If there is an industry that’s secretly popping globally, it has to be the human hair extensions industry. Hair extensions used to be synthetic wigs from the local beauty supply store, but nowadays, it’s normal for beauty-conscious women to spend hundreds and thousands of dollars just to get some virgin human hair. So if you want to start a hair business and wonder how much money you can make, we will show you how to make 6-figure sales selling hair extensions.
You can make 6 figures selling human hair
The average amount for retail hair can cost $150 USD to $300 USD. If you only make 1 sale per day, you will make about $54,750 USD-$109,500 in gross sales in a year! The general profit margin for retail hair is about 50%-100%. So deducting the money you spend to get the hair, you will make a net profit somewhere between $27,375 USD to $54,750 USD. If you can make 2 sales per day, you will be making 6 figures net profit!
If you are a hairstylist, your income will only double because you can charge for services such as knots bleaching, custom colors, install and styling. On an average note, African American women are willing to spend $300-$500 just to get the hair and then about $100-$300 to get the hair installed and styled. If a client wants custom color or wig making, you can charge even more.
sell hair extensions worldwide with a website
When you first start your hair business, it may take months, a year or even longer for you to generate revenue every day, especially if you don’t have a legitimate “business presence” such as a storefront. Imagine having a business but people don’t even know what you sell! That won’t help you make money.
Many hair businesses fail because the owners don’t recognize the importance of having a website. A well-designed website costs significantly less than a storefront but it can prove your hair company’s legitimacy to a potential customer. It also allows your customers to easily place orders at any time they want. With a speedy website, you can take orders and make money while you sleep! Branded Hair Extensions
Branded Hair Extensions used to take orders without a website. But the time and money we had to spend to manually take every order started really limiting our sales. But now with the help of our websites, customers can look for product descriptions themselves and place orders even during our non-business hours. We can wake up to thousands of dollars of sales and all we needed to do is to carefully prepare all the shipments.
Advertise your hair business on social media
Social media isn’t the best place to sell hair extensions, but it is definitely the best place to advertise your hair business! More customers can discover your business on platforms such as Instagram, Facebook, and Youtube. With a little help from paid advertisements and influencer marketing, you will be able to build a community for your brand.
Having a great social presence for your hair business will also boost your sales. Customers will be able to see more photos of your hair and service. If you have a website linked in your social media accounts, your customers can just click on the link to shop their favorite bundles and wigs.
Good branding=higher hair prices
The general retail rule is 50%-100%. If a wholesale hair vendor charges $50 for a bundle, you can sell it at $75-$100+. You should be able to make 1/3 or double the original amount you paid for the hair.
If you want to learn how to calculate hair prices, click here.
One thing we want to point out is that high-quality branding and packaging can help you raise the prices of your hair.
Have you ever been pleasantly surprised by high quality packagings?
I’m sure you have.
Selling hair extensions is in the beauty industry. You are selling an idea of beauty, not just hair extensions. You want your customers to feel pampered and feel great about themselves when they wear your hair extensions. We have to say that branding and packaging are the best way to add points to their shopping experience with your brand. If you have nice branding and packaging for your hair brand, you can probably increase your prices for another 30%-50%.
Price your hair fairly, don’t undercharge, EVER
It is true that there is a lot of competition in the hair business world. We know that some hair bosses think that they need to beat everyone’s prices in order to survive in this industry. That is the worst thing you can do to hurt your business.
You should price your products fairly based on what value you can offer to your customers. 50%-100% retail rule is just a general rule of thumb and not every company needs to follow that. For example, Beyonce’s hairstylist Alonzo Arnold charges $1500 for a wig while the average price for a wig is $200-$500, but here is his sales record.
We are not saying that you should charge $1500-$2000 for a wig, after all, not everyone is a celebrity hairstylist and can pre style the wigs. But there are plenty of brands that do charge over 200% for profit. But are people buying? Of course, they are!
Instead of worrying about your prices, think about what you can add to your brand that makes it unique. Branded Hair Extensions provides custom coloring and wig making to our wholesale clients at low prices so they can offer that to their customers too. This can add extra value to the hair that you are selling.
Starting a lucrative hair business
Now that you know how much money you can make from selling hair extensions. We are going to get the essential things that you should set up for your hair business to take off the right way, not the “DM to purchase” way.
1 Have a website
As we already mentioned, having a website is like having a storefront. Sometimes your customers don’t even know about hair that well. They’d rather have a place to browse the products that you offer.
2 Have social media for your company
Set up your Facebook, Instagram business account. We are talking about the actually approved business accounts on Instagram, not the ones where you turn your personal profile to a “business” profile.
3 Set up Google My Business
You don’t have to have a storefront to list your business on Google. Listing your company on Google without a storefront address can help you improve the SEO of your website, making your hair website show up first when your customers search your name.
4 Have branding and packaging for your hair business
You should put serious effort into designing your LOGO and your packaging. We recommend soft satin hair bags and bundle chokers. These are all great options for luxurious feeling packaging. You can also include a business brochure in your packages so your customers can learn more about your company.
5 Have a great images for your brand
What’s better than having a great campaign for product photos for your brand! Customers don’t have to ask you what your hair looks like. They can see for themselves! Branded Hair Extensions is offering campaign photos and product photos for purchase soon! Subscribe to our newsletters to stay tuned when we drop the photo packs.
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