How much to markup Donna Bella Tape In extensions?

Oct 13, 2019 | Find Hair, Launch Your Web Store, Prepare for the Launch, USA

Jenna told me, she started to offer Donna Bella Tape in Extensions. But the question raised, how much to markup if you sell Donna Bella, or another well-known hair brand? It will not take your customer a lot of effort to compare the price with the Donna Bella website. What would be a smart and profitable markup strategy?

There are two key elements to consider. First, what are the cost you have to bear for the tape in extensions you purchased from Donna Bella? The second question you must ask, what is the price range I can put for my services?

How much to markup Donna Bella tape in extensions?

What are the cost you need to bear for the extensions you purchased from Donna Bella?

Okay, we mention Donna Bella, but the following applies for all kind of extensions you buy from other brands. Donna Bella writes on their blog: “There’s no easy answer about how much a stylist should charge for a hair extension job.” But you want an answer anyway, so that is why I wrote this post.

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Purchase cost Hair Extensions

It all starts with the purchase price of the hair you bought from the wholesale supplier. This price depends on the quality and quantity. The more kilo’s or bundles hair you buy, the lower the price per bundle. That is economies of scale. Here you can make the difference from people who buy retail volume, say 3 to 5 bundles. Better to wait some time. Get more orders in from your clients and negotiate a nice purchase price per bundle with your supplier.

The payment transaction fees

Next to the purchase price, you have to pay for the payment services. Especially when you have a wholesale supplier from abroad.
If you pay using PayPal, there might be a 3 to 5 percent payment charge. If you use Western Union or Money Gram you will have a similar charge. The first, PayPal has a buyer’s protection. If something goes wrong with the shipment and you do not get what you expected you get your money back. The wholesale supplier has the opportunity to explain they did everything to make sure you received what you expected.

MoneyGram and Western Union do not have any buyer’s protection. This is a payment method many suppliers prefer. Because they do not run the risk to lose hair shipment and receive no money. This way of payment you can consider after you build up a good relationship with the seller. For higher amounts this is even cheaper.

So, on your notebook you now have two amounts.

  • The purchase price of the hair bundles
  • Plus, the payment transaction fees.

The shipping costs

You know buying from Alibaba or AliExpress will most often not charge you for shipping cost. Thanks to the high volume of these platforms, the suppliers offering their hair benefit from very low shipment prices. But please do not forget, if your hair has to be transported from A to B there are expenses involved. Sometimes these expenses are already included in the selling price, but very often they are charged separately. The last allows for more exact pricing, because if you agree on a shipment with more days involved you will pay less. If you accept no insurance of the shipment, again you will pay less. This freedom will allow you to save hard cash on your shipment charges. This is not possible if the seller does not separately charge for shipping, but has it included in the selling price per bundle or kilo.

Now we have three amounts on your notebook:

  • The purchase price of the hair bundles
  • The payment transaction fees, plus
  • The shipment charges.

What is the price per bundle after payment and shipping?

Now you have all the figures you need to calculate how much you need to markup your purchased hair extensions. The original purchase price, the payment commission or fee and the charges for shipping.
There are two methods to calculate the markup per bundle.

You can calculate with every order the total cost per bundle. All you have to do is to divide the total amount by the number of bundles you are going to sell. This will give you the amount per bundle that will generate not a loss and not a profit on this transaction. This way of calculation is simple, but you will have to recalculate your selling price after every new purchase.

Or you can estimate the number of bundles you are going to sell this whole year and estimate the total amount you are going to invest in hair, plus charges. If now you divide the total cost by the total number of bundles you are going to buy this year, you will have a stable cost price of the hair. Your cost price will be fixed for one year.

Please continue reading!

Be aware, you need a higher markup

Please, I hope you did not stop reading after the last paragraph. Because with the cost price you calculated you miss a reward for all the other expenses related to doing business. The rent of your store or supply room, the maintenance of your webstore, the fuel of your car for the home visits to your clients and many, many other expenses.

Luckily you started the year with a good business plan. So, you have a good idea of all the operational and marketing cost it takes to keep on doing the hair business. Every bundle you are going to sell should also compensate for these expenses. Here we use the same formula. You divide all the operational and marketing expenses per bundle you purchased. Together with the cost price per bundle, you will have the minimum price you should charge not to make any loss or profit.

Wait! Stop! You are in this business to make a profit. So again, you have to continue reading because now we are going to discuss the part where you are going to make a profit!

How much to markup Donna Bella tape in extensions

Now you will find out if you are a real entrepreneur. Because now you know the lowest price of the Donna Bella tape in hair extensions or any other bundles. With the next step you step in the footsteps of many great entrepreneurs. You are going to decide how much profit you are going to make per bundle.

