I was shopping today with the family and happened upon a new cosmetics store at the mall called Bare Escentuals, Inc.
). It was started in 1976, 30 years ago in Los Gatos California by a woman entrepreneur, Wendy Zomnir, because she wanted to make make-up available to women with crushed minerals from the earth. Bare Escentuals creates all its make up from 100% pure "bareMinerals" which are free of preservatives, talc, oil, fragrance and other potential skin irritants. Today it's run by another woman, CEO Leslie Blodgett.
The BareMinerals SPF 15 Foundation at Bare Escentuals costs $25 for 9 grams.
The store was packed with women who wanted to try the BareMinerals, because the staff mixes custom colors for women and provides a free makeup session. It was hot and the foot traffic was amazing. I got pretty excited and checked the place out, and I couldn't believe the prices they were charging for these custom blends.
BareMinerals (9 grams) costs $25! The picture is crummy. I know. My phone sucks.
It costs about $25 for 9 grams of this bareMinerals. Now, the quick thinking me started trying to figure out what that really means. I did a quick calculation and converted that to troy ounces (1 troy ounce = 480 grams).
$25 / 9 * 480 = $1333.33.
You get to a price of $1333.33 per troy ounce of BareMinerals. BareMinerals is more expensive than an ounce of gold. In fact, more than twice the price of a troy ounce gold - the December gold futures closed at $626 per ounce on December 8, 2006! With prices like these, who needs to deal in commodities or deal in drugs? Foggetaboutit! Let's start doing cosmetics!
By the way, in case you were wondering, Bare Escentuals is a public company. They went public
on September 29, 2006 at $22 per share and closed the day at $27.15 gaining 22%. The deal was led by Goldman Sachs Group, Inc.
) and CIBC
. It recently traded at $34.45 which means it has gained 56% since its IPO. It did $364 million in revenues in the trailing twelve months and earned $38 million while growing 44%. Not bad for a $3 billion company!