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Thu Dec 18, 2008 7:22 pm |
Here is what comes to my email:
As a valued Saffron Rouge customer and someone who purchased Dr. Hauschka from us in the past, I wanted you to be among the first to know about Dr. Hauschka's brand-wide significant price increase taking effect January 1, 2009. This price increase is approximately 13.5% above current pricing.
Due to the rising costs of business, Dr. Hauschka is raising its pricing structure for the first time in years. With this price increase, Dr. Hauschka can guarantee that their market-leading commitment to using high quality ingredients and manufacturing processes will continue in the years to come.
The good news is that you still have time left to stock up on your favorite Dr. Hauschka products at the current prices before the brand-wide rate goes up at the start of the New Year. So whether you want to finish your holiday shopping or buy for yourself, there's no better time than now.
Click here now to shop Dr. Hauschka
Sincerely,
Jeff Binder
CEO |
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Thu Dec 18, 2008 10:47 pm |
I can't believe this. Everything is raising their price, but my salary just stays the same.
and 13.5% is just too muchl, especially considering the price of Dr. Hauschka in North America is already much higher than it is in Europe. |
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Fri Dec 19, 2008 6:40 pm |
They increased the price once last year, about 20%. My friend's friend who works in a drugstore in German said that it does not worth the price, and do not recommend Dr. Hauschka to us.
And this time they want to do it again? I think we should stop using it. |
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Fri Dec 19, 2008 9:21 pm |
but geeez 13.5% is terrible....i can accept a 5% increase but that much in one go |
_________________ age 33 .. skin dry with odd breakout now and then. skin color best i can describe is golden brown..tans easily |
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Sat Dec 20, 2008 10:42 am |
chicot wrote: |
They increased the price once last year, about 20%. My friend's friend who works in a drugstore in German said that it does not worth the price, and do not recommend Dr. Hauschka to us.
And this time they want to do it again? I think we should stop using it. |
I`m in the minority, I know, but I never understood all the hype about Hauschka line. There are other good natural lines though. I`ve tried:
- cleansing cream (broke me out)
- regulating toner for oily and impure skin (contains alcohol, so drying)
- regulating oil (I was looking an oily mess with it)
- toning fluid (it is not true, that it improves any skin tone, it`s making me dark and unhealthy looking)
- lipstick (dry for me)
- handcream (nothing to write home about, suitable only for summer, not moisturizing enough for winter)
- and now I`ve ordered cleansing clay mask, this will be the last Hauschka chance for me
that said - I`m in Germany and so enjoying much lower prices for Hauschka products than US or Canada based folks.
and still I`m not in love with the line, yes, it`s not worth its price for me
more to that - I think this is a line for young people, without any serious issues with aging, or for basic skincare, as I do not see how, say, rose cream, or quince cream, can solve my aging-related problems??
so what do you US or Canada folks find for yourselves in this line, thus do not find in other lines, that justifies the price for you? |
_________________ 31, combo - oily, breakout-prone, fair complexion, sensitive and prone to rosacea |
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Sat Dec 20, 2008 12:50 pm |
Wow,thanks for posting this, I am going to stock up on some old favorites. |
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Sat Dec 20, 2008 11:37 pm |
what other natural lines would you recommend Aiva?..........In this forum though i keep coming across Dr Huschuska alot!!! |
_________________ age 33 .. skin dry with odd breakout now and then. skin color best i can describe is golden brown..tans easily |
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Wed Dec 24, 2008 10:18 pm |
I just want to buy cleasing cream from this brand. I am 30++,maybe that is not suit for me.I decide to stop buying. |
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Thu Dec 25, 2008 12:18 pm |
Aiva wrote: |
chicot wrote: |
They increased the price once last year, about 20%. My friend's friend who works in a drugstore in German said that it does not worth the price, and do not recommend Dr. Hauschka to us.