Check the following post for ideas and support to calculate the highest markup you can charge.

post profitable pricing strategy

If you offer Donna Bella hair combined with a treatment, you do not need to inform the client of the exact price of the hair.

Offer an all-in-one treatment:

  • Donna Bella hair
  • install and
  • together with the best service in town

Now you can sell the Donna Bella hair at a higher price than the price on the website of Donna Bella. Agree? leave a comment!

Do I have to get a certificate of Authority to sell hair in ny

Do I have to get a certificate of Authority to sell hair in ny

Oct 12, 2019 | Prepare for the Launch

Home 9 Tag: Hair Business ( Page 5 )

Certificate of Authority needed if selling hair online?

In New York State anybody that sell, tangible. That is stuff you can keep in your arms. Or services, things you do for others, like washing their hair, need a Sales Tax Vendor Registration or Certificate of Authority.

Today, Kerona asked me the question, if she had to get a certificate of Authority if selling hair online in New York?

Obligations as seller of hair

The certificate allows you as a hair business, to collect sales tax on taxable sales. But take care, at the end of the tax period you have to pay the sales tax to the Tax Authorities. My recommendation is to open a separate bank account to keep the received sales tax. Avoid using the Sales tax received for other purposes.

Make sure your bookkeeping keeps tracks of all purchases and sales. I also advice you open an online service account. This allows you to file your tax return in time. It will also provide you the necessary insight and information in time.

Would You Like to Make $ 30.000/month for Only $ 29/month?

Yes

Tax Forms and Filing Information

If your hair and beauty business is registered as a Sales Tax vendor, you need a Certificate of Authority from the New York State Department of Taxation and Finance. This certificate gives you the authority to collect the required sales and use taxes.

The difference between the Sales Tax and Use Tax is:
Sales Tax
– applies to retail sales of certain tangible personal property and services.
Use Tax
– applies if you buy tangible personal property and services outside the state and use it within New York State.

If you make taxable sales, before you receive the Certificate of Authority, your business may be subject to penalties.

Thanks Kerona!

Kerona was very right to ask the question, because if you sell any product and you fail to register you might end up with substantial penalties.

There is no difference made between selling online or through a brick and mortar store.
But what does matter is if you offer services or sell goods.

There is also a difference between New York City and New York State tax. For example:
Beautician services, barbering, and hair restoring are subject only to New York City sales tax, so no State Tax.

Do not let the Tax hurt your business

Always check with a local tax advisor, or the tax authorities your rights and obligations. Legislation and rulings and tariffs are bound to change over time.

For more information visit : https://www1.nyc.gov/nycbusiness/

How to launch your new hair web shop and get visitors right away

by | January 15, 2018 | Get visitors to Your Store, Launch Your Web Store, Sell Online, USA, WooCommerce | 0 Comments

Waiting for the first client, expecting your first hair sale? You launched your website yesterday, full of awesome hair extensions, great prices and free shipping! But no visitors at all. You decide to wait one more day. But again, no visitor and thus no sale. What...
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Working full time and running a small hair extensions business

by | December 28, 2018 | Make Your Dream Happen | 0 Comments

You work full time, but at the same time you want to work on your dream, selling hair extensions. This seems to be a challenge too big too to turn...
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Not interested in a 6 dollar figures online hair store, do not read this

by | July 31, 2019 | Prepare for the Launch | 2 Comments

If you are not interested to create a 6 figures online hair business, I recommend you toskip this post and to keep on dreaming. But now are you are...
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Hey how do start own hair business

Hey how do start own hair business

Oct 2, 2019 | Get Help, Make Your Dream Happen, Prepare for the Launch

Hey how do start own hair business

This week, Shantina reached out to me. Shantina asked me by mail, “Hey, how do start own hair business?” Nothing more, only this phrase. It was this sentence that kept me thinking for some time.

The main goal to start How to Sell Hair Extensions was to help women with the dream to start selling hair. You adore hair and you see some of your friends start selling hair. And they are even making some nice cash. The second you are going home, you start to imagine. “I can do the same, I can sell hair too and I know I can do better!” You have a clear mission; you want talk hair all day, sell hair to your friends and friends of friends and make money.
You want to sell hair better than your friends, but is that adequate to start a hair store? Because how do you start your own hair business? Who can tell you? Your friends who are selling are not going to tell you where they got the hair. The lady of the salon or hair store is not going to share how to beat the competition or how to establish a successful hair business. You are on your own if you want to start a hair store!

Thanks Rosa

I thank Rosa for the image of her great store and salon in Spain!

