Introduction: Why Most Beauty Brand Launches Fail

You’ve created a beautiful product—maybe it’s a skin-brightening serum, a next-gen anti aging night cream, or a clean, consciously formulated lip balm. After months of perfecting your formula, choosing packaging, and dreaming of going viral or landing a retail deal, you’re ready to launch.

But then comes the real challenge: how do you actually sell it?

The beauty industry is brutally competitive. In 2022 alone, the global beauty market was worth $430 billion—and it's expected to exceed $580 billion by 2027. That means thousands of brands are launching every year, all fighting for attention, shelf space, and customer loyalty.

Unfortunately, a great product is no longer enough. Without a strong Go-To-Market (GTM) strategy, your brand risks being lost in the noise.

I’ve launched and scaled multiple 8-figure beauty brands, and I’ve also experienced the sting of failed product launches when GTM fundamentals were overlooked. One particularly painful memory? A premium skincare SKU under a blockbuster brand that flopped—despite high expectations and a global reputation—because we skipped the foundational GTM steps. That mistake cost us dearly, and it’s a mistake I want to help you avoid.

This article is part of a multi-part series designed to help you build a strategic roadmap for your brand. Each section is self-contained and actionable, so whether you're new here or have been following the series, you’ll walk away with practical steps you can implement immediately.

Today’s focus: Pricing & Positioning—two of the most powerful (yet often misunderstood) levers in launching and scaling a profitable beauty brand.

Let’s dive in.

 Pricing & Positioning: Finding the Sweet Spot

Your pricing strategy directly influences your profitability, customer perception, and sales volume. Set the price too high, and you risk alienating potential buyers. Price too low, and your brand may be perceived as low-quality or struggle to remain profitable.

A smart pricing strategy balances costs, competitor positioning, and customer psychology to maximize both revenue and brand value.

🔥 Key Factors in Pricing Strategy

Choosing the right pricing model depends on your brand positioning, target audience, and product costs. Here are the three primary pricing approaches:

✅ Cost-Based Pricing

• A straightforward method where you calculate total costs (ingredients, packaging, labor, distribution) and add a markup for profit.

• Ensures profitability but may not fully capitalize on perceived brand value.

• Best for: Brands focused on affordable, value-driven products.

✅ Competitive Pricing

• Price is determined based on competitor benchmarks within the market.

• Helps stay competitive and attractive but requires additional brand differentiation.

• Best for: Mass-market beauty brands or those entering an established category.

✅ Value-Based Pricing

• Pricing is determined by perceived value to the consumer rather than just costs.

• Often used by luxury, clean beauty, or niche brands with strong storytelling.

• Best for: Premium brands that highlight ingredient quality, innovation, or sustainability.

🚀 Case Study: La Mer
La Mer’s famous Crème de la Mer moisturizer sells for $380 per jar, even though its core ingredient (fermented sea kelp) costs far less to produce. Through luxury packaging, exclusivity, and a compelling brand story, La Mer successfully positions itself as a high-end skincare essential rather than a simple moisturizer.

🏷️ Positioning Your Beauty Brand for Success

Your pricing strategy should align with brand positioning to attract the right audience. Below are the three major brand positioning tiers and how they impact pricing:

🔹 Luxury Beauty Pricing

• Premium pricing backed by exclusive branding, high-quality ingredients, and prestige marketing.

• Example: La Mer, Augustinus Bader, Dr. Barbara Sturm → Positioned as elite skincare brands.

🔹 Mass-Market & Affordable Beauty

• Competitive pricing to attract a broad audience while maintaining profitability.

• Example: The Ordinary, CeraVe → Known for high-quality products at accessible price points.

🔹 Niche & Clean Beauty Pricing

• Pricing leverages eco-conscious formulations, cruelty-free ingredients, and sustainability.

• Example: Ilia Beauty, Biossance → Customers pay more for ethically sourced, clean formulas.

💡 Pro Tip: If you're targeting a premium or clean beauty segment, every aspect of your branding—from packaging to marketing copy—must reinforce high value and exclusivity.

📢 How to Set the Right Price for Your Beauty Brand

To establish the ideal price point, consider the following key factors:

✅ Customer Willingness to Pay: Conduct surveys, focus groups, and pre-launch promotions to understand what your audience values.

✅ Brand Perception & Value: Enhance pricing power with premium packaging, compelling storytelling, and unique ingredient sourcing.

✅ Retail vs. Wholesale Pricing: If selling in Sephora, Ulta, or major retailers, account for wholesale pricing (retailers typically take a 40-60% margin).

✅ Psychological Pricing Tactics:

• Rounding Up for Luxury: High-end brands price in clean numbers (e.g., $50, $100) to reinforce prestige.

• “.99” for Affordability: Budget-friendly brands use $19.99 or $29.95 to suggest affordability.

🚀 Case Study: Drunk Elephant
Drunk Elephant successfully positioned itself as a high-end, clean beauty brand with premium pricing. Despite higher price points, the brand gained cult-like loyalty by emphasizing ingredient transparency, minimalist packaging, and a dermatologist-backed narrative.

⚠️ Pricing Mistakes to Avoid

Even established beauty brands make critical pricing mistakes that impact sales. Here are some common pitfalls to watch out for:

❌ Underpricing Your Product

• Can devalue your brand and create skepticism about efficacy.

• Customers may associate low price with low quality.

❌ Ignoring Cost Increases

• Failing to adjust for rising ingredient, packaging, or logistics costs can shrink profit margins.

• Conduct biannual pricing audits to ensure profitability.

❌ Not Differentiating from Competitors

• If your pricing mirrors competitors, you must have a unique value proposition to stand out.

• Consider bundling, loyalty discounts, or exclusive perks to create value.

💡 Pro Tip: Pricing should be re-evaluated every 6-12 months based on customer demand, competitor shifts, and market trends.

✅ Actionable Takeaways for Pricing & Positioning:

🔹 If your brand is luxury or clean beauty, use value-based pricing and focus on premium branding, exclusive storytelling, and ingredient transparency.

🔹 If you’re targeting mass-market affordability, use competitive pricing, streamlined packaging, and focus on volume sales.

🔹 Regularly analyze market demand and adjust pricing based on profitability and consumer behavior.

🔹 Implement introductory pricing strategies (early-bird discounts, limited-time offers) to drive initial traction and long-term retention.

💡 Key Tip: Test different price points through A/B testing and customer feedback to determine the most effective pricing for your market. 🚀

Next Step: Brand Messaging & Storytelling

Now that you have a pricing strategy, the next step is crafting a compelling brand story that resonates with customers emotionally and logically.

💬 Need help pricing your beauty brand?

If you’re unsure whether you’re undercharging, overpricing, or just not standing out in the market — we can help.

Book a free Growth Strategy Session and let’s review your pricing and positioning together.

🎯 You’ll walk away with clarity on:

• Where your brand sits in the market

• How to align your pricing with your audience and brand story

• What small tweaks can unlock bigger margins and stronger brand perception

👉 Click here to book your session