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How to Price Your Hair Products for Profit?

Tasha Nelly| Jun 15, 2025 | 4 mins read

Learn how you can price your hair products for maximum and long term profitability by partnering with Indique. Indique’s Private Label Program allows you as a business to focus on selling and marketing while we source, supply and provide you guidance on how to expand your profit margins in today's competitive environment.

How to Price Your Hair Products for Profit?

The success of your hair products business depends on one make-or-break factor: how effectively you price your hair products. Your products can be of the highest quality, but if their pricing differs from customers' perception, then your hair products will not sell.

In today's world, customers are informed, and therefore, this is a common problem faced by many brands that can be addressed through a single blog post. This is your one-stop destination for learning how to price your hair products for profit. To maximize your sales and build customer loyalty and trust, and ensure long-term profitability these are the most important facets.

Know Your Customer and Market Position

Market analysis and pricing tips for wig and hair extension brands — Keep Your Facts Checked!

You must be able to understand what the market looks like before you decide what to price your hair products at. The hair extensions and wigs industry is a booming one, and therefore, the competition is growing so knowing your market standing is essential.

To stay competitive, price your hair products at a level that is neither too low nor too high; finding a balance that allows for a reasonable margin of change is essential. In the future, if you wish to change the price of products, that can also be done with flexible pricing tactics.

Finding your Target Clientele

Each customer base will have a different idea of what a particular hair product should be priced at and what is considered in their affordability range. However, your job is not to cater to all of them; in fact, finding your target market is often overlooked but is a critical step in pricing your hair products.

Knowing your customer base can give you all the information and insight like their preference of hair texture, hair quality, hair length etc. that will help you to determine what works for them and what doesn't. By adjusting your pricing accordingly, you can create profits and generate maximum sales for your hair products.

Understand Your Costs

Arguably, the most important step in pricing is calculating the cost of your hair wigs and extensions. Including the cost of production, shipping, marketing, and other additional expenses, you can create a comprehensive overview. Next, you need to calculate what your profit margin is and how you can effectively tie that into your costs and, ultimately, price.

For example, your price should cover your cost and account for your needed profit while not straying too far from what your customer base’s preference and affordability range is. Break your cost down into shipping, marketing, product, packaging, and hidden costs to get a holistic view.

Determining a Profit Margin

How to set profit margins in the hair industry — Keep Your Breakevens In Check

A good profit margin should consider the quality of your hair, your brand's reputation, and your costs. After doing so, creating a desired profit margin is easy. Accounting for some wiggle room and testing a few different pricing methods, you should have a clear-cut strategy on how to price your hair products.

Your profit margin should be large enough to carry your brand through difficult times and flexible enough to adapt to market changes as and when needed. Therefore, after accounting for your costs and profit needed, your pricing strategy is complete.

To calculate your profit margin use this formula, and assume 40-70% of this to be your margin: (Selling Price - Total Cost) / Selling Price x 100

Make Adjustments

Monitor how your prices perform over time and be ready to adjust based on customer feedback, rising costs, or market trends. Use sales and promotional tactics strategically without compromising your brand's value to increase sales and enhance brand profitability.

Regularly track the performance of your brand and partner with a reputed brand that can guide you on future profitability decisions and pricing decisions. For example, Indique’s Private Label Hair Extensions Program allows you to focus on selling and solves any problems related to your pricing and sourcing.

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Conclusion

Profitability isn’t about charging the highest price—it’s about smart, data-driven pricing.

Indique’s Private Label Program empowers you with premium virgin hair products and the guidance you need to grow a long-term, profitable business. While you focus on branding and pricing, Indique ensures you get quality inventory and expert support at wholesale prices.

You set the price. Indique sets you up for success.

Ready to start your private label journey with Indique?
Let us help you price smarter and sell better.

Contact us today for wholesale pricing and expert guidance.