Start With No Money
Find a name for your store
Start Selling Now, with Hair Samples

How do start own hair business?

The good news is, you managed to find this website. I want you to know, you are no longer alone. Not anymore, right from the minute you found my site and you made contact. By email, WhatsApp or social media, or you left a question like Shantina did. As of now you are not alone anymore. Your question is for me like the start gun for athletes. I see your question and I jump up. I want to know what is driving this woman to start selling hair, what is her dream, how will the store look like? And how can I support her?

Share your questions about selling hair

For me every question is important. Because I know, behind this question is somebody with a dream, with thoughts to improve her or his financial situation. Success will improve her standards of living, she will be able to go to the university, take care of her family or just to buy those shoes and bags she liked so much!

I will answer your questions, because by doing so, I can do my part in making this world a better place. And that is what all women selling hair want to accomplish too, I know. Making this a better world, full of the best-looking women. Thanks to the hair products they offer.

The start of your own hair business is … at the finish

While I reply the mail from Shantina I am working on a larger project. I am working on an easy to use plan to guide everybody who wants to start to become a hair entrepreneur. Step, by step. If you contacted me recently by WhatsApp, you will notice this already. To begin with the start of your hair business, you need to focus on the end, the finish so to say. Do not ask how to start, but make it clear for yourself what do you want to achieve?

If you put all your energy, time and perhaps even money in finding out how to start your own hair store, I fear you will lose interest over time. Your dream will never come true and you will end up buying the hair from your best friend, for eternity. And always listening to her success stories. Too many, girls and women started with a dream to be financially independent, but they stranded because they did not know where to go.
They wanted,

  • to sell to the girls at college and wholesale too.
  • to sell to all afro American women between 18 and 45 in their country and abroad.
  • the name of a good hair supplier to sell this hair to anybody they know.

These are great ideas, but they are not business opportunities.

The best way to start, is to think of a successful hair store, your store!

It is systematically proven that your brains do not understand the difference between reality and imagination. Sounds odd, but it is the explanation of why you like to read a short novel or watch “Orange is the new black”. It is the base of success for athletes who prepare for a new record. Imagine every step of the race, repeatedly and sure you will be the winner, or a good number two!

The same goes for your own hair store. Imagine how your store will look like, how will your happy customers look? Imagine the hair and even the aroma of your fast selling hair. Visualize every single part of a successful hair store, your store!

Visualize Your Success

Some people use Pinterest to collect the images of their dream store. But you can also collect in paper the images, quotes from entrepreneurs who inspire you and pictures of happy women with gorgeous hair. It does not matter how you do it.

Create a special spot for your vision board. This is the board with the pictures and quotes and other stuff that fits perfectly in your hair store. Make the vision board complete and make sure you will maintain it. Your thoughts about the ideal hair business may change overtime. It will get better day by day!

Now you know how to start your own hair business

Look at your vision board every single day and imagine how you will be standing behind the counter, talking hair with the most beautiful women of your town, or better the world! They come all the way to buy from you! What is needed to make this vision board into reality? You. You only need yourself to put this into action. All you need to do know is to start to take over control of your brains and to implement your vision of this awesome hair business into reality. You will have the perfect store and have answered all by yourself the question: how do start own hair business?

I am here for you 24/7

And if you need some help, please do not forget to ask me for help. I am here for you 24/7.

Find Capital to Start Hair Store in Kenya

Find Capital to Start Hair Store in Kenya

Sep 30, 2019 | Kenya

Home 9 Tag: Hair Business ( Page 5 )

Find Capital to Start Hair Store in Kenya

On Friday the 13th, Joy from Kenya contacted me by WhatsApp. Joy wanted to start supplying Braids in her county in Kenya. She wanted to know how to find capital to start a hair store. Joy had great ideas to start selling, but very often the prices from the suppliers were too high. It was difficult to make a profit, unless she could buy a larger volume of wholesale hair.

Last Friday, Joy contacted me again. I made the promise to myself and now to you, to do some research on how to find capital to start a hair store in Kenya. In the various chats I have with women in Kenya, many times I hear to find the money to start a business is very difficult. Too bad so many great ideas will never see the market, because the lack of capital. Many women, like Joy, have a side business or day time job. But this does not always generate enough money to start a hair business venture.

Would You Like to Make $ 30.000/month for Only $ 29/month?

Yes

Where to find money to start a hair store

There are at least several ways to find the money for your hair store in Kenya, think of:
-You can borrow from your family,
-use your savings,
-organize hair extensions parties,
-start a crowdfunding event or
-apply for micro credit.

