Start A Hair Dye Business - Business Ideas

Updated: September 15th, 2022
Start A Hair Dye Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Starting a hair dye business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell hair dye, or selling hair dye online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a hair dye business ➜

Key Stats

market size
$12.4B
revenue (monthly)
$60K
starting costs
$26.8K
gross margin
60%
avg product price
$60
time to build
180 days
growth
SEO
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$600

$4,700

Equipment & Supply Expenses

$63

$200

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Advertising & Marketing Costs

$75

$4,786

Software Expenses

$150

$2,719

Total Startup Costs

$2,862

$53,372

Successful Businesses

Business URL Rank

CosmoProf distributor of salon professional products

cosmoprofbeauty.com

101,466

Davines

us.davines.com

122,296

Behindthechair.com

behindthechair.com

186,686

Arctic Fox

arcticfoxhaircolor.com

202,584

Image Beauty

imagebeauty.com

380,651

The Henna Guys

thehennaguys.com

391,000

Joico – the joi of healthy hair

joico.com

431,846

HairCrazy

haircrazy.com

512,754

Josh Wood Colour

joshwoodcolour.com

642,235

Kenra Professional: Trusted, inspiring, professional hair family

kenraprofessional.com

687,103

Ugly Duckling

uglyducklingcolor.com

997,753

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Meaningful business connections

You never know who you will meet as a hair dye business. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Easy to encourage "impulse buy"

In the hair dye business, you have a much higher chance of encouraging your customers to buy on impulse - you can easily alter the price, placement, packaging, and promotional value to influence the decision of your buyer.

Control of workload

With starting a hair dye business, you have the unique ability to choose how little or how much you want to work. You also have the freedom to decide which projects you want to work on, and can turn down the ones that do not interest you.

Unlimited income potential

With starting a hair dye business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your hair dye business are typically around 60%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the hair dye business, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a hair dye business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

Niche Market

A niche business is not necessarily a bad thing, in fact, it can be the key to your success. However, it can be more challenging and time consuming to find the perfect niche market and target audience.

High overhead expenses

With starting a hair dye business, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

Marketing Ideas

  • 1

    Affiliate Program

    Affiliate marketing is a great way to bring in a new revenue stream, especially when you don't sell products or services.

    Simply put, an affiliate program is an agreement where a business pays another business or influencer ("the affiliate") a commission for sending traffic and/or sales their way.

    The affiliate typically gets a unique link where clicks and conversions can be tracked.

    Learn more about affiliate program ➜

  • 2

    Direct Sales

    Direct sales strategy implies a direct contact between a seller and a consumer without the involvement of any third party. Direct selling is popular in sectors where sellers communicate with their clientele personally. The sales technique occurs at non-store locations which include at home, work, or online.

    For direct selling to succeed, hire a few (or many) salespeople to support the sales conversion process. It's critical that you assign them specific roles and responsibilities to nurture the client and provide excellent support.

    Learn more about direct sales ➜

  • 3

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