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The Most Commonly Asked Question #2: What is the cost per unit?

Learn about K-beauty manufacturing costs in this article.

Debbie2025-06-17

One of the most critical questions for any brand embarking on a skincare manufacturing journey is, "What will be my cost per unit?" Understanding this figure is essential for budgeting, pricing your final product, and determining your profitability. While it's a straightforward question, the answer often involves a deeper dive into manufacturing economics.

At Mayk, we aim for transparency and clarity, guiding you through the factors that influence your per-unit cost, whether you choose our Retail-Ready or Custom Formulation services.

It's a fundamental principle in manufacturing: the cost per unit typically decreases as the quantity produced increases. This isn't just about simple volume; it's due to several key economic efficiencies:

  1. Amortization of fixed costs: Every production run involves certain fixed costs, regardless of how many units are made. These include setting up machinery, initial R&D (for custom formulations), quality control testing, and labor for initial line preparation. When these fixed costs are spread across a larger number of units, the cost allocated to each individual unit significantly drops.

  2. Economies of scale in sourcing: Manufacturers can procure raw materials, active ingredients, and packaging components in much larger bulk quantities for bigger orders. Bulk purchasing typically comes with significant discounts from suppliers, directly translating to lower per-unit material costs for the finished product.

  3. Increased production efficiency: Longer production runs mean less downtime for changing over lines, less material waste during startup, and more optimized use of labor. This heightened efficiency contributes to a lower operational cost per unit.

  4. Negotiating power: Larger order volumes provide manufacturers with greater negotiating leverage with their own suppliers, securing better rates for everything involved in the production process.

At Mayk, we structure our pricing to reflect these principles while offering accessible entry points into premium Korean skincare manufacturing.

Our Retail-Ready Formulations are designed for maximum transparency and ease. For these pre-developed, market-proven K-Beauty products, all associated costs are clearly stated on our website. You can navigate directly to each specific product page in our catalog to view the detailed cost per unit based on various quantity tiers. This allows for immediate budget planning without any hidden surprises.

For projects requiring a unique formula developed to your exact specifications, the cost per unit is more variable, as it's directly tied to the specific choices you make:

  • General Skincare Products: The cost per unit for custom-formulated skincare products (like creams, serums, cleansers) typically ranges around $4 to $5 per unit.

    • Key Influencing Factors:

      • Ingredients: The type, concentration, and source of active ingredients can significantly impact cost. High-performance, rare, or patented ingredients will naturally raise the price.

      • Formulation complexity: Unique textures, multi-phase formulas, or those requiring specific processing techniques can affect manufacturing complexity and cost.

      • Packaging: Your choice of primary and secondary packaging materials (glass vs. plastic, airless pumps vs. jars, custom shapes, specialized printing) is a major cost driver.

  • Sheet Masks: As a specialized skincare category, sheet masks have a different cost structure. The cost per piece for custom sheet masks is generally around $0.9 to $1.2 per piece.

    • Key Influencing Factors:

      • This range depends heavily on the type of mask material (e.g., cellulose, bio-cellulose, cupra), the complexity and volume of the essence formulation, and the type of active ingredients used.

It's critical to understand that these are estimated ranges. Unlike Retail-Ready Formulations, every Custom Formulation is unique. Due to the precise nature of ingredient interactions, varying material yields, and specific processing requirements of a bespoke formula, we cannot provide an exact cost per unit until the sampling stage has been successfully completed.

The best way to determine the precise cost for your custom project is to begin the Research & Development process to create your sample. This allows our chemists to finalize the exact formulation and identify all production nuances.

What is the cost per unit for a retail-ready formulation?

Our Retail-Ready Formulations are designed for maximum transparency and ease. For these pre-developed, market-proven K-Beauty products, all associated costs are clearly stated on our website. You can navigate directly to each specific product page in our catalog to view the detailed cost per unit based on various quantity tiers. This allows for immediate budget planning without any hidden surprises.

What is the cost per unit for custom formulation?

For Custom Formulations, the cost per unit depends on the product category, packaging, ingredients, and overall complexity of the formulation.

As a general rule of thumb, the cost per unit typically ranges between $4~5 for skincare products, and about $0.9~$1.2 for sheet masks.

What's the cost difference for manufacturing an ODM vs. an OEM product?

The total project cost for Retail-Ready Formulations is generally lower and more predictable due to lower MOQs and pre-existing formulations. It's ideal for market entry or testing. Custom Formulations, while having higher MOQs and an R&D fee, offer complete uniqueness and brand differentiation. The higher initial investment in R&D and MOQ is offset by the ability to create a truly bespoke product that stands out in the market.

Does the cost per unit include packaging for my product?

For Retail-Ready Formulations, the cost per unit shown on our website typically includes standard primary packaging (e.g., the bottle or jar). Secondary packaging (such as label and box) are additional costs. For Custom Formulations, the final cost per unit will explicitly include both the formulation and your chosen primary and secondary packaging, as packaging is a significant cost driver that you select during the R&D and quoting process.

Do certain types of ingredients always make a custom formulation significantly more expensive?

Yes, the choice of ingredients can significantly impact the cost. Generally, ingredients that are rare, highly concentrated, patented, or sustainably/ethically certified tend to be more expensive. Similarly, some active ingredients (eg. PDRN) require specific complex processing or stability considerations that can add to the formulation cost.