Why is the final retail price of the product so high?Who gives it courage?

The discussion of the ice cream assassin has just declined, and now many media have begun to discuss the price of domestic toothpaste.

Because the price of toothpaste 10 years ago was mostly less than 10 yuan. Why are you about 30 yuan to toothpaste everywhere? Some expensive toothpaste retail prices can exceed 100 yuan.

If you say that more than 10 yuan of ice cream is a "assassin", more than 20 daily toothpaste can also be regarded as "assassin". The only difference is that it is difficult for us to find the price corresponding to the ice cream, but it is easy to see the price of toothpaste. Therefore, ice cream is only "assassination", but toothpaste is "grabbing".

We can imagine such a picture. You have entered a large supermarket. 50 kinds of toothpaste products are placed on the shelves of the supermarket, but there are more than 20 types of price of more than 20 yuan, and the price of 25 toothpaste is 10 yuan Between -20 yuan, only 5 toothpaste is less than 10 yuan.

Which price range of toothpaste do you choose to buy?

From the perspective of probability, you choose toothpaste at 10 yuan to 20 yuan, but if your living conditions pay more attention to quality, you may choose toothpaste more than 20 yuan. The reason is simple. These dazzling price cards give consumers a psychological suggestion. The higher the price, the better the product, and the lower the price, the more products.

In addition, there is a huge difference between toothpaste and ice cream. It will be eaten for more than 10 yuan ice cream for a while, so it will feel a little painful. Although more than 20 yuan of toothpaste is not cheap, it can be used in the last month, which costs less than one dollar a day. This is the main reason why domestic toothpaste that can be sold in more than 20 yuan in China!

In 2020, the brand with the number one domestic sales volume is Yunnan Baiyao, and its retail price is almost 25 yuan. The 2-5th place is black, Jiajieshi, cold sour, and Gao Loujie.

So the question comes, the more expensive the toothpaste is selling, is it because of product development or production costs more and more expensive?

In fact, this is not the case. Whether it is the research and development cost of toothpaste or the production cost of toothpaste, it is relatively low.

We take the Dengkang Oral Orals (Cold acid Ling parent company) that have been submitted to the IPO application. The company's revenue from 2019-2021 is 944 million yuan, 1.03 billion yuan, and 1.143 billion yuan, respectively. The revenue is rising steadily, which shows that the company's growth is worth looking forward to. The net profit in the past three years was 63.16 million yuan, 95.24 million yuan, and 119 million yuan, and the net profit performance was also quite excellent.

So what is the cost of research and development and production of cold acid spirit?

The R & D costs from 2019 to 2021 were 30.3 million yuan, 31.7 million yuan, and 35.52 million yuan, respectively. The rate of R & D costs has been stable at about 3%.

Taking a cold-aciding adult toothpaste (100g) as an example, the cost of production from 2019 to 2021 was 1.53 yuan, 1.47 yuan, and 1.50 yuan, respectively. It can be seen that the production cost of toothpaste has been maintained at about 1.5 yuan. However, its ex -factory price continued to rise, respectively, 2.54 yuan, 2.55 yuan, and 2.62 yuan, respectively.

According to the dealer of cold acid, toothpaste has risen several times in recent years, and the wholesale price of dealers has reached 5 yuan. The retail price in the hands of consumers is above 10 yuan.

Through the e-commerce platform, you can know that the retail price of many cold-acid products is between 15 yuan and 20 yuan. Cold acidity's prospectus presents the tip of the iceberg industry in the toothpaste industry. High retail prices do not mean that the cost of the product is very high. The cost of 1.5 yuan will eventually need to be more than 15 yuan in the hands of the seller, which is the current status of the toothpaste industry.

Some people may say that toothpaste companies are really dark, such a low cost, but sold to us 10 times. In fact, toothpaste companies do not really make so much money, because the price of the factory is only more than 2 yuan, and most of the money is eaten by dealers and retailers.

Why is the final retail price of the product so high? Who gives it courage?

The answer is advertising. A very important expenditure for these toothpaste companies is sales costs. It is still used as an example. It gave people a low price before, but how can I sell for more than 10 yuan? It is best to ask the celebrities to endorse and put a lot of advertisements. In 2021, Wu Lei became the new spokesperson for cold acid.

From 2019 to 2021, the sales costs of cold acids were 276 million yuan, 266 million yuan, and 279 million yuan, respectively, accounting for about 25%of revenue.

In fact, the sales revenue of cold acid spirit in the field of toothpaste is not very high. Procter & Gamble's advertising fee in 2021 is as high as $ 11.5 billion, and the sales cost of Yunnan Baiyao in 2021 was 3.896 billion yuan.

This also indirectly shows that if you want to sell well, advertisements must be indispensable. If you invite another spokesperson with a relatively large traffic, the company's products can naturally sell the price.

It turns out that expensive toothpaste and cheap toothpaste will not be much different in terms of cost. It is nothing more than that of the product positioning, which eventually leads to different retail prices.

What kind of toothpaste do you like to buy?

This is the best era and the worst era. With capital thinking and innovation models, the world is your stage!

In the new business world, there are no eliminated industries. Only the eliminated products and outdated business models will focus on product innovation and model innovation in the future.If a company or a boss, if the shortage of innovation ability is destined to be defeated in advance, please remember that there is no innovation, how can you have imagination!

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