By Nmesoma Okechukwu
- E.l.f. Cosmetics dropped one product price by $4 and saw sales jump nearly 40% proving that affordability can be a more powerful growth strategy than premium pricing
- Black-owned beauty businesses can use the same cost-cutting playbook to build brand loyalty without sacrificing quality or profit margin
When it comes to beauty and lifestyle businesses, some brands lean toward affordability and mass sales while others opt for luxury and exclusivity. With the economic climate the way it is, brands are starting to realize that selling more at lower prices can outperform, selling fewer at a premium. Sensing consumer distress, E.l.f. Cosmetics dropped the price of its Halo Glow skin tint from $18 to $14 and saw sales jump nearly 40%.
Why This Matters: Nike (NKE +3.02%), Adidas (ADDYY +0.28%), Procter and Gamble (PG +0.45%), Walmart (WMT +0.45%) Home Depot (HD +0.48%) have all raised prices citing tariffs, wages, and health insurance costs, leaving everyday consumers struggling to stick to their budgets. Dime Beauty cut 20% off 17 of its products and saw sales surge 73% in just five days alongside a significant boost in brand loyalty ratings.
These results prove a clear correlation between strategic price cuts and improved customer retention. Authors of The Pricing Sprint, Jenny Millar and Ann Padley, warn against panic discounting, cutting prices simply because competitors are doing so. The smarter move is finding ways to reduce production costs first, then passing those savings to customers.
Indie fragrance brand The New Savant outsourced manufacturing to family-run businesses in Maine, allowing them to order in bulk and drop prices without touching their margins. Brooklyn based Dieux Skin switched its serum packaging from plastic to aluminum, cutting costs while improving sustainability. For Black-owned beauty businesses already operating near the edge of profitability, this is the playbook, cut costs strategically, not reactively.
What’s Next: Beauty’s next growth phase will reward proof, personalization, and performance over broad claims and price alone, according to Sarah Jindal, Senior Director of Beauty Insights at Mintel. Brands that find innovative ways to lower costs while maintaining quality will be best positioned to build both the credibility and customer loyalty that sustains long-term growth in an increasingly competitive market.
CBx Vibe: “Midnight in New York” Ayra Starr
