When a perfume does succeed, the profits are formidable all around. The laboratory sells the juice to the licensee at two and a half times the cost. The licensee sells it at retail for two to four times its cost and earns about 30 to 40 percent in profits. The licensee then pays the luxury brand royalties for use of the name.
— From Deluxe: How Luxury Lost Its Luster by Dana Thomas (p. 163).