Today I want to zoom in on micro credit as source of capital for your business. This type of financing is set up in many countries especially for women who want to start a business. This morning I watched a documentary about the Bill and Melinda Gates Foundation. Melinda mentioned the best way to improve the quality of life is to invest in the women of that country. This vision helped to start fund raising initiatives for women all over the world.

What is micro credit

It’s only about 30 years, micro finance as a source as capital, is available for women in Kenya. The Government understood small scale enterprises are important to make people of Kenya more prosperous . For example to generate more jobs and to reduce poverty.

The idea was to offer loans and deposits, plus support to the entrepreneurs who borrow the money. Later the focus of the institutions was on lending the capital to start a business. Less support was given as training or coaching on the business side. Some institutions are active in micro enterprise business and do provide training. For free or paid.

There are two types of institutions active in the micro credit business in Kenya. Those you can become a member and share in the revenues. Plus you have something to say and those who only see you as their client. Less influence and no revenue share for you.

Compared to loans from commercial banks, the average amount you can borrow is most often smaller. The pay back time is shorter. But the conditions to borrow the money are more soft. For example if you need a larger loan, a commercial bank could be more appropriate to finance your hair store.

How to lend money for your hair business in Kenya

To lend the money as a capital for your business, in general there are 3 approaches:

Group-lending approach.
Organization of clients into groups or use of informal groups for purposes of attaining economies of scale from the small sized transactions and instituting group guarantee mechanisms;

Character-based credit appraisal.
Credit appraisal is based on character assessment, rather than traditional collateral (ownership of land or other assets) and viability of projects to be financed;

Focus on micro-enterprises.
A special focus on financing very small businesses and the poor.

You might not feel comfortable with the group lending approach, because you depend on the behaviour of others. And if one member of the group fails to meet his obligations (pretty sure it will be the only guy in the group). You are all in the soup! At the other hand, it is a community where you can support others too and you can learn from each other.

With a character-based loan, you do not need to have a collateral, but the bank will rely on good faith and your story. If you have a good story to tell about how you will perform the business the chance to get the loan will increase.

One out of every three women with a micro finance loan in Kenya also have more than one business. Thus the micro credit allows you to open a fashion store next to you salon for example. This is a smart way to spread the risk. And to ensure you will still be able to pay your bills, even when one of the businesses suffers from disappointing sales.

Micro finance organisation to contact for your hair business in Kenya

There are nearly 30 institutions in Kenya active with micro credits. These institutions are ready to finance the capital you need to start or grow your hair business.

Below you will find my selection of the most important institutions. I encourage you to visit their websites. Your clients like to compare the hair they buy from you. So you should definitely compare where you can find the money you need to form the capital of your hair business.

KWFT Banking on women

With “To Partner with Women in their Creation of Wealth” as their mission statement, KWFT is my favorite micro credit institution of choice in Kenya. They even have a Mother Room, to change and breast feed the baby, in their branches!

They have developed several products based upon the group lending approach. These loans are granted with no collateral and the members can guarantee each other loans, named Biashara and Mwangaza loans. But there is also a group loan without group co guarantees (Mwamba loans). This opens more ways to access financing.

Before you uptake a loan, you undergo eight weeks training to learn various business skills such as book keeping and how to save.

You then will participate in monthly meetings with the KWFT officers where they walk the financial journey. This approach has provided financial services at your doorstep to provide convenience and save time and money.

I also recommend to read the success storiesthey share. No matter how enthusiastic you are about your own idea to start a hair business, you can always learn from the success of others.

Jitegemea Ready to give a hand

Jitegemea promotes and empowers micro and small enterprises by providing requisite services which include:
-credit,
-savings mobilization and
-technical assistance.

They offer several loans. Like Biashara Loans, a product for their clients who have operated a business for at least six months, you can get amounts of Ksh: 5,000 to Ksh: 3,000,000. Or Asset Loans, this is a product that helps you to purchase business assets.

Their mission should be read as an invitation to walk into one their branches. Jitegemea wants: “To empower our clients by availing financial and social programs that will enable them realize their potential.”

It is also good to mention Queen Maxima from The Netherlands visited the head office in 2005. That gives a special bond with this institution for me!

Equity Bank Your Listening Caring Partner

This large financial institution only survived a major crisis thanks to their micro finance activities. They offer six products in their women’s loans portfolio. Most of them are combined with access to business improvement trainings. Keep in mind you need to pay for this service at Equity Bank.

The Fanikisha group Loan. For 15-30 members, to be repaid within 12 months. Or the Fanikisha Fedha loan for a group to ten members, and a repayment period of 18 months. For individuals they offer the Fanikisha Imara loan. They also offer individual loans with a longer period to repay. For all loans you need to have additional income that could be used for loan payment.