And this time they want to do it again? I think we should stop using it. |
I`m in the minority, I know, but I never understood all the hype about Hauschka line. There are other good natural lines though. I`ve tried:
- cleansing cream (broke me out)
- regulating toner for oily and impure skin (contains alcohol, so drying)
- regulating oil (I was looking an oily mess with it)
- toning fluid (it is not true, that it improves any skin tone, it`s making me dark and unhealthy looking)
- lipstick (dry for me)
- handcream (nothing to write home about, suitable only for summer, not moisturizing enough for winter)
- and now I`ve ordered cleansing clay mask, this will be the last Hauschka chance for me
that said - I`m in Germany and so enjoying much lower prices for Hauschka products than US or Canada based folks.
and still I`m not in love with the line, yes, it`s not worth its price for me
more to that - I think this is a line for young people, without any serious issues with aging, or for basic skincare, as I do not see how, say, rose cream, or quince cream, can solve my aging-related problems??
so what do you US or Canada folks find for yourselves in this line, thus do not find in other lines, that justifies the price for you? |
Well, I am live in Canada. In the winter time, the temperature is always horrible, like -25, and chilly wind. The regular rose cream is the best for me for now, I think that will be only product I am going to use from Dr.Hauschka.
My friend in german sends me one tube every year, so till now, the price is still OK for me. |
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Thu Dec 25, 2008 2:13 pm |
This is the heart of what I keep telling folks here: it's "price vs. efficacy". Before you buy any product, look at the ingredients and listen to the feedback from consumers. If the price is too high and the function is too low, or the ingredients aren't good, don't buy the products.
A price increase such as this should be a red flag.
A very close friend of mine who is a cosmetic consultant to just about every big name house in the US gave me some advice before we started our company. He was telling us ways to regulate production, sales and the amount of customers that we get. And, this was before he knew that our business plan was to keep our prices low, and not to raise them.
He said, if you find that you are losing profit for whatever reason....loss of customers, higher ingredient prices, higher production costs....simply jack up the products prices. The customers that already buy your products will probably stay with your products. You may not get many new customers, but you'll make as much, if not more profit, by increasing the prices you charge.
This appears to be exactly what is being done in this case. Same product, higher price.... if you stay with them, you had better really like the products, or the thing that is going to become lighter and smoother won't be your skin, but your wallet!
John |
_________________ President and Chief Formulator, Never Over The Hill Cosmetics, Patend holder, Award winning cosmetic chemist, neveroverthehill.com, Age 51 and staying young forever! |
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Fri Dec 26, 2008 11:44 am |
Actually, there is a case study on cosmetics used in business schools in which a failing cosmetic company got a new CEO with the charge to turn around the company. He did so by raising prices substantially while not changing the product one whit. And it worked--sales went up and the company was saved.
How does this work? In the cosmetic business (and in certain other fields like perfume and wine) consumers know that there is a wide spectrum of products available with a corresponding wide degree of acceptability. Because they are unable or unwilling to try products across the spectrum simply to find which ones they prefer, consumers tend to use price as a signal of quality. The higher the price, the higher the presumed quality of the product. So, to take wine as an example, if I'm not very knowledgeable about wine and I want to have a nice bottle for a special occasion, I'm more likely to pick an expensive bottle than a cheapie, hoping that expensive equals high quality. Often times this will be accurate--high prices might reflect lower yielding vines, more careful attention to processing, etc. But, as anyone who has done a blind taste testing can affirm, sometimes a cheaper bottle turns out to beat pricier ones.
Same thing with cosmetics and skincare. Sometimes higher prices reflect better ingredients, sometimes not. But a cosmetic company might well bet on consumers believing that higher prices means higher quality.
John, I hope for your sake that lower pricing doesn't hurt your sales. And I hope for the sake of consumers that you don't end up having to raise your prices to "signal" higher quality products. |
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Fri Dec 26, 2008 4:37 pm |
flitcraft, excellent follow up post! I'm not surprised to hear about the business school example of a cosmetic price increase saving the company. It sounds EXACTLY like what the cosmetic consultant advised me to do! It is true that if a customer is super loyal to a product, they will stay with it despite a price increase. And, new customers, seeing the high price, might believe it means higher quality, which is NOT often the case as you point out.
