Did you receive the new pricelist of your hair vendor? Big chance now you understand the hair prices are rising significantly!
You feel it in your own wallet, all prices are rising, so not only the hair prices! How will you deal with this unexpected consequence of Covid-19? Last year we saw the first signs of the increase of the price of lace, thanks to a manufactory shortage in North Korea. But now also the raw material for wefts and bundles is showing an increase. The hair vendors tell me, they for see more increases of the hair price soon. That is no good news, what can you do about it?
This post will tell you how you can create a great pricing strategy and not only keep your clients, also to find new markets or products that might even increase your hair sales in times all hair gets more expensive.
Invest in the relation with your clients
Of course, you have always put the client at the first place, but when the hair prices rise the loyalty of your client might come under pressure. They also see the available money for buying hair is less, due to increased prices all over the board. Food is more expensive, energy prices rise, health cost and more to come. She will have to make decisions about how to spend her money. The most important action, that will not cost you additional money, is to invest in your clients. Contact them, engage with them, and see if you can find solutions to help.
There are a couple of solutions, some require additional money, but many are possible without you spending cash.
Check your refund policy
Now hair prices rise, it is the time to clean the dust from your refund and return policy and see how to make the customer interest the number one. Of course, without the risk you put yourself out of the hair business. Start with the language used, avoid your policy is only telling “all sales are final”. Use a more friendly wording. See below an example of a client friendly policy, that still protects your interests as a hair store.
“We launched this hair store because you deserve the best quality of affordable hair. When you are happy with the hair, we know we accomplished our mission.
There is a 100% no questions asked return policy of 30 days after the date of purchase when, despite our quality controls, you received the incorrect length, texture or color. Hair must be in the original state the same as it was sent to you. You are free to select the method of shipping for the return shipment, but we always recommend asking for a tracking number. We refund the shipping charges only when the hair you received is not in accordance with the original order. Any hair extensions that have been altered, washed, or worn in any way will not qualify to be returned. Our after sales team is always available to advice you about how to bring back the hair to the original condition, but for altered products (bundles are unwrapped / extensions have been worn) all sales are final.”
What do you think about that? You start with putting the interest of your client as your number one goal. That is what the client will see first and keep in mind. She will also understand in some circumstances you cannot accept returns.
Do the unexpected, share special offers
When the hair prices rise, nobody will expect to see lower prices. But when you have some hair you purchased before at a lower price, or when you have the budget to offer hair at a special price, do it. Negotiate with your hair vendor if needed to help you when you place a wholesale order. Make sure the offer is temporarily and your client is aware of this limited time. It shows you care about their wallet. Do not lower your prices to beat the competition but keep the prices at the required and profitable level and offer some extra discount.
New market
You might have your ideal client in a certain market segment, your special place on the hair market. But now the hair prices rise, it is a good moment to evaluate if there are other clients’ segments in need for your hair solutions. Perhaps you can find high earners like social media celebs, or in industries like tech that offers good salary. Use this moment to be innovative and search for new ideal clients.
Offer other payment solutions
Have you thought about payment plans, like Sezzle or Affirm? Or introduce a layaway plan, on which your client places a deposit on a hair product to “lay it away” for later pick-up when they are financially positioned to pay off the balance.
Clients might need more time to collect the money to buy hair, especially when the hair is more expensive. Offer them a payment plan that will allow them to buy the hair at today’s price level, without the risk for price increase in the future. Once they started with the plan, they will be loyal clients, also because you keep on investing in the relationship.
Review your shipping policy
You might offer free shipping now. The price for this service will lower your profit margin. Take these shipping expenses into account when you re calculate your new hair price. You could also offer the client free or lower shipping or courier charges as an option. Or keep your hair prices lower by charging for shipping. Consider reviewing the couriers you use, perhaps the national postal company is a cheaper solution, with one or two days more delivery days. Would that be acceptable for your client, to keep the hair price lower?
Minimum Order Quantity MOQ wholesale hair
When you also offer wholesale hair, you might have a MOQ to ensure clients really deserve to be considered as wholesale clients. Consider lowering your MOQ requirement. This will allow your wholesale hair clients to keep on buying your hair, but at a lower total order amount. Again, it shows you think of their interest and that will build loyalty towards your hair store.
Invest in the future
When possible, invest in the future, revamp your webstore, add additional services to your product offering, search for new innovative products you can develop in house.
Learn to understand your business better
Use tools like google analytics to create more insight in the behaviour of your clients. Optimize the flow of visitors through your webstore to find sales opportunities. What product page has the highest exits and what can you do to turn the exits into a sale? You have a ton of free data, use the rise of the hair prices to turn this into a more profitable webstore.
Keep an eye on other online hair stores
Select the hair stores that compete with you for the same ideal clients. What are the actions they take now the hair prices rise? Do not copy them. After all you are unique and that is what your clients like in you. Learn from their moves and do better.
Avoid surprises from the vendor when hair prices rise
Make sure your hair vendor informs you in time for price increases of the hair extensions and wigs. Avoid you only see the updated prices when you place a new order. That is too late because you might have some client orders for the hair already. Agree with your hair vendor they will inform you in time. Check their terms and conditions about hair prices.
If you do not feel secure about the communications from your hair vendor, schedule a regular check of the current hair prices. It is bad hair prices rise; it is even worse when you discover prices have changed too late.
Keep your clients when hair prices rise!
See what you can do with the suggestions above to deal with the higher prices of the hair. Keep on selling your hair and wigs for competitive prices. Remember, the purchase decision of your client is not fully driven by money, but also by the total value they will get in return of the amount paid. Better service, nicer hair, a great relationship are all elements that your client will consider when she wants to buy hair, your hair!
