— The diamond company that made one of the most sought-after lipsticks for women, a line of lipsticks that are now selling for about $10 on eBay, is changing up its pricing.
The brand’s new pricing structure includes a discount on its most popular items, including lipstick and blush, as well as other makeup items.
It’s a big shift, said Diane Lissner, who oversees Diamond cosmetics.
“We’re still doing some work to adjust to the new pricing model,” she said.
Diamond cosmetics sold about 9.7 million lipsticks in the U.S. last year.
Its price of about $1.49 a pop has been trending upward for the past three years, according to research firm Euromonitor International.
Lissner said the company plans to change prices on other items as well, such as makeup remover and nail polish remover.
Her team will also increase its supply of makeup removers, a major part of the makeup business, she said, adding that the company is also exploring options for other products.
While Diamond cosmetics’ business is still growing, Lissneder said the brand needs to do more to keep pace with changes in the makeup industry.
If you see that price increase, you know that we need to do something,” she added.
Dorals brand cosmetics, which was launched in 1984 and has brands like Zara and Forever 21, has been on the upswing in recent years.
But Lissners sales have slowed, especially as sales have increased for other cosmetics.
She said the new price structure will help the company stay on track with that growth.
In March, Dorals announced that its sales in the United States dropped 11.7% in the second quarter of 2017, after gaining 9.2% in 2016.
That is a sign that the brand is struggling to stay relevant, said Jeff Sussman, an analyst at The Lindsey Group.
And Dorals is not alone.
Other beauty companies, like Lancome and L’Oreal, are also increasing prices.
Sussman said the changes could be good for business as well.
This is a way to increase awareness of a brand that may not have seen that kind of growth in the last several years,” he said.