You want to enjoy the growing demand for hair in your country. You see more and more small hair stores to launch and grow their hair business. To help these businesses to sell hair to their clients you want to get hair cheaply to sell at wholesale to them. But how cheap should the hair be? Before you start the negotiations, you need to know what you can charge your own clients. If you do not have this knowledge you might end with hair that is still too expensive. Or you might refuse good quality hair at a price that still could have made you very profitable. Learn how to get the hair cheaply, at a price that allows you also to make a profit!

Know your market

Before you ask for a low price for the hair, at wholesale conditions, you need to perform a market survey. You need to understand your local market.

The competition

What is the competition? How many other firms offer hair at a low price and sell it as wholesale? If you check the competition, do not only consider the selling price. There are several other items you should include in your survey.

What kind of quality do they offer;

• How broad is their product offering?
• How is their aftersales service organized?
• What is the reputation of the company?
• How do they market the hair?
• Do they accept returns?

This kind of questions you should ask for say 4 to 5 competitors. If possible both wholesale companies located in your country and wholesale companies abroad. For the foreign companies, you should be sure they do ship to your country.

Launch your own hair store with the all in one hair business package, complete with hair samples

Take also into account any new company that might enter the market in the foreseeable future. In neighboring countries there could be companies that wants to benefit from the economy of scale. This might allow them to enter your home market at very competitive prices. This is possible if they can offset the expenses for the new wholesale operations against the cost base of their current company.

The products

You should also think if there are any new products that might be a substitution for the products you are going to offer. For example, if you only offer synthetic hair, demand for human hair might have a negative impact on the demand for synthetic hair.

But also, product enhancements might weaken your position. Or strengthen if you offer products that have recently entered the hair market.

The buyers

Now you understand the landscape about the competition and the products. The next step is to learn about the needs of the buyers. If you want to offer wholesale hair, you need to map the salons and resellers that might be in need to get hair cheaply. Here again you can ask yourself the same questions as for the competition. Understand what they want to sell, only your hair or also the hair from other firms? What is the retail price they can charge to their clients. What other incentives will they give to their clients to convince them to buy their hair?

Will they prefer drop shipping, where you keep the stock and only deliver the retail orders? What will the impact be in terms of logistics and inventory plus packaging?

At what conditions do they expect you to pre finance their sales?

How can I get hair cheaply to sell as wholesale?

This question depends as you have read on so many different items. From competition, product trends and the buyers.

If you are ready to start the negotiations with the hair supplier in order to get hair cheaply you need to calculate the above in your price.

Calculate how much it will cost you to exceed the services the competition offers now, and your clients are eager to get.

If your customers want you to keep the stock, until they have a buyer, make a calculation about how much this extra inventory will cost you.

In the all-in-one hair business package, you will find calculation templates.

These templates will guide you through the calculations needed to know how much you can charge your clients. But also calculating backwards, to learn how much the wholesale price for you needs to be.

Negotiate the right wholesale price

Now you have all the knowledge needed to start the negotiations about the price for the wholesale hair. You will not only be able to focus the conversation on the right hair and price, you will at the same time protect your own profit, because you know exactly your maximum price.

Let me know if you want the calculation sheets.