One thing that I learned from watching a lot of Shark Tank that products should retail for 4x as much as they cost to make - manufacturing in bulk cuts costs. So, a fragrance that's $80 at the store probably costs $20 (at most) to make. The rest goes to the company who made it, shipping/handling and the overhead of retail (which gets the biggest cut since they're the ones who get the customer to buy it). So, it's definitely easy to see how authentic online discounters could be selling fragrances 40% off.
When it comes to niche fragrances (like Creed, Tom Ford, Amouage), I do think they spend more money on higher quality ingredients, but I can't imagine their fragrances costing more than twice what regular designer fragrances cost to make. I doubt a $300 fragrance costs $75 to make, when 90% of it consists of alcohol.
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How much does a fragrance cost to make?
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