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Fur Oil
ENTREPRENEURSHIP

Is A 700% Retail Markup Too Much For A Beauty Product?

During an episode of the ABC television show “Shark Tank” that aired Friday, Fur co-founders Laura Schubert and Lillian Tung reveal the brand's signature oil costs $5.34 to make and retails for $46, leading to a markup of more than 700%. In a subsequent post about the markup, anonymous Instagram account Estée Laundry wrote, “There might …
Rachel Brown·March 5, 2020·1 min read
The 30-second read
During an episode of the ABC television show “Shark Tank” that aired Friday, Fur co-founders Laura Schubert and Lillian Tung reveal the brand’s signature oil costs $5.34 to make and retails for $46, leading to a markup of more than 700%. In a subsequent post about the markup, anonymous Instagram account Estée Laundry wrote, “There might be other costs for a company with ~12 employees and no large marketing campaigns, but the markup seems higher than most brands featured on the show? And we all know the science, R&D and testing that’s involved in creating a natural oil blend is astronomical ?.”

We wondered how beauty industry experts and indie beauty entrepreneurs would react to Fur’s pricing calculation. So, we asked 27 of them: Do you think Fur’s markup is reasonable?

The players

1 mentioned
Brand

AS Beauty

Founded2019
HQNew York, New York, United States
Revenue Range$150M+