you on here. Would love to see more on beauty business ❤. And you look so pretty 😍💖
Great video ! But I seriously doubt Estee Lauder's Net Profit margin is only 10%. In business, a net profit of that range is not favorable at all. If you look at their GPM i.e. Gross Profit Margin, at around 80% is actually an excellent achievement. So from 80% down to only 10% net profit is a very strange phenomena that will be of great interests to the taxation dept LOL.
Can u plz make a vid of facial skin care ... Nd ur hair colour looks amazing on u can u plz say which colour it is?.... I mean name of this colour ....
Is that really the case, though? That does not sound profitable at all, especially since Estee Lauder sells their products in stores like Sephora, which as you mentioned can take a big cut. Would the 10 dollars profit from your example be after the retailer cost? Some cosmetics companies grow really fast. No way that would be the case if they were just making a 10% profit. This is discouraging for anyone wanting to start a business in the cosmetics industry. I hope your company is making more than that.
@@matt8953 mass production helps with the 10% pure profit margin. It's not that low at the end of the day. And thing is, most products have a similar number. So it may not be totally off the mark. You may try looking into demand-supply papers on core (they're open access) for more information
I think the 10% profit is base on wholesale price and not retail price. Wholesale price being typically half that of retail price, that will suggest a profit of 20% which is acceptable, though not that great either. I prefer to look at the Gross Profit Margin, which at around 80% is fantastic. How it gets down to profit of 10% to 20% depends alot on "creative" accounting and how the management team including the CEO is being compensated, as these constitute the Indirect Costs of the costs of goods sold. A GPM of 70% to 80% is definitely one of the highest amongst the various trades and is a catalyst for many to want to start a cosmetic or skincare business. However, it is the ability to come out with a niche product that will compel the business to be successful as this industry is extremely competitive, due to the high gross profitability.
![⭐ฮิตในTikTok!! ( มะมะมะหมูเด้ง MooDeng ) Ver. แดนซ์ ReMix BY [ ดีเจกิต รีมิกซ์ ]](http://i.ytimg.com/vi/4noyAoMa7bQ/mqdefault.jpg)
I used to work as an optician here in the Netherlands when an episode of a tv series aired all about glasses, specifically the lenses. This series was all about finding out the actual cost of things. They came to the conclusion that the raw materials of the lenses were about 3 cents worth of plastic. What they didn't include was the million euro machines needed to make those 3 cents worth of plastic into an actual functional lens. They also left out the research and development of said lens, let alone transportation and other overhead costs. I had a great time explaining to customers that yes we were charging that much for a mere 3 cents worth of plastic. All this to say that I really appreciate these behind the scenes information videos.
As a product manager in beauty industry I’m really thankful that you made this video - I’ll just send it to everyone I know when they’ll ask me why some products are so expensive/cheap 😬
Ah amazing!! 💗
@@LiahYoo [ Meditation leads to awareness of telepathy, and awareness of telepathy leads to meditation. ]
Honesty socially is more important than DOING to impress others. It’s not what we DO to build social value that matters. It’s the respect we are willing to give, as well as the authenticity and sincerity we have within our personalities. The ideas we choose to participate in matter most: they are either friendly or cruel socially. Material wealth, body size, facial features, or DOING will never create authority by default, which is the ability to pass judgments socially the most. Aristocratic men are hypocritical, cowardly, and jealous. Anger and zero accountability are not replacements for honesty and empathy. No one has control over ideas socially.
Authoritarianism is a shallow head game: the refusal to share honesty (friendship) socially. Men with negative intentions will show complete bias against ideas supporting emotional freedom, free thinking, and level states of being. Spiritual development, the focus away from the material and towards psychology ONLY (attraction), is promoted as “not important” by conformist men with abusive, fearful, and pragmatic personalities. Spiritual ideas immediately decentralize power, elevate mood, reduce manipulation, and eliminate leadership. Spirituality places much more emphasis on social inclusion, honesty, and collective consciousness. Authoritarians weaponize the material or development in it and use both as reasons to criticize and remain unfriendly (dishonest). Dishonesty is the only way the idea of power may exist. When friendship is seen as more important than power, material development is subservient to mood. When the material is used to boost self worth and reduce others socially, mood is subordinate to power.