The rest of your post is excellent as well. Yes, we may be taking a bit of a risk pricing our products so reasonably low. But I'm tired of seeing consumers so easily ripped off by unreasonable high prices! Our whole business philosophy is a good quality product at a reasonable price. And we use top of the line, state of the art, botanical active ingredients. Plus, we use several, like "Ruscogenins" that nobody else in the world currently uses. So we don't skimp on quality at all.
No, we won't be raising our prices any time in the near future at all. We are doing quite well with our current product line up and price range.
John |
_________________ President and Chief Formulator, Never Over The Hill Cosmetics, Patend holder, Award winning cosmetic chemist, neveroverthehill.com, Age 51 and staying young forever! |
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Fri Dec 26, 2008 8:03 pm |
John I'm so glad to hear that you won't be raising your prices. For me to buy your products here in Australia the price has already gone up alot because of our falling dollar. And I do looove your anti wrinkle cream and definately want to keep buying it.
I'm one of those people that DON'T believe that higher prices means higher quality in skin care. I'm getting great results by buying cheaper products...very cheap retin a, homemade vitamin c serums and your anti wrinkle cream. That's about all I can see I need at this stage. |
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Sat Dec 27, 2008 9:44 pm |
Yeah, I'm done buying high-priced skin care and makeup. The economy has hit our family business very hard (stereo and home theater), and we're competing with companies who have lowered their prices next to nothing to survive. We've had to do the same. And the skin care giants want to RAISE thier prices? I'm not playing anymore.
I'm also no longer young and having to try every new thing (been there, done that.) I know most things are similar except for prestige. I don't need prestige. I need a few well-chosen and effective products to get maximum results. Retinoids, peptides (matrixyl), AHAs and BHAs (can find these cheap, cheap), a bleach (there are many), sunscreen, and a gentle cleanser. I normally don't even use a moisturizer because they're built in to the other products.
This is one of my pet-peeves, and I try not to get on my soap-box, but this news just sent me over the edge. It's a trend I've been seeing over and over again (especially the new ZO products...their pricing makes my hair stand on end.)
Anyone who's studied economics knows there's a break-even point for pricing vs. demand. I believe the skin care industry is pricing itself out of business...or are we as women just up for anything? There seem to be hundreds of MD-backed skin care lines (probably with nice products) pricing themselves in the $100s+ with unproven technology. Even a cleanser is in the $40+ price range. Ridiculous. I'm not playing anymore. Not with Hauschka, not with anyone. |
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Sun Dec 28, 2008 1:49 pm |
Sad to say it, but I'm not sure that it is possible for the skincare and cosmetic industry to price itself out of business, as long as there are baby boomers willing to pay to keep the hands of time at bay. I ought to know, being one myself.
Seriously, though, I'm slimming down my "must haves" to try to save some money. Luckily, some of my "investment" products are already bought--my ProLight Platinum and Clarisonic brush. I'm using the Clarisonic every other day to stretch out the life of its brushes, too. And I'm using up my samples and "let's try it" previous purchases and trying to buy only the things I know absolutely work for me--Vitamin C, Avene Diacneal, Cellularskin-rx peptide eye cream, and PSF's green tea cleansing milk.
Oh, and I'm ordering the Ageless If You Dare set of exercises, since more exercise (facial and otherwise) is on my New Year's Resolution list. (Again...) |
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louise.bourgeois
New Member
Joined: 29 Dec 2008
Posts: 3
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Mon Dec 29, 2008 7:36 pm |
This is nuts - did Mr. Binder not get the memo that the economy is going down the tubes, Wall Street is on the verge of collapse, and consumer spending is at an all-time LOW??
My only rationale for this is that perhaps the company is trying to cut production costs by laying off workers and therefore will not be producing as much. They are probably wanting to then get more profit per unit of sales.
In any case, Dr. H products are already too pricey for me and they have never done anything for me (though they smell and feel nice). I also work in the luxury goods business so I understand the whole "perceived value" with respect to high prices, but I can tell you that these days you do not want to be raising your prices I don't care what you're selling! |
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