PRODUCT
Formula development, materials, bottle, pump, cap and carton.
Lesson 07 · Price is context, not proof
The aromatic liquid is not the only thing in the price.
Development, packaging, distribution, service, marketing, scarcity and brand position can all matter. None guarantees that the fragrance fits you.
Emotional, artistic and symbolic value are real. They are simply not raw-material receipts. Ask what part of the whole object earns the price for you.
Show me
What can sit inside the price besides the liquid?
Open each part of the cost stack.
Product
Formula, development and physical object.
Materials, testing, bottle, pump, cap, decoration and carton can all contribute.
ROUTE TO MARKET
Freight, warehousing, wholesale, retail, sampling and service.
MEANING
Design, history, scarcity, status and the value attached to a name.
THE COST STACK
Formula development, testing, bottle, pump, cap, carton, freight, warehousing, wholesale, retail, sampling, service and marketing can all sit inside the price.
PRICE CANNOT PROVE
Naturalness, concentration, performance, rarity, originality, ingredient cost or personal fit do not follow automatically from a high price.
THREE KINDS OF VALUE
Functional value asks what the object does. Artistic value asks what the composition or design gives you. Luxury value includes access, service, scarcity and symbolism.