3 ms·
These products are so well optimized now they're mostly margin and packaging/shipping/handling cost. I doubt your toothpaste tube cost more than $0.50 in actua
by raverbashing 5y ago
These products are so well optimized now they're mostly margin and packaging/shipping/handling cost.
I doubt your toothpaste tube cost more than $0.50 in actual materials to make. And on a store this can go for $3? $4? (from a quick look in Amzn - approx values the cheapest one is $8 for 6)
- sfifs 5y agoCPG industry margins are quite public as almost big brands are owned by listed companies. They're not high. The highest margin categories for big retailers i believe tend to be clothing.
- Scoundreller 5y agoThey're not wrong about the big difference between production cost and selling price. CPGs are basically in a war with eachother over marketing and need to spend the maximum amount possible to get you to but their $3 toothpaste over another CPG's $3 one and over a lower-priced generic. If they could cut their marketing budget in half, they would, but that would only work short-term.
- arcturus17 5y agoToothpaste costs $6-$8 in Amazon US? Holy cow.
- lotsofpulp 5y agoNo, it is ~$3 for a standard ~5oz size. https://www.amazon.com/Crest-Complete-Whitening-Toothpaste-Triple/dp/B005PLQIQ4 https://www.amazon.com/Crest-Complete-Whitening-Toothpaste-T... Amazon is more expensive than Costco/Walmart/Target, but especially so for dense, heavy items like liquids (or toothpaste).