How to price your wigs?

You know the demand for wigs is growing, and so many hair stores owners want to know, “how to price your wigs?”. There are a couple of things you must take into consideration to price your wigs. It is not only the material and the time it takes you to manufacture the wigs. You also need to know how much money your client is willing to sacrifice for your tailor-made wig. Read now, step by step, how to calculate the best price for the wigs you want to sell at a nice profit.

Retail and wholesale pricing strategy

When you sell wigs, hair extensions or other hair products, you need to have a strategy to manage the price. You start with some basic calculations and assumptions, but then you adjust this to get the best price at the highest turnover. There is no difference between a retail strategy, or wholesale pricing strategy. Retail is when you only sell to private individuals and wholesale is when you sell Business to Business or B2B. The market is different, but the steps to take are similar.

Hair Business Checklist for starters

How to create a profitable pricing strategy for hair extensions?

In 2018 we wrote a post about how to find a pricing strategy for hair extensions. This works if you want to know how to price wigs. Here we talked about:

Basic Pricing Strategy for Wigs

Here you estimate the mark up for your expenses and the profit margin to increase the price for your wigs. Or other hair products.

Suggested Retail Price for Wigs

This works very well if your hair wholesaler has a good insight of the hair market and they can recommend a price level for the wigs.

Bundle Pricing Strategy for Wigs

Nobody likes to do math, so why don’t you price the bundles for your client. Offer a bundle deal of 16 inches, 18 inches and 20 inches. One price, this will reduce the stress for your client when she takes the purchase decision of the hair.

Discount Pricing Strategy for Wigs

Work with a discount on the prices for your wigs you calculated with the Basic Pricing strategy. Make sure the offer has a time limit, so clients understand it is a now or never deal.

Loss Leader Pricing Strategy for Wigs

This time you pick one kind of wig that is cheap compared to the rest. But the wig is basic. People see the cheap wig first and offer other more complete wigs, but higher priced.

The number 9 Pricing Strategy for Wigs

Advertise with low prices, using the 9-pricing strategy. Instead of a $ 350 price for your wig, you advertise the same wig for $ 349. This last price makes the wig much more attractive because the client will feel she pays $10 less.

Benchmark Pricing Strategy for Wigs

You are free to pick any of the strategies above, but never forget this strategy. Your Ideal client keeps an eye on the prices of other wigs and will use this information to value the wigs you are selling. We will take a closer look later.

How to price your hair bundles is different from wigs

If you know how to price your hair bundles, you should realize the price of wigs has other elements. For example, there is much more material needed to create the wig. Hair and glue, lace cap and thread and other construction material. You can do everything by hand or use a professional sewing machine. You should add the cost of any tool or machine in the price of the wigs.

The price of your sewing machine

You must know the time you will use the tools and sewing machine. And you need to estimate the number of wigs you are going to sell. Now deduct from the purchase price of the tools the value at the end of its lifetime. This amount, the depreciation, you divide over the number of wigs you estimate to sell. When you calculate the price of your wigs, you will receive for every wig you sell some money to buy a new machine at the end of the economic lifetime.

Time has also a value

The time you or a co-worker needs to design and make a wig, should also be added to the price of the wig. Even if you are the owner and nobody else is involved in making the wigs. You could have used the time to educate yourself, or to have another job. Here the system is, you calculate the time you need to make a wig and the hourly rate you could get when you work in a supermarket, at the hospital or as a model. Calculate the time you need for the wigs times the hourly rate and add this to the price of the hair, the material and the depreciation of the tools and machines.

How to price wigs

Now you know the cost price of the wig. Now you can analyze the wig market and see what similar wigs, made by the competition, are priced. Online it is not easy to see if the quality is comparable, but look for comments on social media to get a feeling of the quality of the wigs. What do others say about the wigs? Now you know how you can price your wigs. Combined with one of the other strategies, you can be sure your wigs will not only fit well on the head of your client, but they will also fit well in her budget!