She needed hair to stock her hair business in Ghana
Patience was already testing her marketing skills, because she has Facebook en Instagram. She had posted already some pics of hair, wigs and cosmetic products and the response is encouraging. In her store she will offer one stop shopping, from purchase the hair or wig to install. It’s very nice to see people interact after you posted the products you want to sell. But now she needed the hair to stock her store and to start selling!
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Understand the market
Patience did her job well, she started to perform a market survey. This was mostly done online. She followed some stores that are selling already hair extensions in Ghana online. She checked their prices and read how the customers responded in the comments they left behind. The latest was important because this gives a certain understanding about the quality and aftersales of the store.
Tip: Always perform a market survey to check what the competition offers and not only check the price, but also the quality of service and hair.
There is no hair police
This study educated Patience a lot, she could build for free a good understanding of what customers like, as they shared in the comments on social media. She also obtained a feeling of the price range she could offer. For example the prices of wigs in Ghana, Now she knew how to price hair bundles to sell online.
The next step was to create a list of all the stores and to pick some offers she wanted to compare. The challenge is to make the right comparison. There is no standard of quality in this Industry. Unless you buy all the hair and test the quality yourself, you need to work with some assumptions about the quality. Here the client feedback could be of help, but is only an indication, not a standard.
“There is no hair police out there to control the quality of the hair and the grades most sellers rank them.
List of hair vendors
We started to create a list of some relevant hair vendors that was selling hair for a lower price. Or at least at first sight. You can also include some vendors with a higher range because this will paint you a complete image of the hair market.
Tip: Compare only a couple of hair types and the most relevant lengths, that is enough for an indication
All you need to do is to make a grid, with the lengths in the rows and the competitors in the columns
This will show you what the price range is, but beware, the quality of the hair is not included in this comparison. To make the difference more visible you can even put it in a graph.
Tip: If one part of the product offering is too high measured against the market average, create a bundle deal. For example, add the install and the hair in one bundle.
Would you like to know the market price of your competitors, leave a comment and we work it out, so you can sell at a profitable margin, even if the competition is selling hair for a lower price.
