If you are starting a wig or hair goods business here is some of the information you need to get started and to help you make great profits.
Retail sales of wigs and hair goods can be a lucrative business venture.
A retail wigs, hair and hair goods business can be very lucrative and many people are starting a local shop, expanding their hair salons, getting into the medical wig business or opening up internet businesses selling wigs, hair pieces, lace wigs or hair replacements and other wig and hair products. The wig and hair business has been rapidly expanding since the 1960 and had become a billion dollar industry[1]
Although the wig and hair industry experienced a lose of sales during the recent economic downturn - the recession - it is already starting to rebound. The idea of looking good and having great hair has not lost it's charm with consumers and, because more people are unemployed they are seeking new opportunities in this industry. As the economy turns around more wig and hair industry retailer will be enjoying the benefits of more sales and better incomes.
If you are not already in the wig and hair business but are thinking about getting into it, you will want to have as much information about the business as you can get your hands on.
Some of the common questions people ask is, "What it takes to get into the business." and "How much does it cost to start up." Do you need to buy thousand or 10s of thousands of dollars in inventory. And, most people thinking of getting into it want catalogs and wholesale pricing from suppliers so they know what they can sell and what they will pay for the products. You may have more questions about the business and if you do you will have a opportunity to ask them later in this article.
For now we will try to answer those specific question that always seen to come up and tell you what you will need to do to get catalogs and prices from suppliers including wig and hair manufacturers, distributors, and wholesalers.
Who can get into the wig and hair goods business?
To get into the wig and hair business as a retailer you should “ideally” have experience with hair as a cosmetologist and already have a clientele that is both requesting hair pieces and wigs from you or a clientele that would be interested in buying the products if you carried them. Beauty supply store are a natural for hair and wigs products, both on a retail and wholesale lever, because they cater to a group of people who would indeed buy these hair accessories. People who work with chemotherapy patients also can increase their incomes or even change careers by providing medical wigs for these patients. Internet entrepreneurs have also gotten into the wig and hair piece business. All That being said; Many wigs are ready to wear out of the box so it doesn’t take a wig expert or cosmetologist to sell them to the public. Practically anyone with good people skills can do it.
For an entrepreneur it only takes internet marketing savvy to build a clientele that keeps coming back and buying more and more product while new customers come onboard buying for the first time. Wholesalers of other related products may want to wholesale wigs and hair pieces as well and it's very lucrative to do so. Beauty Salons, women's dress shops, bridal shops and many other business that cater to women might find that their sales jump when they add hair products. With ready to wear, most any one who is customer oriented can open a local wig or hair piece shops or salons and get sales from the products. In other words there is ample opportunity for most anyone to get involved and do well potentially.
Essentially, most anyone can get into the business with a little knowledge. With some training and more knowledge one can build a large business selling custom hair pieces and wigs at a considerable profit. If you have good people skills this is a great business to be in. Whether you sell ready to wear or custom wigs, hair pieces, hair replacements or hair extensions will depend your current experience, continued education, knowledge and skill level. There are many suppliers who are willing to educate you further to so you can get into the more profitable products like hair replacements, medical wigs, and custom wigs and hair pieces.
The bottom line: Profit
The main question is of course is "Can you make any money in the business?" Again this is dependent on you - the reseller of the product and the manager of your business. No-one can predict how well you will do. It is dependent on what you do, where you do it and how you do it as well as what product or products you carry.
But, generally speaking is there money to be made in the wig and hair business? Certainly, and lots of it. The profit margin with wig and hair products including extensions is high. Just how high is dependent on a number of factors. Most often it is at least 100% profit if you are buying correctly from the real suppliers – as opposed to discounters who claim to sell wholesale. Often is can be much more. 400% to 500% is not unheard of on some salons.
Naturally, if you are selling ready to wear wigs or hair pieces over the internet your profit per item might be lower because of all the competition, but the number of sales, if you can market your website well, could well make it a very profitable venture with high over all profits. Your over head is much lower as well. If you are running a store or salon with high overhead and lot’s of personal customer service you will be charging more for the product. Your sales might be fewer than an internet companies might be but your over all profit for each sale will be much higher.
The amount of profit is quite variable because of many factors which we don’t have room to go over in this report. If someone were to ask me what is the average profit in the industry I would say on the average 200- 300%. The “Confidential Report “ covers the details about how to buy well to make the best profits [4]
Cost of getting into the wig and hair goods business.
This is a hard question to answer because there are so many variables. Do you already have an existing business - a shop location or internet site? If you do a lot of your costs are already accounted for. If you don't, you will need to determine what it will cost you to set up a location for a business or an internet site. We won't get into that here in this article. But, to really get into this business plan to spend a minimum of $1000 to $2000 dollars. Yes, you can do it for less and many people have done so.
The cost of purchasing products for your business can be vary considerably and is dependent on which suppliers you work with. Some want you to spend $1000 to $10,000 as your minimum first order but (don't stop reading yet.) that is the exception and not the rule. There are over 35 suppliers in the Industry directory who will let you open up a wholesale account with under $200 dollars as your initial purchase.
The average first time purchase from a supplier will be between $500 - $1000 dollars. If you have a shop already you can figure that you initial initial investment can be as low as $500 but to get the best prices you will want to make a higher investment of $2000 to $5000 to get the best deals. If you are not ready to spend that much at first don't worry. Buy less, make your profit and negotiate a better deal later. Don't continue buying at the price you are used to paying if you are making a larger investment in a particular product. When you have more money to spend as for a better deal - Negotiate. It's your money and you are in charge. Money talks. [4]
The nice thing about the industry is that most suppliers will let you order 1 or 2 products at time "after your initial purchase," which sets your wholesale price. If your customer wants something you don't have on hand, but you do have in your catalog, you can place the order for it at your wholesale price. The company ships it to you within a few days and you have made your profit.
Drop Shipping.
There are also 23 companies in the industry directory who will drop ship directly to your customers for you for a small fee that you can charge to your customers. This is "great" for internet businesses. Once you establish yourself with a company you can sell your heart out and have the supplier directly to your customer.
Hopefully, that answers some of your basic questions, given you some food for thought, or at least has dispelled any rumors you may have heard. To get more specific you need to work with a supplier of suppliers to get their specific details on all of the above and to set up your business plan. How do you do that?
Which wig and hair companies should you do business with?
Generally speaking, You should do business with reputable companies that have been in business for some time and have a good reputation in the business. You should try to avoid, if at all possible, wig discounters, often found on the Internet, that call themselves wholesalers but are what one might call self interested income producers. They sell you products at a discount over retail because you are buying more than one. But you may easily find that they are selling the same product for less then you paid them for it when they run a sale. They do "not" really sell wholesale.
You want to do business with the real suppliers - manufacturers, distributors and wholesalers in the industry. You can find over 150 real suppliers of over 550 well known brands and over 50 unbranded products at www.hairgoodswholesale.com This is the Wig & Hair Products Industry Directory of Manufacturers, Distributors & Wholesalers
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1. Report: Data Line August 2009 What is happening in the wigs and hair goods industry. Back
2. Wholesale Wig and Hair Wholesale Application Form
3. Secret, simple reliable way to get catalogs and wholesale pricing streaming to you door in a few days.
4. "Confidential Report" ...The Ins and Outs of Buying & Selling Wigs Hair Products for Profit You can get access to it Here after paying a small fee or receive it free as an InsidersClub™ Member. Back
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