Hair Care Products Business

How Profitable Is A Hair Care Products Business? (Updated for 2024)

Pat Walls

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Updated: October 8th, 2024

How Profitable Is A Hair Care Products Business? (Updated for 2024)

So you want to start a hair care products business?

And the first question that came to your mind was, “well, are hair care products businesses actually profitable?”

With a market size of $12.4B - there’s plenty of business to go around.

Especially considering:

You could start a hair care products business with as low as $250
Based on our data, hair care products businesses generate an average of $1.45M per year

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a hair care products business.

Let’s dive in!

Is a hair care products business profitable?

Yes, a hair care products business is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $1.45M per year with an estimated gross margin of 40%, you could expect to recover your investment within 12 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your hair care products business.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your hair care products business is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a hair care products business worth it?

If you’re wondering if a hair care products business is worth it, the answer is a big YES. With hair care products businesses, you have the potential to earn $1.45M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $12.4B, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a hair care products business to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful hair care products businesses case studies.

Examples Of Profitable Hair Care Products Businesses

Here are a few examples of profitable hair care products businesses, and a few more details about them:

1. KO-Pack ($3M/year)

Payton LaCivita, co-owner of KO-Pack, had a lifelong passion for entrepreneurship. After successfully launching his own brand and consulting for others, he saw an opportunity to disrupt the contract manufacturing and copacking industry. With a vision to provide fast and reliable services to e-commerce brands, Payton and his co-owners raised capital, built a state-of-the-art facility, and started attracting clients with their innovative product offerings and exceptional customer service. Since their launch in May 2020, KO-Pack has experienced impressive growth, adding new client partners weekly and averaging $150k in monthly revenue.

Is it profitable? Yes
How much money it makes: $3M/year
How much did it cost to start: $1M

How We Started A $150K/Month Contract Manufacturing And Copacking Business

KO-Pack is a contract manufacturing and copacking company for men’s grooming, haircare, skincare, aroma therapy, and natural household products, growing at 40-60% YoY growth and averaging $150k per month.

Read this case study

Read by 3,028 founders

2. Antonio’s Barber Shop ($1.5M/year)

Antonio Camilleri, a seasoned barber with over 18 years of experience, opened his first barbershop in Leister, UK, after working as an apprentice and further improving his skills in the Netherlands. Recognizing a gap in the market for old-school barbering in Malta, Antonio moved back and opened the official Antonio's Barber Shop with 8 chairs, quickly growing to 14 barbers across 2 locations. With an annual turnover of 1.5 million euros, Antonio's Barber Shop offers top-notch customer service, a range of grooming products, and a barbering academy.

Is it profitable? Yes
How much money it makes: $1.5M/year
How much did it cost to start: $500K

How I Started A $125K Barber Shop, Beard Grooming Brand And Barbering Academy

Antonio Camilleri built Antonio's Barber Shop from a small two-chair operation to two locations servicing over 250 daily clients and €1.5M in annual revenue with a product line generating a 30% profit.

Read this case study

Read by 8,680 founders

3. The Holistic Enchilada ($96K/year)

Delilah Orpi started her blog, The Holistic Enchilada, in 2017 as a side project while working as a full-time teacher.

After finding success with a post about her curly hair routine, she decided to focus on the curly hair niche.

With the help of blogging courses and her expertise in clean beauty, Delilah has grown her blog to earn an average of $7,000 a month in revenue.

Is it profitable? Yes
How much money it makes: $96K/year
How much did it cost to start: $250

How I Make $96K/Year As A Beauty Blogger

Delilah Orpi's blog "The Holistic Enchilada" is making up to $7,000 a month in revenue through sales of digital products, display ads, affiliate marketing, and sponsored posts in the niche market of clean beauty and curly hair, with a focus on retaining customers through email marketing and SEO.

Read this case study

Read by 5,205 founders

Learn more about starting a hair care products business:

Where to start?

-> How much does it cost to start a hair care products business?
-> Pros and cons of a hair care products business

Need inspiration?

-> Other hair care products business success stories
-> Marketing ideas for a hair care products business

Other resources

How much can you make with a hair care products business?

With a hair care products business, you can make an average of $1.45M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $250. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 12 months.

How much does a hair care products business make a week?

Based on our data, average weekly revenue for a hair care products business ranges around $30.2K. As such, you could see monthly revenues of $121K.

To know if your hair care products business achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your hair care products business.

How much do hair care products businesses owners make?

The income of a hair care products business owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established hair care products business is about $30.2K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a hair care products business owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Hair Care Products Business Profit Margins

Generally speaking, a hair care products business can expect profit margin of around 40%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a hair care products business, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, hair care products business owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, hair care products business owners can ensure long-term sustainability and profitability for their business.

Hair care products business owner salary

The salary of a hair care products business owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established hair care products business, in a prime position, might see an average weekly salary around the ballpark of $12.1K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a hair care products business may be a promising business to start - but the success of your hair care products business mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable hair care products business.

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Starting A Hair Care Products Business: Everything You Need To Know

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