A Wren Says

How much should flexi-eye shadows cost? Is $34 enough or too much? I don’t personally have any idea about product development costs, marketing costs, and the expected profit margins for beauty brands. But what I do know is that a lot of people have come out to say that this first drop from Leaked Labs was overpriced.

It is harder for small brands to get the cost reductions that will help them pass on a lower price to their customers. That might be why Leaked Labs pushed a higher price to their customers. It could also be about perceptions of exclusivity that drove the chosen price. That places in somewhat in the masstige level, not quite drugstore but not quite premium or luxury.

However, customers were understanding the price in terms of what they weren’t getting. They weren’t getting the massive PR gifting sets. They weren’t even getting packaging. They weren’t getting responsive customer services. And in some cases, they weren’t getting a product they could use effectively. All of those reasons led them to see a disconnect.

As Leaked Labs reworks its business model, it needs to consider not just what price works for them. They need to think more deeply about what works for their intended customers. Pricing is just one of the many pieces of the marketing formula. How you choose to price your product is a signal to the market. If they want to build trust, they need rework that part of the equation.