How about building a nation wide successful wholesale hair brand? And let others do the selling to retail customers, while you earn more?

More and more women are selling hair to private clients, or small salons. You can benefit from too this by the launch of a wholesale Hair and beauty channel.

In this post I will tell you about:

Hair Extensions Wholesaling

Why would you consider a hair wholesale business

What would be your wholesale hair pricing strategy

How to design your online hair wholesale store

How to get paid for your hair wholesale orders

Stop Dreaming, Start Selling Wholesale!

Hair Extensions Wholesaling

Before a selfie can be made with the install of newly bought Brazilian Kinky Curly, the hair has travelled a long way. It has to travel, all the way from the donor, to the manufacturer. Through hair wholesalers and resellers to the girl who made the selfie.

In every stage the selling price has been increased with the margin for the manufacturer, the wholesaler or the reseller. The hair that was bought cheap from the donor in for example India and will be sold for a much higher price in the online hair store.

In recent years there is a new development of factories that try to skip all the channels between them and the final client to get higher profit margins. But this is still a new evolution and the knowledge of the local market is not easy to get without a wholesaler. With your wholesale store you can however anticipate on this by offering your hair also to private individuals and to resellers. Resellers, like hair salons or stores. If you build a good relation with the hair manufacturer, the two of you can develop a strategy to increase sales volume and profit margins.

Why would you consider a hair wholesale business?

You can start online a hair wholesale business with much lower investments than a brick and mortar business. With a smooth supply chain, both on the receiving end from the manufacturer and to the re-sellers, you do not have to put your money at risk with a large stock.

You do not like to keep on telling how good your hair is!

Why won’t you let others do the talking about your hair? The main challenge for retail stores is to found out the exact moment when a certain person is ready to buy their hair. To sell hair, the message about the hair has to be told day in day out. Using content marketing (blogging) and traditional marketing (advertisements).

As wholesaler you can enjoy all this marketing effort, because you know exactly who is interested in your hair. You can find hair resellers online or the yellow pages. And all you need to do is to contact them and seduce them with your fine hair and the interesting profit margin they can make.

If you team up with the manufacturer you can share the cost to broadcast the marketing messages. Split these expenses, where the manufacturer can produce some of the material and images. In return you can use your knowledge of the local market. You will understand the language and the culture more better.

The same advantage you can use to collaborate with the hair re-sellers. Take for example a hair salon. They talk hair all day with their clients and understand their needs and challenges. You only need a few salons to start selling quite a volume of hair. You can give the salons a discount because of this advantage.

What would be your wholesale hair pricing strategy

People like to compare before they buy hair, wholesale and retail, and the price is the most important one. Not only for the girl who will do the install, also for the re-sellers. They want to know if the hair will allow the to make enough margin.

Sell hair wholesale at a discount against the retail price, of say 50%. Depending of the local market conditions.  This will allow the re-seller or salons to make enough margin for themselves and to be able to offer the hair for a good price to their own clients.

Be careful, if you start your wholesale business you should not give away too much margin right away. Always make sure you make a profit on the hair you sell.  Only when you are confident the buyer will place recurrent orders you can consider a higher discount.

Next to the discount, you also should keep an eye on the volume. You are only interesting for the manufacturer if you buy hair at a large quantity over time. Remember, you are not a retail client. To protect you from small retail orders at the highest discount you can communicate the smallest order quantity (MOQ). The client can only buy at a minimum of the MOQ.

How to design your online hair wholesale store?

To protect your clients, the re-sellers and salons, and at the end your own profit margin, you should keep your wholesale prices in a controlled way. You do not want to put your wholesale prices at your website for everybody to see. This will limit your negotiating space, and also influence the expectations of retails clients. If they see your hair at a lower price, they might not be willing to buy the hair at the higher retail price. Even if they will never buy the hair at the wholesale volume.

You can protect the online wholesale store with a password.

If you protect the wholesale store with a password only for wholesale clients, you will be sure only the re-sellers will be able to place an order at the discounted wholesale price.

Not all online stores have this feature, but shops from Shopify do have this possibility. This works best if you only want your resellers to access the store. All you need to do is to activate the Shopify’s password protection feature in the Shopify admin section (under preferences).

But you can even go further. With the Wholesale Club App you break up your retail customers into “tiers”. These tiers are assigned specific discounts off of regular retail prices. It even has a feature to incentive clients to buy more in order to get a larger discount. Now you can focus on the purchase of the best hair, while being sure you sale at the best margins only.

How to get paid for your hair wholesale orders?

As a hair wholesale company you need high volume. But at the same time you do not want to invest all your savings in a large stock of hair extensions. That is too risky and limits your possibility to jump into market opportunities.  Your clients can help you to get these high volumes, but sometimes they need some help.

You can help your clients to buy more hair and to keep more stock at their store if you allow them various payment conditions. For example you can allow them to receive the hair and pay 20 days later. This will allow them to finance their own sales and will make your clients more comfortable buying from you.

It is not difficult to keep these outstanding payments in control if you use a Shopify store.  Clients can be tagged according to the payment terms agreed upon them.

Alternatives payments like cheque or supported by some online stores, like Shopify. This will allow the re-seller to receive an email with the invoice details and to pay later using the cheque.

In case you prefer to have a 100% automated control of the payment by your resellers, you can use in Shopify an App named Afterpay. This App allows all your clients to pay after they received the hair. You can offer this service to your wholesale clients.  The full automated payment collection process takes all the tracking and checking of unpaid invoices out of your hand.

Stop Dreaming, Start Selling Wholesale!

Okay, now you know about the advantages of selling hair wholesale. Higher Margin with less Marketing effort from an ideal position between the factory and the resellers and salons.

Start now or ask me how to make your next step!

Why would you not launch your wholesale business today? Leave a comment to tell me why you feel you can not start or start today!