Joyful ideas supporting free thinking (telepathy, cooperation, and honesty) encourage growth of the human persona, are anti-manipulative, and promote emotional harmony. Men focusing on the immaterial (personality) and on honesty (friendship) have more evolved minds compared to authoritarians consumed with leadership (power). In order to seek status, alphas intentionally remain closed-minded (materialistic), manipulative (controlling), and antagonistic (blame), while also forming intense judgments (jealousy) about more emotionally developed men. Men with mature minds are authentic with others, focus on humor, and shun the idea of emotional leverage. This makes them an unintentional threat socially to serious and conceited men with elitist personalities focused on dominance. Leadership is not warm, nor is it real. It is used in practice to reduce pride in others and to artificially boost feelings of self worth in an individual focused on social image only. Men focusing on telepathy are contradictory socially to alphas promoting leadership. Men with inherent worth (love for others) are offensive to men trying to prove worth (lack of belief in self) with material development.
All men know consciousness (Source) and possess a conscience. Possessing a conscience is knowing right from wrong, and refusing to lie about awareness. No man is exempt from understanding Source (love) within, and all of us know we are mentally connected. The idea of comparing human beings to unaware animals is cunning and manipulative. Alphas rely on shared lying socially about awareness in place of being honest (friendly). Character development is ignored with this psychology. Our feelings (thoughts and beliefs) are transmitted and shared vibrationally and mentally. In order to seek power, which is the intention to emotionally reduce others socially, men must feign unawareness of a conscience. Cruel ideas are deliberately participated in and broadcast mentally promoting social dominance. The willful focus on a friendly collective consciousness is a contrarian idea to human animals playing dumb. Being EQUAL TO in the mind socially IS secure, and the ONLY true expression of emotional security that exists. Authoritarians refuse to focus away from being unfair human animals, and remain consumed with social inequality. This forces an unrelaxed, emotionally tense environment driven by melodrama and contempt for others.
Alphas are mentally unstable, have manipulative personalities, and possess low feelings of self worth resulting from the intense focus on anger (authority), apathy (indifference), and advantages (dominance). Ideas rooted in mental dominance (alpha psychology) will never promote honesty (friendship). Alphas are homophobic, and are especially critical of friendly men that are emotionally developed. Men with empathy have already worked through insecurities and judgments to focus on telepathy. Prideful men lying about insecurities within use blame and criticisms to seek control over feelings socially in order to project an image of being stronger. This creates artificial versions of emotional security and more value socially enforced with paranoia and anger. Resorting to vibrational attacks for the purpose of self promotion by reducing worth in others mentally leads to violence. Dominance over feelings is impossible, as we all share thinking. Men with emotional IQ are authentic socially and care about calm feelings more. We are telepathic. There is no choice but to be level with others mentally, and to focus on the ultimate truth of what reality is (connection with Source). Evolved men refuse to criticize other people unprovoked or manipulate the truth. Alphas will always share critical thoughts about other people. Men with emotional depth focus on honesty socially more than alphas, creating non-violence.
The idea of a social hierarchy (human authority) is degrading and humiliating. It promotes closed-mindedness, fear, and the social inclusion of violence. Thoughtful men focusing on telepathy, and away from conformity, are judged relentlessly for having elevated emotions by alphas refusing to evolve. Lessor minds intentionally share cruel beliefs together promoting the social exclusion of men with empathy socializing positive. These men are mental only in focus, never play head games, and are level in the mind with all. Alphas seek emotional support and validation from each other socially, since the ideas they participate in are rooted in dishonor and physical aggression. Alphas judge honest (friendly) men the most, as they focus away from arrogance entirely, and expect friendship to be returned socially. Passing excessive, unprovoked judgments (authoritarianism) on a better psychology, wavelength, and state of being is jealousy. These criticisms always relate to social harmony and non-violence. Alphas rely on power of numbers to manipulate the truth and to keep primal ideas popular that are intentionally threatening towards men that have already focused away from machismo (lying and fear), and towards telepathy, honesty, and Source. Authoritarians will always promote vibrational attacks against men that have already grown past them in thinking, resulting in petty head games socially.
Intelligence is always associated with emotional IQ, and emotional IQ has a direct correlation to the mental focus on social equality. Social equality can only result from honesty (friendship) within the mind. The reason men chose to be honest is because they are aware telepathy is real. It looks stupid to lie about it. Alphas primarily focus on dominance in the mind and social image, and focus entirely away from telepathy within. This reduces their emotional IQ socially. Because of this, alphas will always feel inferior to more honest (friendly) men. Alphas must always focus on acting skills to socialize, since the inner persona is focused only on criticisms, violence, and dishonesty. This creates a shallow personality with a dumb vibe. Forceful thinking men will always share jealousy with men sharing respect with more emotional depth. Only men with emotional IQ can form real personas vibrationally that are not shallow. It is only when the inner mind matches the outer persona that a human being can be likable socially. Shallow men are associated with lying and are not respected when it comes to intelligence, creating situations where they are avoided socially. This angers the minds of men possessing a lower psychology, which often creates unprovoked violent reactions. When thinking is focused on honesty, feelings radiate soft. When thinking is focused on lying, feelings radiate threatening.
