Mainly what people are paying for is marketing, packaging, and brand prestige. That's why lipstick, for example, which is mostly wax, oil, and pigments, routinely costs more than $20 a tube at a department store makeup counter.1 nov 2015
How much does it cost to formulate a product?
If you're really serious about creating a product you'll want to work with a cosmetic formulator to get your product made. Their services are not free and could run you anywhere from $500 to $25,000 depending on the chemist and the formulations you make. The average cost of working with a chemist will be around $2500.