How to Calculate The Price For Your Hair Products
Our calculator is designed to be simple and easy to use. It covers:
- your base costs of time
It also allows you to input a desired profit margin on top.
We hope this calculator helps you make more money for your hair product line.
Please input below:
More Tips On Pricing Your Hair Products
How To Price Your Hair Products
One of the most challenging aspects to starting a hair product line is determining how much to charge for your hair products.
When businesses under-price their product, this can be extremely detrimental to their bottom line and reputation.
Often times, businesses under-price their products to drive demand and volume, but that last thing you want is for customers to view your product/service as "cheap." Additionally, this can have a big impact on the type of customer you attract, which can be difficult to recover from.
On the other hand, when businesses over-price, this tends to be just as damaging to the business.
When customers buy, it's likely that they will explore the internet and look at other competitors to ensure they're getting the best value + deal. This is why it's so important that you research your competition and understand where you land in the marketplace.
Here are some factors to consider when pricing your product:
Understand your customer
It's important that out of the gates, you identify the type of customer you want to attract and how much they're willing to pay for your service. One great way to do this is by surveying your customers. Here are some important items you'll want to takeaway:
- Customer demographic: Age, gender, location, etc.
- Buying habits of your customer: What they buy + when they buy
- Level of price sensitivity with your customer
All of these segments will help you identify the type of customer you're attracting and how to price your product accordingly.
Understand your costs
When pricing your hair products, it's critical that you first identify all of your costs and consequently mark up your hair products so you can factor in a profit.
The actual cost of your hair products may include things like:
- The actual cost to make the product (ie. raw materials, supplies, manufacturer).
- Shipping + overhead fees
- Operating costs to run your business
You may want to consider creating a spreadsheet with every single expense involved in operating/owning your business. This will give you an idea as to what you need to generate in order to at the very least, break-even and will help you price your products to factor in a profit.
Create revenue goals
When determining the price of your hair products, you'll want to create goals for revenue + how much profit you want your hair product line to make.
This process is simpler than you may think:
- Think about your breakeven cost (by completing the above step).
- Create a revenue goal based on your break-even cost
- Evaluate the # of items you plan to sell in a given period (make sure this is a realistic number)
- Divide your revenue goal by the number of items you plan to sell
This figure will help determine your estimated price per product in order to meet your revenue goals.
Evaluate your competition
The last piece in determining how to price your hair products is by simply looking at your competition.
The best way to do this is by finding like-minded businesses that offer product(s) with similar perceived value. Then, you can compare prices of the different businesses and determine where your hair products fits best in the marketplace.
All of these factors play an equal part in pricing your hair products, so it's important you evaluate each one individually to come up with an accurate price that will help optimize your business from the start.
Lauren Costanza, founder of Bluminary provides us with a detailed spreadsheet of all of her costs associated with running her business:
I knew this would be a self-funded adventure, and I set aside $3,000. During the first three months, I had a detailed spreadsheet where I tracked where the money was going and what was going toward products versus researching and developing new products.
The spreadsheets involved columns and rows of numbers to craft a budget and gain an understanding of how much would need to be invested at each stage of the process - from gathering supplies to building a website, and shipping materials.
Examples of a successful hair product line
7. Private Label Extensions ($7.8M/year)
Mikey Moran (from Atlanta, Georgia, USA) started Private Label Extensions over 9 years ago.
Hi! My name is Mikey Moran and I am one of the owners of Private Label Extensions. We started this company a little over 5 years ago to create another option for women looking for amazing quality hair and entrepreneurs looking to get into the hair industry.
We’ve made a lot of mistakes during our business journey but have learned from them all and have seen an increase in business. We went from selling a few thousand dollars a month to over $650,000 monthly and even had a $1,000,000 month. One of our biggest accomplishments was being ranked #278 of the fastest-growing companies by Inc Magazine for 2018.
8. The Longhairs ($1.2M/year)
Chris Healy (from San Diego, California, USA) started The Longhairs over 7 years ago.
We’re Chris Healy and Lindsay Barto, founders of The Longhairs. Our flagship product is Hair Ties For Guys™, the finest hair ties in the world, offering these and other superior products for men with long hair on our website, thelonghairs.us.
We started our business in 2014 without a following, and over four years we’ve grown our audience to 60K monthly website visitors, 20K email subscribers, and 28K YouTube subscribers, with monthly revenue of $30K.
9. Ugly Duckling ($720K/year)
Ishan Dutta (from Los Angeles, California, USA) started Ugly Duckling over 6 years ago.
Hello, my name is Ishan Dutta and I am the founder of Ugly Duckling Los Angeles, a hair products company catering to stylists and colorists.
We take in anywhere between 600 and 900 orders a month, with a conversion rate between 1%-2%, and an average cart value around $60 and trending higher.
10. PocketGel ($30K/year)
Nathan Failla (from Pittsburgh, Pennsylvania, USA) started PocketGel over 5 years ago.
Hello to all entrepreneurs out there! My name is Nathan Failla, I am of the founder of the on the go hair care company PocketGel. The idea for PocketGel and initial groundwork started in late September of 2015 and we have been striving to style your hair while you’re on the go ever since!
Our best seller or I should say “sellers” are both the fiber pomade and pomade. We sell a near even amount of both types of styling products with pomade having less than a 5% gain over fiber pomade. We attribute the popularity of both products due to current men's hairstyle trends.
11. Bristle Products- L. Archie Brands LLC ($6.6K/year)
Leslie Wheeler (from Detroit, Michigan, USA) started *Bristle Products- L. Archie Brands LLC * almost 6 years ago.
I am Leslie Wheeler, Founder of Bristle Products and Owner of Bristle Hair Shop. I have had a passion for hair and skin care products from an early age. I am the youngest of a family of 4 girls, on a tight budget growing up in Detroit, my mom allowed us to each pick our own shampoo out so we wouldn’t fight over sharing a bottle. I remember taking a long time to decide which bottle I wanted and could stand there for a long time strolling and staring at the different packaging and of course, smelling each one, doesn’t everyone do that?
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