Machismo and compassion are polar opposites. Machismo will never allow for healing to occur, while compassion is the promotion of both healing and emotional growth. Men focused on compassion will always outsmart less mature men with arrogance sharing no respect. Men will either allow healing (level thinking) to occur socially, or they will attempt to take away pride from others to artificially boost feelings of self worth. Alphas will always attempt to seek an image of more value socially by cheating (violence, greed, or leadership). Judgements from personalities with machismo usually have little substance. Only judgments relating to character issues (dishonesty), violence, or an excessively critical mind have real substance. Passing judgments on men for being honest (friendly) is shallow, arrogant, and completely against the development of our collective consciousness socially. Judgments from alphas are hypocritical, cruel, and reside in dishonor. Shallow judgments from authoritarians will always lead to drama, social inequality, and violence. Alphas focus intensely on cutting other men down unfairly in order to promote a better social image, calling it competitive.
It’s time for human beings to let go of classism (psychic warfare) for good. It is jealousy. Secure men are level in the mind and easy to get along with. Alphas resort to conniving and childish head games. Men that focus non-violent and refuse to lie evolve.
[ End drama. ]
th-cam.com/video/hHcIOwgOHqk/w-d-xo.html
@@LiahYoo Here is a UFO playlist I made on TH-cam. I cherry-picked only the best videos with the closest available footage... Aliens or CGI? You decide:
th-cam.com/play/PLAaeGTcewqEiDLntbj-OByNUHP0WxMy_Y.html
@@LiahYoo Songs about telepathy, mental/emotional connections to the spirit world, and vibrational healing from Source... A TH-cam playlist:
th-cam.com/play/PLAaeGTcewqEhPXwATVMVCsRYiMnEV6wbC.html
As a chemistry student, it is my biggest dream to start my own skincare company and I wanted to say I really appreciate what you are doing. You are someone I look up to. Thank you so much for using your platform to share your experience and knowledge transparently. It means a lot to people like me. ❤️❤️
good luck!
@@Leah-bx4dq Thx!!
Always appreciate your honesty Ms. Liah!!!!!🙏🏻🙏🏻🙏🏻
Always!
Yeah except when her sunscreen failed to meet the claims, she did not reveal the results lol
Wow, thank you for the breakdown. I used to scoff at pricey skincare, but it is humbling to see a pricey brand like Estee Lauder only make a 10% profit on one of their products.
Thank you so much for your candid video. I liked getting an insight in a side of the beauty industry that the general public doesn't know much about.
I also really like your hair: it's suits you so much!
Glad it was helpful! and thank you so much!
I would also further differentiate between wholesale and retail. In your $100 Este Lauder example, that retail price was not $100 revenue to Este unless it was through their own sales channel, like their online storefront. Likely someone would go to Ulta or Nordstrom for that purchase. Este's revenue here would be at wholesale, so more like $50-$80 depending on what wholesale agreements they have with various retailers. This drastically impacts assumptions when reading into their financial statements and trying to understand typical cost of goods sold. So the takeaway...most major brands have revenue streams dominated by wholesale, not retail. Great video and thanks!
Yes totally agree on your views. I seriously doubt Estee Lauder net profit is only 10%, its just not very commercially viable. More likely scenario is revenue based on wholesale price (typically half of retail price) which will imply a net profit of abt 20%. In business, NP in the region of 20% is considered ok, not that great but viable.
Thank you so much for telling the truth !
I think this kind of videos are really nice to hear and informative !
I'm so glad!
that explains why expensive products cost what they do, but now I'm puzzled at how some respectable brands sell products for so cheap
love learning about the behind the scenes!
lmk what you'd like to see next!
What's the process to find a reputable factory, good quality ingredients and clinical data?
Factories, raw material suppliers, testing labs are all 3 different entities so you might wanna research, ask the industry professionals who used them before and see if it aligns with your needs!
Been watching since Miss A Suzy’s makeup video and I have always learnt something from you everytime I watched your video. Your growth has been amazing and u love how you articulate things so beautifully 💯
My eyes really went 🥺🥺 thank you!!!!
Over the past 6-7 years I have tested many products for safety and effectiveness. Recently I tested an unbelievable eye cream. It was like nothing I have ever used. It was not creamy. The eye cream was the consistency of paste but it smoothed out my aging under eye. The only thing I can tell you is that the cream was pink. I enjoy your channel. Thanks
Name of product?
