Office for Men by Fragrance One

Office for Men 2019

MarF
04/08/2021 - 02:30 PM
30
Top Review
Translated Show original Show translation
2
Pricing
2
Bottle
8
Sillage
8
Longevity
6.5
Scent

A word or two on pricing policy

Hello everyone! So far I have limited myself to writing statements, but to this fragrance and the whole topic "Fragrance.One" I would like to get rid of a few more sentences with this comment. Cause for this gives me a video uploaded by Jeremy on his English YouTube channel and meanwhile (as will be shown probably for good reason) deleted again with the title "Top 10 All Time Favorite Fragrances"
With a detailed description of the fragrance I want to keep me at this point in view of the numerous statements and comments no longer. The fragrance is for me a fresh / citrusy-woody monotony with appealing H/S. Nothing special and certainly nothing that could make me buy it by now. But undoubtedly a pleasing blend, which will certainly nowhere in its métier "Office" and will certainly elicit untrained noses one or two compliments. My comment should now, however, deal with another aspect.

Namely, it is about the topic of pricing policy at Fragrance.One in general and in particular with the OfM here. Perhaps some of you have wondered what the above video has to do with OfM. The connection comes from a comment made by Jeremy in said video regarding the production costs of OfM. As a reminder, a 50ml bottle of OfM is currently available to buy for €145, and a 100ml bottle for €159 on Fragrance.One's official website. However, there are more frequent discount codes and bundles with which the fragrances can be had for significantly less.

But what does OfM cost per bottle in production? The cost is (drum roll please...!) a whopping €5.70! Yes right, under 6 € per bottle! That's right, isn't it? One can only congratulate good Jeremy on an excellent margin. Jeremy topped it all off by proudly announcing that he could charge high prices despite the low production costs because the fans would buy his products anyway. Just like the motto "If you're stupid enough to pay the prices, it's your own fault". Now we (fortunately) live in a free market economy and it's Jeremy's right to charge whatever he thinks is reasonable for his products. But if I charge 145 € for 50 ml, I should at least deliver a product that is worth the price. Whether it is possible to produce a perfume with costs of less than 6 € per bottle, which corresponds qualitatively to the called price, I dare to doubt. But since I am not an expert in this field, I would like to leave this aspect aside at this point. In any case, I don't want to hear anything from Jeremy about the terrible and low-quality bottle and the unimaginative packaging not being so bad, because the enormous quality of the fragrance justifies the price. After all, at under €6 production costs, there should probably be some budget left over for a better bottle and appealing packaging, don't you think? But of course that would be at the expense of the margin and that can not want anyone...

I am in no way trying to make a hate-speech against Jeremy and his company. It is my firm belief that any seller can offer their products for whatever price they see fit. Ultimately, it is always up to the consumer to decide if they are willing to pay that price. However, when Jeremy praises the alleged quality to the skies, yet doesn't spend €6 on his €145 per 50 ml perfume, thus "taking money out of the pockets" of the unsuspecting fanbase, I find the whole thing a bit brazen. Especially when you consider who most of Jeremy's viewers are. Certainly not perfume lovers like us, who can halfway judge the quality of a fragrance after a test and are therefore able to form an expert opinion about the product. Rather, it consists of teenagers or young people who just want to smell good and almost blindly trust Jeremy's judgment regarding the products presented. And while the one or the other here probably likes to spend 400€ or more for a Roja or Xerjoff and smiles rather tired about the 145 € for 50ml, this probably does not apply to Jeremy's viewership.

