Best Way To Pricing Hair Products (Bundle, Closures & Frontal And More)
Updated: Sep 11, 2021
Pricing your hair extensions and hair product is very easy, use this below mention equation and you will always be able to determine exactly how much you should be charging your customer. First take the cost of the product, add the cost of international shipping, add the cost of packaging(meaning the packaging that you plan to send your hair extensions to customers in) add the cost of shipping that you plan to charge your customers, add your anticipated profit(meaning the profit that you plan to make from every sale) and that should give you exactly how much you should be charging your customers. sales tax will vary depending on which state you live in. processing fees will vary on which payment processor you are using. once you figure out how much your payment processor will be charging you to accept payments, then you can go ahead and corporate that into the equation as well as how much sales tax would be that can also be factored into the equation. that can better help you determine how much you should be charging your customer.
Because sales tax and payment processor fees will vary depending on the state that you live in and the payment processor that you are using, for the sake of this article, we're going to do the equation without those two variables. for example, your vendor charges you 50 bucks for a 12-inch straight hair bundle, imagine that international shipping is 30 bucks. your cost of the packaging is 5 bucks and your desired profit is 50 bucks. then incorporate shipping cost to your customer, we'll say that that is 15 bucks, once you add all of those together, you are left with 150 dollars and that is going to be the price of the 12-inch straight hair bundle. and that is what you will charge your customers. in this example, you would keep 50 bucks, and the remaining cost would go to your vendor. that is if you are not purchasing in bulk. keep in mind that purchasing in bulk whenever it comes to hair is going to help you cut down on costs. It also enables you to possibly make more profit, the more bundles you order, the less expensive your cost will be and you can expect international shipping to be anywhere from 25 to 60 dollars. If you purchase in bulk, you will notice that you only have to pay that international shipping cost at one time.
Cost of product for 10 bundles ($50/per bundle) = $ 500
Cost of international shipping ($60) =$ 55
TOTAL PRODUCT COST =$ 555
Cost of Packaging ($10) =$ 10
Shipping to Customer ($15) =$ 15
For 10 bundles YOUR PROFIT ($150) =$ 150
TOTAL SELLING PRICE FOR 10 BUNDLES $ 730
($730) divided by 10 (number of bundles you purchased) = PRICE PER BUNDLE YOU CHARGE YOUR CUSTOMER ($73)
Lets understand by this below chart more clearly. If you buy single bundle then you have to charge your customer $150 and you are getting profit $50 in this example you are selling product to your customer at high price as a result you will face a lot of competition in the market and sell will be very less.
But in other hand if you purchase in bulk at list 10 bundles then you may charge your customer $73 and you are getting profit $150 in this example you are selling product to your customer at low price as a result you will not face so much competition in the market also your sell will be high.
There are also product pricing calculators online as well, if you get on google and type in product pricing calculator, then you will get it to help you figure out how to price your product if you do not feel like dealing with the equation that we've given as example.