Glossary · Business & Sourcing
What Is Unit Cost Breakdown?
A unit cost breakdown separates the price of one finished unit into its components: bulk formula, primary packaging, secondary packaging, filling, and factory overhead and margin. In cosmetics the packaging usually dominates, which is why a formula upgrade and a pack upgrade carry very different price impacts.
Why it matters when you source
Asking for a breakdown turns a vague percentage increase into a specific conversation about which line item moved. It also shows where a cost reduction is realistic — often the pack, rarely the preservative system.
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