In my opinion, a price classification in the upper designer range would have been fair to the community. However, as mentioned above, that is up to Jeremy alone. In any case, the product that the young person buys with their savings due to Jeremy's aggressive marketing for a lot of money should then be beyond reproach. And yes, the discount codes do make the fragrances significantly more affordable. But in my opinion, they are both an expression of Jeremy's failed pricing policy and a nice (but transparent) marketing move designed to boost sales. Anyway, I don't think much of such discount and bundle promotions at all. If you can give a discount of 50% or more, you're making a confession that you have no business being in the regular price range. How do you see that? Your opinion on this would really interest me!
11 Comments
Philipp4096Philipp4096 4 years ago
1
Translated   Show original Show translation
Top comment, with which I agree 100%. Especially the argument that you design the flacon deliberately simple to offer the fragrance to the customer cheaper, is absolute nonsense. But as you also correctly write, pricing is the balance of supply and demand. And in the case of perfumes, pricing actually seems to be based on the elasticity of demand (or price sensitivity) of the customer and not on the production costs.
SweetloveSweetlove 4 years ago
Translated   Show original Show translation
Would Jesus come today with Rolex and Ferrari?
MullieMullie 4 years ago
Translated   Show original Show translation
The price of a perfume by far does not only cover the production costs of manufacturing. Distribution through wholesalers, marketing, POS costs in the stationary trade and costs of the brand itself. Basically, brands only take about 20% of the retail price, but bear 100% of all costs in the first step before it goes to marketing and sales. With an incalculable outcome, especially for small brands.
I find Fragrance One to be an unreasonable worthless brand. No justifiable equivalent value!
OeufdeoeufOeufdeoeuf 4 years ago
Translated   Show original Show translation
Let me ask you a question out of curiosity. What does production cost mean? How expensive is the development by the perfumer. Does he get a fixed sum e.g. 20k or does he get a share of the sales?
SinaWSinaW 4 years ago
1
Translated   Show original Show translation
Very interesting what you saw & shared with us. About the prices of perfume I have not thought further, except for: "that the profit margins on fragrances over 200 € are certainly very large". But when I read what MoSeek writes, it makes me drool! From a "successful" Youtuber I would have expected nothing else, they lack the reference to reality ... And Jeremy Fragrance really makes the smallest effort ...!
12terMann12terMann 4 years ago
1
Translated   Show original Show translation
Yes, I have also seen the quite self-confident video of JF. I also asked myself at that moment: How brazen can you actually be? Just like the motto: You buy every cheaply produced fragrance from me anyway for a lot of money. You want such high prices. So I give you this.
MarFMarF 4 years ago
Translated   Show original Show translation
@Gluckspilz Whether profit margins at the level of Fragrance.One are really "necessary", I dare to doubt. But yes, I don't begrudge every successful entrepreneur his success and of course Jeremy too! But what bothers me is that the bottle and packaging are simply inadequate for the price level and the whole thing is then talked up by saying that the quality of the perfume is so great. That fits with the production costs simply not together mMn and leaves a strange impression
MarFMarF 4 years ago
1
Translated   Show original Show translation
@Dentist04 Unfortunately, I can no longer send you the link to the video, as Jeremy has since deleted it again. I can offer you as a "source" so unfortunately only my memory.
GluckspilzGluckspilz 4 years ago
Translated   Show original Show translation
Huge profit margins are required to cover marketing, exploitation chains, shrinkage, flops, fragrance development and so on. JF makes more profit through direct sales without advertising. In return, he bears the disproportionately higher entrepreneurial risk. He should therefore be allowed to do so. Especially since he often offers high discounts. If the fragrances didn't find satisfied buyers, he would be stuck with them. Most perfumes of other brands are likely to be even cheaper to produce.
Dentist04Dentist04 4 years ago
1
Translated   Show original Show translation
So that the margin for all EdPs or EdTs depending on the manufacturer and designer and label behind it is correspondingly large (as with clothes) should be clear to everyone.
Nevertheless, I would be interested where your info about the production costs of 5.70 € comes from (source?)
Apart from that, I like the fragrance, I also like Jeremy, is just a type, but he knows to inspire and polarize and even if I already call quite a few fragrances my own, one thing is certain: Office brings mega positive FB
MoSeekMoSeek 4 years ago
1
Translated   Show original Show translation
There is a documentary of the ARD about perfumes. In it, one of Germany's best-known perfumers (Uwe Herrich, Dresden) explains what the most expensive fragrance oils in the world cost in the highest concentration that one is allowed to use in perfumes: they are cents, the highest-quality oud is just under one euro per 100ml. Perfumes that cost more than 50 euros per 100ml are therefore (according to him) always rip-offs. Daniel Schütz and his investors are no exception.