Do you want to know how much money you can make selling hair extensions? If YES, here is an analysis of the income & profit margin of hair extension stores. It is an indisputable fact that selling hair extensions is big business.
Once you have access to quality products, and you know how to reach out to your target market, you will sure make some good profits out of this trade.
There are so many different options available to you if you want to get into the hair extension market. You just need to know which would suit you best based on your location and startup capital available to you. Selling hair can be done in so many different ways.
You can sell on your own website, social media, and a dozen other hair marketplaces. You would also need to take care of your branding, packaging, wholesale hair buying, shipping, and everything else.
The key to success in this business is being able to get offer your clients top notch products at great prices. If you are going to inventory products, make sure you know what your market is interested in or the more popular hair extensions that are available in your area.
How Much Money Can You Make Selling Hair Extensions?
The amount of money you can make from your hair extension trade is most times dependent on how much you have invested in the business, both time and money wise. That being said, let us try to predict what the average hair extension business can net you monthly and yearly.
The average retail hair extension order is around $195. If you get (2) sales a day at this average, you will make $390 per day in sales. Multiply that by 365 days in a year, and you get $142,350. Yes, all you need to do is get just two sales a day. What if your store received more orders a day? Your sales could very easily go up to $1,067,625.
But with this scenario, you need to factor in bad sales days, weekends, public holidays and sales fluctuations that are occasioned by the seasons. Let’s look at another scenario. Let say you acquire about 15 hair weave customers a month so that means after about a year you have
- 15 x 12(months) = 180 customers per year
The average customer buys about 3 packs of hair weave for a whole head sew in and they buy that about every 3 months. So let’s say each customer buy quarterly which is:
- 3 x 4=12 packs of hair per year per customer
Let’s do the math to see the amount of weaves that could be sold in a year,
- 180 customers – 12 packs each customer- buys annually = 2160 weaves sold in a year
Now let’s say you make just $35 profit of each weave, total profit in one year would be:
- 2160 weaves x $35
Your total profit could get up to $75,600. This is actually your total profit, and not your total sales. Even if you make half of that, your business would still be doing really good.
If you are on a tight budget, you can hold off on some of the custom packaging items. Of course your bundles may not look as hot as you want, but your will still make your sales with proper marketing.
Note that your will never launch your business “perfect” every time. The key is to start from somewhere. The next step is to understand how to take payments for your orders. More payment options are coming to the market every year.