Faulu To enable Kenyans to realize their dreams

The vision of Faulu is to enable all Kenyans to realize their dreams, by listening and empowering the community with relevant loans and services. Faulu was declared the overall Best Microfinance Bank in Kenya in 2019.

Faulu offers a group business loan with flexible collateral options and a tenure, months to repay of maximum 24) for Self help groups. A Micro Loan for small businesses and entrepreneurs with a maximum of 36 months repayment. For individual loans the Chama Loan could be an option.

What to do if you want to apply for a micro credit?

The providers of the micro finance have a special focus on women and micro businesses. This will help you to get access to these loans, sometimes with a group and sometimes for yourself.

This possibility to find capital to Start a Hair Store in Kenya will work in your advantage if you first take the time to write your business plan. The Business Plan is a checklist that will help you to tackle in advance any failure for your hair and beauty store. It will help you to talk with the loan officer and to convince him or her about the bright future of your venture.

You want to get a loan?

Prepare yourself the best way for a talk with the loan officer. Get your copy of all-in-one business package and find yourself the capital you need to start selling hair!

Hair extensions market research tells time to stop dreaming!

by | June 5, 2020 | Business Ideas | 0 Comments

  Hair extensions market research Hair extensions market research tells this: Today is the best time to start or re-open your hair...
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Selling your hair products to hair stylists and sell 10x more

by | May 20, 2021 | Start to Scale Your Business | 0 Comments

Selling your hair products to hair stylists and sell 10x more You can sell your hair to retail clients, but what if you can increase your order volume...
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Get Inspired in South Africa

by | July 17, 2015 | Get Help | 0 Comments

At the end of August I had a great conversation with Jake van den Berg, from Inspiring Women South Africa. We had this talk, by Skype to keep the traveling expenses within budget, to see how we could work together to inspire women with interest to start up their own...
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How to Sell the Best Beauty Products in Tanzania

How to Sell the Best Beauty Products in Tanzania

Sep 10, 2019 | Tanzania

Home 9 Tag: Hair Business ( Page 5 )
The future of Tanzania is in the hands of the women and girls of Tanzania! The World Bank said the Government should invest in girls. This will improve the quality of life in Tanzania. More and more women will get better education and get better paid jobs. They will also look for the Best Beauty Products in Tanzania. Why won’t you take advantage of this evolution? Start selling the Best Beauty Products in Tanzania, now!

Do you want to earn your money by selling hair?

Yes!
Learn to Sell From Darling Hair
Hair Store Names

Proposed Increase of Import Duties on Human Hair is not helping

The Finance Act, 2019 is published on the Special Gazette of the United Republic of Tanzania. To increase Government spending a new Harmonized System Code or HS code was introduced. These codes are used to classify traded goods. The new HS code 0501.00.00 Human hair, unworked whether or not washed or scoured; waste of human hair and has an Excise Rate of :

10 percent if locally manufactured or

25 percent if imported.

At the time of writing this post, September 2019 The Finance Act, 2019 was still in the phase of first reading and not yet implemented.

Proposed tax will not stop women of buying hair extensions and wigs in Tanzania

The proposed increase of tax on human hair is of course not helping to start a business with the Best Beauty Products in Tanzania. This attempt to keep hold of traditional values will perhaps delay the change in the Tanzanian Society, but never stop. Many women already wear wigs and hair extensions because they feel it makes them feel and look good.

The business environment in Tanzania remains challenging but offers opportunities

The World Bank sees it is still rather difficult to do business in Tanzania. The biggest struggle for businesses are in the areas of:
– trading across borders,
– starting a business and
– paying taxes.

To import goods into Tanzania it is well known the complicated documentation requirements are a main hurdle. Regarding taxes, start ups sometimes have to pay taxes based upon estimated revenues, even before commencing operations.

The goal of the government is to become a middle-income country by 2025. This goal requires reforms. One of the most important reform is on the increase of the role of women in the economy. Reduce child marriage and early childbearing plus more education for girls will help the country to reduce the poverty and increase the average income.

Start Your Beauty Store now

With the aim of the Government to become a middle-income country, and the planned reforms for girls, this is the time to prepare the launch of your hair business. You should not wait until everybody has discovered the attractive and growing hair business. This is the time to grab your place on the market. So do not wait.

Start with obtaining the right education, both on language (English) and business skills.

And invest time to find the best hair wholesale company.

With the best hair and the right education you will become financially independent. And have a fun business with the girls of Tanzania talking hair all day, with or without the higher tax on human hair.

Contact me if needed, I love to help you