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 successful hair product linees
Private Label Extensions ($7.8M/year)
Mikey Moran from Atlanta, Georgia, USA started Private Label Extensions about 8 years ago, a hair product line.
- Revenue: $650,000/ month
- Founders: 2
- Employees: 20
- Location: Atlanta, Georgia, USA
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.
Private Label Extensions is a hair distribution and technology company that builds hair brands from A to Z for entrepreneurs looking to get into the industry. We provide a variety of hair extension products including, hair extensions, wigs, frontals, closures, and much more. We also provide custom hair branding packaging and labels, websites, dropshipping, and wholesale options.
When we began this company we started off with an affiliate model and had distributors that sold our branded products. It wasn’t the best model to use in the hair industry and then found a gap, which was people wanting to start their own hair brand versus selling someone else’s brand. About a year and a half into the company we pivoted the model so that people couple purchase hair to sell for their own brand.
The Longhairs ($1.2M/year)
Chris Healy from San Diego, California, USA started The Longhairs over 6 years ago, a hair product line.
- Revenue: $100,000/ month
- Founders: 2
- Employees: 3
- Location: San Diego, California, USA
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.
Ugly Duckling ($720K/year)
Ishan Dutta from Los Angeles, California, USA started Ugly Duckling over 5 years ago, a hair dye business.
- Revenue: $60,000/ month
- Founders: 2
- Employees: 2
- Location: Los Angeles, California, USA
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.
I started the company almost five years ago because I wanted to provide people with better quality hair color and hair care. I decided to go into hair color in particular because I could see that the color market was really taking off, with more and more women going for very fashionable looks.
It wasn’t the grey hair coverage and the safe balayage that salons were used to. People were going for stronger looks. Roots to end platinum blonde.
Nathan Failla from Pittsburgh, Pennsylvania, USA started PocketGel over 4 years ago, a hair product line.
- Revenue: $2,500/ month
- Founders: 1
- Employees: 0
- Location: Pittsburgh, Pennsylvania, USA
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!
PocketGel’s product is currently filled and manufactured in Michigan. Then it is shipped down to myself in Pittsburgh, Pennsylvania. PocketGel is both the name of the company and the packets of styling products themselves. As of right now, we have three separate styling packets for different hair types and desired styles.
Our three product style types are pomade, fiber pomade, and hair gel. We decided on those three styling types because of customer feedback for what kind of products they wanted from us that could be taken on the go. These three types of styles also gives our customers varied and unique hairstyling options. We would eventually like to expand our product, being able to include at home versions of our PocketGel packet products so our customers can enjoy our products on the go and at home.
Bristle Products- L. Archie Brands LLC ($6.6K/year)
Leslie Wheeler from Detroit, Michigan, USA started Bristle Products- L. Archie Brands LLC over 4 years ago, a hair product line.
- Revenue: $550/ month
- Founders: 1
- Employees: 2
- Location: Detroit, Michigan, USA
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?
I am weirdly fascinated by product labels, packaging, and products, basically beyond a product junkie, I may be in a new category. I am such a fan of so many hair care lines and many inspire me!
Being in the salon industry, as a hairstylist for 25 years, allowed many opportunities, From working in some of Metro Detroit’s most popular salons to being a brand rep for a multi-million dollar haircare brand.