@@AA-cn5ul The company testing the product and participants do not know who makes to product. There is just a study # on the packaging. I have asked after the clinical trial is over and they do not know. Occasionally I can tell whose product it is if packaging is unique. After the clinical trials it's about a year before it hits the shelves. Thanks
Isn't R&D not part of cost of goods sold? They'd probably be capitalized and its depreciation would go into expenses at the lower part of the financial statement. Cost of goods sold will only include the raw materials, direct production costs, and the cost of logistics for transporting both the raw materials and the products they make.
The 10% net profit quite possibly also doesn't say much if the founders are in the administrative team and they get paid a salary. Really concerning considering selling and admin is more than 65% of their expenses in that example, even more so since R&D is probably not included under that heading, it would be under impairment of intangible assets. I skimmed through their annual report for 2017, operating income is $1,692 million, meaning that 10.6% net income is around $1,254m. A portion of this will be paid out as dividends and the rest will be retained. The executives likely own a portion of its shares and earn part of these dividends as well.
In accounting, anything that aren't direct costs to manufacturing and distributing the product are considered overheads. Operating expenses are anything that aren't interest and tax expenses.
I'm just an accounting student though so I might be wrong and maybe slightly different accounting treatments are allowed in this industry.
Thank-you so much for the insight ❤. Very informative video and also a long time since I last saw you on here. Would love to see more on beauty business ❤. And you look so pretty 😍💖
Thank you for watching this video! Means a lot 💗
hii, please tell us about your education background which helped you in starting krave
That was amazing, thank you! Love to learn more about the business side of things. Please more content like this!
This is very interesting. I would enjoy a video about your college education preparing you for your success in business.
I have also wondered this! Thanks for the clear and thorough explanation
Of course 🥰
Love this video! Was wondering if KraveBeauty has received any investments from external investors? Love from Singapore!
Great video ! But I seriously doubt Estee Lauder's Net Profit margin is only 10%. In business, a net profit of that range is not favorable at all. If you look at their GPM i.e. Gross Profit Margin, at around 80% is actually an excellent achievement. So from 80% down to only 10% net profit is a very strange phenomena that will be of great interests to the taxation dept LOL.
This was super helpful! Can’t wait to see more
Thanks Jackie💗
This is so educational! I'm working in a totally different industry, but many factors are the same.
True!
Can u plz make a vid of facial skin care ...
Nd ur hair colour looks amazing on u can u plz say which colour it is?.... I mean name of this colour ....
Is that really the case, though? That does not sound profitable at all, especially since Estee Lauder sells their products in stores like Sephora, which as you mentioned can take a big cut. Would the 10 dollars profit from your example be after the retailer cost? Some cosmetics companies grow really fast. No way that would be the case if they were just making a 10% profit. This is discouraging for anyone wanting to start a business in the cosmetics industry. I hope your company is making more than that.
@@matt8953 mass production helps with the 10% pure profit margin. It's not that low at the end of the day. And thing is, most products have a similar number. So it may not be totally off the mark. You may try looking into demand-supply papers on core (they're open access) for more information
$10 profit but scale it up because they are moving millions of products.
I think the 10% profit is base on wholesale price and not retail price. Wholesale price being typically half that of retail price, that will suggest a profit of 20% which is acceptable, though not that great either. I prefer to look at the Gross Profit Margin, which at around 80% is fantastic. How it gets down to profit of 10% to 20% depends alot on "creative" accounting and how the management team including the CEO is being compensated, as these constitute the Indirect Costs of the costs of goods sold.
A GPM of 70% to 80% is definitely one of the highest amongst the various trades and is a catalyst for many to want to start a cosmetic or skincare business. However, it is the ability to come out with a niche product that will compel the business to be successful as this industry is extremely competitive, due to the high gross profitability.
Thanks for the information 😍
so enlightening!
Very interesting video!! ✨
🥰🥰🥰
@@LiahYoo 🤎
Sería genial que tengan traducción en español ! ☺🙏
Mam iam from India. Please share affordable korean skin care that available in india
Good to know. Anyways luv ur hair colors.😍
Yay! Thank you!
Good morning dear beautiful moon great video and super channel God blessing you with healthy
En idioma o traducción al español por favor ! ☺🙏
Make such videosss
🔥 thanks
🥰🥰🥰🙏
😍
❤👏
Literally to the 1% whos Reading this God bless you and may your Dreams Come true stay safe and a wonderful day 💕🙏🙏🙏
Same to you!
First comment 🌴
Legend!