Tag Archives: beauty economics

Makeup Inflation

16 Jan

Hello everyone! I don’t know if you guys know that I am a business student but I am and we were discussing inflation in class today. I thought deeply about how inflation affects my spending habits and concluded that since I only purchase makeup and sometimes food I don’t really care much about prices and such. But now since work hours are cut once again I am at a point where I have to save money for many things and cannot have as many things as I want to anymore. So with less extra income coming in I have to figure out what sort of financial plan to have when it comes to purchasing makeup and upcoming limited edition collections (MAC I’m looking at you).

This is where inflation comes in so what is inflation? Inflation is defined as an upward movement in the average level of prices. So in terms of makeup the graph would look something like this:

So let’s take for example a MAC eyeshadow refill pan:

In 2007 the price was $13 as of 2010 the price was raised to $14.
The price was just raised a dollar but it makes a difference if you are purchasing a lot at one time (like what I do).

I’d just like to point out that cosmetics is getting even more pricier perhaps one day drugstore makeup won’t even be considered drugstore makeup but mid-priced makeup brands. You as a consumer have power to say when and where to buy products so I would like to mention that I don’t buy makeup that is not on sale (is that bad for me to say?) but I will probably have another post about this.

I hope that this post was informative if there are any other business concepts that I can apply to this blog I’ll make sure to post. And thanks for reading this long post.

Sources:

Abbott, F. K. (2008). Economics Today: The Macro View Fifth Canadian Edition. New Jersey, USA: Pearson Education Inc.

MAC Cosmetics. (n.d.). Retrieved January 15, 2012, from http://www.maccosmetics.ca

 

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